All Posts

Thanks for the reply.  If I go the route of withdrawing more excess, how do I determine how much extra to withdraw to try to avoid this circular outcome?  The money will have earnings on both my and my spouse's excess contributions, so just trying to understand how this does not continue to increase our taxable income and result in further excess contributions.    Also, if I choose to go the route of recharacterizing this last portion that is showing as excess to a traditional IRA, what do I need to reflect on the 2024 Tax Return, and do I need to do anything for 2025?    Thanks for the help.

It depends. it's possible the software isn't allowing nonpassive income to be entered correctly on Schedule E. If your K-1 has passive activity adjustments in Box 6, 7, or 8, double-check that the software is correctly linking those values to Schedule E.   If you're using TurboTax desktop, , you might need to check the K-1 worksheet section where the income and loss are reported before they flow into Schedule E. Some have had success correcting the issue at the source rather than trying to override the error directly on Schedule E.

If you removed your vehicle from business use you can indicate it was converted to personal use. If not, review your vehicle section again carefully to be sure you didn't indicate it was sold. When you enter the vehicle information in your business be sure you did not select 'Sold, disposed of, etc....' then do not indicate it was sold.  Also, make sure you didn't say 'Yes' it was converted to personal use.

Go back to the same question and say no.  Then sign out of the return and back in so the information will save. If this doesn't work, go to:   Tax tools Tools Delete a form Delete form 8938.  Sign out and then sign back in again. If using the Desktop version, go to the forms mode and then find form 8938. Delete it from here.

When you file, you file using your ITIN number.  Then when you enter the W2 you edit the social security number to reflect the number on your w2 and any other info.  You may end up having to mail in the return.  The IRS allows this.  https://www.irs.gov/individuals/international-taxpayers/individual-taxpayer-identification-number-itin-reminders-for-tax-professionals Tax returns filed with an Individual Taxpayer Identification Number reporting wages paid are required to show the Social Security Number under which the wages were earned.  This creates an identification number (ITIN/SSN) mismatch.  In the past, returns with this mismatch could only be filed on paper.  Due to programming changes the IRS' e-file system can now accept these returns.  The taxpayer's correct ITIN should be used as the identifying number at the top of Form 1040.  When inputting W-2 information, the SSN should be entered exactly as shown on the Form W-2 issued by the employer.  It is now possible to e-file a return with an ITIN/SSN mismatch.  

Review your tax return to be sure. You can review the .pdf. and you can view your Schedule 2, Part II, Line 8 to see the penalty. Instructions below will show you how to do both.   You have access to all forms when you choose to print your return in TurboTax Online/Mobile.  However you are required to pay before printing, but do not have to file until you are ready. Can I print a copy of my return in TurboTax Online before filing? If you are using TurboTax Desktop you can switch to Forms and review all forms and worksheets.   From the left rail menu in TurboTax Online, select Tax Tools (You may have to scroll down on the left rail menu.) Select Tax Tools On the drop-down select Tools On the pop-up menu titled “Tools Center”, select View Tax Summary  On the left sidebar, select Preview my 1040  For TurboTax Desktop, change to 'Forms' and review the forms                           

I had the same issue and could not make the error go away. I've had the vehicle longer than 5 years, and it would be fully depreciated under both the regular and AMT methods. But alas ... I could not make the software do what was required. Since TurboTax had this error last year, I'm not sure why it has not yet been corrected. The federal form had no errors, but the California form would not let me e-file since I could not correct the "error". I attempted to make a change using the Forms mode - which had to be accessed in a way differently than prescribed - but this did not work either. Then I attempted to make the change using another thread's suggestion of marking the vehicle as used for personal purposes only and then using the "sale of business property" but that was a bigger mess for me. Please fix the program.

If you have not filed your 2024 tax return, click on File on the left side of the online program screen.  Then on Step 3 click on Revisit.  You can change the AGI in this section.  Enter a 0 (zero) for the 2023 AGI since you did not file a 2023 tax return.