All Posts

"the lower value is transferred to the Deductions page." - by this, do you mean, Schedule A, or do you mean on the Deductions & Credits Summary screen in the interview?   If the latter, just ignore it, because the value is ignored as Amy said for purposes of your tax return anyway.

To enter an EV Vehicle Tax Credit - Click on Federal Taxes Click on Deductions and Credits Click on I'll choose what I work on (if shown) Under Cars and Other Things You Own On Energy-Efficient Vehicle Charging Station, click the start or update button

Do you have a 1099-DIV with an amount in Box 5?    Qualified business income (QBI) is the net income or loss from a trade or business. This includes income generated from partnerships, S -corporations, sole proprietorships, and some trusts.  A Real Estate Investment Trust (REIT) may be a part of a mutual fund you own.     You can view Form 8995 to see the source also.   

You do not need POA to prepare a tax return for a family member who is going to sign the return and file it by mail.   Any return you prepare using TurboTax is going to say it was "self-prepared" since TT is do-it-yourself tax software.   It is very common for family members to use TT to prepare returns for other family members.   If the return will be filed by mail, it needs to be signed in ink by the primary taxpayer---the incarcerated family member.    You cannot sign for them.   When you mail a tax return, you need to attach any documents showing tax withheld, such as your W-2’s or any 1099’s.  Use a mailing service that will track it, such as certified mail so you will know the IRS/state received the return.   Federal and state returns must be in separate envelopes and they are mailed to different addresses.  Read the mailing instructions that print with your tax return carefully so you mail them to the right addresses.  

Use the link in the instructions below to go to Schedule C.     You will click on Add income for this business (line of work) and select the 1099-K option.    How do I enter a 1099-K for self-employment income?    

You can enter the amount of the Washington LTC tax for your wife in Box 14 of her W-2 in TurboTax - select the category as "Other deductible state and local tax" and that will transfer it as a deduction.   Since Washington does not have state income tax, it seems unlikely that the amount of this tax will be more beneficial than the state sales tax for deduction on your tax return.  You're allowed to used either the state and local income taxes or state and local sales taxes as a deduction, but you can't use both.  You can access the sales tax calculation in the Deductions and Credits section in the category of Estimates and Other Taxes Paid.  Click Start for the Sales Tax category to get started with that.

Thank you ReneV4. However I found bugs in Turbo tax which need to be fixed. I did sell the rental in its entirety in Jan 2025. TT was not figuring LTCGs properly even after making it 100% (BTW I have no idea where the 42% came from in TT). After that It was not allowing the Past years Passive losses in the calculation to determine LTCG. I had to manually enter the passive losses (from Prior years) on Schedule E worksheet CarryOvers to 2025 Smart Worksheet Line G ,suspended Loss under, Regular Tax column. This then flowed the correct LTCG calculation through Schedule E-> Form 8582-> Schedule D. This exact flow matters on TT as I had tried adding the Passive losses several places. TT should have asked me for the previous Passive Losses not allowed over the years to fix this.   After fixing this on my Fed return I did my AZ Non Res and CA 540 Resident  returns.  However this is where another bug came up in TT which needs to be fixed immediately.  When entering "Taxes Paid to Another state" in my CA return (from the Sale of my AZ rental) it said "This income is from Arizona  and I could not claim the credit". TT assumed this was from wages and not the proceeds from the sale of the rental I disposed of in AZ. Therefore I had to manually go and add the CA Schedule S by selecting forms then picked Schedule S and input the AZ Rental property Sale income in Column B tnen put the amount of AZ tax in there. However the drop down on Schedule S did not allow AZ to be picked so now I get an error on the CA state return.  THIS NEEDS FIXING IMMEDIATELY TURBO TAX!

Yes, you can and absolutely should attach a supplemental statement to a 1120-S, especially for ‌liquidations. However, in the "Business" or "S-Corp" versions of TurboTax, there is no ability to attach forms.  You will need to print and mail your return, with the attachments, along with a letter explaining that you wish to report the property liquidation gain as an exchange for your stock and not as ordinary income on your personal return, and here are the supporting documents to support my filing.   In the meantime, here are some suggestions for moving the gain from ordinary income into a sale of stock. To move the gain from Box 1 (Ordinary) to Box 17 code K (or properly onto Form 4797), try this:   For Section 179 Property: If TurboTax is putting this in Box 17, Code K, it’s actually doing what the IRS requires for S-Corps. The recapture of Section 179 is always passed through to the shareholder separately so they can calculate their own recapture at the individual level. For the "Exchange" Treatment: To ensure the gain is treated as an exchange for stock, the corporation should report the distribution of the property at FMV. The gain is calculated as Gain = FMV - Adjusted Basis. Rather than having TurboTax treat the asset as a sale to a third party, record it as a distribution. If your de minimis items are showing up on Line 4 of the 1120-S, the software sees them as "Other Income" (like a refund or miscellaneous fee).   Go back to the "Deductions" section. If these were previously expensed items being "recovered" during liquidation, they are often treated as ordinary income under the Tax Benefit Rule. However, if you want them on Schedule K, you may need to enter them as "Other Portfolio Income" or manually override the summary link if you are using the Forms Mode (only available in the Desktop version). One last thing to check, since you are using TurboTax Business Desktop, click the Forms icon in the top right.   Find Schedule K. Find the line where the income is incorrectly appearing. Right-click the amount and select "Data Source." This will tell you exactly which worksheet is pushing that number there, so you can go back and delete or move it.