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You need to make sure you entered the K-1 schedule properly. The K-1 entry should show on line 9(a) on your Form 1065 K-1 entry ( 8a on an 1120-S K-1) and then on line 12 of Schedule D. If so, the entry is getting long-term capital gain treatment. Otherwise, please clarify why you believe it is being treated as ordinary income.

Because you’re on Desktop (Windows 11), you can use “Forms Mode”—something Online users don’t have. Here’s how you can get around the broken Smart Worksheet logic.   Switch to Forms Mode: Click the "Forms" icon in the top right. Locate "Other Subs": In the list of forms on the left, find the Oregon Other Subtractions worksheet. Find Part C (Foreign Tax Subtraction): * Look at Line 2. If TurboTax has auto-filled your total federal tax (e.g., $40,000) instead of your allowed subtraction ($0), this is the error. Override the Line: * Right-click on Line 5 (the final subtraction amount). Select Override (or press Ctrl+D). Manually enter the amount you are entitled to (the smaller of your actual foreign taxes paid or the $3,000/$1,500 cap).     Can You Amend to Fix This? Yes, you can. Despite what the software might imply, you are legally allowed to amend a return to claim a deduction you were entitled to but missed. Here are the steps.   Open your original 2024 return: Go to the "Federal" tab (even though you aren't changing it). On the left-side menu (or under the "Federal Taxes" tab at the top), select Other Tax Situations. Scroll down to the bottom and select Amend a Return. TurboTax will ask, "Did you already file your return?" Select Yes. It will then ask, "What do you need to change?" Choose the option that says "I need to amend my state return only" (or choose "The IRS or state sent me a notice"). Select Oregon as the return to amend. TurboTax will still walk you through federal screens. Do not change anything on the federal screens. Just click "Continue" or "Done" until you reach the State or Oregon section. Once you are in the Oregon section, select "Amend an Oregon return" or "Review Oregon." Apply the Correction: Find the ASC-311 (Foreign Tax Subtraction). As we discussed, if the interview/worksheet is still blocking you, switch to Forms Mode (top right). Locate the Schedule OR-ASC or the Other Subtractions Worksheet. Override the final subtraction line (Code 311) to the correct amount (up to $3,000 for Joint / $1,500 for Single). Explain the Change: When prompted for an explanation, state: "Amending to claim Foreign Income Tax Subtraction (ASC 311) per OR-17 instructions; original return incorrectly capped subtraction based on total federal tax instead of allowed subtraction."   Once you complete this, print and mail your return to:   Oregon Department of Revenue,  PO Box 14700 Salem, OR 97309-0930.        

I also found another error in TurboTax desktop software when it prepares for state tax filing by mail. In the final printed PDF of state tax filing instructions (first page), it says "Be sure to attach the state copy of Form(s) W-2, W-2G, and any Form 1099 to your return." This is incorrect. You don't need to attach Form 1099 in the state tax return when you mail it unless that 1099 has state tax withholding.

TurboTax will automatically determine if you have to repay anything based on your income when you enter your 1095-A into the program.  There is not a special box for you to check. The calculations will be done on form 8962.  If your income is too low, you are correct, Treasury Regulation § 1.36B-2(b)(6) is a safe harbor to protect those who income falls unexpectedly.  You generally would not have to repay the credit.    Also, if the safe harbor did not apply to you then your repayment is limited to $375 if your income is less than 200% of the Federal Poverty Level.  For 2025, the 2024 FPL is used to calculate your premium tax credit and repayment limitations.  Basically, if you are not eligible for the Premium Tax Credit because your income is too low, then you would not have to pay it back assuming you answered the questions honestly when you enrolled. If your income is below 100% of the federal poverty  line and you expect it to be so for this upcoming year, then you should contact the marketplace to update your income.  You may be eligible for Medicaid.  If you are eligible for Medicaid when you enroll, then you are not eligible for the Premium Tax Credit.      

Yes, it would be an issue. If you use your original (lower) TurboTax numbers in the "Original Amount" column of the amendment, but the IRS systems have already been updated to a higher amount, the software/IRS will see a discrepancy immediately.   You don't necessarily have to "know" how they got that number to file an amendment for the Roth contribution, but you must use the IRS's figures as your starting point if you aren't contesting them. Here is what I suggest you do.   Get your Tax Account Transcript from the IRS website. This will show you exactly what "Adjusted Gross Income" (AGI) the IRS is currently using for you. In your amendment, your "Original" or "Previously Adjusted" column should match the IRS's numbers, not your original TurboTax numbers.  Then, you only change the lines related to the Roth IRA/Excess Contribution removal. By now, you may be wondering why your income went up. The IRS usually adjusts income higher because of Third-Party Reporting. They likely received a 1099-K , a 1099-NEC, or a 1099-MISC that wasn't included on your original Schedule C.   Tip: Check the "Wage and Income Transcript" on your IRS online account. It lists every document (1099s, etc.) sent to them under your SSN. This will solve the mystery of where that extra income came from. Summary of your Next Steps:  Don't "Guess": Download your 2025 Account Transcript from IRS.gov to see the AGI they are using. Use the Higher AGI: Use that IRS AGI as the "Starting Point" for your 1040-X. Calculate the Roth Limit: Use that higher AGI to confirm your "allowed" Roth contribution. Since you already removed the excess, the amendment is just the formal "paper trail" to show the IRS you've fixed it. Explanation: In the "Explanation of Changes" section of the 1040-X, simply write: "Removing excess Roth IRA contribution due to IRS adjustment of AGI, which lowered my allowable contribution limit."          

You have a couple of options to report the sale of the property. One is in the business section of TurboTax, on the screen that says Let's gather your business info. Find the Less Common Business Situations menu and choose Sale of Business Property. That will work if you know the sale proceeds, cost basis of the property and the accumulated depreciation.   Your other option is to edit the asset entries in the business/rental section of your return and assign a portion of the sale proceeds to each asset, thereby reporting the sale of each one of them. Typically, you can assign a sale price of $0 to all the assets but the home or building in the case of a rental property.      To do that, go to your rental entries and on the screen that says Lets' gather your business info update the Rental Properties and Royalties entry. Later on edit your rental entry and on the screen that says Review your (name of rental) Rental Summary, choose Assets/Depreciation. Once in that section, go to the asset summary where you will see each business asset listed. Edit each entry and indicate that you sold each asset. Then you can enter the applicable sale price of each asset, effectively reporting the sale of the rental property.   The result of either of these methods will be that a portion of the gain on sale of the business or rental will be reflected as ordinary income to the extent of depreciation deducted on the assets (known as depreciation recapture) and the remainder of the gain will be taxed as capital gains.      

Only the IRS and your State control when and if a Federal or State tax refund is Approved and Issued.   Once a tax return has been Accepted by the IRS or a State, TurboTax receives no further information concerning the tax return or the status of any tax refund.   If accepted by the IRS use the federal tax refund website to check the refund status - https://www.irs.gov/refunds   After the tax return has been Accepted by the IRS (meaning only that they received the return) it will be in the Processing mode until the tax refund has been Approved and then an Issue Date will be available on the IRS website.   Call the IRS: 1-800-829-1040 hours 7 AM - 7 PM local time Monday-Friday

what loop are you referring to?  did you mean "Paid in 2025 more than I owe."?   the vouchers that TT generates during tax prep whether it was for 2025 when you filed last year, or for 2026 when you file this year, are just informational - they are not mandatory to follow and have no bearing on any of your returns.    when you file for 2025 you enter what you actually paid for 2025 tax year, under Deductions & Credits / Estimates and Other Taxes Paid (some people have trouble finding this - you may have a screen saying "Your Tax Breaks" and need to select button to add another break etc).

To complete and file a 2023 and 2024 tax return using TurboTax you would need to purchase, download and install on a personal computer one of the desktop editions for each tax year required from this website - https://turbotax.intuit.com/personal-taxes/past-years-products/   A prior year tax return can only be printed and mailed, it cannot be e-filed using TurboTax.  Use a separate envelope for each tax year being mailed.