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For 2025, qualified long-term care premiums are deductible as medical expenses up to certain age-based limits. Provided total medical expenses exceed 7.5% of Adjusted Gross Income. Costs for chronic care, including nursing homes and home care, are deductible if they are prescribed by a physician.    The limits by age are as follows:   Age 40 or less: $480 More than 40 but not more than 50: $900 More than 50 but not more than 60: $1,800 More than 60 but not more than 70: $4,810 More than 70: $6,020  Keep in mind:  The care must be for a "chronically ill" person and have a licensed health care practitioner’s certification.  The policy must be a "tax-qualified" long-term care contract You must itemize your deductions to claim these expenses Self-employed individuals may be able to deduct premiums regardless of the 7.5% AGI threshold. Deductible expenses include nursing home care, home health care, and other related services. This may include meals and lodging in a health care facility. You cannot deduct expenses that are covered by your insurance.    Where do I enter my long-term care premiums?   Publication 502 Medical Expenses Please return to Community if you have any additional information or questions and we would be happy to help.  

Follow these steps: Open to NY Continue to Retirement Distributions Summary or Pension and Annuity Exclusion Edit each 1099-R Enter the date you began receiving you receiving your pension I recreated your scenario with a birthdate to turn 59.5 near the end of the year. I marked the distribution date after turning 59.5 and can see the exclusions with no issues.   Verify: NY Pension / Annuities worksheet Part I has:  Date listed Gross Federal NY taxable   Part II line 3 line 4b   NYS Publication 36 states: "If you became age 59½ during the tax year, the exclusion is allowed only for the amount of pension and annuity income received on or after you became 59½, but not more than $20,000."

Unfortunately, a1099-MISC homebuyer grant from a bank as taxable income. Anyone who instructs you to report the 1099-MISC on your tax return then zero-out that amount by reporting an equal-but-negative amount in another part of your tax return, is misinforming you. This is also true for seller-provided grants.   Homebuyer grants are exempt only when provided by a qualified non-profit, which, again, does NOT include grants from banks, seller-provided gifts or any other entity other than a qualified non-profit.

If the PTE Credit wasn't automatically carried over to your current return, such as because you didn't use TurboTax last year, you would enter it in your 2025 state tax return.    If the pass-through entity is a Partnership, TurboTax will prompt you in the California interview to make any needed entries for the Partnership K-1. Under Partnership K-1 Adjustments, look for Credits and Form 3804-CR.    For taxable years beginning on or after January 1, 2021, and before January 1, 2026, California law allows an entity taxed as a partnership or an “S” corporation to annually elect to pay an elective tax at a rate of 9.3 percent based on its qualified net income (QNI). The election shall be made on an original, timely filed return and is irrevocable for the taxable year. See this California FTB webpage for more information.   Qualified taxpayers are allowed a credit equal to the qualified amount of the qualified taxpayer’s pro rata share or distributive share and guaranteed payments of the electing PTE’s qualified net income. That amount is reported on the qualified taxpayer’s Schedule K-1 (100S, 541, 565, or 568).    If the available credit exceeds the current year tax liability the unused credit may be carried over to reduce the tax for five years or until exhausted, whichever occurs first. Apply the carryover to the earliest taxable year possible. In no event can the credit be carried back and applied against a prior year’s tax.  

  Thank you for following up on your initial post, and correcting it.  The 12% penalty is very unfortunate, but it does make more sense with what the software was generating based on my responses.  I will file the amended 2024, wait for confirmation of receipt, and then follow up with 2025 - each year now with the attached 5329 and associated 6% penalty.  At least the bleeding has been stopped, and the filings should put it to bed, until minor housekeeping next year, with the 1099-R and earnings.   Thank you again.

You need to adjust the cost basis for several very important reasons:    1 To avoid double taxation - For example, if your Form 1099-B has a cost of zero (0) and they report that you sold that stock for $100. You pay tax on the full $100. However, if you did pay something toward that stock (for example, you paid $75), you want to be sure that you correctly report that you have "basis" or cost in the stock.   2 To account for corporate actions, such as stock splits or mergers - For example, if you bought one share for $100, and it splits into two shares, your new basis is $50 per share, not $100. If you don't adjust your basis and sell your stock for $60. You might think you had a loss of $40, when you actually had a gain of $10.   3 To track reinvested money - For example, if you have stock that pays dividends and you re-invest automatically, you are technically using your already taxed money (profit) to buy more shares. Each time a dividend is reinvested, it increased your total cost basis. If you don't adjust, you'll end up paying tax on the dividends you already paid tax on previously.   Therefore, even when using the import feature in TurboTax, it is always a good idea to review your documents to ensure you are making any needed adjustments, especially if the "cost" is showing as zero (0) on your Form 1099-B.   Note: This adjustment is critical for employee stock options, since you probably already have ordinary income reported on your W-2. If you don't manually add that taxed amount to your cost basis, you will be paying income taxes on it twice, once as wages and then again as capital gains.

No, you don't need to enter anything directly on the Form 8949.   When you enter your Form 1099-B reporting the stock sales, you will see an option that says the cost basis is incorrect or missing on my Form 1099-B. It is on the screen where you enter the proceeds and cost basis. You can enter the correct cost basis there. On the entry screen for the sale, enter the correct date you acquired the investment.

@ThomasM125 ,  Thanks for the response. Yes, I expected the same that this is not what is supposed to happen. And as I described in the questions that Column A is somehow showing an increased income and so I am trying to find some suggestions on how to debug that. Can you please elaborate on what those steps could be? Thanks, for your help.