Thank you for your detailed help.
A couple of followup questions:
1. To deal with my lump sum payment, Turbo Tax asks for my 2024 Tax exempt interest. Do I just use my 2024 adjusted gross and subtract out the taxable income to determine the tax exempt interest? I don't see a specific line that shows that.
2. Turbo Tax asks for my Taxable Railroad Retirement benefit. What line do I find that on my 1099 or 1099R?
3. Just to be clear, I want to better understand Line 7 on my wife's 1099 (she gets spousal benefits.) I do not have anything in Line 7 on my 1099. She has an amount in Line 3 (2025), and also has an amount in Line 7 (for 2024). Line 3 and 7 are both lump sum payments that I enter into Turbo Tax, correct? Is the purpose of Line 7 to show what prior year she received the lump sum?
Thank you again.
