All Posts

Yes the codes are correct and the form is not inaccurate. You paid the penalty on the $29 earnings in 2024, however the earnings is income because it was actually received in 2025, so include that as taxable income. You included it correctly. J – Early distribution from a Roth IRA, no known exception P – Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2024 @helpplease44 

You should not need that information unless there were state taxes withheld, which would be unusual for a Form 1099-MISC.  So you can leave those boxes blank if there is an error condition or warning being shown in TurboTax.

Box 18 on a W-2 is for reporting the amount of local wages, tips, etc., subject to local income tax. Not all W-2 forms have this filled out because not all localities require local tax withholding. If Box 18 on your W-2 is blank, you can leave it blank in TurboTax. The software should allow you to proceed without entering a value here. If TurboTax is not letting you continue and is showing an error for line 18 when it is blank, try these steps: 1. Double-check the W-2 data entry: Make sure all required fields are correct and fully entered except Box 18, which can remain blank. 2. Look for accompanying local tax info: If your W-2 has local tax withheld (Box 19) or a local code (Box 20), you might need to fill Box 18. 3. Restart the W-2 entry: Delete and re-enter the W-2 section to refresh. 4. Use TurboTax Help or Support chat: There could be a product-specific issue or bug. If no local wages apply to you, the blank Box 18 is normal and should not block e-filing.    

You must pay for more than half of your daughter's total living expenses to meet this rule. This includes things like food, housing, clothing, medical care, and school costs. The IRS uses this to see if your daughter depends on you for support. TurboTax will ask you questions about your daughter's living situation and support. Just answer each question about who paid for her expenses. If you paid more than anyone else, including your daughter, you'll meet this part of the dependent test.

These directions work. The glitch is a software problem. Every category in business deductions is automatically filled with a 0 / zero by TT software. The only lines that have numbers are the ones that I entered. TT should either stop pre-filling every line with a 0 or set the software to not trigger a request for Form 7205 with a 0 for that item. 

Whether this "CRP" question relates to the Minnesota Certificate of Rent Paid or Conservation Reserve Payments reported on Form 1099-G, you would need to file an amended return for 2024 in order to report this information.   For instructions, see How do I amend my federal tax return for a prior year?

No. A solution can be to enter summary transactions if you have many transactions. Your brokerage statements should include a summary of your transactions, grouped by sales category, for example, Box A short-term covered or Box D long-term covered.   You can always use direct entry if you choose, with summary totals.  The only exception is wash sales, which must be entered separately, if you have any. Review the wash sale rules below. Where do I enter Form 1099-B? (Ignore import) How do I mail Form 8453? (review if alerted) Wash sales cannot be combined into section totals.  They should be entered individually so that you can track your cost basis and know when you are allowed to use the information on a final sale.   Wash Sale Rule Defined: A wash sale occurs when an investor sells or trades a security at a loss, and within 30 days before or after, buys another one that is substantially similar. It also happens if the individual sells the security at a loss, and their spouse or a company they control buys a substantially similar security within 30 days. The wash-sale rule prevents taxpayers from deducting a capital loss on the sale against the capital gain of other stock. Affect on Cost Basis: The loss that occurs on a wash sale is added to the cost basis of the shares purchased that created the wash sale. When all shares are sold and there is no repurchase, that increased cost basis will be used in full and used to determine gain or loss. As long as you are tracking the wash sales and are not using them on the tax return when you are not allowed, then you can simply enter the same cost basis as the selling price. This will  reconcile your tax return with your Form 1099-B Proceeds which is what the IRS is comparing.   Wash Sale ends: The wash sale disallowed is not added to the net gain/loss rather it is adjusted and suspended so that it does not affect the total gain or loss for any pending wash sales.  The rub is that the broker only knows when a wash sale occurs, not when a wash sale no longer exists. This can spill over between two tax years.  Likewise you can have a wash sale during a tax year, and then fully dispose of the stock in the same year which would eliminate the wash sale rule for the final sale of the same stock.    It's up to you to know when you no longer have to consider the wash sale rule.    Example:  X bought 5 shares of ZZZ stock, at $5 per share, then sold it for $3 per share, however immediately before the original 3 shares were sold, X bought another 5 shares at $5.00 per share.        $25 for the first block of shares        15 is the proceeds creating a $10 loss  The $10 loss is now added to the cost of the new shares for an overall cost basis of $35.     Once the second block of shares is sold (5 shares with cost basis of $30) without any repurchase with in the 60 day window (30 days before or 30 days after the sale), and if they are sold at a loss, then no wash sale exists on the sale, and a loss is allowed.   @yatoshura 

Puede encontrar su información de depósito directo en su Resumen de la Declaración de Impuestos en TurboTax después de presentarla.   Para revisar su información de depósito directo: 1. Vaya a Inicio de impuestos en TurboTax. 2. Desplácese hasta Sus declaraciones y documentos de impuestos. 3. Seleccione el año fiscal que presentó. 4. Elija Herramientas de impuestos del menú. 5. Seleccione Centro de impresión. 6. Haga clic en Imprimir, guardar o previsualizar la declaración de este año. 7. Abra el resumen de la declaración federal; la información de su cuenta bancaria para el depósito directo se muestra en la primera sección.   Si su información de depósito directo es incorrecta y provoca que el depósito sea rechazado, el IRS le enviará un aviso CP53E en 2026 para su reembolso de impuestos de 2025. Este aviso solicita que actualice su información de cuenta bancaria en línea.   No puede actualizar su información bancaria en TurboTax después de presentar la declaración. Siga las instrucciones del IRS en el aviso CP53E para proporcionar detalles bancarios válidos y recibir su reembolso.   Si no responde al aviso CP53E en un plazo de 30 días, recibirá su reembolso mediante un cheque impreso, lo cual tardará más tiempo en llegar.  

It depends on your situation.  If your filing as single, then it would be more beneficial to itemize since the standard deduction for single filers is $15,750.  If your filing status is head of house hold or married filing jointly, then it would be more beneficial to take the standard deduction.  To do so:   Go to the Deductions and credits summary scroll down and press continue Answer a few questions until you get to the Standard vs Itemized comparison screen. There you will be able to manually choose what deduction you want to take.