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As of last night, this issue has been updated. You will now see in the NJ section a statement that says NJ does not tax Code Q distributions. Although you entered it as a T, this is because the fund isn't committing to code Q which makes it nontaxable. Once you answer some of the questions in the federal section after entering your 1099-R, TurboTax is then saying yes you qualify and making the income nontaxable in NJ as well.  @BhSe 

Look at Part III of the IRA Information Worksheet to see if it shows $4,000 there.  Any amount there would either have been transferred in from line 3 of the 2024 IRA Information Worksheet or an amount that you entered into 2024 TurboTax.  You might try answering Yes when TurboTax asks if you made nondeductible traditional IRA contributions and then altering or deleting any amount that TurboTax show as the amount.   If you made no traditional or Roth IRA contributions for 2025, make sure that your tax return does not include any IRA Contribution Worksheet.  Delete the IRA Contribution Worksheet if present.

Yes. A partner who receives guaranteed payments reports the amount as ordinary income on his/her/its tax return. Since guaranteed payments are not treated as distributions, there is no effect on the recipient partner's capital account or tax basis in the partnership interest.

$60,000 capital gains after capital improvements, acquisition, closing costs, etc.,  and it looks like I then have to go back and get tax 25% for depreciation I took over the years on the house?  That is a hefty amount.  I live in Florida.

The answer to the insurance question is "none" for the entire year because you were not considered eligible -- although you were in an HDHP, you were ineligible for other reasons.   You need to remove the entire $2486 if there is that much money in the account, even if you withdrew some.  But if the $2440 was the only funds and you emptied the account, that will also satisfy the situation.   When you answer none, the program will ask something like "will you remove the excess" and you will say yes.  That should take care of it.  If the $2440 included interest, that is reported separately.  For example, if you removed $2435 of excess funds and $5 of interest, you would report the removal of $2435 and report the $5 as bank interest. 

The IRS matches EINs by comparing the submitted 9-digit number and a 4-character "name control" (derived from the legal business name) against their master database, primarily via the e-file system and TIN Matching program. If the name control and EIN don't match, the return or form will likely be rejected.    Can you go back to all forms (W2s, 1099Rs, etc) and check the name entered? That's the only other thing that may cause this reject. If this can't be resolved, your only option is to paper file.  

No, you do not need to amend your return. This will not show up on your state return. Since you received the letter from the Pennsylvania Dept of Revenue, they will either send you a check or it will show up as a direct deposit in your bank. This credit is not claimed on your PA tax return directly.   As far as a federal credit, you probably received a federal earned income credit on your return. Eligibility for the state WPTC is strictly tied to the federal Earned Income Tax Credit (EITC). If the PA Department of Revenue says you qualify for the WPTC, it is because their records show you are eligible for (and likely claimed) the federal EITC on your Form 1040.

As of last night, this issue has been updated.  You will now see in the NJ section a statement that says NJ does not tax Code Q distributions.  Although you entered it as a T, this is because the fund isn't committing to code Q which makes it nontaxable.  Once you answer some of the questions in the federal section after entering your 1099-R, TurboTax is then saying yes you qualify and making the income nontaxable in NJ as well.    

@hcubed1952    IF your CSA-1099-R has a real box 2a value in it  (not zero and not blank), due to after-tax contributions you made during your employment.. Then...delete that CSA-1099-R and start over. _________________________________ Unfortunately, the question in the interview is misleading for your situation...   If your box 2a has a non-zero number in it..(not blank, nor marked as undetermined), and that number is somewhat lower than the box 1 number, due to an after-tax contribution amount that is noted in box 5...then edit that retirement form again, and when you get to the following page (below), answer it as-if the displayed edits were present  (i.e. you needed to answer YES).     Answering YES will use the box 2a $$ amount on your for 1040.  Checking lines 5a and 5b on your form 1040, before and after entering that 1099-R, and the 5b amount should be lower than line 5a.     (But if you answered No, and already entered some $$ in the "General" or "Simplified" calculation area ,you might need to delete your 1099-R first and re-enter it from scratch.) _________________________________  

You can amend a tax return in TurboTax that was originally filed elsewhere, but you must first recreate the original return exactly as filed in the software. After matching all lines to the original, select the option to mail the return to trick the software, then proceed to amend it.    Steps to Amend a Non-TurboTax Return Recreate the Return: Purchase and open the TurboTax Desktop software for the tax year you are amending. Enter all information exactly as it appeared on the return you filed with the IRS/state. "File" by Mail: To unlock the amendment tool, you must tell the software you are filing by mail. Do not actually mail this return. Amend the Return: Choose the option to "Amend a Filed Return". The refund monitor should reset to Make Changes: Update the return with the correct information. Print and Mail: Print the Form If you want to make changes or add a document to a tax return that has already been filed and accepted by the taxing agency, you should follow these guidelines.  You must first wait until the initial return is completely processed.  You will have to use the same TurboTax account that you used for the original tax return.  Once you begin your amendment, you'll see your original return.   The refund calculator will start new at $0 and only reflect the changes in the refund or tax due  Only make changes to the areas of your return that need to be corrected.  You have three years from the date you filed your return or two years after you paid the tax due (whichever is later) to file an amendment  Select your product below and follow the instructions.  Amend TurboTax Online  Amend TurboTax CD/Download 

@ mcmillianpamela  More info is needed so that someone can make a suggestion.   Can you please post the rejection error code and message? Also please clarify if your statement about "first time filing jointly" applies to the 2024 or 2025 return. And who is the primary filer (first-listed taxpayer) on the return--you or the spouse?

Thanks PK.   You are right that the tax in India is yet to be finalized. All I have is the TDS withholding for now.   1. The final tax in India is expected to be $22,000 as per my CA in India. If I wait until the tax in India is finalized, can I still take the credit next year or a couple of years later?    2. I have already adjusted the basis etc. So the numbers I gave you can be used as-is.  

I checked our 2019 return, and both EIN's have not changed.  The numbers on the 2019 Wage Statement summary for my state (PA) are the same as the w2's we got this year.  Could my preparer have entered the company names or addresses wrong?  maybe?  The numbers have not changed from prior years.  When I go into "fix my return", it pops up EIN's....they match the w2s that we got this year.  So thats right.  I downloaded our 2019 return and I see they match on a form called something like wage summary statement for my state...but I don't see that form when I download our 2025 return...odd.   My wife's EIN hasn't changed in 30 years...sure it's possible it changed on the backend somewhere, but I doubt it. Mine has been the same since 2016 (probably longer, that's just when I started at this company).   Also, if I paper file I'd be putting in the same exact info, so why wouldn't they just reject it again?  Seems like the way to fix this is to find out what EIN they have, and then enter that...but how do I find that out?   I figure this has to be an issue with turbotax or how it was entered...since if the numbers changed on the company's end, wouldn't that cause thousands of other ppls's returns to get rejected too?