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Your California loss would only differ if you have a state specific adjustment between your federal return, and the amounts allocated between Georgia and California.  I suggest reviewing the entries on your federal return first to make sure you do not have any other amounts entered that could be flowing into your California return.  You may also need to review the input in your Georgia return to ensure it only reports the Georgia portion of the loss. The remaining amount would then be allocated to California.   As far as the Schedule M-1, if you meet the requirements, there is an option to not complete the reconciliation and still be able to file your state return if you meet the requirements as listed in the instructions.     If you do meet these requirements, go through your federal interview section again.  Click on the Balance Sheet tab.  Proceed through the screens and if you qualify, you will see a screen that says "Good News."  If you meet the requirements, select the circle to the left of Yes, I want to skip the balance sheet section.       This should allow you to continue with your return and e-file as long as there are no other items needing correction.

@lchriste wrote: I explicitly answered the question no for both my husband and myself. So maybe something else is going wrong? The only answer we will get from "up top" is the one posted above.  If you want to discuss further, you would need to call customer support. 

I have been using TurboTax for several years so I don't consider myself as a rookie.  I only use it for creating 1099's.  probably a waste of money but that's what I prefer to use it for & turn the rest over to my accountant.  It's a relatively simple task yet I have all of these problems.  I have been trying all of the suggestions given for the last month.  I have also searched online for answers & have found that an extreme amount of people have been having similar problems.  I have also uninstalled/reinstalled the program & have been taken back to 2023 along with with not having any entered information or files.  It's either 1 or the other.  When I originally installed the 2024 version, I had to re-enter all of the employee data because it did not save it from the year before even the I checked the box to do so.  With so many people over the years slowly having problems building up more & more after using TurboTax for 20+ years, it's safe to say that it's not just me & my computer.  And now it appears that Intuit purchased 2 or 3 other tax software services/companies so are we to believe that those programs are damaged goods now as well?

Because there was no taxable gain, you can ignore this reminder from 2024 TurboTax as long as the return of contribution was reflected on your 2023 tax return as having contributed only $7,500 for 2023, reported on Form 8606 line 1 since it was nondeductible.

I filed the amendment back in March 2025. This week I received a letter from IRS acknowledging that they received my amended return and asking me to complete the form 1040-x to support the changes made with the amended return. They also suggested to provide form 1099-SA with the changes to complete the processing the amended return. I am confused because I thought the amended return would send the 1040-X with all the information. When I downloaded the amended return, I could see 1040-X. So are they wanting me to download a new form 1040-X, complete the form and send it or should I be sending the completed form that I downloaded while filing the amended return?  I tried calling them and was on phone for 1.5 hours waiting to connect. Appreciate any suggestions. Thank you.  

Needing to mark one of the boxes when you had no such coverage is a quirk (a bug, really) of TurboTax, that TurboTax Product Quality fails to acknowledge.  You'll need to mark one of the boxes if you are to e-file.

Q.  I was actually mainly looking for the source of the following statement in the post above: “You CAN count  mortgage interest (but not principle payments), as well as insurance, real estate tax, utilities and HOA fees.” A. Pub 970 ( https://www.irs.gov/pub/irs-pdf/p970.pdf ) is the reference for this topic. But, you're not going to find that question specifically covered.  What you have here, is just my opinion.  That money (mortgage interest,  insurance, real estate tax, utilities and HOA fees)  was spent on housing ("room") for the student while attending college.  So, I think that makes them qualified education expenses for a 529 distribution.    The bottom line, for most parents with kids in off campus housing, is that your tax free 529 distribution is limited to the cost of attendance or what on campus students pay, whichever is less.  The IRS is most likely going to accept that number.    Q. It it not covered in the article PaulaM linked here? A. I agree.  That said, here is a published opinion that disagrees with me.  But, it too, is just an opinion; not an IRS publication or US code.   https://www.savingforcollege.com/article/can-i-pay-my-mortgage-with-529-plan-money#:~:text=A%20mortgage%20payment%20is%20a,home%20mortgage%20interest%20tax%20deduction.  Note the suggested workaround to have the student pay rent.    Another thing to consider: For tax purposes, the condominium is a 2nd home (unless you are charging rent). As such, the mortgage interest is deductible, as an itemized deduction, on Schedule A. But you cannot "double dip".  That is, you cannot deduct, on Sch A, the same interest that you used to claim an educational expense ("room") for the 529 distribution.  But, you can split the interest between the two tax attributes, deducting some on Sch A and using some for the 529 distribution. 

@edmarqu  @lchriste  We asked the community moderators to look into this situation. They found that the question about living in certain foreign countries never had a default answer of Yes. However, the software developers recognize that the question caused confusion, and they plan to improve it for 2025.  

A Wage and Income Transcript from the IRS also will not include any state or local information, so you cannot use it for your tax return if you worked in a state that has state or local income tax. The best way to get your W-2 forms is from your employers. You can also get copies of your W-2 forms from the Social Security Administration. There is a fee of $62. Go to the following link for details. How can I get a copy of my wage and tax statements (Form W-2)?  

Can you confirm that you do not have multiple accounts? Be sure that you log in to the account that you used to file your extension. Follow these instructions to confirm: How can I view all my TurboTax accounts?