All Posts

Dear Karis_F,   I agree: what you recommend "should work", but it doesn't.   When I enter the screen asking me to allocate my W-2 wages, I have boxes to enter the correct allocation of (a fraction) of the year-long income into the NC PY time period. I do enter this amount, and TurboTax notes the correct tax due in the state pop-up. But, when I do a final review (or a state review) TurboTax change the PY amount that I entered into the box and substitutes the full amount. (Obviously, this increases my tax due amount.)   When I look at NC Form D-401 (NC Instructions) page 21, NC instructs how Form D-400 PN Line 1 should be entered. In Column A, enter the full amount. In Column B, enter the NC allocation. Well, no matter what I have tried (and I've redone the state taxes many times), Column B on Form D-400 PN Line 1 always is equal to the full year amount in Column A.   This is a TurboTax error. I suppose that I have no choice but to complete my NC State Return Manually.   Any advice would be very much appreciated!   Sincerely, Mike

That's the way it works. In TurboTax Online there is no way to do what you want. "Cancel Amend" removes the Form 1040-X, but it does not undo the changes that you made for the amended return. You have to go back to any entries that you changed and manually change them back to the way they were before you amended. In TurboTax Desktop you can save a copy of your original tax return with a different name, then use the copy to prepare the amendment. You still have the original tax return with no changes. If necessary you can make another copy of the original to start the amendment over again.  

Confirming what @MinhT1  said,  The 1099-Q is  only an informational document. The numbers on it are not required to be entered onto your (or your student's) tax return. The interview is complicated and it's easy to make mistakes. Avoid it if you can and you probably can.  You can just not report the 1099-Q, at all, if your student-beneficiary has sufficient educational expenses, including room & board (even if he lives at home) to cover the distribution. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms. But, it will prepare a 1099-Q worksheet for your records (you don’t need it). You would still have to do the math to see if there were enough expenses left over for you to claim the tuition credit. You also cannot count expenses that were paid by tax free scholarships. References: On form 1099-Q, instructions to the recipient reads: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."  IRS Pub 970 states: “Generally, distributions are tax free if they aren't more than the beneficiary's AQEE for the year. Don't report tax-free distributions (including qualifying rollovers) on your tax return”. "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."  Another thing for consideration; room and board are qualifies expenses for a 1099-Q (529 distribution). Rather than using all the after scholarship tuition for the 1099-Q, allocate his room and board to the distribution (also books and computer)  to free up some tuition for the Lifetime Learning Credit (LLC).  Grad students are not eligible for the more generous American Opportunity Credit (AOC or AOTC).  

Form 8615 is triggered if you meet all of these conditions:   Age: You were under 19 (or under 24 and a full-time student) at the end of 2025. Income Type: You have more than $2,700 of "unearned income" (this includes taxable scholarships used for room/board, interest, dividends, or capital gains). Support: Your earned income (wages from a job) did not provide more than half of your own support. Parents: At least one of your parents is alive. The software won't let you submit because Form 8615 requires your parent’s taxable income and filing status to determine if your investment/scholarship income should be taxed at their (usually higher) rate. As a result, you would need to get this information from your dad.   His Taxable Income (appears as AGI on Line 11 on the 1040) His Filing Status (e.g., Married Filing Jointly) His Social Security Number (for the form's header)        

Why was 3,420 on the 1099-SA form? Was this the amount in box one? What was the distribution code in box 3?   I am not sure what you are trying to ask. How did you use the 1,163 for medical expenses? Did you use a debit card given to you by the HSA custodian? Have you already spent the money on medical expenses and you are trying to reimburse yourself?   Did you ask to withdraw 3,420 from your HSA? If so, for what reason? Please clarify what you are trying to do.

  In TurboTax Online, this is how to get to the estimated tax payments screen: Open your tax return Click on Federal in the left-hand column, then Deductions & Credits Navigate to the list of Deductions and Credits  Locate the section named Estimates and Other Taxes Paid and click on the arrow on the right  Click on Start next to Estimated Tax Payments On the next page, click Start next to Federal estimated taxes for 2025 (form 1040ES)

To clarify: what state tax return are you filing? And what section of the return includes hyphens that are causing an issue?   If you have not filed your state return yet, you can go to the State Taxes area in TurboTax Online, select Edit next to your state return, and make any necessary changes within the return.

The answer is Yes, with some big caveats:   1. The income is from a qualified retirement plan or individual retirement account (IRA) 2. The income for the subtraction is federally taxable 3. The income has not already been removed from Wisconsin income on lines 12 through 15 of this schedule (2025 Schedule SB - Subtractions from Income) 4. Caution: if you claim this subtraction, you may not claim any tax credit on Schedule CR and on lines 13 through 20 and 30 through 35 of the Form 1. This means:  • Completely foregoing any credit that would be originally computed for 2025, including any amount of the credit that may have been carried forward to a future year, and  • Being unable to utilize any credit carried forward from a prior year to offset your 2025 tax.   Having said all that, the mere fact that your spouse receives a pension does not seem to prevent you from taking this credit...but all the caveats must be followed.

Thank you @MonikaK1 for your response.   I did make the Q1, Q2, and Q4 payments in the correct amount on the correct dates to meet the 110% payment of my 2024 taxes owed. And I continue to believe that the calculation of Line 5 is in error.   However, I discovered that California has a "new" law requiring payment of 90% of THIS year's tax if your taxable income exceeds $1M. (A new situation for me this year.) Since I've never exceeded that threshold prior to this tax year, indeed I have underpaid the required amount.   However, I don't believe that Line 5 should reflect that and I still believe the calculation for Line 5 is incorrect. Line 6 is where this should be addressed. There it says: "Required annual payment. Enter the smaller of line 2 or line 5. (If your California AGI is equal to or greater than $1,000,000/$500,000 for married/RDP filing a separate return, use line 2)"   Again, the Line 5 calculation is incorrect but in my case I don't believe it will affect the overall calculation of any underpayment because Line 6 correctly uses the number from Line 2. Note that TurboTax has filled in Line 5 with the same number as Line 2 for some reason and I believe that is an error, but it does not affect my outcome.   I will file my taxes and let the state determine what, if any, penalty I owe.

I use the desktop version. 1098-T is in the beneficiary name (the child), and the 1099-Q is in my name. I cannot put someone's else 1098-T on my return. In fact TT does not even allow it, there is no option to add 1098-T except for the persons on the return. I would assume this is not a rare situation, when parents open the 529 in their name and dedicate their child as the beneficiary. In previous years I could handle this situation in 1099-Q section by simply stating the distributions were used for room and board, tuition etc. Now I cannot, and 1099-Q automatically becomes taxable. Yes, I just deleted 1099-Q, and it helped, but this is misleading. There should be at least some guidance in the 1099-Q interview for the situation like this. My situation is simple, the entire distribution is qualified, so I can just drop 1099-Q. What if someone made the distribution for the child, then figured out only a part of it is qualified?

ahhh i see why this is a problem. thanks for your response! Supposedly they are fixing this...last i heard someone else wrote they spoke to turbotax and the new date for a fix went from mid february to mid march...but that is just hear say...i haven't heard that from an official turbotax employee...is this the latest? 

There are no e-file fees when using the TurboTax online editions.  The TurboTax account fees are for the use of the software to assist you in completing a tax return.  The account fees have to be paid whether the tax return is e-filed or printed for mailing.

Your fee for using TurboTax is the same whether you e-file or mail the return in an envelope.  The fee is for using the software, not for e-filing.   If the e-file was rejected, you can try to fix it and re-file or you can print it, sign and date it in ink, and file by mail.   If it was rejected---what is your rejection message or rejection code?