All Posts

Because of some of the recent tax law changes, the IRS released final instructions for Form 4562 (Depreciation) quite late this season. In many cases, TurboTax didn't have the depreciation module fully functional until late February 2026. If you started your return prior to that and transferred last year's information, the carryovers may not have populated into this year's returns. You may need to manually add those using these set of steps. Some of this may already be in your return, but I will mention them anyway.   Step 1: Navigate to the Asset Section Go to the Federal tax section and select Wages & Income. Find Rental Properties and Royalties (Schedule E) and click Edit/Add. Proceed through the "Property Profile" until you reach the screen titled "Your Property Summary." Look for the Assets/Depreciation row and click Start or Update. Step 2: Adding the Property (The Structure) This may be already populated in your return. When it asks for the asset, start with the house itself.   Description: Use something like "Rental House" or the address. Cost: This is the original purchase price plus any capital improvements. Note: You must subtract the Land Value from this total. Depreciation only applies to the building, not the dirt. Date Placed in Service: Use the original date you first started renting it out. Step 3: Entering "Prior Depreciation" (The Critical Step) This is where most people get stuck. TurboTax will ask: "Did you take depreciation on this asset in prior years?"   Select Yes.   It will ask for the Prior Depreciation amount.   Look at your 2024 Depreciation Schedule.  Look for a column labeled "Accumulated Depreciation" or "Prior Depr."  Enter the total amount of depreciation taken from the day you bought it through December 31, 2024.    

Scholarship income should be listed on the 1098-T, box 5, an informational form, not a tax form.  If you did not receive a 1098-T, go through the education section and mark that you received scholarships. The program subtracts tuition and fees from scholarship income to get the taxable amount. A little tweaking is needed when also claiming the education credit by the parent or student.

I am in the same boat. I just finished my taxes and I got charged for two things. I got charged for TurboTax Online State 2025, which I already expected, and then I was charged for the upgrade that I said no to. How am I able to get that money back since you aren't able to talk to an actual person with these situations?

Oh, now I see others have run into this issue.  I'm not a tax expert, but by my interpretation that box should be checked.  To see this erroneous return generated after you pay for the product with no means to resolve is so frustrating  😠 https://ttlc.intuit.com/community/taxes/discussion/1040-5a-rollover-checkbox-unchecked-with-1099-r-code-g/00/3811079 https://ttlc.intuit.com/community/taxes/discussion/2025-form-1040-line-5c-rollover-not-checked/00/3836464   I don't think I'll be going back to turbotax after this one..  seems clear to me its improperly populated my tax return.

Yes, you should amend your return to change your filing status to married-filing separately or Head of Household if you qualify for that. It may result in you owing taxes as there are different tax rules for different filing statuses. If you file as married-joint, you would need a tax identification number for your spouse. I can't advise you on the process of waiting on acquiring a tax ID number as opposed to a social security number, accept to say it would be best to amend your return before the IRS makes an inquiry regarding that.    

No. You cannot claim those 2025 payments because the IRS mandates that the Energy Efficient Home Improvement Credit must be claimed in the tax year the equipment was "placed in service" (installed), regardless of when you actually pay the bill.    Since your insulation was installed in 2024, the tax benefit belongs to your 2024 tax return. If you did not take the credit last year, you can file an Amended Return (Form 1040-X) for 2024.

Just to clarify, the advice you got from TurboTax was technically correct, but it may have been confusing in this situation. Here’s how to handle your pensions and IRA.   Since you already took the IRA distribution in September 2025, you must report it now. You cannot "ignore" it until next year because the money was physically moved in the 2025 calendar year. When TurboTax asks how much of that distribution was an RMD, you enter the amount that was required for 2025. Usually, an RMD requirement is listed on a disclosure statement or you may need to contact the IRA custodian to find out what the RMD requirement was for the year.   As far as the two pension distributions, the pension is a steady stream of payments mandated by the plan, it automatically satisfies the RMD requirement for that specific account.   Do you need to calculate an RMD for a pension? No. Is it reported as an RMD in the software? Generally, no. In the TurboTax interview, when it asks "Was this a Required Minimum Distribution?" for a standard monthly pension (1099-R), you should typically answer Yes, but then when it asks how much of it was an RMD, the answer is all of it. The "April 1" Rule: This does not apply to monthly pensions. Since he is already receiving the payments, the "distribution" is happening automatically. You simply report the 1099-R as it is written.            

Since you are using the desktop version, you can switch over to Forms mode. Look for the red exclamation marks and pink error boxes. You can check those boxes to correct things.   Some boxes allow entry while others require you data source (right click on windows) to find the original entry box. An override can prevent e-filing and will void the accuracy guarantee but the boxes you mention do not include those issues.

Yes, if the drug is prescribed by a doctor to treat a specific medical condition, such as obesity, diabetes, or hypertension, it is a qualified medical expense. If you are taking the medication merely for "general health," "appearance," or to lose a few pounds without a diagnosed medical condition, it does not count as a medical expense.   You must itemize your deductions to claim medical expenses. Also, medical expenses are only deductible for the amount in excess of 7.5% of your AGI. ‌For example, if your AGI is $50,000, only your medical expenses over $3,750 can be claimed as an itemized deduction.‌    Refer to IRS Publication 502 for more information. 

It sounds like your husband only got 1 payment (for November, and probably an interim payment at that, not even his final monthly amount) in 2016, with retiring at the end of October (OPM has *never* made a final determination that quickly!).  I'd put November 1 2016 in the calculator as the start date, and now you know his contributions, it will tell you the nontaxable amount for 2016 if you're curious but it was at most the $12 or whatever you say is his nontaxable monthly amount right now.  So not worth worrying about the taxes on that $12 since you can't go back and amend a 10 year old return anyway.