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On the federal return annuity income is usually taxable as ordinary income, not capital gains or interest.  The amount of income you report will depend on whether you used after-tax or pre-tax dollars to fund the annuity.     California taxes annuity income treating it as ordinary income similar to the IRS.  California does not exempt retirement income (which includes annuities) from state income tax and the taxable amount for California is usually the same as your federal taxable amount.  In addition to the federal early withdrawal penalty of 10%, California will charge it's own 2.5% penalty at the state level on early distributions.     Helpful Links: Do I claim pension or annuity income on my tax return?  Is my pension or annuity payment taxable?  2024 Pension and Annuity Guidelines 

For sellers you are not able to deduct most selling expenses directly from your income, the expense instead reduce any capital gains you might owe on the profit from the sale.  There is a capital gains exclusion if the property sold was your primary residence.  The exclusion is up to $250,000 when filing as Single and $500,000 when filing as married filing a joint return.  In order to qualify for the exclusion you must have lived in the home for 2 of the last 5 years before the sale.   Costs that reduce your capital gains: Selling expenses: Fees paid to sell the property, such as real estate agent commissions, legal fees, and title insurance. Home improvements: Costs for major improvements that add to the home's value can be added to your cost basis. For instance, putting in a new roof or adding a deck would qualify, but general repairs do not. Property taxes: You can deduct the portion of the property taxes you paid for the part of the year you owned the home. For tax year 2025, the combined state and local tax (SALT) deduction, which includes property taxes, is capped at $40,000 ($20,000 for married filing separately), though this limit may be lower based on income. Mortgage interest: You can deduct the mortgage interest paid up to the date of the sale. For buyers the only deductible closing costs when purchasing a personal residence are property taxes and mortgage interest which are itemized on your tax return.  Most other fees are not deductible but can be added to the cost basis to lower your capital gains if you sell the property in the future.   Potentially deductible costs for buyers: Mortgage interest: The interest you pay on your mortgage is deductible, up to certain limits. For loans originating after December 15, 2017, the limit is $750,000 in mortgage debt ($375,000 if married filing separately). "Points" paid to secure the mortgage: Mortgage points paid to lower your interest rate are a form of prepaid interest and are generally deductible, though certain conditions apply. In some cases, you may have to deduct the cost over the life of the loan. Property taxes: The portion of the property taxes you pay at closing for the period you own the home can be deducted. This is also subject to the overall SALT deduction limits. Non-deductible costs (can be added to cost basis): Appraisal fees Inspection costs Attorney fees Recording fees Title insurance Helpful Links: I sold my home. What can I deduct?  Publication 523 (2024), Selling Your Home     

If you are reporting losses multiple years in a row you can face an increased risk of an IRS audit, especially if the losses being reported are offsetting substantial other income.  The IRS expects a business will attempt to earn a profit.   Your business activity is presumed to be for-profit if the business generated a profit in at least 3 out of the last 5 tax years.  If this is not the case the IRS may reclassify your activity as a hobby instead of a for-profit entity.  If the IRS does consider your business a hobby you are only able to deduct losses up to the amount of income earned in the activity.     Some factors the IRS considers are: Manner of operation. Do you maintain accurate books and records, have a business plan, and change methods to improve profitability? Time and effort. Do you put in enough time and effort to suggest a profit motive? Expertise. Do you or your advisers have the necessary knowledge to succeed? Profit history. Have you made a profit in similar activities in the past? Financial status. Do you have other sources of income to fund the activity? Personal pleasure. Is there an element of personal recreation in the activity? TurboTax will automatically track losses and carry them forward to future tax years; however, it is your responsibility to maintain all required documentation in case you are audited. Net operating loss (NOL): Business deductions that exceed income can create a Net Operating Loss (NOL). An NOL can be carried forward indefinitely to offset up to 80% of your future taxable income. Excess business loss: For non-corporate taxpayers, there is a yearly limit on how much business loss can be used to offset non-business income. Any excess is treated as an NOL carryover. Passive activity losses: If your business is considered a passive activity—one in which you do not "materially participate"—passive losses can only offset passive income.  Undeducted passive losses are carried forward indefinitely until you have passive income or dispose of the activity. To manage multi-year business losses and prepare for a potential IRS audit: Keep excellent records. Maintain detailed and accurate records of all business income and expenses to demonstrate your profit motive. Create a business plan. A formal plan that shows how you are working to become profitable helps prove your intent to the IRS. Demonstrate a profit motive. Show evidence of marketing efforts, research, or operational changes made to improve profitability. Consult a tax professional. A professional can provide expert guidance on navigating complex rules, especially if you have significant income from other sources.

The safe harbor is no more than 3 losses in 5 years before the IRS might consider your activity a hobby. But if you have good documentation that you are attempting to turn a profit you can continue to deduct your losses. 

Thank you for taking the time to answer my question.  I will have an accountant and my financial advisor assisting me.   Because I will have no withdrawals from my IRA or 401k this year.  I can afford to pay more income taxes than if I was withdrawing funds from my IRA.  I  came up with a $100,000 as a large enough number to lower my taxes in the future.  I was  trying to get your opinion if this amount is to large an amount if I have no further Capital gains this year which I should not.  And maybe how much or how large a check I would need to write to do a $100,000 Roth Conversion.

@Jfcsoup    You do not pay any tax on the inherited IRA when you inherit it. When you take money out of the IRA, you pay tax on the amount that you take out. Similarly, you do not pay any tax on the brokerage account when you inherit it. You only pay tax when you sell an investment in the account.  

I assume that you received the payment in 2025. You will report the entire lump-sum payment on your 2025 tax return. You do not amend your 2024 tax return. There is a "lump-sum election" that might reduce the amount of the payment that is taxable. Essentially what the lump-sum election does is calculate how much of the payment for 2024 would have been taxable if you had reported it on your 2024 tax return, and then include that amount in the taxable Social Security on your 2025 tax return.   Your SSA-1099 for 2025 will show how much of the payment is for 2024. After you enter the SSA-1099 in TurboTax, it will ask if you received any lump-sum payments. If you answer Yes it will then ask for information about the lump-sum payment for 2024. It will also ask for information from your 2023 SSA-1099 (if you got one) and your 2023 tax return. After you enter all the information, TurboTax will calculate whether you benefit from using the lump-sum election. If so, it will make the appropriate entries on your Form 1040.  

Generally, if you owe more than $1,000 in federal taxes, you were required to make quarterly estimated tax payments. If you paid at least 90% of the total tax owed (or 110% if your AGI is greater than $75K for Single filers and $150K for Married Filing Jointly), then you are good and aren't required to pay estimates. The estimated quarterly tax dates for tax year 2025 were/are: 1st quarter (January 1–March 31): April 15, 2025 2nd quarter (April 1–May 31): June 16, 2025 (since June 15 is a weekend) 3rd quarter (June 1–August 31): September 15, 2025 4th quarter (September 1–December 31): January 15, 2026  Here's more info with Common Questions about Estimate Taxes.

I've been taking QCD from my IRA when I turned 70 1/2.   I get a 1099R for it.  After I enter the 1099R Turbo Tax asks me if I made any QCD.  Check yes and enter the amount.  It will be excluded on 1040 line 4b with the letters QCD by it.   Next  year in 2026 I will have to start taking my RMD.  You can apply a QCD to the RMD so the RMD won't be taxed.     For 2025 you will get a normal 1099R that has a new code  Y.   See post https://ttlc.intuit.com/community/retirement/discussion/re-for-2025-the-irs-is-introducing-a-new-code-y-for-qcds/01/3680111 And see 2025 draft 1099R list of codes https://www.irs.gov/pub/irs-dft/f1099r--dft.pdf  

It will really depend on your other credits and deductions as well. We can assume a Standard Deduction for a Single filer of $15,750 for 2025.  That amount would be subtracted from your AGI amount. And it will bump up any income over $48,475 and below $103,350 into the 22% tax bracket (for a Single filer). It's a tiered system (brackets of income levels and related tax rates). And here are the 2025 tax brackets. 

@M-MTax wrote: @MythSaraLee wrote: Is the "Deductib.ly" also developed by our TurboTax? I am virtually 100% the answer is "no". Maybe the dev will chime in. You can now remove the "virtually" 😉 Thanks!!

Ideally, convert just under the amount that would bring your tax from zero to above zero. Otherwise convert more up to the tax you find acceptable.   The trick is, to accurately calculate your 2025 AGI, deductiona and incorporate the 2025 Tax brackets, etc.   It is no longer allowed to reverse a conversion if you make a mistake.   @JRretires 

@MythSaraLee wrote: @Deductibly Thanks. Is the "Deductib.ly" also developed by our TurboTax? Thanks for the question. No, Deductib.ly is not affiliated with TurboTax or Intuit.   We’re an independent team of donors and developers who relied on ItsDeductible and were disappointed to see it shut down. So we’re building a modern, community-backed alternative. Still early days, but we're committed to getting it right.   If you're curious or want to give input, feel free to join us over at r/deductibly on Reddit.

@MythSaraLee wrote: @Deductibly Thanks. Is the "Deductib.ly" also developed by our TurboTax? Thanks for the question. No, Deductib.ly is not affiliated with TurboTax or Intuit.   We’re an independent team of donors and developers who relied on ItsDeductible and were disappointed to see it shut down. So we’re building a modern, community-backed alternative. Still early days, but we're committed to getting it right.   If you're curious or want to give input, feel free to join us over at r/deductibly on Reddit.

Correct, the deadline to convert a traditional IRA to a Roth IRA is December 31, 2025.  It must be completed by December 31, 2025 in order to be reported on your 2025 return.  Regular IRA contributions on the other hand can be made up until the April tax filing deadline of the following year, so for tax year 2025, they can be made by April 15th 2026.      TurboTax is designed to report on the conversion after it occurs, not projecting and creating the best strategy for the future.     Many brokerage firms also offer free online calculators to help model the tax impact of a Roth conversion based on different scenarios.  I would check with your financial institution to see what Roth Conversion Calculator they may have available.    Some things to keep in mind when you do use a calculator to help plan for multi-year conversion:   Tax brackets: By spreading out conversions over several low-income years, you can fill up your lower tax brackets (e.g., the 12% or 22% brackets) and avoid pushing yourself into a higher one. Medicare premiums: Higher income from a Roth conversion can trigger Income-Related Monthly Adjustment Amounts (IRMAA), increasing your Medicare Part B and D premiums. A good calculator will help you plan conversions to stay below IRMAA thresholds. Social Security tax: A higher taxable income from a conversion can increase the amount of your Social Security benefits that are subject to federal income tax. State taxes: Don't forget to account for state and local income taxes, which can vary and impact the cost-benefit analysis of your conversion  

It's actually a reduction of taxable income. You still report it as you will receive a 1099-R, but then it's excluded (if the qualifications are met, and it's below the limit) and will reduce your Adjusted Gross Income. This link on What is a Qualified Charitable Contribution has great info to help as well.

Doesn't everybody have access to the extended Win 10 support at no cost? When I went to Settings>Update & Security> Windows Update there was a box that I clicked on to start the process. (I don't remember the specifics; I did it a couple of weeks ago.) Then while poking around the web I found a website that gave instructions on how to add that box if it didn't appear. My son used that information to successfully get the extended support on his PC.