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When I try to file a substitute 1099R, it is asking me to explain how I tried to get a 1099R. I know I’ll receive it next year in 2026. But now, TT is saying I owe 10% on early distribution. From my understanding there is a new law that removes the 10% early withdrawal penalty on earnings removed with excess if you do it timely. Is the distribution code correct?  This is from Fidelity.   Are the earnings on my timely return of excess request subject to a 10% early withdrawal penalty if I am younger than 59.5? No, the SECURE 2.0 Act of 2022 removed the 10% early withdrawal penalty on earnings removed with excess and non-deductible contributions for IRA owners under 59.5. However, earnings must be included in income in the year the excess or non-deductible contribution was deposited into your IRA.

did you claim real estate tax professional status in 2023 but not 2024?  For 2023, if you did, the real estate activities would not be passive and not flow to form 8582.  So you would be left with those passive losses in 2023. if not, rental income with active participation should flow to 8582 line 1a, but with material participation should flow to 8582 line 2a and would offset the other passive business losses.   seems something is wrong with 2023   the special QBI rule for rental real estate does not transform it into a nonpassive activity.    rules to be a REP       1.Time Commitment: You must spend more than 750 hours during the tax year on real estate activities. This includes tasks such as property management, development, leasing, and brokerage. 2. Primary Focus: More than half of your total working hours must be dedicated to real estate. For example, if you work 1,500 hours a year, at least 751 hours must be in real estate activities. 3. Material Participation: You must demonstrate material participation in your real estate activities. This can be established by meeting one of the IRS's seven tests for material participation, with the most common being that you participate for more than 500 hours in the activity during the tax year.                                                                                             

1. When you made the Roth conversion you owed tax on that amount  2. If you make an IRA withdrawal in December 2025 and withhold the entire amount to cover the conversion tax owed you still will be taxed on the amount you withdrew in December and that amount is 2025 income. 3. Any distribution made in 2026 doesn’t affect your 2025 tax situation. 

The other day I called again and spoke to a supervisor. I faxed them my tax extension, the IRS IRA rules, and a formal statement. I received a transaction confirmation about two days later. It was not easy but yay it’s done.  When I receive the 2025 1099R next year, do I need to anything or do I just ignore it since I’m reporting it in 2024? Also, I had them reinvest the excess contributions and earnings this year 2025, just to confirm, the total contributions for this year includes the earnings too, correct? I want to make sure I report my IRA contributions correctly next year.  Thank you so much for your help! @Opus 17 @fanfare 

@sherekahouston We cannot tell what software you are using.  Are you using online TurboTax -- or are you using the desktop download?   If you are using desktop, which version are you using?   We have heard that some users experienced some strange effects of an update to desktop software on 9-11-2025.

Yes, xmasbaby0. The software changed my filing status. I’ve been using TurboTax since 2010 and it has never done this before! It imported my previous years report, I actually completed my taxes, was doing a final review before filing and the system glitched, changed my status, and erased my husbands information