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Unfortunately, TurboTax Desktop does not yet have the Tips included in box 1 of my W-2, but not in boxes 7 or 14 after entering your W-2 in the special circumstances but they updated TurboTax Online a month ago.  3 Desktop updates over the weekend but not a fix yet.  Any idea when Desktop will be updated for this function?  Very frustrating.  

At this time, tax year 2025 Michigan Schedule 1 Line A and MI-1040 Line 30 are unsupported in TurboTax.    You can enter MI tax withheld from a flow-through entity that was reported to you following these steps: Open your return and navigate to Wages & Income >> Deductions & Credits >> Estimates and Other Taxes Paid >> Estimates >> State estimated taxes for 20XX. Add another payment. Choose Michigan from the drop-down, enter the date paid, and the amount. Continue to view the confirmation page, then click Done. This entry will be reported on the MI Tax Payments Worksheet under Tax Payments for the Current Year and flow to Form MI-1040 Line 32.   Although this work-around omits the K-1 reporting, you will report the state tax paid on your behalf to reduce your state tax liability (if any).

Reading your question, I am not sure if you entered this correctly so I will give you complete steps on entering the sale information and for claiming the foreign tax credit so there is no confusion on your part. To report the sale and sales tax, enter in this exact manner.   Go to Federal > Wages & Income. Find Investments and Savings (1099-B, Stocks, etc.) and click Start/Review. Click Add investments and select Enter a different way. Choose Other (for land or second homes). Enter the details of the sale (Sale Price, Date Sold, and your Original Cost). Here, you can deduct the sales tax from the sale price to reduce the capital gain on the sale. Now here is an important distinction on claiming the foreign tax credit. The IRS only allows a Foreign Tax Credit (FTC) for "Income Taxes" or "Taxes in Lieu of Income Taxes." If the foreign country charged you a Sales Tax, Value-Added Tax (VAT), or Stamp Duty (a tax on the transfer of the deed), this not eligible for the Foreign Tax Credit on Form 1116.  Here is how to tell.  Income Tax / Capital Gains Tax: This is a tax calculated on your profit (Sale Price minus your Purchase Price). If the tax was based on the "net gain" from the sale, it is a "creditable" income tax. Sales / Transfer / Stamp Tax: This is a tax calculated on the total sale price or a flat fee for the transaction. If you had owed this tax even if you sold the land at a loss, it is a transaction tax, not an income tax.   If you feel this was an income tax based on the parameters listed above, here is how to claim the foreign tax credit.    Go to Deductions & Credits > Estimates and Other Taxes Paid > Foreign Taxes. Click Continue until you see the screen: "Do you want to take a credit or a deduction?" Select Take a Credit. You will see a summary of your 1099-DIV foreign taxes.  Make sure all income is reported by clicking on the boxes until you are done. Once you are in the summary screen you should get a prompt asking if you have more income to report than the 1099 DIV. Pay attnetion on how that is worded so that addtional income may be added. Click "Add a Country" (do not edit the existing 1099-DIV entry). Select the Country where the land was located. On the screen for "Income Category," select Passive Income (this covers capital gains from land sales). The "Gross Income" Screen: This is where it asks for the source of the income. Enter the Total Sale Amount (in USD) from the land sale. The "Foreign Taxes Paid" Screen: Enter the Sales Tax/Transfer Tax you paid to that country here. Again, I cannot undermine the importance of determining if this is a sales tax or an income tax based on capital gains.  if you determine this is an income tax and you are taking a credit, go back and add back in the tax where you entered the sale of the house. This was in step 6 of the sale information I provided in my first set of steps. You are not allowed to double-dip on your tax benefits.   @VSN7    @rgoutham            

We would like to research this experience further. It would be helpful to have a TurboTax ".tax2025" file that is experiencing this issue.   You can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, please follow these instructions:    In TurboTax Online, open your return, go to the black panel on the left side of your program and select Tax Tools.  Then select Tools below Tax Tools. A window will pop up which says Tools Center. On this screen, select Share my file with Agent. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. You may wish to snap a screenshot to post instead of the actual number. Reply to this thread with your Token number (including the dash) and tag (@) the Expert requesting the token from you. Please include any States that are part of your return - this is VERY important. If you are using TurboTax for Desktop, go to Online in the top menu, then choose "Send Tax File to Agent."   We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and provide you with a resolution. 

@pk, thank you for your note – and, I agree with your analysis.   To explain the issue using your numerical example, TurboTax displays a screen entitled “Any foreign source qualified dividends or long term capital gains?" during the Foreign Tax Credit interview.  On that screen, TurboTax prompts the user to enter “foreign qualified dividends and l.t. capital gains.”  When $800 is entered, TurboTax displays the error “this field should be at least $950” (where $950 = “total foreign income for this category” = Box 1a x 95%).  However, based on the supplemental tax reporting information provided by the mutual fund company, the correct answer to the question is indeed $800 (= Box 1a x 80%) – which, of course, is less than the $950 minimum required by TurboTax.   Any insight on why TurboTax might be reporting this error?  And, more importantly, how do I circumvent this issue and enter the correct amount for “foreign qualified dividends and l.t. capital gains”?   Thank you for your assistance.

Please update here if you continue to experience the error.   It's possible to print your actual city return and then use the TurboTax city return to complete it. Also, you do have time to wait to see if any update changes the printing.   @kwcoffman 

The desktop version of form 5695 has a glitch that causes it to deny users the tax credit. On line 31 of the form in the Energy Efficient Home Improvement Credit Limit Worksheet, on the first line of the Worksheet it is supposed to auto-fill the amount on Form 1040, line 18, and it does not.  The end result of this glitch is that the calculated amount of the credit ends up being zero, even when the user is indeed eligible for the credit.