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Thanks for the detailed response. Yes it is a post taxed dollar contribution and all the criteria for saver's credit is met. I am not looking for dollar for dollar match grant but the credit/deduction for the contribution to ABLE account for NJ state return. The problem is that Turbo Tax is not even allowing me to enter that contribution. When I click on retirement contribution, it just giving message that I don't qualify. That could be the right message for federal but still it should allow me to enter the contribution made in 2025. First time opened the account and contributed.   Even Google Gemini also says that it should allow in retirement section and NJ state allows the deduction.

"At this point I have to remove it, but believe I can do so without removing more earnings, thus no MAGI increase issue."   Correct.  You must do this by obtaining an ordinary distribution of $280 from the Roth IRA, not a return of contribution, reported with code J, T or Q, not code P, on a 2026 Form 1099-R   Because this is a distribution of contribution basis, this ordinary Roth IRA distribution will not be subject to any income tax or early-distribution penalty.   The $280 will appear on line 20 on your 2026 Form 5329 to be subtracted from the $280 on line 18.  This excess will be carried forward from 2025 to 2026 when you transfer in your 2025 tax file to begin your 2026 tax return.   As you said, because the end of 2025 has passed, it's too late to avoid the 6% penalty on this $280 on your 2025 Form 5329 (unless you are eligible to treat the $280 as part of your 2025 Roth IRA contribution, in which case the excess would be resolved on your 2025 Form 5329).

Thank you. I have a a really big foreign tax credit carryover from the past few years already. Going forward, we will not have any foreign income. Will those credit simply be expired by the end of 10 years period, or can I use in any other way to offset US tax.  

Yes, you can recover deleted tax returns.     In TurboTax Online:  Log in to TurboTax portal Go to the "Documents" section   In TurboTax Desktop: Search for Backup Files: Look for a file starting with a tilde (~) in your Documents/TurboTax folder. Search for .tax Files: Search your entire computer for *.tax202X to find the file extension, checking the Recycle Bin/Trash Account Login: Check if you have multiple user accounts on your computer If you can't find your return, you can get a transcript from the IRS.   How do I get a copy of my tax return or transcript from the IRS?   @chateaufinan 

Follow these steps to enter your W2: Go to Income Then go to Wages and Salaries (W-2) Go through the questions to enter your W-2. There are multiple ways to enter your W-2, here's a link that provides more information on how to enter it: How do I import or enter my W-2? How do I manually enter my W-2? Regarding Form W-3, this form is only used for employers who are issuing their W2s to their employees in the beginning of the year.  Form W-3 is not a form that you can enter on your personal tax return.

While it feels like TurboTax is "disallowing" your credit, what you’re likely seeing is the Foreign Tax Credit (FTC) Limitation in action.   The IRS has a "fairness" rule: they won't let you use foreign taxes to wipe out tax on your US-sourced income. You can only use the UK tax to offset the US tax specifically assigned to that UK income. The remaining Foreign Tax will be an excess amount that you would first carryback to your 2024 return if you had foreign income for that year and then if there is "additional excess" it will carryforward for ten years (starting in 2026)  to be used to offset any future foreign income.    The reason, why your refund dropped is when you added the $36,000 UK withdrawal, your total taxable income went up, which increased your Total Tax Liability. Then, when you added the $13,000 foreign tax, TurboTax calculated your "Credit Limit" using this formula:   FTC LIMIT = (US TAX) X ( foreign taxable income/Total worldwide income)   For example, If your total income (US + UK) puts you in a 22% effective tax bracket, the US tax on that $36,000 withdrawal is roughly $7,920. Even though you paid $13,000 to the UK, the IRS will generally only let you take a credit for that $7,920 this year.    The "missing" $5,080 ($13,000 - $7,920) doesn't disappear; it becomes a carryover that you can use in future years, as I mentioned previously.    @ZengFreeman 

Until you enter your year-end balance, TurboTax produces an incorrectly low taxable amount for the Roth conversion by assuming that your year-end balance is zero and applying too much of your basis in nondeductible traditional IRA contributions.  Once you enter the year-end value, TurboTax corrects the original calculation to produce the correct, higher taxable amount of the conversion by applying less of your basis.