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A trustee-to-trustee transfer of an IRA is neither a distribution nor a rollover.  As such, it is not reportable.  A trustee-to-trustee transfer of an IRA does nothing to change your tax position with regard to your Massachusetts taxes.  Filing a substitute Form 1099-R would be a mistake.   To reiterate, this was not a rollover.  A trustee-to-trustee transfer of an IRA is no different than changing investments within an IRA.

Find the magnifying glass icon on the top of your screen while working in TurboTax and enter 8949 in it and press "enter". You will see the form listed at the bottom of the screen and you can clink on it and it will bring you to the entry screen for investment sales in TurboTax.

Thank you for your reply. I apologize for not describing the problem clearly before.   To reiterate, my situation is that boxes (a), (b), (c), and (d) on line 22 do not apply to the bank account I entered. As you mentioned, my account was neither opened nor closed (a, b) during the current year and not jointly owned (c). However, I also cannot check the box (d) because this bank account generated interest income, which was already included and reported in part III, line 13a.   Previously, TurboTax allowed me to uncheck all items (a), (b), (c), and (d) on line 22 without any problems. I successfully passed the software review and completed my 2024 e-filing, but not in 2025 TurboTax.   I hope I have described the problem clearly this time.   If TurboTax still requires me to check at least one box, and since the information provided in line 22 of Form 8938 does not directly affect the calculation of taxable income, I will have no choice but to check the box (a) as the other member has suggested. While marking box (a) may be interpreted as the bank account was still valid/open in 2025, I still believe that from the IRS's perspective, they mean the bank account was created during that tax year.

Yes, this is case where TurboTax does not take an account the exempted foreign income reported as negative income in your return.  You do need to adjust that manually in your return. Here is how to adjust.    Go to Deductions & Credits > Estimates and Other Taxes Paid > Foreign Tax Credit.  When you reach the screen asking for your Foreign Income, do not simply rely on the "imported" numbers. Manually enter the income amount for that country. Instead of entering the "Gross" amount, enter the taxable amount (Gross minus the Treaty-Exempt amount). If TurboTax asks for "Gross Income" and then later asks for "Exemptions," ensure the math on the summary screen shows the Numerator (Line 1a) matches your taxable foreign income.    

It's doubtful that TurboTax is treating the entire amount as taxable.  If only the amount from box 2a is being included on Form 1040 line 5b, TurboTax is treating only the amount from box 2a as being taxable.  The only way I can think of to cause TurboTax to treat the entire amount as taxable is if you mistakenly marked the IRA/SEP/SIMPLE box on TurboTax's 1099-R form, causing the entire box 1 amount to be inappropriately included on Form 1040 line 4b.   Keep in mind that the tax code defines the entire box 1 amount as "income," but the nontaxable portion of that income has no effect on your tax return (other than being required to be shown on line 5a of Form 1040).  The nontaxable portion of the income should be present in box 5 of the Form 1099-R.

You need to make sure you entered the K-1 schedule properly. The K-1 entry should show on line 9(a) on your Form 1065 K-1 entry ( 8a on an 1120-S K-1) and then on line 12 of Schedule D. If so, the entry is getting long-term capital gain treatment. Otherwise, please clarify why you believe it is being treated as ordinary income.

Because you’re on Desktop (Windows 11), you can use “Forms Mode”—something Online users don’t have. Here’s how you can get around the broken Smart Worksheet logic.   Switch to Forms Mode: Click the "Forms" icon in the top right. Locate "Other Subs": In the list of forms on the left, find the Oregon Other Subtractions worksheet. Find Part C (Foreign Tax Subtraction): * Look at Line 2. If TurboTax has auto-filled your total federal tax (e.g., $40,000) instead of your allowed subtraction ($0), this is the error. Override the Line: * Right-click on Line 5 (the final subtraction amount). Select Override (or press Ctrl+D). Manually enter the amount you are entitled to (the smaller of your actual foreign taxes paid or the $3,000/$1,500 cap).     Can You Amend to Fix This? Yes, you can. Despite what the software might imply, you are legally allowed to amend a return to claim a deduction you were entitled to but missed. Here are the steps.   Open your original 2024 return: Go to the "Federal" tab (even though you aren't changing it). On the left-side menu (or under the "Federal Taxes" tab at the top), select Other Tax Situations. Scroll down to the bottom and select Amend a Return. TurboTax will ask, "Did you already file your return?" Select Yes. It will then ask, "What do you need to change?" Choose the option that says "I need to amend my state return only" (or choose "The IRS or state sent me a notice"). Select Oregon as the return to amend. TurboTax will still walk you through federal screens. Do not change anything on the federal screens. Just click "Continue" or "Done" until you reach the State or Oregon section. Once you are in the Oregon section, select "Amend an Oregon return" or "Review Oregon." Apply the Correction: Find the ASC-311 (Foreign Tax Subtraction). As we discussed, if the interview/worksheet is still blocking you, switch to Forms Mode (top right). Locate the Schedule OR-ASC or the Other Subtractions Worksheet. Override the final subtraction line (Code 311) to the correct amount (up to $3,000 for Joint / $1,500 for Single). Explain the Change: When prompted for an explanation, state: "Amending to claim Foreign Income Tax Subtraction (ASC 311) per OR-17 instructions; original return incorrectly capped subtraction based on total federal tax instead of allowed subtraction."   Once you complete this, print and mail your return to:   Oregon Department of Revenue,  PO Box 14700 Salem, OR 97309-0930.        

I also found another error in TurboTax desktop software when it prepares for state tax filing by mail. In the final printed PDF of state tax filing instructions (first page), it says "Be sure to attach the state copy of Form(s) W-2, W-2G, and any Form 1099 to your return." This is incorrect. You don't need to attach Form 1099 in the state tax return when you mail it unless that 1099 has state tax withholding.

TurboTax will automatically determine if you have to repay anything based on your income when you enter your 1095-A into the program.  There is not a special box for you to check. The calculations will be done on form 8962.  If your income is too low, you are correct, Treasury Regulation § 1.36B-2(b)(6) is a safe harbor to protect those who income falls unexpectedly.  You generally would not have to repay the credit.    Also, if the safe harbor did not apply to you then your repayment is limited to $375 if your income is less than 200% of the Federal Poverty Level.  For 2025, the 2024 FPL is used to calculate your premium tax credit and repayment limitations.  Basically, if you are not eligible for the Premium Tax Credit because your income is too low, then you would not have to pay it back assuming you answered the questions honestly when you enrolled. If your income is below 100% of the federal poverty  line and you expect it to be so for this upcoming year, then you should contact the marketplace to update your income.  You may be eligible for Medicaid.  If you are eligible for Medicaid when you enroll, then you are not eligible for the Premium Tax Credit.