All Posts

Thanks but this doesn't completely resolve the problem.  TT is pulling forward the $ from the W2 and placing it in line 1c in Schedule A of  it-203-f.  Even after applying a reversing entry to zero out the amount, TT is forcing me to fill out Schedule A or else it flags as an error.   In this circumstance, I only need to fill out Schedule B.   Resolution?

When entering the Form 1099-NEC there was a screen that asked What type of income is on your 1099-NEC? You should have selected Self employment income   Delete the Form 1099-NEC and re-enter.   Click on Federal (Personal using Home & Business) Click on Wages & Income (Personal Income using Home & Business) Scroll down to Other Common Income  On Form 1099-NEC, click the start or update button 

My question (which I failed to include in the post, sorry), is if there is something different this year that I need to do in order for this to be generated as expected? I understand that the IRS updated their instructions for line 18 for 2025, but as far as I can see this should still be zero in my case.   I've uploaded a diagnostic file via"send tax file to agent" but I don't see any way to better report if this is a bug.

There are issues and the wait times are longer. NY is making changes to resolve issues. The inflation refund checks - more processing time New laws - the state is performing more manual checks to prevent errors Comptroller backlog - to release the funds Since you are at the 7-week mark, you are officially past the "normal" window. Check for a "Letter Requested" Status: Log into the NY Refund Status tool. If your status says "We sent you a letter," you must respond to that letter (often for identity verification) before they will move forward. Look for "Comptroller" Status: If you see a message mentioning the "State Comptroller," it’s good news—it means the math is done and you are simply in the payment queue.

It is possible you owe city/local taxes since you reported the wrong amount. However, often the local tax withheld will equal the actual tax due as the calculation of that is usually simple. I suggest you prepare an amended return in TurboTax so see if you end up owing anything. If not, you don't need to file the amended return. Most likely it won't affect your federal return unless you itemize deductions and deduct your local taxes, but even then the impact would probably be minimal.   You should wait until the return you filed is processed as the state government may adjust your return if necessary as they will have a record of what your local taxes and withheld amount is from your W-2.

Thank you David.  That's part of the problem, we don't actually know what this was for.  We are assuming it's some sort of beneficiary payment but the statement only said "Benefit for 2025" with no other info.  I just looked up a copy of the actual check and a note at the bottom states "Soc Sec For Ins."  I remember I had tried calling the SS office a while back and they were of little help, just basically telling me that something was owed and it went to my husband as my father-in-laws beneficiary.  I'm just concerned that if we don't categorize this correctly then it might mess up our taxes, either overpaid or underpaid.  It's not huge $$s but we certainly don't want trouble with the IRS for not handling it properly.  Does it ultimately matter if we choose lump sum payment or not?  Do you know how that impacts the calculation of taxes?

Please clarify.  Will not let you Continue from where?   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 Online editions -   On the screen Did you get a 1099-R in 2025? Click on Yes On the screen Let's import your tax info Click on Change how I enter my form On the screen How would you like to upload your 1099-R? Click on Type it in myself On the screen Who gave you a 1099-R? select the type of 1099-R you received and Continue

@ThomasM125    What you quote is the federal "estate tax" which is paid by the estate and not the beneficiaries.  It is not an inheritance tax.  The federal government does not have "inheritance tax"   Some states do indeed have an 'inheritance' tax, but that is paid by the beneficiaries and not the estate. 

100 percent agree. It is a very simple bit of logic to add this, and as many other have stated on this and other 1095-A-related posts the question of how to indicate an HRA should have been dealt with my now. I tried entering our taxes on another site and received the same result (a credit automatically calculated, with no questions about whether or not an HRA was involved). Because I could find no guidance with IRS materials either, I called the IRS.   Sorry in advance for the length of this post.   I spoke with three different IRS reps. All three said they get a LOT of questions on 1095-A. I received conflicting answers from them, too. So there is a lot of confusion on this with the IRS; so I guess it’s not surprising that other sites and TurboTax have issues with this as well.    I was suggested three approaches (in order received, not in any particular preference).    1. The first rep with whom I spoke indicated I should enter the 1095-A information, even if a premium credit is calculated. The rep said the IRS expects the 1095-A data if one were received, and would reject the return if the 1095-A information were not included. In this approach, the IRS would send a letter indicating the return was adjusted if the credit was not appropriate. That rep couldn’t advise me on how to indicate we had an HRA, so I was transferred to the tax law section.    The second rep with whom I spoke could not help; so I was transferred to a third rep, who suggested approaches 2 and 3, below.    2. Don’t include the 1095-A information if you’ve already determined that we’re not entitled to the premium credit (which language in Pub 974, the instructions on the back for Form 1095-A, and the instructions for Form 8962 indicates is the case). The rep said there is no requirement to include the 1095-A. He said that the IRS only looks at 1095-A information if the premium tax credit is requested, or an advance premium tax credit was received. He said then and only then are 1095-A and Form 8962 required.   3. Include the 1095-A information but change the figures in column B to zero ($0). The software should then negate any premium credit. The rep indicated that this approach is shown “in the instructions” as the way to indicate that one is not eligible for the premium tax credit. This approach was also suggested by a person on this blog. I cannot find that in the instructions for Form 8972, however. But when I enter zeros in Column B TurboTax throws an error. The least I can change it to is $1.00. But at least the credit is removed, reducing the refund to same amount calculated if not including the 1095-A.   At this point I’m leaning toward approach 2, and amend our return using approach #3 if our return is rejected.

You will not be subject to a federal inheritance tax as the exemption for that in 2025 is 13.99 million dollars. You can use this link to PA form Rev-1500 to learn about and file your Pennsylvania inheritance tax.