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Based on your description, it sounds like you have a Bond from an organization that went bankrupt.  If their bankruptcy filing has been completed and you received nothing for your investment with them, you would report this as a worthless security using a sale date of 12/31/2025.  If bankruptcy proceedings are still ongoing, there exists a possibility that you could receive payments from them for the worthless bond, in which case you should not file this as a worthless security.  Be sure to keep records of bankruptcy filings, news articles, etc. related to the company as proof that you will not receive anything.   In TurboTax Premier Online, follow these steps.          Down the left side of the screen, click Federal. Down the left side of the screen, click Wages & Income. Click the down arrow to the right of Investments and Savings. Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B). Click Add investments. On the Let's import your tax info screen, select Enter a different way. On the OK, let's start with one investment type screen, select Stocks, Bonds, Mutual Funds, then Continue. At the screen Which bank or brokerage, enter the information.  Click Continue. Do these sales include any employee stock, enter No. Do you have more than three sales, enter No. Do these sales include any other types of investments, enter No. Did you buy every investment listed, enter Yes.  Continue. On the screen Now, choose how to enter your sales, select One by one.  Select Continue. At the screen Look for your sales on your 1099-B, select Continue. You will now be able to enter $0 total proceeds (sales) and your cost basis, along with the sales category (likely long term basis (over 1 year holding period) not reported to IRS).  Use 12/31/2025 as the sale date.  You will need to have the date of purchase entered also.  In the description, use the word Worthless.  Select Continue. At the screen Review your sales, select Add another sale as necessary. When completed, close the record and click Continue.  

Those questions aren't connected to line 32a of Form 5695.  (Or if, somehow, those questions are connected to line 32a, the software does not work.)  As I've pointed out repeatedly, TurboTax shows a credit of $1406, but this is $406 over the $1000 cap (50% of $2000).   When will this be fixed??

Once your return is filed, TurboTax has no control over the processing or the timing when the IRS releases your refund.    The IRS states that most federal tax refunds are issued within 21 days of acceptance, however, some may take longer if they require additional review. Also, by law, the IRS cannot issue EITC or ACTC refunds before mid-February. This applies to your entire refund, not just the portion related to those specific credits.   Here are a few FAQs to help you track your refund: When will I get my federal tax refund? How do I track my state refund? Why does Where's My Refund say "approved" but TurboTax still says "accepted"? Why do some refunds take longer than others? What if my IRS refund is taking longer than 21 days?

Yes, the worksheet is trying to give you credit. It does this first so you need to make an adjustment. Follow these steps: Open to federal deductions and credits Select education Edit next to the son with the taxable distribution Continue through to Your Education Expenses Summary Edit Education information Continue through to Amount used to calculate education credit/ deduction (this only appears after enter both Q and T. Always enter Q first. Your $10,000 issue shows, change it to zero. Finally, if there is still an issue, just follow IRS guidance and remove the Q since it isn't taxable.  IRS Publication 970, Tax Benefits for Education states: If the entire 1099-Q went to qualified expenses, room and board, tuition, etc then you do not need to enter the form. 

Actually, I already have heard back. They agreed with TurboTax, limit $10,000. I responded that their instruction booklet did not indicate to do that, nor how to do that. We'll see if I hear back again.

Yes you want to include the Form 8833 with your federal tax return.  While the qualified intermediary did receive the information for the withholding purposes, it is always best to provide the details with your tax return.  This affirms your position on the income instead of relying on the 1042-S which the IRS does not necessarily review.   Taxpayers use this form to make the treaty-based return position disclosure required by Internal Revenue Code section 6114. Dual-resident taxpayers use this form to make the treaty-based return position disclosure required by Regulations section 301.7701(b)-7.  About Form 8833

Try entering 0.   The IRS uses your prior year AGI to combat fraud. Make sure you take into account the information below.   You can find your 2024 Adjusted Gross Income (AGI) by: Looking at line 11 on page 1 of your 2024 Form 1040 Requesting a transcript of your 2024 tax return from the IRS. You can request your transcript online at the following link: Get Transcript Please click on this TurboTax article for more information.    Check these items as well to ensure you have the correct number.  If you:  Filed late last year after mid-November or your return was processed after that time—try entering 0. Amended your return last year—make sure you’re using the AGI from your original return, not the amended one. (If you only have a 1040X form, it’s on line 1, column A). Rounded your AGI to the nearest dollar—be sure to round up when it’s 50 cents or more and down when it’s 49 cents or less. Filed with your spouse last year—you and your spouse have the same 2024 AGI. (Don’t split the AGI amount or enter  0  for one of you).   Time-saving Tip: If what you entered is correct and you continue to get a reject, you won't be able to e-file. There's probably a data mismatch at the government, or some other situation beyond your control that prevents your return from being e-filed. In this case, your only option would be to print and mail in your return.    This article will give you instruction on how to print and mail your return. 

Yes, double dipping is not allowed. But you are allowed to split up the expenses in claiming the available tax benefits.  Since the AOTC is the most generous benefit, he should claim that even if some of the 529 distribution earnings is taxable on your return.    It takes $4000 of tuition to get the maximum AOTC.  But, if he's only getting $1000 AOTC, it usually means he has no tax liability ($1000 is the refundable portion of the $2500 [maximum] AOTC).  If he only uses $2000 of tuition, his refundable AOTC will be $800.     You need to do the math to decide how to split up the benefits. Roughly it's sounds like you can do both. He uses $4K of tuition, leaving $10K for your 529 distribution. That plus what you paid for room and board should get you to the $16K distribution.      Provide the following info for more specific help: Box 1 of the 1098-T box 5 of the 1098-T Any other scholarships not shown in box 5 Does box 5 include any of the 529/ESA plan payments (it should not) Is any of the Scholarship restricted; i.e. it must be used for tuition Box 1 of the 1099-Q Box 2 of the 1099-Q Room & board paid. If student lives off campus, what is school's R&B on campus charge. If he lives at home, the school’s R&B “allowance for cost of attendance” for student living with parents. Other qualified expenses not included in box 1 of the 1098-T, e.g. books & computers How much taxable income does the student have, from what sources When he went to school before, how many times did you claim the AOTC or Hope credit? Is the student an undergrad or grad student? Is the student a degree candidate attending school half time or more?

If you didn't file a 2024 return your AGI is 0.   Try entering 0 for the AGI. The IRS might have processed your return later so the AGI didn't get entered in time.  Especially if you mailed it.  That works for most people. See, https://ttlc.intuit.com/community/rejections/help/what-if-i-entered-the-correct-agi-and-i-m-still-getting-an-e-file-reject/00/27031 How to correct the AGI in the Online version https://ttlc.intuit.com/community/agi/help/where-do-i-correct-my-agi-in-turbotax-online/00/26311 If you can’t get it to efile you will have to print and mail it. https://ttlc.intuit.com/community/printing/help/how-do-i-print-and-mail-my-return-in-turbotax-online/00/26258 Be sure to attach copies of your W2s and any 1099s that have withholding on them.  You have to mail federal and state in separate envelopes because they go to different places.  Get a tracking number from the post office when you mail them for proof of filing.

@taxrar181966 , agreeing with @DaveF1006  for his correct and expansive/complete reply, just wanted to point out that : (a) form 1116  when applicable  ( i.e. when the safe harbor  of US$300  per filer  cannot be used ) has a limit of allowable  Foreign Tax Credit  based on allocation of  US tax liability on the same doubly taxed foreign source income --- it is the lesser of  FT actually paid / accrued and  US taxes imposed on the same  doubly taxed in come; (b)  no matter which Foreign Tax credit  computation is used/applicable, FTC is a Non-Refundable Credit i.e. the usable amount of credit  is  limited by the Federal Tax Liability on world income before  application of  FTC.  Thus if the US  federal Tax liability is  US$429, and  the foreign taxes  paid is  US$500 , the FTC used will be only US$429 and not US$500. Does this make sense ?