All Posts

@terri_romero You cannot make any changes after e-filing unless the IRS rejects your e-file.  Then you can fix it and re-file.   But....did you enter a qualified dependent?   If you did not enter a qualified dependent, you cannot file as HOH.   Am I Head of Household?   https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-filing-status/qualify-head-household-2021/L0NxUtVc2_US_en_US?uid=m5x19jkx What is a "qualifying person" for Head of Household?   If you qualify as Head of Household, when you enter your marital status (single or married filing separately) into MyInfo, and then enter your qualifying dependent, TurboTax will offer HOH as your filing status.  

It depends. Let's look at the reasons on each side of the decision and checking in the program.  Claiming the retirement subtraction is up $24k for single filers/ $48k married. High incomes generally do better taking the subtraction. If you don't take the retirement subtraction, you can take: Homestead credit - if you have a large credit here,  try both ways in the program. This is a refundable credit and that matters. Married couple credit - up to $480 Itemized deduction credit - 5% of some expenses School property tax credit - up to $300 Working families tax credit Earned income tax credit In addition, if you have low retirement income and high property taxes or medical expenses, the itemized deduction credit may be better. Finally, the program allows you to change your answers so you can try one method and then the other. Check your tax liability and refund both way. 

Yup it doesn't work.  I have the visual basic update, ran as administrator, no VPN, etc. Loaded program errors out on launch: "Looks like we've run into an error" window.  Switching to H&R Block after 20+ years of Turbo tax.  

You may have received an automated email indicating that Form 5695 was available. While the form has been finalized, the final software update is still being deployed, and some customers may not yet see the form available in their product.   The update is actively rolling out across all platforms, and full access will be available once deployment is complete. No action is needed from you at this time. Check again tomorrow and/or this weekend to complete filing 5695. If you continue to see this form blocked after this weekend (1/25/26), please tell us in the replies below.   @jenlang6666   

I agree.  TurboTax was once a good product.  Now they are trying to monetize every element (like eliminating ItsDeductible and charging $30+ for Deductible Duck) to gouge long-time customers.   I am looking for alternatives  

TT notified customers only AFTER a vast majority of us had used our "automatic renewal" for the desktop version. This is sooooooo disappointing.  I haven't made a final decision how I will proceed for 2025 but I will be cancelling automatic renewals! 

There is a lot of confusing misinformation on the question of whether short-term rentals go on Schedule E or C, but the rules around this are actually pretty simple and well defined.  Unfortunately, TurboTax doesn't do a good job of guiding you on this, as you have found.   There are only two situations when rental income can go on Schedule C.  One is a rare exception for a real estate dealer (such as someone flipping houses) with incidental rent income during a flip.  The other is if the rental provides "substantial services".  That is defined as services for guests during their stay, such as daily hotel-style maid cleanings of the room, a "turn-down" service, or a bed and breakfast that provides meals or daily activities.  Cleanings between guests aren't considered substantial services, so that's not what we're talking about.  So most short-term rentals go on Schedule E, but if they do daily housekeeping at your condotel, that may be one of these rare situations where you do have a Schedule C rental with substantial services.    Some of the confusion comes from the "STR loophole" which allows you to deduct rental tax losses from your regular income if the average stay is 7 days or less and you qualify for the material participation rules.  But even when using that exception to classify STR income as non-passive, it still doesn't go on Schedule C, it still goes on Schedule E.  The difference is that the tax loss isn't limited by the passive activity rules on form 8582.  TurboTax Online still lacks the ability to do that, unfortunately, so it's not suitable for this fairly common situation with short-term rentals.  The desktop version of TurboTax does, but you have to go into forms mode to do it.  Pretty much all professional tax software has an option to specify that rental income is non-passive, and that will cause the Schedule E tax loss for that activity to bypass form 8582.  

I would suggest you delete Form 2555 and Form 1116 and start over.  In my test return, on the Form 1116 Worksheet, I didn't enter the 2555 excluded income, and Form 1116 calculated correctly with just my other income, and the amount of foreign income/tax I entered in the FTC interview.   @user17645583867           

We cannot see your screen, your return or your account.  Have you entered ALL of your 2025 information?  All your income, etc.?  Many tax documents that you need do not arrive until late January or even February, so maybe you do not have it all there yet.   There are a lot of variables that affect your refund or tax due including how much you earned, how much tax you had withheld, your filing status, the number of dependents you claim, your deductions and credits, etc.  You may have lost Earned Income Credit or the Child Tax Credit— did a child turn 17?  If you received the EIC last year, remember that changes in the amount you earn have a big effect on the amount of EIC you can get. (Sometimes earning more money means less EIC)  Are you 65 or older ?  If so, your standard deduction is higher. Everyone has a higher standard deduction now so it is harder to use itemized deductions.   And of course, always check your own data entries, looking for errors such as misplaced decimals or extra zeros.   https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/refund-go-compared-last-year/L97JmhUbi_US_en_US?uid=ld9ijm41   Print out 2024  and 2025  and compare them side by side to see what is different.    https://turbotax.intuit.com/tax-tips/tax-payments/video-why-would-i-owe-federal-taxes/L3VXudPiN  

The best way to enter this is as follows.   Delete the 1099-INT entry you currently have (use the "trash can" icon). Go to Wages & Income -> Less Common Income. Select Miscellaneous Income, 1099-A, 1099-C. Select Other reportable income (at the bottom of the list). Description: Enter "Foreign Bank Interest (Turkey)" and the bank name. Amount: Enter the USD equivalent

Move forward with filling it out to prove you don't qualify. Earned income over $32,900 disqualifies you. Once the program is sure you don't qualify, you will be able to move on with your return.   You can try to delete the form but the program may not allow it. If you are using: Online: see How do I view and delete forms in TTO?  Desktop: If you are working in the cd/download TurboTax program: On the top right, there is a FORMS button.  Click on FORMS. Locate the form you want to delete. Click on the form name. Below the form, bottom left, select DELETE FORM button. 

Yes, here is how to report the sale in TurboTax.   1: Report the Sale (Investment Income)   Go to Wages & Income  Go to Investment Income  Go to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other. Select "Other" as the type of investment. A description, describe as  "Inherited Home - India." Date Acquired: 03-Feb-2020 (The date of death). Date Sold: 04-Sep-2025. Sales Proceeds: $266,831 (Your sale value). Enter $2668 as a selling expense, as this will reduce the proceeds. Cost Basis: $265,742 (The Fair Market Value on the date of death). For the holding period, select Long term.    Step 2: Claim the Foreign Tax Credit (Form 1116) Now let's claim the Foreign Tax Credit for the tax paid to India. This is how you tell the IRS you already paid $30,293.58 to India.   Go to Deductions & Credits -> Estimates and Other Taxes Paid -> Foreign Tax Credit  Answer Yes to "Did you pay foreign taxes?" When asked about the "Income Category," select Passive Income (this covers capital gains from property). Add Country: Select India. Description: "Sale of Inherited Home." Gross Income: Enter $266,831 (The gross sales price). Foreign Taxes Paid: Enter $30,293. Date Paid: 08-Sep-2025. One more thing that is worth mentioning. You had a filing requirement in 2020 to report the inheritance on Form 3520. If you didn't do this, then you will need to fill out the 3520 for 2020. Here is a link to the form, and here are the instructions. Since this is a delinquent filing, if you didn't file one, follow these instructions.    File the 2020 Form 3520 now: Use the downloadable link I provided above. Attach a "Reasonable Cause" Statement: You must include a signed letter explaining why you didn't file in 2020. A common valid reason for expats is: "I was unaware of the specific informational reporting requirements for foreign bequests, as there was no U.S. tax due on the inheritance itself, and I am now filing to be in full compliance." Do Not File with your 1040:  Form 3520 is mailed to a different address. Mail to:   Internal Revenue Service PO Box 409101 Ogden, Utah 84409