All Posts

No, the QBI deduction doesn't reduce your SEP contribution. Instead, the SEP reduces your QBI deduction. Here is an explanation of how this flow works.   Gross Business Income - Expenses = Net Profit Net Profit - 1/2 SE Tax = Adjusted Net Earnings Adjusted Net Earnings × 20% = Max SEP Contribution (Adjusted Net Earnings - SEP Contribution) × 20% = Potential QBI Deduction Assuming $213,665 is the adjusted net earnings amount, your maximum SEP contribution should be  $42,733, and the QBI is $34,186. Based on this, it sounds like there's an entry mistake or calculation mistake. Additionally, the $29,000 for your QBI is calculated using the $70,000 maximum SEP contribution.   I would suggest the following.    Delete and Re-calculate. Go to Tax Tools > Tools > Delete a Form. If using TurboTax desktop, go to the forms mode in your program. Find the Keogh/SEP/SIMPLE Contribution Worksheet. Delete it. Log out or close your return to save your changes. Reenter the  "Self-Employed Retirement" section. This should pull your data from Schedule C and provide a cleaner copy. If this doesn't work, we may need to see a diagnostic copy of your return to determine if the worksheets are calculating your SEP contribution and QBI correctly.   @peterhsiegel         

Since you have code 7 in box 7, it means the bank processed a Distribution and a New Contribution rather than a Recharacterization. This is why you received a 1099-R with Code 7 (Normal Distribution).   Because the funds were moved immediately and you intended them to be Roth contributions all along, you can treat the 1099-R as a Rollover rather than income.   Follow these step to enter your 1099-R: Go to Wages & Income > Retirement Plans and Social Security > IRA, 401(k), 703(b) (1099-R). Enter the 1099-R exactly as it appears (Code 7 in Box 7). Continue through the follow-up questions. When asked "What did you do with the money?", select: "I moved the money to another retirement account (or returned it to the same account)." Then choose: "I rolled over all of this money." (Since the full $2,000 went into the Roth IRA). When asked if the money was rolled into a Roth IRA, say Yes. After you have completed this, you can check your Form 1040, Line 4. Line 4a (IRA Distributions): Should show the $2,000. Line 4b (Taxable Amount): Should show $0 (or just the amount of any other actual distributions you took). The Word "Rollover": You should see the word "Rollover" printed next to Line 4b on the actual tax form.

If you are going to use the Standard Deduction, the Personal Property Tax will make no difference.   However, in the Online version, follow these steps for Personal Property Tax Log into TurboTax Select Deductions & Credits Scroll down to Personal Property Taxes Edit You can delete the amount If you don't you may get the message Right now, the Standard Deduction saves you the most on your taxes. In this case you do not have to do anything. If you're in the Desktop version Under Federal Select Deductions & Credits Under Cars and other things you own Pick Personal Property Taxes If anything is posted click Update Click the small arrow on the right Select Delete @TWDesigns [Edited 02/04/2026 : 6.24 AM PST]  

We could fill out the form by January 31.  The problem is when you go to file, if you are using the QMID number, I7Q6 it will NOT be accepted.  And this is a TT issue not a IRS problem.  Shame on TT we all deserve a refund, which we are pushing personally.  We used H&R Block and it went through without a problem.

@trsps1    Well, now that you can look at your form 1040SR....the reason for a larger than normal refund  (But not if a "massive" one)  could be 2 increased deductions for seniors.   1)  If you end up with using the Std Deduction, that is much larger for Srs....that's on line 12e of the form 1040   2)   And new for 2025 taxes, an additional deduction "up-to" 6,000/spouse over age 65....i.e. as much as  12,000 if both spouses were at leas age 65 during 2025.  That extra deduction shows up as part of, or all of line 13b on the form 1040.  (I say, it can be "part of" line 13b, because a couple other new deductions may add into that line  ((overtime, tips and certain vehicle loan interest situations)

No.  You cannot claim the renters credit for Indiana.  in order to claim this credit, it must be your principal home. Even though you are paying for your daughters home, your principal home is the one you live in most of the time.  Also, since your daughter does not pay the rent, she cannot claim the Indiana Renters Credit as one of the criteria is that the person/people using it as their principal resident must be the ones paying the rent.   

Yes, your understanding is correct as long as she did not remarry.  If that is the case (she sold within 2 years and had not remarried) you can enter the stepped-up value as the "Adjusted Cost Basis" of the home and continue to see if the program then gives her the full 500,000.   On the "Home purchase info" screen select "Yes, I will enter the amount" Do not use "No, I would like some help top calculate it"          

Form 4562 is only ready for Schedule C and F. The Schedule E area is currently being updated.    The software should be updated after 02/13/26, but our tech team is working hard to have those updates before that date.

A full or corrupted cache can cause problems in TurboTax, so sometimes you need to clear your cache (to get to the screen to pop up). This article provides the steps on how to clear you cache depending on your browser.   Also, keep in mind  that entering your HSA contributions in TurboTax requires a two-step process. First, the HSA information is entered in the Wages & Income section using the W-2, Box 12, Code W. Second, you must also input the information in the Deductions & Credits section under HSA, MSA Contributions.    

The OBBA has introduced a new deduction for overtime pay from tax year 2025. You may deduct up to $12,500 of qualified overtime premium on your Federal tax return (up to $25,000 for MFJ). The deduction is gradually phased out if your MAGI exceeds $150,000 ($300,000 for MFJ). The deduction is for the overtime premium, which is the portion over your regular pay.   For tax year 2025, your employer may list non-taxable overtime in box 14 of form W-2 with a specific label like "FLSA OT Prem". You might also receive a separate year-end statement giving you the amount. Otherwise, you have to calculate the overtime premium to enter on your tax return.   In TurboTax Online, this is how you enter the qualified overtime premium:   After entering your form W-2, you'll see a screen titled Let's Check for Other Situations Put a checkmark on Overtime and click Continue Follow the TurboTax questionnaire to enter your qualified overtime premium This deduction will transfer to Schedule 1-A of your form 1040, with that amount flowing to line 13b of your form 1040.

You should receive an email from ARAG with the next steps.    Be sure to check your spam folder if you did not receive it in your inbox.    You may also reach out to ARAG directly at their Contact Us page for assistance.   Or see this TurboTax Help.    @kimpatin