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A distribution from a traditional IRA is indicated by the marking of the IRA/SEP/SIMPLE box next to box 7 of the Form 1099-R that reports the distribution.  If the payer did not mark this box, presumably the distribution is not from a traditional IRA.

This is an error in the program and is currently being worked on. If you are using the desktop version of TurboTax, you need to run your updates by using the Online and then Updates menu options periodically until you find the issue resolved. If you are using the online version of TurboTax, the correction will be made without any input from you, you just need to log into your program periodically until you find the issue resolved.

I can't understand why TurboTax did not show an excess contribution for 2024. You said that you made $4,774 in contributions but enter valid HDHP coverage for only two months - this should have immediately triggered an excess contribution message.   1. I am assuming that you turned 65 no later than March of 2025. As noted above, if you are older than 65 when you apply, Medicare coverage will be backdated to your 65th birthday, but the backdating will never be more than 6 months. Hence I assume that you turned 65 in March or before.   2. The calculations sound OK.   3. I do not understand TurboTax making no mention of the excess, if you had entered the data you described. Did you enter the $4,774 in contributions? Did you enter your HDHP coverage as only January and February, with Medicare thereafter?   TurboTax has been handling taxpayers beginning on Medicare for many years; it depends on the user's entries. I will tell you that there appear to have been a number of updates to the Step-by-Step flow even daily without notice to us, so I can't always predict that what happens on one day will happen again on the next.   4. I understand your situation - it is the same for me. However, turning 65 is indeed relevant because the moment you turn 65 and start Medicare Part A (even if you applied for it somewhat after your birthday),you stop being eligible to make HSA contributions.    Does your spouse have normal employer health coverage or is 65+? If neither, then your spouse should open his/her own HSA since he/she is covered by the HDHP. I say this because many taxpayers are unaware that each taxpayer can have an HSA, although you evince a good knowledge of the HSA process.

The “senior deduction” is added automatically by the software based on the date of birth and filing status you entered into MY INFO.  You do not need to take any extra steps to enter it. (And…the new senior deduction has nothing to do with whether you are getting Social Security)     2025 STANDARD DEDUCTION AMOUNTS SINGLE $15,750  (65 or older/legally blind + $2000) MARRIED FILING SEPARATELY $15,750  (65 or older/legally blind +1600) MARRIED FILING JOINTLY $31,500  (65 or older/legally blind + $1600) HEAD OF HOUSEHOLD $23,625 (65 or older/legally blind + $2000)     For 2025 through 2028 there is an extra  deduction amount of up to $6000 per individual 65 or older filing Single, MFJ, or HOH which is phased out for taxpayers with modified adjusted gross income over $75,000 for single filers and $150,000 for joint filers.   (The deduction phases out completely at $175.000 Single or HOH, or $250,000 joint)   The $6,000 senior deduction will be calculated on 1040 Schedule 1-A page 2 Part V Enhanced Deduction for Seniors which goes to 1040 line 13b. It is separate and in addition to the Standard Deduction or your Itemized Deductions on 1040 line 12e.  Turbo Tax automatically includes it. IRS Schedule 1-A https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf  

Social security withholding is 6.2% of Social Security wages. not box 3 wages. Not bpx 1. They could differ  $83758.40 times 6.2% IS =$5193.02. TurboTax is messed up. Your options are to wait for the update or mail your return. 

Go back to My Info on the left side of the online program screen. Edit the dependent and carefully check your answers to the questions.   Note - A child born in 2025 is deemed to be living in your home for the Whole Year. Make sure you select them as your Child, that you selected that they lived in your home for the Whole Year, temporary absence for education is deemed living in your home. That they did NOT provide over one-half of their own support (You Did), that you indicated there was no one else in the household providing support to them, and that you did NOT check the box labeled Not valid for employment in the Social Security number section.   If all your answers are correct then delete them as a dependent and re-enter.

I am having this same exact issue.  Box 6 is EXACTLY 1.45% of the amount in Box 5.  Yet, Form 8959 is still being added to my tax return, requesting that I purchase the upgrade.  If I reduce the cents in Box 6 - Medicare tax withheld, it puts the amount lower than 1.45% of the amount in Box 5 - Medicare wages and tips, which avoids Form 8959 being added.  I have used Turbo Tax for years and have NEVER had this issue in the past.  This is an obvious error in the software/programing which is misleading people into purchasing something that they DO NOT NEED.  This issue borderlines being a SCAM and needs to be resolved as soon as possible.

Anyone have an update on this "glitch"? I tried yesterday and got the same message. I was told by a rep, it would be resolved today. I'm wandering if this is accurate. I'm trying to be patient, but I'm ready to use another software. I have used turbo for a few years now, and I would hate to switch, but I might have to.