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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