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You may want try to do both.  Even if the DOT will send you another one, it would likely take a while (or not happen at all) and since you would be completing your return showing that this was not taxable income by taking the steps above suggested by Rene, having them correct theirs will just support your claim that it is not taxable.   Be sure to keep records and receipts for what happened and why it is not taxable income with your tax return in case they would question anything. 

I filled like before 1/21 that was the day it accepted my refund and the establishment date to receive it is 2/12 what should I really expect and I also paid for 5 days early. Thank you for your time today. 

DID YOU E-FILE?   Did you e-file?   Did you go through all three steps of the FILE section and click a big orange button that said “Transmit my returns now?”     When you e-file your return you will get two emails from TurboTax.  The first one will say your return has been transmitted; the second one will tell you the IRS has accepted  or rejected your federal e-file.  If you filed a state return, there will be a third email (usually a day or two later) that tells you if the state e-file was accepted or rejected.   Check your e-file status:   https://turbotax.intuit.com/tax-tools/efile-status-lookup/    What does it say in your account?  Does it show that the return was accepted?   Or does it say something else---like "rejected," "printed," or "ready to mail?”   If you discover or realize that your e-file was rejected, or just never filed, you will need to print it, sign and date it in ink, and file it by mail now, since e-filing is closed for returns for tax year 2024.

Reading through this entire thread is confusing. What are you trying achieve? If I read this correctly, first, you wanted your full deduction of the taxes.  You found out this couldn't be done.   Now, you say it is fully itemized on your state return but the impact isn't huge.  What is the outcome you are looking for, because your answers have thrown us all into a state of confusion?   Please clarify your intent so we can better serve you.   @bwracerg 

HOW CAN I DOWNGRADE TO A LOWER VERSION https://ttlc.intuit.com/turbotax-support/en-us/help-article/change-service-level/downgrade-lower-priced-version-turbotax-online/L2IDaMvkt_US_en_US?uid=m6ilzady     WHY DO I HAVE TO PAY?  I WANT THE FREE EDITION   The information that you can enter in Free Edition is pretty limited now.  Thanks to the tax laws that began for 2018 returns, there are no more simple Form 1040EZ or 1040A's.  Everything goes on a Form 1040 that has three extra "schedules" with it, and if you need any of those schedules, you are not able to use the Free Edition.  Using the standard deduction instead of itemizing does NOT mean you will not need any of those schedules.   If you started in the Free Edition and entered any data that required any extra forms or schedules, you have to upgrade to a paid version and if you are watching the screens carefully you are alerted to the upgrade.       TurboTax Online: Important Details about Filing Simple Form 1040 Returns If you have a simple Form 1040 return only (no forms or schedules except as needed to claim the Earned Income Tax Credit, Child Tax Credit or student loan interest), you can file for free yourself with TurboTax Free Edition, or you can file with TurboTax Live Assisted Basic at the listed price. Roughly 37% of taxpayers are eligible. Examples of situations included in a simple Form 1040 return (assuming no added tax complexity): W-2 income Interest, dividends or original issue discounts (1099-INT/1099-DIV/1099-OID) that don’t require filing a Schedule B IRS standard deduction Earned Income Tax Credit (EITC) Child Tax Credit (CTC) Student loan interest deduction Taxable qualified retirement plan distributions   Examples of situations not included in a simple Form 1040 return: Itemized deductions claimed on Schedule A, like charitable contributions, medical expenses, mortgage interest and state and local tax deductions Unemployment income reported on a 1099-G Business or 1099-NEC income (often reported by those who are self-employed, gig workers or freelancers) Stock sales (including crypto investments) Income from rental property or property sales Credits, deductions and income reported on other forms or schedules        How can I see my TurboTax  fees?  https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/review-fees-turbotax-online/L1XnIzgzg_US_en_US?uid=m682vq7k   If your TurboTax fees are higher than expected, you can reduce them by removing add-ons     (BEFORE you e-file) :   Remove Premium Services Remove MAX Defend & Restore Remove a state Remove PLUS Help & Support Remove Pay With Your Refund     Or—-Use this IRS site for other ways to file for free.  There are 8  free software versions available from the IRS Free File site   https://apps.irs.gov/app/freeFile/  

TurboTax gives you an estimated date for receiving your refund based on a 21 day average from your date of acceptance, but it can take longer.  “21 days”  is not a promise from TurboTax or the IRS.      First, check your e-file status to see if your return was accepted:  https://turbotax.intuit.com/tax-tools/efile-status-lookup/   Once your federal return has been accepted by the IRS, only the IRS has any control.  TurboTax does not receive any updates from the IRS. Your ONLY source of information about your refund now is the IRS.     You need your filing status, your Social Security number and the exact amount  (line 35a of your 2025 Form 1040) of your federal refund to track your Federal refund:    https://www.irs.gov/refunds   To track your state refund:     https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/track-state-refund/L3jgO8PGs_US_en_US?uid=lt447ebr   If you chose to have your TurboTax fees deducted from your federal refund, that will take some extra time, while the third party bank handles the refund processing     https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/refunds-take-longer-others/L14YlqFrH_US_en_US?uid=lexdr7zh . https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/irs-refund-taking-longer-21-days/L2vRAJbdU_US_en_US?uid=lexe7lst         If you are getting earned income credit on line 27 or additional child tax credit on line 28 You are subject to the delay required by the PATH act.  Do not expect your refund before early March   https://ttlc.intuit.com/turbotax-support/en-us/help-article/internal-revenue-service/federal-refunds-delayed-due-path-act/L5jnQJsBi_US_en_US   Note:  “Accepted” is not the same as “approved”.  TurboTax tells you the e-file was accepted if the IRS deems that there is enough information on the return for them to take it in for processing.   Only the IRS can approve of the refund, which is a later stage of processing.  If the IRS approves your refund they will provide a date for the refund to be issued.   FROM THE IRS WHERE’S MY REFUND SITE: https://www.irs.gov/wheres-my-refund How it works Where's My Refund shows your refund status: Return Received – We received your return and are processing it. Refund Approved – We approved your refund and are preparing to issue it by the date shown. Refund Sent – We sent the refund to your bank or to you in the mail. It may take 5 days for it to show in your bank account or several weeks for your check to arrive in the mail.

@ReneV4    Thanks so much, this is extremely helpful! One last question: is it better to do what you suggested here or to ask state Dept of Transportation to send me an amended 1099-MISC showing $0 as opposed to $700 (not sure they will do that).

Thank you I reviewed your return. It seems the basis numbers were imported data from the previous year. You might want to check your previous IRA Information Worksheets.   If you are certain that you do not have any basis in any traditional IRA then you can delete the entries with these steps:   Login to your TurboTax Account  Click on "Search" on the top right and type “IRA contributions”  Click on “Jump to IRA contributions" Select “traditional IRA” Continue until you get to “Did you have any nondeductible IRA contributions to your traditional IRA from 2024 or prior years?” and select “Yes”  Enter $0 and continue Repeat for the spouse.   @debradefreyn 

After you enter your first 1099-NEC, there is a button underneath the summary box that says Add a 1099-NEC.   To get there take the following steps: Business Update next to your business Edit next to your business Business Income Start or Update next to 1099-NEC Yes to Did you get a 1099-NEC Enter your 1099-NEC On the screen that says Review your 1099-NEC summary select Add another 1099-NEC  

TurboTax does not and cannot receive any type of tax refund, federal or state.   Only the IRS and your State control when and if a Federal or State tax refund is Approved and Issued.   Once a tax return has been Accepted by the IRS or a State, TurboTax receives no further information concerning the tax return or the status of any tax refund.    If accepted by the state use this TurboTax support FAQ to check the state tax refund status - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/track-state-refund/L3jgO8PGs_...

You are correct in your assessment that net operating losses can be carried forward until you have a year in which you have income to apply them to. Also, if you don't have a profit motive for your venture the IRS may consider it a hobby. If that happens, you would be precluded from deducting all expenses accept for cost of goods sold and that may invalidate your net operating loss. You may find this Intuit article helpful in determining if you have a hobby or a business.   @user17703295984 

Why do you believe you should be getting more back?  What is your filing status?  Married, Single, Dependents?  Are you a dependent on someone's return?  How much money did you make?  How much money did you have withheld from your pay?  More or less than last year?  Any side gigs? Did you have Overtime or Tips?  Do you qualify for any credits or deductions?  Did you have a child that turned 17 during 2025?  Did you have more than one job?   All of the questions above are factors in how much you get back or even how much you owe, so there is not a standard answer that tells everyone why they are getting what they are getting back without looking at their specific numbers.     Here are the basics of how taxes work. During the year you receive income.  (W-2's, Side Gigs, Self-Employment, Retirement, etc.) The employer withholds taxes based on what they pay the employee and what the employee entered on the W-4 they filled out when they were hired.  If you have a side gig, you should be making quarterly payments for self-employment taxes, although many people do not do that which can create a penalty at tax filing time. You fill out your taxes at the beginning of the next year to see what your actual tax liability is on what you earned throughout the year You consider any type of deductions you may have to lower your taxable income to hopefully pay less taxes Some of these deductions include Tips, Overtime, Car loan interest, student loan interest, IRA contributions, one half of self-employment taxes, and HSA contributions The number after all the deduction is your taxable income, then a table is generally used to determine the amount you are actually liable for (there can be other situations that will cause this to be more complicated, I am simply going over the basics) Then any credits you may qualify for are subtracted from your tax liability.  Some credits are non refundable, which means they will lower your tax liability down to $0 but will not be refunded to you.  Others are refundable which means if your tax liability falls to $0, it can add to your refund.  You then match your tax liability to what your employer withheld and payments you made to the IRS If the withholdings and payments are more than your tax liability, you will then get a refund of the difference. If the withholdings and payments are less than your tax liability, you will then have to pay the difference when you file your taxes. Note. This is the basics, situations can be more complicated, but it all comes down to your tax liability versus what you paid in and refundable credits.    So if you are 25, single and have no dependents, and earn $40,000 a year, your employer likely would have withheld around $2,671 for your federal taxes.  If they did and you file your return with no adjustments, then your tax liability would be $2,671 and you would have no refund and would not need to pay in anything either.  You would basically break even. Now in the same scenario above add in that you do Door Dash on the side and earn an extra $5,000 doing Door Dash.  They do not withhold taxes so if you did not make payments throughout the year, you would now have to pay in self employment taxes of 15.3% ($765) and about an extra $600 for federal taxes.  In this case you would then owe $1,365 when you file your taxes.   Now if you have a 2 year old child and don't do Door Dash, but the employer withheld the exact same amount you would be getting a refund of $2,200 because your tax liability would have been lowered by $2,200 so you would get that amount back and the IRS would only be keeping $471.

Do we know why such a delay this year? The IRS released the forms in mid-Jan and they shouldn't have changed much. Everything followed normally timelines. What's driving the delay this year and why do I have to come here to ask about timeline to correct this issue? Why is it not communicated online accurately (currently says by Feb but maybe earlier - which is inaccurate)?

The answer I received was not helpful, because I was told I had been refunded for the product.  I was refunded for a different product.  I solved the problem when I determined that the License Code provided during the download was actually for the refunded product.  The correct License Code was on the receipt for the original purchase.   Overall, the customer service experience was very bad.  While I eventually spoke with someone who was quite nice and tried to be helpful on the call, the answer emailed to me was incorrect.  Furthermore, you make it far too difficult to reach a human for technical support.  I like this product that I’ve used for decades, but find the customer service to be among the poorest I’ve ever had to deal with, mainly because it’s nearly impossible to get a human response.  You even make getting the phone number nearly impossible.

Thank you for showing me the information.   @SusanY1 wrote: TurboTax accepts the information for assistance in calculating this, but disregards it when it determines there is no taxable distribution.   This is the problem that I've been having!  TurboTax accepts the information but does NOT disregard it.  There is no place for me to enter the tuition paid amount, so TurboTax adds the distribution to my taxable income and charges me a penalty.   In the past I've been able to enter the tuition paid and TurboTax has correctly determined it was not a taxable distribution.  Not this year.