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If your daughter is a non-resident who worked in Philadelphia and had Pennsylvania state withholding (PA W/H) and Philadelphia city withholding (PhilCity W/H) on her paychecks, she very likely needs to file a local tax return with Philadelphia. Non-residents working in Philadelphia are generally subject to Philadelphia's Wage Tax, which must be filed and reconciled even if they don't live in the city. Please note that Pennsylvania state law requires all non-residents who earn income from Pennsylvania sources to file a Pennsylvania non-resident income tax return if tax was withheld. Similarly, for Philadelphia city taxes, while residents pay a resident wage tax, non-resident workers pay a non-resident wage tax and are required to file accordingly.   To file your daughter's Philadelphia local tax return as a non-resident worker in TurboTax Online, follow these steps: 1. Complete Federal and State Returns First: Finish entering all income details including wages earned in Philadelphia. 2. Navigate to the State Taxes Section: After federal, go to State Taxes. 3. Select Pennsylvania and Access Local Taxes: Choose Pennsylvania and then look for the Philadelphia local taxes section. 4. Enter Local Wage Tax Information: Provide the information about taxes withheld for Philadelphia city wages, typically from her pay stubs (PhilCity W/H). 5. File the Nonresident Local Return: Ensure you select non-resident status for Philadelphia when prompted. TurboTax will handle the calculations to ensure proper credit for the tax withheld and generate the necessary forms.  

TurboTax fees are taken from either your federal refund or state refund, depending on what is deposited first.  You can review your fees and see what exactly you are paying for your TurboTax service, to do this:   Open or continue your return On Tax Home, select Start or Continue to enter your return Select Tax Tools from the menu, and then Tools A Tools Center box will pop up on your screen Select My Fees

There are a couple of questions that are noted in the review and explanations below.   Business Number One: Home Office Expense Screens There is not an answer to the question 'Did [business owner] live in the same home all 12 months?' (I marked Yes) On the screen 'We just need a little more info about [business owner] home office' there is a question 'Did [business owner] use this home office for only this business, and no other businesses?' The answer here is 'Yes' and should be 'No'. On the screen 'Does [business owner] use space in this home to store inventory or product' there is no answer which is required - Yes Continue through the expenses until you reach the screen 'Home Office Asset Summary'.  Business Number Two: Home Office Expense Screens On the screen 'Do any of these apply to [business owner] home office?' Selection is 'This home office is a separate structure' There is not an answer to the question 'Did [business owner] live in the same home all 12 months?' (I marked Yes) On the screen 'We just need a little more info about [business owner] home office' there is a question 'Did [business owner] use this home office for only this business, and no other businesses?' The answer here is 'Yes'. On the screen 'Does [business owner] use space in this home to store inventory or product' there is no answer which is required - Yes Did any of these situations apply to your home office in 2025? Select 'None of these apply' If you answer the question No to the following question you will not be able to enter your asset in the second business: Was this home office the primary place where you work? Since you entered 35% of time used for business, I assume you answered this question 'No'. If so, the depreciation of home or additional assets does not come up. Continue through the expenses until you reach the screen 'Home Office Asset Summary'. Select 'Add an Asset' to enter an asset for this second business. Please update with additional details if you have more questions and we will help.

Per the IRS Instructions for Form 7203 Line 6: If the amount of the distribution is more than the stock basis before distributions, report the excess amount as a capital gain on Form 8949, Sales and Other Dispositions of Capital Assets, and Schedule D. Don’t increase your stock basis for the amount of capital gain reported for the excess.   Because the amount reported on Schedule K-1 Box 16 may be adjusted for S-Corp basis limitations, the amount on Form 7203 must be determined by the shareholder. A manual entry by the taxpayer allows a more accurate stock basis to be reported on this form.   @scott_pulliam 

Yes, if the IRS sent your return back for identity verification and instructed you to file by mail, you can print and send the forms create by TurboTax.   You should mail your paper return, with a signed Form 14039  and a photocopy of at least one valid identification, such as to driver’s license, passport, or SS card, to the address listed in your IRS letter.   To see more detailed information, please refer to the link below: Tips for Handling Identity Verification Requests From the IRS  

Thanks for your response. As I'm using Canadian version of TurboTax 2025, Schedule E ONLY is a Tax Form for US tax filing.   In this case, where do I enter the property Adjusted Cost Base in the Canadian version of TurboTax ?   Thanks in advance for any help.

Update- I confirmed this is a glitch that does not take into account the phase out. The graphic says capped at 10k but when going through the final review I can see the SALT deduction broken down with 17k listed. AGI in the 570 range. Very frustrating as this added hours to my filing. Hope this helps someone else dealing with the same issue. Probably my last time ever using TT. 

Thank you Karis.   My expectation was wrong. I expected Turbo Tax to generate form 1099-S in my return. But I see that it is Form 8949 and that is transferred to Schedule D.   I even upgraded from TurboTax Deluxe to Premier because I was told that's what it takes to perform this transaction. I don't think this is true.

@pk  It does make sense to me. Thank you for the useful information.   One last question. When I do file MFJ and will be treated as a United States resident for tax purpose only. Do you know if that would likely to affect my status as an F1 student and will it also affects for future Green Card application?   Thank you so much again! 

If your return is rejected because of the 1095-A: The IRS database thinks that you or a member of your household has, or has had a Marketplace policy.   You should Confirm that you and no one else got a 1095-A You can use the phone number listed by state at  The Health Insurance Marketplace. If you're sure you don't have a 1095-A you can use these steps to clear it. Select Tax Tools On the drop-down select Tools There will be 2 green boxes Select Topics Search Type 1095-A The question will come up Did you receive Form 1095-A for your health insurance plan? Answer Yes Continue to the form Delete it using the trash can Repeat the process When you get to Did you receive Form 1095-A for your health insurance plan? Answer No

IRS Form 843 Claim for Refund and Request for Abatement can be used to claim a refund of penalties.  This form is not supported by TurboTax and will need to be filled out and mailed.  Any documentation that you can mail along with this form to show reasonable cause as to why you failed to comply with removing the excess Roth contribution in a timely manner.   Filing an amended 2024 Federal return and mailing it along with Form 843 and all supporting documentation will be helpful.   Please keep in mind that this process can take several months to resolve and that you may get letters from the IRS requesting other documentation or information to support your claim.  

Update- I confirmed this is a glitch. The graphic says capped at 10k but when going through the final review I can see the SALT deduction broken down with 17k listed. Very frustrating as this added hours to my filing. 

Thank you for your ideas! It turned out that the problem was that I had entered the incorrect answer under Schedule C line 32 concerning at-risk status of the business investment, so it removed the business loss from the Summary. I found the place to correct that line, and the information is now showing up again.