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The program usually waits to determine taxability until after you’ve entered the student’s expenses (Form 1098-T).   TurboTax doesn't ask "was this non-qualified?" right away... instead, it asks for your 1099-Q info, then asks for your 1098-T and other expenses.   For example: say your total 1099-Q distribution is $5,080 but you only enter $5,000 in qualified expenses,   The program will apply the tax and the 10% penalty to the earnings portion of that $80 difference.   Open or continue your return. Enter the 1099-Q (and if nothing happened)... you need to go to the 1098-T / Education Expenses section: Under Federal tab, Click on Deductions & Credits, then Click on Education, and finally Click on Expenses and Scholarships (Form 1098-T). Proceed through the interview screens, until you are asked about her school expenses, and then enter the actual qualified amounts (Tuition, books, room/board). * Once you finish the expense section, the program compares the expenses to the 1099-Q you entered earlier. If the expenses are lower than the distribution, it will then generate the "Amount Used for Non-Qualified Expenses" or "Taxable Distribution" screens. Note: If the 1099-Q was issued in your daughter’s SSN (Box 6 is checked or her name is on the form), the form actually belongs on her tax return, not yours.   If she is your dependent, you still enter her 1098-T on your return to get the credits, but the "taxable" portion of a 1099-Q in her name would technically be reported on her own return.   If the 1099-Q is in your name, then you enter it on your return.   You generally do not need to report a 1099-Q on your tax return if the total distribution from your 529 plan or Coverdell ESA is less than or equal to the beneficiary's adjusted qualified education expenses.   * And finally... If you bought a $80 "required" book or a piece of software that wasn't on the original tuition bill, you can add that to your "Qualified Expenses" total.  This would make the $80 qualified and allow you to skip entering the 1099-Q entirely, which is perfectly legal (and much simpler).

Provided you haven't filed the return, you can edit your original W-2 entry. Under Federal Wages & Income Select W-2 Click the pencil to edit the W-2 Check the box indicating the W-2 was corrected by your employer.

At the screen Tell us about XXX HSA spending, did you select I used the money for medical expense only?   If you did not make this selection, the HSA distribution may have been reported as income on line 8f of the Schedule 1.    

Under the Alternative Minimum Tax (AMT) rules, the standard deduction is completely disallowed, which means it must be "added back" to your taxable income for the AMT calculation regardless of whether you actually claimed it on your regular return.   The AMT calculation (Form 6251) starts with your regular taxable income. Because regular taxable income already has the standard deduction subtracted, the IRS rules require you to add that full amount back ($31,500 for Married Filing Jointly in 2025) to arrive at your Alternative Minimum Taxable Income (AMTI).  In some cases, it can actually be beneficial to "force" itemized deductions even if they are slightly lower than the standard deduction. This is because the standard deduction is a 100% add-back for AMT, whereas some itemized deductions (like charitable contributions or home mortgage interest) are not added back, potentially lowering your overall AMTI and total tax bill.    If you use TurboTax, you can see this comparison by going to the "Deductions & Credits" summary and selecting "Change my deduction" to see which method results in a lower total tax liability (regular tax + AMT).

To clarify: are you filing your tax return and claiming your daughter as a dependent? Or are you preparing a separate tax return for her?   If she is your dependent and is a foster child, you would check the box that she is a foster child and answer yes or no to the question: Was she placed with you by an authorized placement agency, judgment, or court order? in the Your Info area in TurboTax Online under Your Household.

It's possible this is browser-related or information that is not being cleared from prior responses.   First, delete all copies of Form 5695 by going to Tax Tools >> Tools >> Delete a form. Choose Form 5695 and confirm the deletion. Click Back when finished.   Now log out of TurboTax Online, refresh your browser, and clear your cookies and cache. Then restart your browser and log into TurboTax again. Or try a different browser to enter your Residential Energy Credit.   For more help, please see:  How do I delete cookies? How to clear your cache

@mchadderdon wrote: I found my answer.  The 28% is a maximum tax rate. Yeah, that's correct; the maximum long-term capital gains rate is 20% while the maximum collectibles (gain) tax rate is 28%. I did not realize you were unaware of the foregoing.   Also, don't forget about the NIIT, which both types of gains are subject to once the threshold is exceeded.

As you proceed through the State Taxes interview screens, one of the first should be a menu titled "Here's the income that Wisconsin handles differently" (see below), under Investments, select Start next to Wisconsin Capital Gains and Losses to make your adjustment(s).      FYI, you'll be filing Form WD and not 2WD (for estates and trusts), so you can skip over instructions for that form.    I also happened to run into this in the Form WD instructions, just in case your capital loss happens to be on Wisconsin-source property, you can take it: Nonresidents and Part-Year Residents: Nonresidents should include only gain or loss from Wisconsin sources on Schedule WD. Part-year residents should include the gain or loss received from all sources while a Wisconsin resident and the gain or loss from Wisconsin sources while a nonresident.    Gain or loss from Wisconsin sources includes gain or loss from the sale of land, buildings, and machinery located in Wisconsin, gain from the sale of stock acquired under an incentive stock option or employee stock purchase plan to the extent attributable to personal services performed in Wisconsin, and your share of gain or loss from an estate or trust, partnership, limited liability company (LLC), or tax-option (S) corporation which has been reported to you on Wisconsin Schedule 2K‑1, 3K-1, or 5K‑1. It doesn’t include losses from nonbusiness bad debts and worthless securities, and gains or losses from sales of stocks (except gain on stock acquired under an incentive stock option or employee stock purchase plan as explained above) while a nonresident.

If the transactions are being entered into TurboTax Online on a one-by-one basis, select How did you receive this investment and report I inherited it.   Select The cost basis is incorrect or missing on my 1099-B.   At the screen We noticed there's an issue with your cost basis..., select I know my cost basis and need to make an adjustment.   Retain your records of the cost basis should a tax authority have a question at a later time.   @Matilda 

To enter your 1099SM select the following: Federal Income Retirement Plans and Social security Social Security and Rail Road Benefit (SSA-1099, RRB-1099) Enter it as Social Security Income under the SSA-1099 entries.  It is treated the same

You generally do not need to amend NJ/NY state returns for a 2024 excess Roth IRA contribution if it was non-deductible and only triggers the 6% federal penalty. NJ/NY taxation on IRAs typically mirrors federal treatment, and a 6% penalty on excess contributions does not change taxable income. You can amend only the Federal 2024 return in TurboTax by opening the 2024 return and choosing "Amend a filed return" without engaging the state sections.    You will be able to indicate that you only need to amend the federal and not the state tax return in TurboTax.

 Go to Federal> Wages & Income>>Retirement Plans and Social Security  (SSA1099 and 1099RRB) to enter your SSA1099.   And....be careful about this:     USER ERROR WITH SOCIAL SECURITY ENTRY We have seen a lot of people who made a user error with the entry of their SSA1099.   The screen right after you enter the SSA1099 asks you if you lived in certain foreign countries in 2025.   If you skipped past that screen or answered incorrectly, your Social Security was not taxed correctly.   Look at your Form 1040 and see if line 6b was left blank due to that mistake.  The IRS is catching those mistakes and correcting them by reducing your refund or increasing your tax due.   It is really so important to read every screen slowly and carefully from top to bottom as you prepare your tax return to avoid errors.