All Posts

Also, check a copy of your actual tax return to see what the final bill was supposed to be. (line 37 of the form 1040)   Then check to see if you paid that amount on either your Credit card, or bank account statements. Make sure you are NOT using the TurboTax filing charges as part of your IRS payment.  The IRS payment is entirely separate from the TTX software charges.     

@dmertz, Huzzah, it all seems to work!  The Form 8606 make sense.  The nontaxable %, TT's calculation of the taxable amount (which I can see and confirm step-by-step on Form 8606), the 2023 ending IRA basis (unchanged in my case, as I did not increase it in the prior year amended returns for the "to-be-cleared eventually" nondeductible excessive contributions), the fact that my excessive contributions are, in fact, cleared by TT in the 2023 amended return, and, ultimately, that TT, accordingly , does not generate a 2023 Form 5329 (whew), everything makes sense.    Would you kindly take a look at my manual 1099-R box & code entries?  Even though it all seems to work calc-wise, and I found the Form 1099-R Instructions to be instructive, I want to feel confident that this is, in your experience, an appropriate way to fill in the form in my situation.   (Any corrections or suggestions are appreciated, as I haven't filed yet.)        Assume the official 2023 1099-R reports a $19,000 normal traditional IRA distribution.  I split it into two 1099-Rs, manually entered in TT:   1) 1099-R Part 1 of 2 (for the $9k of prior year excessive contributions that carried over into 2023, and were cleared in and for 2023 as $9k of the 2023 normal distribution); and   2) 1099-R Part 2 of 2 (for a normal distribution of the $10k balance).    Amounts are round examples:     1099-R Line   1099-R Part 1 of 2   1099-R Part 2 of 2   Ln 1 Gross distribution   9,000   10,000   Ln 2a Taxable amount   LEAVE BLANK   10,000   Ln 2b Taxable amount not det'd   CHECKED   CHECKED   Ln 4 Fed tax w/held   LEAVE BLANK   5,000   Ln 7 Box 1   CODE 7   CODE 7   Ln 7 Box 2   LEAVE BLANK   LEAVE BLANK   IRA/SEP/SIMPLE   CHECKED   CHECKED   Thank you for all your help!

sounds like a passive activity but(?) . a trade or business is not a passive activity if the taxpayer materially participates in the activity  see reg 1.469-5T. must meet one of the seven tests https://www.law.cornell.edu/cfr/text/26/1.469-5T  certain activities are not considered participation 1) work of a type not customarily performed by the owners done in an attempt to avoid the passive activity rules 2) investor participation, unless the individual is directly involved in day-to-day management or operations       I suggest you have them provide an explanation of why the PAL rules would not apply and then have it evaluated by a pro.    the other things 1) will there be a profit over the terms of the leases - if not, hobby loss rules would apply which could result in the income being taxable but no deductions or 2) the activity would be reported on schedule C and profit is subject to self-employment taxes    The rental of personal property is subject to self-employment tax if it is classified as a business activity. This classification is determined by the continuity and regularity of the rental activity.    

we don't know which is correct 5 or 7 years. check IRS PUB 946 page 28 and table B-1 starting on page 98 if the wrong life has been used in the past here are your options   If you have been doing it wrong for only 2 years, then you can amend the back year returns to correct and then go forward correctly.   If you have been doing it incorrectly for more than 2 years, in order to correct it, you will have to use IRS Form 3115 to Change the Accounting Method and adjust depreciation taken in year discovered and then future years can be handled correctly.   IRS PUB 946 https://www.irs.gov/pub/irs-pdf/p946.pdf    the life is determined by the type of asset you select   

if the underpayment was due to a Turbotax calculation error you can file a claim. if it's an error on your part any penalties and interest are your responsibility. we don't know in your case which is the case. https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/submit-claim-turbotax-100-accurate-calculation-100/L88SYklBL_US_en_US   

found on the web Many users confirmed that the only solution to fix Fatal Error 1603 is uninstalling and re-installing TurboTax from scratch. and here's from Turbotax https://ttlc.intuit.com/turbotax-support/en-us/help-article/product-delivery/error-1603-fatal-error-occurred-installation/L0QVgZpOi_US_en_US 

Hi there, When you pre-purchase a software activation key (for example, from Costco), you’ll usually receive either: A card or receipt with the activation code—sometimes it’s printed inside the box or emailed to you. Instructions from the vendor—often including the official download link for the software. To use it: Go to the official website of the software (e.g., Microsoft, Adobe, Autodesk, etc.). Download and install the program if you don’t already have it. During installation or the first time you launch the app, you’ll be asked to enter your product key. Once entered, it will activate the software and link the license to your account (or your device). It’s always best to keep the key safe, since you may need it again if you reinstall the software. For reference, I personally get my software keys from NaijaSoftwares.com — the process is really smooth there: they email you the license key instantly along with an installation guide, which makes activation much easier. Hope this helps!

@user17568826280 ,  are these like informal investment club like structure ?  How does each member know  how much he/she has put in and how much is distributed to him/her?  Is there  like a informal share  value like structure ?  I am assuming that some of the members in any one of these "club" are US persons and others are NRAs for US purposes -- yes ?   or is this like a savings club i.e. the pooled amount is large enough to attract higher interest earnings from a financial institution ( a foreign  financial entity )?  How is this recorded  on the books of the financial entity --- by one person's name or a fictitious "group" name with individual owners un-named ? Where can I find more info on this ?  What are they called in that foreign country ?    I ask because  while FBAR  / FATCA requirements  define  both the  reporting  requirements  and the types of institutions ( financial etc. ), it  only deals with formal structures including trusts but does not say anything about informal structures like savings clubs or investment clubs --- the latter exists here in the US also.  So any info would be helpful in my search to understand.   pk