All Posts

No, as a part year California resident you do not get to claim a credit for taxes paid to another state you moved to.  If you were a full year resident of California (or any other state with an income tax) and you paid state income tax to another state you could claim a credit for taxes paid to another state.  

Oh yes. My desktop has almost all the states. When you go to file, select paper mail. That tells the program to ignore the return. TurboTax does not communicate with that state at all.   If you already have the state installed on your computer, from your return: Look under the tabs to see all of the states you have installed Select your state there by clicking on it. You may have to click it a few times and the screen will change and say continue for the state. That enters it without a cost and it will stop bothering you. @Linda13b 

If you reside in New York but work temporarily in California, you will still file as a resident of New York so you need to have taxes withheld there. You will get credit for income earned in California on your New York tax return, so your tax liability in New York may be limited if you don't work there much during the year.    If you are changing your residency to California, you will not need to pay tax in New York. The only exception would be if you were working remotely at the convenience of your employer. If you work part of the year in New York and then relocate to California, you will need to file a part-year resident form in New York, but you won't need to have taxes withheld for New York once you relocate. 

Except, that is the answer that worked in previous years.  TT finally updated this screen to the better default solution except they did not completely correct the software.  Yes, this is a BUG!!! The new default for capital gains on stocks is that the sale is from outside Oklahoma and you check the box if it is a sale of Oklahoma stock.  However, the second screen you encounter has the old solution and now we are in a situation where you cannot file your State return unless TT fixes the problem.

2025 TT Desktop: Lines 17a,b,c on form 5695 does not match my interview answers to these same questions; it's March 12, 2026 and it's sad that this error continues to be an error.  What else will be WRONG when I submit my taxes.  Why did I pay 90 for this??  I'm not happy.  I'm using the desktop program so I can fix these on my own in the form, but this is really poor quality control on TT's part.  

Usually, California gives you a credit for taxes paid to Oregon. But in this case, the rule is reversed—Oregon, as the nonresident state, needs to give the credit instead. That’s why TurboTax doesn’t allow Schedule S on the California return. Here’s how to make sure your daughter isn’t taxed twice. Here are the order of operations that should occur.   In TurboTax, the order in which you complete the states is vital for the "Reverse Credit" to calculate correctly.   Federal Return: Complete this first.  California Return: Complete this second. Since she is a CA resident, CA will tax 100% of her income (including the Oregon wages). Oregon Return: Complete this last. This is where the magic happens. 2. Why the Oregon Return is the Key On the Oregon Nonresident return, you will look for the "Credit for Income Taxes Paid to Another State."  Because California is a "Reverse Credit" state, Oregon will give your daughter a credit for the taxes she is paying to California on those same wages.  This credit should reduce her Oregon tax liability, often all the way down to $0 (or very close to it), effectively resulting in an Oregon refund of most of her withholding. 3. Step-by-Step in TurboTax If you have already started, you may need to "delete" the state returns and restart them in this order to clear the "disallowed" errors:   Step A: Go to the California state section. Ensure she is marked as a Full-Year Resident. Do not try to claim an "Other State Tax Credit" (Schedule S) here. Let CA tax the full amount.  Step B: Go to the Oregon state section. Ensure she is marked as a Nonresident (since she is a CA resident away at school).  Step C: In the Oregon interview, watch for a screen titled "Credit for Taxes Paid to Another State" or "Taxes Paid to a Reverse Credit State." Step D: TurboTax will ask for the "Taxable Income" and "Tax Liability" from the California return. Enter the numbers from her CA Form 540. As a result, Oregon will calculate the credit and apply it against her Oregon bill. 4. Why "Schedule S" was Disallowed TurboTax's "disallowed" message is actually a safeguard. California law (RTC Section 18002) explicitly forbids its residents from taking a credit on the CA return for taxes paid to Oregon. Instead, it requires you to claim that credit on the Oregon nonresident return.   @Beancountermom         

can you clarify since you are mentioning Win 10 and Win 11, are you using "Desktop" (menu across the top) or "Online" (in your browser, menu down the left)?  If you upgraded to Win 11 why not stick with desktop version?   for the import issues a lot of people have been having problems with browser permissions this year, see this thread and others  https://ttlc.intuit.com/community/taxes/discussion/re-vanguard-brokerage-update-is-available-from-vanguard-but-not-on-turbo-tax/01/3746947#M1390363   not sure about your transfer issue.  folks have issue with transfer on desktop when starting a new return have solved it by doing File / Open Tax Return then opening the .tax2024 file and TT 2025 will detect prior year and transfer it into a new return.   if you're still having issues maybe post more details and screenshots using the camera icon above the message window (don't post any personal identifiers) and maybe someone here can help.  

I originally filed in February and Turbo tax put in the incorrect deduction for the capital gains on line 15.  I received a letter from NM Taxation saying I owed them more , plus a fine.  So today (3/12/26) I did the correction recommended on this site   and refiled.  It did correct the line 15 and put in the new amount of 2500.  

Yes, Form 1041 for tax year 2025 (including Schedule K-1) must be filed by April 15, 2026. Due to the complexity of the activity you are reporting, it might be easier if you shared a diagnostic copy of the trust return. The steps are the same:   Open your return in TurboTax Business and go to Online in the top menu, then choose "Send Tax File to Agent." You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. Reply to this thread with a screenshot of your Token number (this avoids Community filters for numbers with a dash) and tag (@) the Expert requesting the token from you. Please include any States that are part of your return - this is VERY important.   Note that the Community Experts may not be available over the weekend so we may not respond for a few days.

I've had the same issue this year - it's pulling in 2025 withholdings instead of what I anticipate to be withheld this year - it does appear to be a bug, however, I found a way to work around it.   When it asks if you want to copy w2 wage information - click "yes", just to get your old employer form copied.  (I'm retired too, so I clicked "no" initially.) Edit the employer w2, and enter wages of "0", but expected federal tax withholding of what you anticipate having withheld from other sources this year, such as taxes withheld when pulling retirement funds. If you get an error that withholdings can't be more than wages, you might have to edit it on the form - that's where I found this option - its the "ES & W4 Wks" form in the Wage Income Section. However, I couldn't get it to work on the form without first clicking "yes" to copy w2 wage information over. Hope that helps!  @baird4328 

I am replying to a post and responses  from 2024 and I am having this same issue (parts that have been entered not showing up on the summary page) in March of 2026.  This is pretty ridiculous considering how much we pay for this software every year!!  Please fix the Income Summary page!!

The Schedule NR  holds the answer.  You said line 19 had the correct percentage. The $40k should not be prorated on that line. As a MI NR your tax is allocated but the income is calculated as a full year resident. MI is among the majority of states that tax a nonresident or part-year resident using apportionment/ allocating the tax. The full income from everywhere is reported. MI will look at your total family income for the year and determine the tax on that amount.  Then, they look at what percentage of the income was actually from MI. MI multiplies the percentage of NY income times the MI tax. For example: MI tax on your federal income is $8,000 But only 10% of your income was earned in MI MI tax liability will be 10% of $8,000 or $800.

did you enter the re-characterization when you did your 2024 taxes?  The correction will be to record the contribution correctly if not done (e.g. Roth to Trad IRA as a non-deductible contribution should generate Form 8606 to record the correct basis).  If you did, I don't think you need to do anything.  The 1099-R itself presumably has a code "R" and has no effect on your return, but Turbotax is giving you a general notification after inputting the 1099-R that you need to check your previous return.    

If you report only the portion of the home that is occupied by your mother, then you would enter her portion of the home expenses ($2500 in the $10,000 example). This is the easiest option if you're comfortable doing the math.   However, if you set up the property as "I rented a portion of my home," then you enter the full expense amount and let TurboTax do the math for you.    You do have the option of considering the payments you receive as reimbursement of expenses rather than rental income, as long as you're not profiting from the arrangement. If there is no rental agreement in place, this may simplify things.