All Posts

Thank you for the reply.   If I could ask 1 more question. . .  Is there a way to move this question to the Retirement and Income Group instead of it being in the Investors and Landlords group?   Thank you again for your time. Sincerely appreciate it.

Si tienes problemas con TurboTax, puedes intentar lo siguiente:   Desactivar los bloqueadores de ventanas emergentes. Prueba usando otro navegador web. Por ejemplo, si usas Chrome, intenta usar Firefox o Safari. Borra las cookies de tu navegador.

 The IRS has issued a correction to the 2025 Instructions on their end. We  are looking into it to see if this is related to the IRS correction or if it is something else.  We have corrected the calculation for joint occupants of a home who are claiming the energy efficient home improvement credit in Part II of the 2025 Form 5669. Please refer to the instructions below with respect to the joint occupancy section on page 3 of the 2025 Instructions for Form 5695. If you downloaded or printed the 2025 Instructions for Form 5695 prior to Jan. 26, 2026, please note the correction. Although, the IRS is saying March 6, if this is the date that they will have the forms corrected, TurboTax software will take a little bit to then make the changes.  You can attempt to refile on the 6th or wait for several days after that.    

It depends. Roth contributions are handled differently than 401(k)s or Traditional IRAs.  Qualified Roth IRA distributions are those made after age 59½ and a 5-year holding period. They are not taxed by Virginia (VA), because VA bases its income tax on federal adjusted gross income (AGI) and qualified Roth withdrawals are tax-free federally, they are also exempt at the state level.    The simple reason the question is asked is because if you lived in a state that taxed all contributions to a Traditional IRA or 401(k), for example, as they were being contributed, then VA does not make you pay tax on that portion when distributed if at the time of distribution you are now a resident. An example is that New Jersey (NJ) does not allow a deduction from income and does tax these contributions as they are being made.

Is accrued interest included in cost basis when purchasing a bond between interest payment dates?   Gemini said The short answer is no. When you buy a bond on the secondary market between interest payment dates, the accrued interest you pay to the seller is not included in your cost basis. Instead, that payment is treated as a "return of capital" or an adjustment to your future interest income. Here is the breakdown of how the math and the taxes actually work. Why It’s Excluded When a bond is traded between coupon dates, the buyer pays the seller the clean price (the actual price of the bond) plus accrued interest (the interest earned by the seller since the last payment). Cost Basis: Only includes the clean price plus any commissions or transaction fees. Accrued Interest: This is considered a temporary outlay. You are essentially "pre-paying" the seller for the portion of the next coupon they earned while they still owned the bond. How it Works at Tax Time Because you paid that interest upfront, the IRS (and most international tax authorities) doesn't want you to pay taxes on it twice. The Full Payment: When the next scheduled interest date arrives, the bond issuer will send you the full interest payment for the entire period. The Offset: Since you already paid a portion of that money to the seller, you are entitled to subtract that amount from your reportable interest income for that year. The Result: You only pay taxes on the "net" interest—the portion you actually earned while holding the bond. A Quick Example Imagine you buy a bond for $1,000 plus $20 in accrued interest. Component Amount Tax Treatment Purchase Price $1,000 Your Cost Basis. Used to calculate gain/loss when sold. Accrued Interest Paid $20 Income Offset. Subtracted from your first interest check. Total Out-of-Pocket $1,020 Also known as the "Dirty Price."   Note: If you use a brokerage, your Form 1099-INT usually shows the full interest received in one box and the accrued interest paid in another, allowing you to net them out on your tax return (Schedule B in the U.S.).

Unfortunately, TurboTax Desktop does not yet have the Tips included in box 1 of my W-2, but not in boxes 7 or 14 after entering your W-2 in the special circumstances but they updated TurboTax Online a month ago.  3 Desktop updates over the weekend but not a fix yet.  Any idea when Desktop will be updated for this function?  Very frustrating.  

At this time, tax year 2025 Michigan Schedule 1 Line A and MI-1040 Line 30 are unsupported in TurboTax.    You can enter MI tax withheld from a flow-through entity that was reported to you following these steps: Open your return and navigate to Wages & Income >> Deductions & Credits >> Estimates and Other Taxes Paid >> Estimates >> State estimated taxes for 20XX. Add another payment. Choose Michigan from the drop-down, enter the date paid, and the amount. Continue to view the confirmation page, then click Done. This entry will be reported on the MI Tax Payments Worksheet under Tax Payments for the Current Year and flow to Form MI-1040 Line 32.   Although this work-around omits the K-1 reporting, you will report the state tax paid on your behalf to reduce your state tax liability (if any).