All Posts

Understood, but you should really keep this limited to one thread:   Rental property converted to Primary and back to rental then sold   I'll page the participants in that one:   @Mike9241 @AmeliesUncle 

@pk @Opus 17 Thanks for helping me. I’m not a U.S. citizen but am a resident for tax purposes on an H1B visa 4.cMy spouse is a Canadian citizen who entered the U.S. and established NJ domicile starting October 2024. My spouse had Canadian-source income from January to July 2024 (before moving). 4.b Spouse is on an H4 visa, 4.c residing in Canada before October 2024.(last 3 years) 4.d Spouse does not yet have an ITIN, but I applied for one with my federal MFJ return, which is still processing. Haven’t complete fatca yet yet   I already filed my federal return MFJ, and now I’m working on my NY and NJ state returns before October 15. I haven’t received itin yet   1. New York (NY):   I’m filing as MFJ but as a nonresident, since we didn’t live in NY. NY seems to calculate tax based on worldwide income of mine and my spouse’s, but I only included my NY W-2 income when I did the allocation and didn’t include my spouse or any investment income ; the tax rate used appears to be based on our combined worldwide income, which increases the effective rate. Is that how NY nonresident calculations normally work  i.e., using the full federal income to determine the rate, even though only NY income is taxed? ny I filed an extension and they gave a temporary number for my spouse im planning on applying using that. Is that ok?     2. New Jersey (NJ):   I’m considering MFJ because of NJ’s lower tax rates when filing jointly and since federal was applied using mfj . I’m including my full income plus investment income from us and worldwide for nj; My spouse started NJ domicile in October 2024. Should I include her full 2024 income (including Canadian income before October) when filing NJ MFJ, or only U.S. income after NJ residency began? NJ gives a credit for taxes paid to NY on NY-source income, but since NY was overpaid by over $1.5k, I’m not sure how that affects the credit computation  since I don’t think I’ll get itin on time before October 15; I’m thinking of attaching form w7 to apply. Is that ok?  

@user17597590908 wrote: Subject: Long-time Business User — TurboTax CD/Download Discontinuation Is Unacceptable I am the owner of multiple businesses employing hundreds of people, and both I and many of my employees have been long-time, loyal TurboTax users. We’ve continued to use the downloadable/CD version for years, despite having reported numerous calculation and logic errors back to Intuit for correction. Now, hearing that Intuit plans to discontinue the downloadable version is the final straw. Many of us rely on Windows 10 systems for business-critical functions that simply aren’t compatible with Windows 11. Eliminating the downloadable version would not only disrupt our workflow but effectively lock out thousands of paying customers who cannot migrate to cloud-based versions for technical or security reasons. If Intuit refuses to reverse this decision, we will be: Writing our congressional representatives to raise awareness of how this harms small businesses and consumers. Organizing a boycott not only of TurboTax but of all Intuit products. Engaging with media outlets (print, TV, and online) that would undoubtedly highlight how TurboTax is abandoning its most faithful, long-term customers. Intuit built its reputation on empowering users with flexible, reliable tools. Please reconsider this misguided policy before you permanently lose your most loyal base. TurboTax is NOT discontinuing the 2025 desktop edition software.

You are mentioning a "glitch" for 2023 and 2024.   As @VolvoGirl mentioned, for 2024 there was a question that asked if you lived in a foreign country in 2024; answering incorrectly could cause you a problem on 6b.   That question was not in the 2023 software, so something else caused you a problem for 2023 if you had the same problem for both years.

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.

It sounds more likely that you entered your SSA1099 in the wrong place and caused a user error.  Where did you enter the SSA1099?    Go to Federal> Wages & Income>>Retirement Plans and Social Security  (SSA1099 and 1099RRB) to enter your SSA1099.  

FMV of a publicy traded stock on a given day is it's FMV regardless of situation.  For example, FMV on date of death uses market data on the date of death (unless on a day where the market was closed), never the day before.  The same should apply for in-kind transfers from IRA to taxable account. The FMV is the FMV on the day the transfer initiates.  This much is well documented and rather apparent after even the most rudimentary research.  The details of how the market data on a given day are used to compute FMV may be debatable, but there is NOTHING I've found so far that supports using market data from the PRIOR day to compute FMV of a publicly traded stock.  Doing so seems clearly incorrect and might well be a legacy habit some big brokerages have been getting away with, not because it is legal or ok.  The bottom line is that it is certainly not ok for the client if the FMV is being applied and reported incorrectly.   If anybody can point at any credible documentation indicating it is okay to use prior day closing price as FMV for an in-kind transfer of publicly traded stock from IRA to taxable account, please share. SE

@pk  @user17597544422    "2. Absent any additional facts, your world income is US sourced and NJ sourced ( work performed  in NJ)."   Just to note also the taxpayer is working remotely for an NY company.  This subjects his NY income to the "convenience of the employer" rule and he may be required to file a NY non-resident return as well.  This non-resident return would only report the taxpayer's NY-based income, and other NJ income and not the spouse's income (from anywhere).  So the spouse's residency does not impact the NY non-resident return, but it is another bit of paperwork that needs to be completed and another check to be written. 

@user17597544422  , having gone through this thread and generally agreeing with the excellent responses of my colleague @Opus 17 , my understanding of the situation is as follows : 1.  You are a US person ( citizen/GreenCard/Resident for tax purposes) with US tax-home, living in NJ. If you are not a US citizen, then your own citizenship info would be helpful 2. Absent any additional facts, your world income is US sourced and NJ sourced ( work performed  in NJ). 3.  You married in 2024 and therefore  are eligible to file MFJ for federal return. 4. Your spouse is from Canada, moved to US in October 2024 -- need info ---                  (a)  Citizenship;                  (b)  if not US person ( defined above ) then with which visa;                   (c)   her tax home during the last three years i.e. 2024, 2023, 2022;                  (d)  does she have US tax id --TIN   ( SSN / ITIN / ? ) if any  ;    Generally, and assuming that your spouse entered US on a visa ( K or H or ??) and  she wants  to be  treated as a resident for the tax year, you  both have to request to be allowed to treat her as a resident for tax purposes. Note that  this  implies  ( in addition to MFJ standard deduction ) that                   (A) her world income (for the entire tax year) is subject to US taxes  ( federal and be extension the State);  any income taxes paid to a foreign taxing authority is eligible for foreign tax credit / deduction or depending on the exact facts and circumstances possible  earned income exclusion.                (B)  FICA/SECA taxes also come into picture ( Totalization agreement would allow one to choose which jurisdiction is paid into );               (C)  FBAR ( form 114 at FinCen.gov)  and FATCA ( form 8938 with return ) filings may be required. I will circle back once I hear from you with answers to my questions.    

I don't know what "bug report" you are referring to. TurboTax for 2025 has not been released yet, so there cannot have been any bug reports about it. When TurboTax for 2025 becomes available I'm sure it will calculate the deduction for seniors correctly. The calculation will be done in Part V of the new Schedule 1-A, which lays out the calculation very clearly, step by step. TurboTax will fill out Schedule 1-A as specified by the IRS.  

@Solar Eclipse wrote: It leaves me with only two possible conclusions: Either 1) Clients and CPA's have been oblivious this has been transpiring for ages or 2) This is actually an acceptable method. Your possible conclusion #2 is probably correct. "This is actually an acceptable method." Apparently there is no law or regulation that specifies the value to be used, and there is no IRS guidance. If the rules are unclear or nonexistent, each brokerage follows the conclusions of its own tax experts or lawyers, and they may reach different conclusions. No one is "getting away" with anything. If there are no explicit rules, no rule is being violated.  

If you mail the tax return, the W-7, and the required documents to the IRS, and the whole package is postmarked before October 15 (and assuming you have a valid extension), the tax return should be treated as timely filed.  The IRS will process the ITIN application first and then forward the tax return for processing.  Use a mailing service with proof of mailing and proof of delivery, just in case.