All Posts

  MY DEPENDENT SAID HE COULD NOT BE CLAIMED   Your dependent made a very common mistake often made by teenagers and students who are filing their first tax returns.  In MY INFO they should have said that they can be claimed as someone else’s dependent—-but they answered incorrectly and now your e-file is being rejected.   Your dependent will have to amend their return to change the way they answered that question in MY INFO.   They cannot amend until their return has been fully processed.   But you do not have to wait for them to amend.  Waiting will not help you at all.   You can file your return by mail, since mailed returns are not rejected.   It will take longer for the IRS to process your mailed return and delay your refund.   OR….Get an IP PIN to e-file.     GET IP pin in order to e-file if your dependent’s SSN was claimed on another return   https://www.irs.gov/newsroom/irs-takes-steps-to-help-prevent-refund-delays-by-accepting-duplicate-dependent-returns-with-an-ip-pin-for-2025-filing-season-taxpayers-encouraged-to-sign-up-soon-for-ip-pin-online-account     https://www.irs.gov/identity-theft-fraud-scams/get-an-identity-protection-pin

@user17720701181 wrote: My schedule E shows a loss and it should be allowed, based on my income, as I'm above the passive activity loss limitation phaseout threshold. However, line 1b on form 8582 is blank and my schedule E loss is showing as fully deductible, which is incorrect. Is anyone else having this issue? Any advice is appreciated.   Can you clarify?   Do you mean your income is BELOW the limits, so you are allowed the loss (up to $25,000)?   Or did you mean your income is too high, so you should not be allowed any loss?   Is your loss over $25,000, and that is why you think the Schedule E allowable loss is wrong?   Did you indicate you are a Real Estate Professional?   Did you indicate that you "Materially Participate"? Did you indicate that you "Actively Participate"?  

You just need to make sure that this amount is included in your current year K-1 activity as a deduction when reviewing your TT detail. This is a current year "deduction", however, there are many unanswered questions; are you a material participant, passive, do you have basis, etc.  

Using TT, you do not get to "choose" which tuition credit you get.  You follow the interview, answer the questions, and TT selects the credit you are eligible for. You answered one or more of those questions incorrectly. 

That seems like a correct treatment. After your K-1 entries, hit Forms in the upper right, and make sure your interest is pulling through as 102 in total (and not 102 + 15 =  117) on the 1040, Line 2b.    However, all of this is assuming that there's no dividends in box 6a. In that case, it could be another treatment. Is there anything to account for in K-1 box 6a?

I actually just got off the phone with Turbotax about this exact problem. I have never had a problem with this before after using self-employed for 9 years, this is the 1st time.  I started my taxes a couple of days ago and when I left it it did say the filing was included.  I didn't have to pay extra. But today I signed back in to finish it and it is not saying I owe $138.  It's a Saturday and I can't call Quickbooks because they are closed so I called Turbotax.  After much confusion about the issue and being told that I might have been disqualified for some reason we concluded that it was a problem on Quickbooks end.  Probably something to do with the system recognizing that I already paid for these features.  That means there isn't anything Turbotax can do from their end.  I recommend calling Quickbooks first since it seems to be a problem with how the account is connected.  I am going to call them on Monday and see if they can either reconnect the accounts or give me a service code because Turbotax can't do it.

I'm no tax expert but it would appear Code 1 is incorrect. I would question the broker. I assume you did a hands off known as an "in-kind" transfer between the 401k and a taxable brokerage account. In support of Code 2, check this IRS website. https://www.irs.gov/pub/irs-prior/i1099r--2025.pdf Then go to Table 1 on page 18, it states: 2—Early distribution, exception applies. • A distribution from a qualified retirement plan after separation from service in or after the year the participant has reached age 55. A 401k is a qualified retirement plan.   It would appear the 1099-R is incorrectly showing Code 1 from Table 1. Perhaps because they didn't consider Code 2. 1—Early distribution, no known exception. Use Code 1 only if the participant has not reached age 591/2, and you do not know if any of the exceptions under Code 2, 3, or 4 apply.   Also, if you look at this IRS website: https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-exceptions-to-tax-on-early-distributions It states: Exceptions to the 10% additional tax "the employee separates from service during or after the year the employee reaches age 55 (age 50 for public safety employees of a state, or political subdivision of a state, in a governmental defined benefit or defined contribution plan)"

While I definitely agree that Intuit and TurboTax are SEVEVERLY lacking, most of what you are referring to is not their fault.   As the other answer indicated, the problems with Form 5695 are primarily because of the IRS, not TurboTax (although it is rather surprising that TurboTax let you file when it was a known IRS problem).   Imports are primarily based on the bank uploading your information, so most likely that is a Chase problem, not TurboTax.   If you decide to use different software in the future, personally, my first pick would be TaxAct.

Below are the details I encountered while I was using Turbotax for 2025 Tax year. At Investment income "Capital Loss Carryover", TT asked me to enter my capital gains and losses info of  tax year 2024.   After all my info were entered with AMT allowable loss -$650 from year 2024, clicked Continue button.  "Here are your capital loss carryover amounts" screen "Capital loss carryover from 2024" column shows Total $0.00 instead of -$650.