All Posts

In TurboTax, you don't directly enter prior year college scholarships to avoid the 10% penalty on 529 plan withdrawals. Instead, you report your 529 plan distributions and then adjust for qualified education expenses reduced by any tax-free scholarships received that year. This adjustment affects the calculation of taxable earnings on nonqualified withdrawals, potentially reducing the 10% penalty. To handle this in TurboTax: 1. Enter your 529 plan distributions exactly as reported on Form 1099-Q. 2. When asked about qualified education expenses, enter the expenses paid in the current tax year. 3. Enter any tax-free scholarships or grants received for the year, which reduce your qualified education expenses. This will calculate the adjusted qualified education expenses and determine if part of your 529 distribution is subject to tax and penalty. Prior year scholarships are typically considered through adjustments if reported on Form 1098-T or corrected scholarships, but they aren't entered separately in TurboTax. The key is accurately entering your qualified expenses and scholarships for the withdrawal year to reduce penalties.

I got to the Partnership/LLC K-1 Summary page but when I depress Add Another K-1 I don't see the option to import the K-1.  I just see the screens where I need to manually enter the information.  Am I missing something?

The IRS requires that, IF rounding is used, it must be used consistently. The IRS policy on rounding is referenced in Notice 1036, which includes tables for income tax withholding:   If rounding is used, it must be used consistently. Withheld tax amounts should be rounded to the nearest whole dollar by dropping amounts under 50 cents and increasing amounts from 50 to 99 cents to the next dollar. For example, $2.30 becomes $2 and $2.50 becomes $3.   It is also referenced in the Instructions for Form 8949:   You can round off cents to whole dollars on Form 8949. If you do round to whole dollars, round all amounts. To round, drop cent amounts under 50 cents and increase cent amounts over 49 cents to the next dollar. For example, $1.49 becomes $1 and $1.50 becomes $2.   Yes, following the IRS rounding policy, the total of several rounded entries may vary from the total of all of the actual numbers in the sum.   @user17727221511 

Thanks.  I had always done it for years prior to last year at the time I submitted my taxes and didn't remember having to do that trick, the Print Center was always just there when you went to review your returns.  So since I didn't know that trick I skipped the worksheets, and by the time I researched it and found the trick later in the year, it was too late.  I was hoping they would have made it easier by now, and let you do it for previous years.  I guess not.  Anyway, I just saved my 2025 federal return with the worksheets, so I'm good for this year.  Thanks.

Understood re: the reporting requirement and basis...   Seems like the app just assumes everyone is below their basis amount on a liquidating distribution (or, in my case, an irregular private stock buyback where they've used box 9 on a 1099-DIV) and doesnt prompt for basis/gain? IE, you can upload the form, confirm the amount, and then just proceed with the return since there's no gain to calculate?   Presumably if you had recovered your basis, either in earlier transactions or in net after the reported sale, is there actually a way to enter this in conjunction with the information reported in box 9? Or does it make more sense in this scenario to just totally ignore your 1099-DIV and enter basis/sale/gain/etc amounts separately in some other area?

2024 and 2025 turbo tax is not using the Qualified Dividend and Capital Gain Tax Worksheet when there are qualified dividends.  In my case this worksheet allows for lower taxes and, although I can open it, Turbo tax will not accept entries nor use it in the tax calculation.  I suspect this error goes back further.

When reporting the sale of your rental duplex, allocate your basis between the building (75%) and the land (25%) as land isn't depreciable. You should enter the expenses related to the sale itself separately (such as commissions and fees) as selling expenses. For the improvements made over 20 years, these are capital expenditures. Add their costs to your property's basis (building portion), which adjusts your depreciation and gain calculation. In TurboTax, enter your purchase price allocated between land and building, then add improvements made over the years to increase your basis accordingly. Depreciation recapture will apply on the building portion. The recaptured amount represents the depreciation you claimed on the duplex, which is taxed as ordinary income up to that amount upon sale.   To enter the sale of your rental property and depreciation recapture in TurboTax: 1. Go to the Federal Taxes section, then select Wages & Income. 2. Scroll down to Rental Properties and Royalties (Schedule E) and click Start or Update. 3. Select the rental property you sold or add a new one if needed. 4. When asked about the sale or disposal of the property, indicate you sold it and enter the sale date and price. 5. Enter your purchase price allocated between land and building. 6. Add your improvements (capital expenditures) to increase your basis under the Assets (Depreciation) section. 7. Enter selling expenses separately when prompted. 8. TurboTax will calculate depreciation recapture and guide you to report it on Form 4797. Following these steps ensures proper reporting of sale proceeds, improvements, and depreciation recapture on your tax return.      

I keep seeing comments about going to “View->Forms” but I can’t seem to find it. I’m using the online version and not Desktop. Are the Forms only available on the Desktop version?   Also with the online version there are no flags that suggest there are any updates to the Idaho calculations pending. It feels as if TT wants me to file an inaccurate return. 

@WyomingInCA    IF you haven't actually filed yet...you can usually delete the forms.   1)  get into your tax return somewhere. 2)  In the left menu, select "tax Tools" 3)  Select "Tools" 4) From the popup menu select "Delete a Form" 5) a long list of all your forms should now show up. 6)  Note:  At the bottom of the Federal list...there is a rt-arrow to display more pages if you don't see them on the first page. 5) Look for various entries of "Schedule B - Form 1099-INT (payer name)"  and a trashcan. 6)  At the very bottom of the page is a "Continue" to hit to get you back to your tax file interview. _____________________ Problem Might Be.....do some of the ghost 1099-INT forms have the same Payer name as the ones you did use??  IF so, you may have to delete both, then return to the program to re-enter the 1099-INT forms you really need.        

It is possible that there is a missing piece of information preventing the home office calculation from being correct.   The percentage of income attributed to business use of the home may not have transferred correctly, even if you did indicate that you do all of your business in your home office.     To fix this situation on your return, the number may be entered directly on the form using Forms mode.  Use these steps:   Click Forms at the top of the TurboTax screen. Click Form 8829 under your Schedule C in the left panel of the screen. Scroll down to Part II and look for the Line 8 Calculation Smart Worksheet. Enter your percentage for business conducted in the home office on Line B.   The situation described above is being reported to the development team for further investigation and correction.  If this did not correct your situation, consider sharing a diagnostic copy of your tax data file so that we can take a closer look to try to help.  The diagnostic file will not contain personally identifiable information, only numbers related to your tax forms.     To provide us with the diagnostic file, follow the instructions below and post the token number in a follow-up thread.   Since you are using a Mac version of TurboTax, use these steps:   Go to the Menu at the top of the screen and select Help. Then, Send Tax File to Agent. Post the token number here.

The IRS will not tell you if someone else claimed you or who claimed you -- if that happened.   If you try to e-file your own tax return and it is rejected for duplicate use of your SSN, then you can print, sign and mail your return and let the IRS sort out the duplicate use of your SSN, or you can get an IP PIN from the IRS to allow you to e-file . 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  

Well, getting desktop edition on a Windows 11 pc really is not that expensive.  You can get a Laptop with Windows 11 installed for about $250 on Amazon.  So there is no need to use the online editions or pay a CPA a heck of a lot more then $250