All Posts

It just occurred to me that, of the long-term capital loss I happen to have (another complicating factor that I didn't want to throw into the already-complicated scenario), I did not know how to pro rate that for NIIT purposes, but chatgpt assures me it should (must, I guess) all be applied to the NIIT portion of the LTCG.  That is very nice to hear!

Even though the full amount shows up in the total income on the 1040 lines 3b or 7, if you have capital gains or qualified dividends the tax is not taken from the tax table but is calculated separately from Schedule D. The tax will be calculated on the Qualified Dividends and Capital Gain Tax Worksheet. It does not get filed with your return. In the online version you need to save your return as a pdf file and include all the worksheets to see it. Save the PDF https://ttlc.intuit.com/community/saving/help/how-do-i-save-my-turbotax-online-return-as-a-pdf/00/26234 For the Desktop version you can switch to Forms Mode and open the worksheet to see it. Click Forms in the upper right (upper left for Mac) and look through the list and open the Qualified Dividends and Capital Gain Tax Worksheet. And you will need the IRS Tax Tables IRS Qualified Dividends and Capital Gain Tax Worksheet—Line 16 on 1040 instructions page 36. And you will need the IRS Tax Tables starting on page 64 or the Tax Computation Worksheet on page 76. https://www.irs.gov/pub/irs-pdf/i1040gi.pdf  

Thank you, fanfare.   I hired a tax service in 2014, and they calculated a basis that was out of step with, and significantly higher than, my previous returns. I did not think to question it. I had been making nondeductible contributions to a Traditonal IRA, which did not affect the taxes owed — i.e., I paid the correct tax in 2014.   In 2025, I started converting to Roth, which will require an 8606 to report the conversion — and to correct my basis.   Question: Can you share the source for your recommendation to not attach an explanatory letter unless instructed by the IRS? I’ve heard otherwise.   Thanks again.

@xmasbaby0   Might want to let the moderator know that 2025 What-If Senior Ded on line 41e is not working right.  It works right in the 2024 program What-If worksheet.  I imagine the 2025 What-If is mainly for 2026 planning.  

My Home & Business prorgram What-If worksheet is working wonky for me too.  I'm having trouble entering amounts on it.  It shows 12,000 and it's not subtracted.  I closed TurboTax and reopened it.  Didn't help.  But FYI your Senior Deduction should be $5,507 for both spouses 65+.  

  The $6,000 senior deduction will be calculated on 1040 Schedule 1-A page 2 Part V Enhanced Deduction for Seniors which goes to 1040 line 13b. It is separate and in addition to the Standard Deduction or your Itemized Deductions on 1040 line 12e.  Turbol Tax automatically includes it. IRS Schedule 1-A https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf

Thanks again.   I have self-employment income so need to file estimated taxes quarterly anyway and I use the 110% fail safe often. Here is the URL:   https://ttlc.intuit.com/community/investments-and-rental-properties/discussion/nua-question-need-answer-before-2025-year-end-sorry-and-thanks-so-much/00/3718716