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I assume that this is more than just the last month's benefit payment.  If that is correct and the payment represents a one-time payment of retroactive benefits covering multiple months or years, then yes, they are a lump-sum payment.  If the payment only covers a single or a few months benefits (as opposed to multiple years) then I would skip the lump-sum payment section and having to figure the tax as if it was received in a previous year(s).  If it says Benefits for 2025, you would have to put 2025 for the year.

How to Report Points in TurboTax Locate 1098 Entry: Go to Federal > Deductions & Credits > Mortgage Interest and Refinancing (Form 1098). Add/Edit Lender: Review your lender information and select "Edit" or "Review". Find Points Section:Continue through the interview until the screen "Did you pay points in 202X...?". Enter Details: Choose the option indicating you paid points (e.g., "I paid points when I... purchased [or] refinanced"). Verify Amount: Enter the points amount listed in Box 6 of your Form 1098. If they are not on the 1098, you can add them in this section. 

OK, so that did what you described. When I set her NM residency status to full-year, TurboTax did indeed generate the worksheet to calculate the credit for tax paid to CA. It also required (rightly if that were truly the situation) that the PIT-B calculation use the full amount of her total federal income. This of course includes income from MA when she was officially domiciled there, and not domiciled in NM any longer (relinquished NM license, changed voter reg., etc.). And yes, TT produced a second worksheet for the MA tax credit which calculated enough to zero out NM's claim to any.   But I can't actually use the suggested workaround for filing her tax returns, because I'd have to lie about her NM residency status to achieve this. She was not in fact domiciled for tax purposes in NM for the full year, and since both other states' returns have to be attached to the NM return to support the credit amounts claimed, the NM TRD will see that overlapping-domicile discrepancy (because the MA one has to be part-year resident). I have no idea what they might do about it, but it is a crime to knowingly submit a false return.   After trying the above, I changed her NM status back to part-year residency to see what would happen. The result was the same as before: TT kept the PIT-B and allowed allocation of only part of the total federal income to NM, but it deleted *both* credit worksheets. This is the heart of the problem, because the instructions for line 20 on the PIT-1 form itself say,   "Credit for taxes paid to another state. You must have been a New Mexico resident during all or part of the year. Include a copy of other state's return."   NM does allow this credit for double-taxed income received during the period that the taxpayer was a NM resident, even if that was only part of the year. Therefore TT *should* still generate the appropriate credit worksheet - preferably automatically, but at least ask if it's needed and/or for which state/time period. It does nothing of the sort, and apparently there's no way to tell it to provide one. The bottom line is that this is definitely a bug in the way TT is handling part-year NM residents that is contrary to NM's instructions.    So how do I get this return into a condition where I can file it with the correct information *and* get the credit for CA tax that NM says she's entitled to?    Thank you very much.

Disabling and clearing various items might eventually work for some, but it did not for me.  Ultimately, I had to go through 4 to 6 captchas, and it finally worked.  Unfortunately, as you are going through them, you are not aware whether or not you were successful on the prior captchas.  Not only that, but the final captcha used a 'fading in and out' scheme, and wanted me to hit 'verify' once an object no longer was reflected in any of the squares.  I had never seen this scheme before.  Even after solving the captcha issue, I was not done.  At least one advertisement window then popped up on the screen.  You must actually click on 'decline' on these advertising windows.  If you simply "X" out of the window, it takes you right back to the captcha craziness, and you must go through the whole process again.      

Thanks for the suggestions, but they do not resolve the issue.   As of 2026-03-26, the TurboTax PIT-UND form for Delaware still contains incorrect information. According to the official Delaware 2025 Form PIT-UND, the correct calculation uses "2024 Delaware tax liability (Line 33 PIT-RES minus Line 34 PIT-RES, or Line 48 PIT-NON)".

Hello:     Have "Needs Review" warnings cleared at this time.  When I submit my return, I may learn more.         I worked with the forms directly, saw what was not complete or incorrect. Made changes on the form.       The step by step was flagging my entries, indicating missing or incorrect info., that was / is a good thing.       Thank You for all your efforts.              Bye for now, 

The IRS must have issued you or someone on your tax return an Identity Protection Pin (IP PIN). which is a 6-digit number that the IRS provides to taxpayers to validate their identity, it must be used to avoid rejection. If you don't remember getting one, you will need to contact the IRS to get it.   Refer to the following TurboTax Help articles What's an IP PIN? Do I need one? and How do I get my 6-digit IP PIN? for additional information.   Go on the IRS website Retrieve Your Identity Protection PIN (IP PIN) for instructions for a replacement.

@mark_van wrote: Am I still disgusted with Turbo Tax forcing this turmoil in the first place? Can we presume you will be similarly disgusted with H&R Block later this year (or early next year) if they stop supporting Windows 10 for the 2026 tax year? That is a likely scenario so I'm just asking.

Thank you for your response. I re-tested based on your suggestion hut I am not seeing the behavior you are able to see. I tested this with a dummy property and in order to keep the figures simple, I entered the following in TTax. Price of Property = 120,000  Cost of Land =20,000. Cost of Improvements =100,000   The basis of the property correctly gets set to $100,000 and the SL deprecation calculates to $3499.  So far so good. Then I went back into the property's asset/depreciation section and selected "add an asset" . Under Rental Real Estate Property I chose "Rental property appliances, carpet , furnishings". This leads to another page where I chose the category for this asset as " Appliances, Carpet, Furniture". Further options ask you enter description, cost , date acquired etc. I added $50,000 as cost for Furnishings. When all data entry is completed, TTax  adds this as a Furnishings depreciable asset and offers you a choice between a Section 179 deduction or a SDA deduction. Choosing the SDA deduction yields a total of $26,000 extra depreciation which brings the total depreciation to $29499. So under the assets summary this is what shows up  Now I am expecting TTax to reduce the basis of the Improvements by $50,000 due to furnishings asset because the total basis of the improvement excluding land was $100,000.   When I look at Form 4562 I see that furnishings $50k has been added to original basis of the $100,000 bringing the total basis of the property to $150,000. Form 4562 AMT worksheet shows this very clearly     Why is TT allowing a special Depreciation but not decrementing the total basis by that amount?  Is it ok if I manually subtract the $50,000 basis from the property and make the value of improvement only $50,000 as then the total basis would be correctly reflected as $100,00   Any thoughts ?   Thank you for your time    RK  

I tested entering a sale of a second home. I don't see where TurboTax lists it as a 1099-B. But it doesn't matter how it appears in a TurboTax summary as long as the actual tax forms are correct. The sale is reported on Form 8949 just like a sale of any other investment. The Form 8949 that lists the sale of the second home has box F checked, which means "not reported to you on Form 1099-B." You have to add the cost of improvements to the "Total amount paid" (otherwise known as the basis). Unfortunately TurboTax does not give you any guidance about that.