All Posts

No, I did not pay estimated taxes (which I am fairly sure is what resulted in the penalty, which, in my estimation is a legitimate underpayment penalty--again I have no problem paying it) nor did I file by mail. I am simply wondering why the turbotax program would not have alerted me to the fact that I was going to have an underpayment penalty and accordingly have me pay it when I filed electronically?

There is no income limit to claiming the home sale capital gain exclusion. So, your  adjusted gross income of $91,000 in 2024 is not relevant.   The limit is how much of the capital gain that you can exclude ($500K married filing jointly).

MAGI is not just one number. It's calculated differently for different purposes. There are about a dozen different definitions of MAGI, depending on what it's being used for. What you found with Copilot is just one of the dozen or so different ways of calculating MAGI. It might not apply to what you are using it for. What do you need your MAGI for? Also note that Copilot, like all AI systems, sometimes gives wrong information. You have no way of knowing whether it's right or wrong unless you check it against a reliable source, such as IRS instructions.  

No.  The amended return is only for the difference you get back.  Like if you paid $500 tax due on the original return and with the changes you only would have owed $300 then you only get a $200 refund on the 1040X.  But if the amended return would have changed your original tax due into a refund then you would get the amount you paid back plus the new refund.     The amended return will only be the difference you get back or need to pay. You can confirm this by printing your amendment and looking at the 1040X. Line 18 should be your original refund amount and line 21 should be your additional refund. If you paid on your original return it will be on line 16 (but don't include any penalty on 1040 line 38). If there is an amount owed with the amendment, it will be on line 20. Ignore any 1040V voucher that prints out and the new 1040. Those are what your return would have been if you had not needed to amend.

No, the deduction may not be taken when a taxpayer converts a traditional IRA to a Roth IRA. Review your state interview entries in TurboTax, and look for the page titled Pension Income Deduction. Here you are instructed to enter any portion of the amount from your federal return that is eligible for the deduction. You should not include the $30,000 from the conversion here. Enter 0 if none of your pension or IRA income is eligible. 

Check your 1040 line 26 for estimated payments and amount applied from 2023.  I have seen people who somehow got the amount applied from 2023 in twice.  You need bank statements showing all the estimated payments you made to backup line 26.  And check your 2023 return line 36 for the amount applied to 2024.  

@tony-hallo365   You get 0 on 6b if you didn't answer the Foreign question right. Or if the amount on 6b is too low and you are married you answered it wrong for one spouse.   There is a new question this year asking if you lived in a foreign place. People have been answering it wrong or skipping it. Go back through the Social Security entries and check, check for each spouse if married. If the IRS adjusted your return you do not need to amend.  

You posted your question from the Free Edition.  You will not be able to use the Free Edition to enter gambling winnings.   You will have to upgrade to Deluxe.     Gambling To enter the W-2G  or other documents For your Gambling winnings--   Go to Federal>Wages & Income>Less Common Income>Gambling Winnings   You can enter your winnings, and then keep clicking through the interview to enter gambling losses.   https://www.irs.gov/help/ita/how-do-i-claim-my-gambling-winnings-and-or-losses   Gambling winnings are taxable income.  Losses are an itemized deduction.  If you do not have enough itemized deductions to exceed your standard deduction, your losses will have no effect. https://blog.turbotax.intuit.com/income-and-investments/how-are-gambling-winnings-taxed-8891/     2024 STANDARD DEDUCTION AMOUNTS SINGLE $14,600    (65 or older/legally blind + $1950) MARRIED FILING SEPARATELY    $14,600    (65 or older/legally blind + $1550) MARRIED FILING JOINTLY $29,200    (65 or older/legally blind + $1550) HEAD OF HOUSEHOLD $21,900    (65 or older/legally blind + $1950)  

For tax year 2024, there are two credits available: Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit. The credit is 30% of the costs paid plus installation, with individual credit limits. For electric panels, the limit is $600. The article below states the following:   Which home improvements qualify for the Energy Efficient Home Improvement Credit? Beginning January 1, 2023, the credit becomes equal to the lesser of 30% of the sum of amounts paid for qualifying home improvements or the annual $1,200 credit limit. In addition, to the aggregate $1,200 limit, annual dollar credit limits apply to specific items including:   home energy audits: $150 exterior doors: $250 per door (up to $500 per year) exterior windows and skylights, central A/C units, electric panels and related equipment, natural gas, propane and oil water heaters, furnaces or hot water boilers: $600   Any costs in excess of the costs applied to the credit can then be added to basis. Per the IRS:   You must reduce the cost basis of your home if a residential energy credit is allowed for any expense for any property. The increase in the basis of the property that would result from the expenses of the improvements to your home will be reduced by the amount of the allowed credit.   2024-2025 Energy Tax Credit: Which Home Improvements Qualify?   Energy Efficient Home Improvement Credit   IRS Publication 551   @nerobins     

IF line 6b was a zero...then we've seen some folks who mis-answered a follow-up question for the SSA-1099, where the taxpayer accidentally indicated a YES to say they were living in certain foreign countries, where the foreign country they were living in was taxing the SS instead.      

If you sold your primary personal residence and you lived in and owned the home for at least two years in the five year period on the date of sale, you do not have to report the sale if your gains are less then the exclusion amounts of $250,000 if filing Single or $500,000 if filing Married Filing Jointly (and both lived in the home for two years). Gain or Loss = Sales Price minus Sales Expenses minus Adjusted Basis (Purchase Price plus the cost of improvements prior to the sale) Selling cost can include escrow fees, legal fees, real estate agent commissions, advertising costs, and even home staging fees. If you had a gain greater then the exclusion amounts then you would have to report the sale. Also, if you received a Form 1099-S for the sale either with a gain or a loss, the sale has to be reported.