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If TurboTax is telling you that $0 is subject to a penalty, it may be due to the amount entered as required not exactly matching the distributed amount, or if a "missed RMD" box was checked Yes by mistake.    To resolve this and clear the error, I recommend deleting the Form 1099-R and the Form 5329:   In TurboTax Desktop: Click Forms Mode at top right Click on Form 1099-R at left panel Select Delete Form at the bottom left Click Form 5329 and Delete Form   In TurboTax Online: Go to Tax Tools on the left hand panel inside of TurboTax Click on the down arrow and scroll down to Tools Click on Tools and select Delete a form from the menu items that appear in the Tool Center Click on the trash can icon to the right of Form 1099-R, then Form 5329    Next, re-enter your Form 1099-R using the following steps:   Go to Wages & Income in the Federal section Go to IRA, 401(k), Pension Plan Withdrawals (1099-R), select Add/Edit for the first Form 1099-R You will reach, "Review your 1099-R summary" section, where you can click the pencil for each Continue through until you reach, "Let's get more information about your Required Minimum Distribution (RMD)", enter (or review/revise your RMD) Then, in the "How much of the distribution applied to your December 31, 2025 RMD?" section, you can select "The entire amount...Or...Some of the distribution applied to December 31, 2025" and then enter the exact amount you entered in the prior section, then Continue You will reach "Review your 1099-R summary", press Continue (not the pencil) and additional questions will generate for you to answer When you reach "Let's go over any required minimum distributions (RMD)", click Continue, not the pencil 

To claim the vehicle loan interest deduction in TurboTax Online, navigate to:   Tax Home Federal  Deductions & Credits (+) Add more expenses Cars and Other Things You Own Car Loan Interest, Start Learn more here about the qualifying requirements: TurboTax - 'What is the vehicle loan interest deduction?'

You can usually e-file without entering this information. Two states, Illinois and Alabama, do require a driver's license or state ID to e-file a state return. See this help article for more information.   Otherwise, here are some solutions to the "too many numbers" issue that have worked for other users:   If TurboTax has a "too many numbers" message, ensure that your input is just numbers and letters. Do not include spaces or dashes. If you have a New York license, ignore the text "IDUSA" and only enter the alphanumeric characters that follow it.  If using TurboTax Online, clearing your browser's cache and cookies can resolve data entry glitches. If the entry continues to fail, you can usually skip this step. While this is used for fraud protection, most states will still process returns without it. If your State issued ID or driver's license is not being accepted when you enter the ID number exactly as it is shown on your license or ID, then you can leave the driver's license/state ID information blank, and still file your tax return. Your driver's license number is not required to file your federal taxes, nor is it required to file your State tax return in most states.    @tomwke   

If you entered your 1099-R and answered the interview follow up questions , TurboTax will automatically pick up the California exclusion and transfer it to your California state tax section.  However,  you can also make the adjustment in the California state section- look for a screen that says "Any Pension or Annuity Adjustments?" You can enter the exclusion as a subtraction.  (If TurboTax always has it you will not see this or see it with the $20,000 amount already applied). For taxable years beginning on or after January 1, 2025, and before January 1, 2030, California allows qualified taxpayers to exclude from gross income up to $20,000 of retirement pay from the federal government for service in the uniformed services or annuity payments received pursuant to a U.S. Defense Department Survivor Benefit Plan. A qualified taxpayer for purposes of the retirement pay exclusion is, in the case of a surviving spouse or spouse filing a joint return, a taxpayer or taxpayer whose adjusted gross income shown on the federal tax return for the same taxable year does not exceed $250,000. In the case of an individual, the taxpayer’s income may not exceed $125,000. A qualified taxpayer for purposes of the annuity exclusion is, in the case of a surviving spouse or spouse filing a joint return, a taxpayer or taxpayer whose adjusted gross income shown on the federal return for the same taxable year does not exceed $250,000. In the case of an individual, the taxpayer’s income may not exceed $125,000. Retirement and disability

Self-employment income is not reduced at all by a self-employed health insurance deduction.  A self-employed health insurance deduction is a personal, above-the-line deduction, not a business deduction.   Odd that you would receive a Form 1099-NEC as an independent contractor to the S-corp if you are a shareholder in the S-corp.  A shareholder in an S-corp would typically be an employee whose compensation is reported on a W-2, not on a Form 1099-NEC, so I suspect that your accountant has made a mistake.

On the Form 1099-R Summary screen click on Edit   To enter, edit or delete a form 1099-R - Click on Federal Taxes (Personal using Home and Business) Click on Wages and Income (Personal Income using Home and Business) Click on I'll choose what I work on (if shown) Scroll down to Retirement Plans and Social Security On IRA, 401(k), Pension Plan Withdrawals (1099-R), click the start or update button

There was no place to tell the program the vehicle was converted to personal use. No matter what I entered, 0 business miles, or stopped using the vehicle, it continued to want MACRS information until I deleted the vehicle. I believe there is a bug in the 2025 TurboTax program.

I came across this when I entered my friend's DFAS 1099R.   After you enter the 1099R keep going and you will come to  a screen Where is your distribution from?   Military retirement distribution Other distribution   If you pick Military the 20,000 is subtracted on Schedule CA (540) on line 5 pensions.   I think for Joint the federal AGI has to be under 250,000 For Single under 125,000

The TurboTax online editions can only be used to complete and file one tax return per account and User ID. To start another tax return using the online editions you would need to create a new account with a new User ID and a new email address.  

I think there is a bug in the 2025 TurboTax program. No matter if I tell it I stopped using it or just entered 0 miles the program still wants MACRS information for a vehicle I started using in 2012 so is beyond MACRS. The only action that stopped the program from wanting MACRS information was to delete the vehicle.

@feltongirl wrote: There are other options.   There are indeed other options for 2025 DIY tax prep desktop software. The question is whether those options will continue to be available for the 2026 tax year.

It's definitely available in the desktop software, it's just a matter of where. Which edition of the home software are you using? In Home and Business edition, I found the entry here, under Business > Less Common Business Situations > Net Operating Loss/QBI Carryforward Loss, Start     For the others, you would select Federal > Wages & Income > and then follow the same section headings you previously used in TurboTax Online:  

@feltongirl wrote: ...I would not have bought this TurboTax CD if I have known about this issue.   Not sure where you got a 2025 TurboTax CD since such a beast does not exist.   Regardless, if you paid and received a code and a download link, you can get a full refund by calling customer support.

@nortsub  I am so sorry for your loss.  I pray for peaceful rest of the departed and my condolences for the family.   Generally, if you are filing a return in  the name of the decedent,  and filing by mail, you sign your name and add  " representative for "  or " attorney in fact for"  then the name of the decedent.  You choose your title based on facts.  Sometime  it your  name  and the "for " Decedent's name.   Is there more one of us can do for you ?

I refuse to buy a Windows 11 computer when there is nothing wrong with my computer.  Microsoft is reaping people off with this upgrade to 11 when there is nothing to be gained from switching.  Now, this TurboTax forcing people to use Windows 11 is another example of corporate stupidity.  They will definitely lose a lot of customers with this decision.  I am one of them and I have used TurboTax for over 10 years.  This is not the only tax software out there.  There are other options.  

Hi I have the same issue with 1256.  I don't see the option as pointed out by the expert.  I don't see how to enter on 6781.  I go to form and I don't have form 6781.  Please further help me on this topic.