All Posts

is this in the retirement section for Form 8606 - this form is very specific about dates and handling the Q1 contributions, so take the instructions very literally when it asks for your balance as of 12/31/24 it means as of that date.  Form 5498 is usually not mailed until May but the instructions for Form 8606 refers to using statements provided in January i.e. your brokerage statements for 12/31/24.  Form 5498 should also be the balance as of 12/31 and should be same as your statement.  It just happens you're filing with extension so you do have the 5498.   Roth conversions are taxed by the calendar year in which they are done.  If you made a non-deductible contribution to your Trad IRA in April 2025 for 2024, that counts towards your 2024 limits and becomes part of your final basis on Form 8606 for 2024, carried over to 2025.  The Roth conversion you then immediately did of that contribution in April 2025 applies to the 2025 tax year not 2024 (along with your 2025 backdoor if you do it during the calendar year) - you won't have received the 1099-R for it yet.   https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/enter-backdoor-roth-ira-conversion/L7gGPjKVY_US_en_US?uid=mgjdpboq   https://www.irs.gov/pub/irs-pdf/i8606.pdf   Line 6 Enter the total value of all your traditional, traditional SEP, and traditional SIMPLE IRAs as of December 31, 2024, plus any outstanding rollovers. A statement should be sent to you by January 31, 2025

P.S. I suspect the person at the IRS that opens all these envelopes is not at work right now   P.P.S. no idea what tradelog is so maybe your situation is more complex, but unless you have a lot of wash sales or other adjustments like AMD, this mail-in step can be avoided in future by inputting (or importing) the sales with adjustments as a1099 in Turbo "one by one" with the details, and input the balance of your 1099 as sales summaries.

you would just get 8453 from the IRS website and fill it in, it's just a cover sheet.  you need to mail the details of the wash sales, the instructions say to send form 8949 or 'statement with the same information' - that's not usually the same 8949 with summary info that you filed as that's already been sent electronically, it's supposed to the details of the sales with adjustments - people usually send the 1099-B.

You posted your question late at night.   Customer support is available Monday - Friday from 5 a.m. to 5 p.m. Pacific time.     Phone support is not provided with the Free Edition.  If you are using a paid version of the software or if you purchased PLUS you can get phone support when customer support is there.  Otherwise, post your question here and someone will try to help.   To call TurboTax customer support https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/contact-turbotax/L2y9ZKpQB_US_en_US?uid=m5s9l2vh  

Gifts given to family members, friends or other individuals are not deductible.   Gifts received are not taxable to the person who received the gift, and are not entered on a tax return.   If your gift exceeds the yearly limit ($19,000 per individual)  imposed by the gift tax rules, then you will need to complete a Form 709 gift tax form and send it to the IRS, although it is very unlikely that you will owe any tax.   TurboTax does not support Form 709.  It is not an income tax form and would not be included as part of an income tax return.   Here is a link to the form: https://www.irs.gov/pub/irs-pdf/f709.pdf   https://turbotax.intuit.com/tax-tips/estates/the-gift-tax-made-simple/L5tGWVC8N     Here's a link for Form 709 preparation software:  https://www.puritas-springs.com/product-category/federal   Here are some useful videos on the Form:   https://www.youtube.com/watch?v=a5wJow5h-No   https://www.youtube.com/watch?v=5Z_28sVOrTY  

Q. When she files her tax return, would the ten percent penalty on the rental distribution be avoided as long at the distribution is below her scholarship and Pell grant?  A. Yes, as long as the scholarship is allocated to tuition and other qualified expenses (Fees, books and computer).    Generally,  your plan is good.  You get to use 529 plan money for the summer rent and minimize taxes.  If she has any earned income, it shouldn't change things, as her standard deduction will increase (earned income + $450, up to $14,600 [$15,750 for 2025]).    ____________________________________________________________________________________________   Qualified Tuition Plans  (QTP 529 Plans) Distributions General Discussion It’s complicated. For 529 plans, there is an “owner” (usually the parent), and a “beneficiary” (usually the student dependent). The "recipient" of the distribution can be either the owner or the beneficiary depending on who the money was sent to. When the money goes directly from the Qualified Tuition Plan (QTP) to the school, the student is the "recipient". The distribution will be reported on IRS form 1099-Q.  The 1099-Q gets reported on the recipient's return.** The recipient's name & SS# will be on the 1099-Q. Even though the 1099-Q is going on the student's return, the 1098-T should go on the parent's return, so you can claim the education credit. You can do this because he is your dependent. You can and should claim the tuition credit before claiming the 529 plan earnings exclusion. The American Opportunity Credit (AOC or AOTC) is 100% of the first $2000 of tuition and 25% of the next $2000 ($2500 maximum credit). The educational expenses he claims for the 1099-Q should be reduced by the amount of educational expenses you claim for the credit. Room and board (R&B) are also qualified expenses for the 529 distribution, but not the AOC (R&B are also not qualified expenses for a scholarship to be tax free). But be aware, you can not double dip. You cannot count the same tuition money, for the tuition credit,  that gets him an exclusion from the taxability of the earnings (interest) on the 529 plan. Since the credit is more generous; use as much of the tuition as is needed for the credit and the rest for the interest exclusion. Another special rule allows you to claim the tuition credit regardless of whose money was used to pay the tuition. In addition, there is another rule that says the 10% penalty is waived if he was unable to cover the 529 plan withdrawal with educational expenses either because he got scholarships or the expenses were used (by him or the parents) to claim the credits. He'll have to pay tax on the earnings, at his lower tax rate (subject to the “kiddie tax”), but not the penalty.   Total qualified expenses (including room & board) less amounts paid by scholarship less amounts used to claim the Tuition credit equals the amount you can use to claim the earnings exclusion on the 1099-Q.  Example:   $10,000 in educational expenses (including room & board)    -$3000 paid by tax free scholarship***    -$4000 used to claim the American Opportunity credit  =$3000 Can be used against the 1099-Q (on the recipient’s return)   Box 1 of the 1099-Q is $5000 Box 2 is $2800 3000/5000=60% of the earnings are tax free; 40% are taxable 40% x 2800= $1120 There is  $1120 of taxable income (on the recipient’s return)   **Alternatively; you can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. Again, you cannot double dip!  When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records, in case of an IRS inquiry. On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."  ***Another alternative is have the student report some of his scholarship as taxable income, to free up some expenses for the 1099-Q and/or tuition credit. Most people come out better having the scholarship taxable before the 529 earnings. A student, with no other income, can have up to $14,600 of taxable scholarship (in 2024) and still pay no income tax.  Scholarships are a hybrid between earned and unearned income. It is earned income for purposes of the $15,750 filing requirement (2025) and the dependent standard deduction calculation (earned income + $450).  It is not earned income for the kiddie tax and other purposes (e.g. EIC). 

Who does not need to file a gift tax return. If you meet all of the following requirements, you are not required to file Form 709. • You made no gifts during the year to your spouse. • You did not give more than $18,000 to any one donee. • All the gifts you made were of present interests