All Posts

After rereading my question, I realized I had inadvertently removed the part about my question being related to payment to an illustrator for their services.  I presume the answer is still the same, however?

I am puzzled. The IRS, in your transcript, seems to have applied the 60% limit on the total of your contributions, which is not the same method described in Pub 526.   Your transcript states "total contributions per computer" equals $51,022. This is exactly 60% of the return's AGI of $85,037. But this is NOT how charitable contributions are limited.   In Pub 526, The calculations for limits is applied first to cash, then to non-cash, then to other categories (which don't apply here), then finally to carryovers.   TurboTax enters $2,435 for current year cash contributions on line 11, then $9,305 for current year non-cash contributions on line 12, then on line 13, it enters $48,587 as the limited cash carryovers. This number is calculated on "Charity Limit 2" which can be found in Forms mode on your return. It is the amount of the carryover which can be used in 2024, allowing for the current year cash contributions.   So, ($2,435 plus $48,587) times 60% equals $51,022.    THEN, the noncash contributions get to be added from line 12.    So the total deductible amount as limited, is $60,327, not the $51,022 that the IRS calculated.   Please tell me if you disagree.

Turbo tax is not asking me if I itemized or not. I have entered it under state and local tax refund and it still doesn't ask if I itemized or not. I'm also stuck in a loop where it says i have already entered this info for this state yet again it doesn't show up on schedule 1.

Yes, I am using TurboTax Online. I think the error is solved now.  Deleted the 1099s.  Cleared cache and cookies.  Re-entered the 1099s. (The wizard for the inherited Roth IRA does not ask for the required RMD amount). Completed the 1099 entry.  (skipped review return).  Viewed 1040 and there was no penalty. Did review return, error found with RMDs - required RMD amount missing. This time, entered the required RMD for that specific distribution only (the inherited Roth-IRA) (Initially didn't recognize that the error checking/correction wizard was referring to only the inherited Roth IRA - both sources of distribution have same name - but clarified by looking at further details of the form which shows the distribution amount, which matched the inherited Roth IRA) Now on view return, no penalty Thanks again @DanaB27  p.s. good to know that it's possible to switch to Desktop from Online if need be

You need to click "Continue" after you entered all Form 1099-R to get to the 10% early withdrawal exception screen:   Click on “Jump to 1099-R”  and enter your 1099-R Click "Continue" after all 1099-R are entered and answer all the questions. Continue until "Did you use your IRA to pay for any of these expenses?" screen and enter the amount of higher education expenses.   Note, if this was from a Roth IRA and you only withdrew contributions then your distribution isn't taxable and not subject to the 10% early withdrawal penalty. Then you will not get the "Did you use your IRA to pay for any of these expenses?" screen.

Yes, even if you don’t receive the appropriate forms, you’re still responsible for paying taxes on all of your taxable income. If you didn't make more than $5,000, PayPal doesn't send you a form. If you didn’t receive a 1099 form, you still need to report the amount of income on your tax return.    Refer to the TurboTax article What is Form 1099-K? for more information and instructions to enter your income.  

You don't need to change the returns. Since you were married before the end of the year, and your spouse has lived in California since the latter part of the year, you can file a joint Nonresident return for New York and joint Resident return for California.    New York has one form, Form IT-203, Nonresident and Part-Year Resident Income Tax Return, that covers taxpayers who were nonresidents either part or all of the year. See this New York webpage for more information.  

Thanks. So the funds were for Preschool. The Preschool charged a penalty for paying monthly. So if you made two lump sum payments, you dont have the penalty. Thats what we did.   The 23-24 school year, one payment was made in July 2023 and another in December 2023. I was advised to put it on the 2023 returns since payments were made in 2023.    The dependent care funds, via a FSA, had no choice but to take out evenly (26 payments) from July 1-2023, June 30 2024. Therefore, the 2024 return shows half of dependent funds (Jan 1-June 30 2024).    Any advice as to what to do, moving forward? I did pay a total of $25 in 2024, due to fees.   Thank you  

To look at this in detail and to report a possible product defect, we would like to see a diagnostic copy of your return. The information in this file is a sanitized copy meaning there is no personal information, only numbers so that we can troubleshoot in depth, check for calculation issues, and to see how certain items are applied. Here is how to order.    For Turbo Tax online, go to tax tools>tools>share my file with agent.  When this is selected, you will receive a token number.  Respond back in this thread and tell us what that token number is.    If you use the desktop version, go to the black stripe at the top of the program, click on online, and then select send tax file to agent. Let us know what the token number is.  

Your Arizona state tax withheld would be listed in boxes 17 and 19 on your W-2 form. There would be a similar entry on Forms 1099, of which there could be several types. You would also see the taxes withheld and paid on lines 53 - 55 of Arizona Form 140.

Yes, it will impact the overall gain or loss if a wash sale is still in play on December 31st. The information below should help clarify the rules of wash sales.   Wash sales cannot be combined into section totals.  They should be entered individually so that you can track your cost basis and know when you are allowed to use the information on a final sale. Only you know the cost basis and the financial company only knows when a wash sale occurs, not when it ends.   Wash Sale Rule Defined: A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar. It also happens if the individual sells the security at a loss, and their spouse or a company they control buys a substantially similar security within 30 days. The wash-sale rule prevents taxpayers from deducting a capital loss on the sale against the capital gain of other stock. Affect on Cost Basis: The loss that occurs on a wash sale is added to the cost basis of the shares purchased that created the wash sale. When all shares are sold and there is no repurchase, that increased cost basis will be used in full and used to determine gain or loss. As long as you are tracking the wash sales and are not using them on the tax return when you are not allowed, then you can simply enter the same cost basis as the selling price. This will  reconcile your tax return with your Form 1099-B Proceeds which is what the IRS is comparing.   Wash Sale ends: The wash sale disallowed is not added to the net gain/loss rather it is adjusted and suspended so that it does not affect the total gain or loss for any pending wash sales.  The rub is that the broker only knows when a wash sale occurs, not when a wash sale no longer exists. This can spill over between two tax years.  Likewise you can have a wash sale during a tax year, and then fully dispose of the stock in the same year which would eliminate the wash sale rule for the final sale of the same stock.    It's up to you to know when you no longer have to consider the wash sale rule.    Example:  X bought 5 shares of ZZZ stock, at $5 per share, then sold it for $3 per share, however immediately before the original 3 shares were sold, X bought another 5 shares at $5.00 per share.        $25 for the first block of shares        15 is the proceeds creating a $10 loss  The $10 loss is now added to the cost of the new shares for an overall cost basis of $35.     Once the second block of shares is sold (5 shares with cost basis of $30) without any repurchase with in the 60 day window (30 days before or 30 days after the sale), and if they are sold at a loss, then no wash sale exists on the sale, and a loss is allowed.   @Mitzy20