All Posts

For the capital gains tax rate to be 0, the total income on the return (including the gain), must be under $48,350 for single filers and $96,700 for married taxpayers filing a joint return.  If the total income on the return is under this amount, the capital gain income could be affecting credits or other items on the return that would reduce the refund.      

Sorry. It is phased out for EACH spouse. Fill out Sch 1-A yourself and see. It's pretty easy. Then why would they even have 2 lines 36a and 36b for spouse? IRS Schedule 1-A https://www.irs.gov/pub/irs-pdf/f1040s1a.pdf IRS EXPLANATION See IRS instructions for 1040 page 110 https://www.irs.gov/pub/irs-pdf/i1040gi.pdf If you are married and filing jointly, both you and your spouse were born before January 2, 1961, and you both have a valid SSN, the maximum amount of the enhanced deduction for seniors is $12,000. The $6,000 per person amount is reduced if your MAGI is more than the amount shown next for your filing status. It says PER PERSON. Also then why would they even have 2 lines 36a and 36b for spouse on Schedule 1-A?    

You can't do your 2024 and 2025 taxes on the same tax return.  You can however,  prepare your 2024 taxes using a 2024 TurboTax Desktop program, but not in the Online program.     You can not e-file the 2024 return.  You will have to mail it in.   Click here for How do I file my return by mail? New this year to TurboTax! You can have your 2024 tax return prepared using TurboTax Full Service. As long as you do it with your 2025 tax return.    When you select TurboTax Full Service, a dedicated tax expert will prepare your tax return(s) for you.  You will set up a welcome call with an assistant and they will answer any questions you may have. The TurboTax assistant will also confirm the documents your expert will need to prepare your taxes. You will be able to upload your documents straight from your computer, or you can use your phone to capture or scan paper documents. You can use this link, click here to start the process. Make sure to select "Prior year not filed" in the interview questions.   For additional information, click here for How do I file a prior-year tax return?   Click here for How does Full Service work? Please return to Community if you have any additional information or questions and we would be happy to help.

If you know that you have taken your required RMD for 2025, in TurboTax when you enter your 1099-R, indicate that the RMD amount was the same as the distribution amount and choose 'entire distribution was RMD'.     Although not accurate, this will prevent Form 5329 incorrectly assessing a penalty when you have multiple retirement accounts.  Neither the IRS nor TurboTax knows what your RMD should be.  The IRS assumes that your plan administrator will ensure that your RMD requirement is met, except in unusual circumstances.  When that occurs, an explanation and request for waiver of penalty are shown on Form 5329, and waiver is usually granted.   Here's more info on Form 5329.   @harveymm     

There will be a button to click on when going through the filing steps.   When you get to the How would you like to receive your federal refund? screen, select See other options then the last option: Split my refund between multiple bank accounts or U.S. savings bonds. Then select Continue.   How do I split my refund into 2 different accounts?

TurboTax hace muy simple el proceso de terminar tu presentación de impuestos, solo sigue las preguntas hasta que completes todos los pasos necesarios.  Si necesitas ayuda adicional con tu declaración puedes elegir TurboTax Live en tu declaración de impuestos para recibir ayuda de un experto bilingüe que te puede ayudar a revisar tu declaración.     ¿Cómo obtengo TurboTax Live?

When I click on review for my federal return that’s where I see the cap of the 10,000. It will only let me do a $10,000 deduction not 40 and then it says $10,000 cap for 2025 . There is a screenshot

You cannot change or add anything on the return that you just e-filed, nor can you stop it.  It is too late, just like when you put an envelope in a US mailbox on the corner.  The IRS does not allow you to take it back.   If you left out a W-2, a 1099G, or a dependent, or a 1099 etc…DO NOT change your return while it is “pending.”  The changes will go nowhere.   Now you have to wait until the IRS either rejects or accepts your return.  If your return is rejected, you will be able to go into your account and make the necessary changes to your tax return and re-submit your return.     If the IRS accepts your return, however, then you have to wait longer until it has been fully processed and you have received your refund.  THEN you can prepare an amended tax return and e-file or mail  it in. You have to be able to work from that return exactly the way it was when it was e-filed originally.  You will need to use a form called a 1040X.     Meanwhile, DO NOT go in and start changing anything on your return in the system, or you will make a mess for yourself.  Sit tight and wait until you see what the IRS does with the return you just e-filed   The Form 1040X you need becomes available in late February,  But wait until your return has been processed.

Make sure you have entered your child as a dependent in My Info, and that you have entered the child's Social Security number.    Careful— do not say that your child’s SSN is not valid for employment.  If your child was born in 2025 make sure you said he lived with you the whole year.  There is an oddly worded question that asks if the child paid over half their own support.  Say NO to that question.   If your dependent was a full-time college student, make sure you were careful on the MY INFO screen for “Uncommon situations” and that you indicated there that they were a student.

Delete that return with the corrupted tax file.   Update your software, make sure there are no password or other type of protections/encryptions on your tax file.    Then start a NEW tax return and go through the transfer process again.      Transfer last year's return to TurboTax Desktop for Windows   How to Transfer 2024 tax file to TurboTax Desktop for Mac 2025

Electronic Form 2848 submissions are typically processed in about 6-business days only when filed through a Tax Pro Account (CPA, EA, or attorney).   Submissions made through an individual taxpayer’s IRS Online account generally take longer.    You can check the IRS account to see whether the authorization has been posted, though status updates aren't always available.    If time-sensitive, you can call the IRS and, once connected to an agent, fax a signed paper copy of Form 2848 directly to them. This is usually the fastest alternative.