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Lots of users made a mistake after entering their SS benefits.   The next screen asks if you had income in a foreign country.   If you answered incorrectly or skipped the screen, your taxable SS did not go to line 6b on your Form 1040, which caused a problem.  If the IRS already corrected the problem, you just need to pay the additional amount of tax due.    Look at your Form 1040.   SS income is on line 6a.  The taxable amount should be on 6b.   Is 6b blank?

The tax rate on Section 1256 contracts is 60% is taxed as long-term capital gains 40% is taxed as short-term capital gains For non-Section 1256 contracts the tax rate is determined by the length of the holding period.   IRS Publication 550 goes into detail of what is considered a Section 1256 contract.  Please note that the Market to Market rules are different and Section 1256 contracts will be reported on a Form 6781    

The Social Security Administration (SSA) automatically reviews your earnings record each year to determine if your new earnings could increase your monthly Social Security benefit. If your earnings from working at age 74 are among your 35 highest-earning years, the SSA will recalculate your benefit amount and increase it accordingly. This adjustment is automatic and does not require any action on your part. Taxation of Social Security Benefits While Working Since you are working while receiving Social Security, there is a possibility that a portion of your benefits could be taxed, depending on your combined income. The IRS defines combined income as the sum of: Your adjusted gross income (AGI), Non-taxable interest, and Half of your Social Security benefits. For the 2025 tax year, the following thresholds apply: Individual Filers: If your combined income is between $25,000 and $34,000, up to 50% of your benefits may be taxable. If your combined income is above $34,000, up to 85% of your benefits may be taxable. Married Couples Filing Jointly: If your combined income is between $32,000 and $44,000, up to 50% of your benefits may be taxable. If your combined income is above $44,000, up to 85% of your benefits may be taxable. It’s important to note that no more than 85% of your benefits will ever be subject to taxation. By continuing to work, you not only have the potential for increasing your future monthly Social Security benefit, but you should also monitor your income levels because they may affect how much of your benefits will be taxable.   @Rnininger  Thanks for the question! **Say “Thanks” by clicking the thumb icon in the post **Mark the post that answers your questions by clicking on “Mark as Best Answer”

Current tax rules are clear that you cannot convert the Required Minimum Distributions (RMD) from an IRA into a Roth IRA; however, with that being said, you can convert any remaining funds in your traditional IRA to a Roth IRA after you have taken the RMD amount for the year.  As an example, if your RMD for 2025 is $5,000, then you must take a distribution of at least $5,000, and you cannot convert any portion of that $5,000 to a Roth IRA.  But, you can choose to take a distribution of more than $5,000, and the amount that exceeds $5,000 can be converted to a Roth IRA.   Based on your age and the fact that you have had a Roth IRA for over 5 years, there is no need to keep track of your basis in the Roth IRA, as any distributions from your Roth IRA will be tax free to you - both return of contributions as well as all the earnings. If you were taking Roth distributions before age 59 1/2, OR if you were taking Roth distributions and you did not have a Roth account for at least 5 years, then your basis in the Roth would be important, as any portion of a distribution that represented earnings would be considered taxable to you under either of those 2 situations.  As such, the short answer for your situation is that you do not need to report your Roth basis in TurboTax for 2025.   I do want you to double check the 2023 return and make sure the basis number reported on it was the basis in your Roth IRA, and NOT the basis in your Traditional IRA. If this $12,485 represents your basis in your Traditional IRA, that number represents your after-tax contributions to your Traditional IRA, and yes, you would want to make sure you report that on your tax returns (I would recommend you amend your 2024 return if this is the situation). When you have after-tax contributions in your Traditional IRA ("basis"), then that means every time you take a distribution from the Traditional IRA, a part of the distribution is a return of your basis and would be tax free.  In my example above, if you had basis in the Traditional IRA, then when you took the $5,000 RMD distribution, an amount less than $5,000 would be the taxable portion of that distribution, instead of the entire amount.  The calculation of the taxable portion of Traditional IRA distributions when you have basis in the account is calcuated on IRS Form 8606, and is determined by the amount of your basis remaining in the account, and the value of all your Traditional IRA accounts as of the last day of the year.   I hope the above answers all your questions - have a great rest of your day!  

You have not shared your filing status.   We do not know if you have a W-2 job or if you are self-employed.   You have not mentioned whether you will claim any qualified dependents.  You have not mentioned if you are 65 or older.   2025 STANDARD DEDUCTION AMOUNTS   SINGLE $15,750  (65 or older/legally blind + $2000) MARRIED FILING SEPARATELY $15,750  (65 or older/legally blind +1600) MARRIED FILING JOINTLY $31,500  (65 or older/legally blind + $1600) HEAD OF HOUSEHOLD $23,625 (65 or older/legally blind + $2000)     For 2025 through 2028 there is an extra  deduction amount of up to $6000 per individual 65 or older filing Single, MFJ, or HOH which is phased out above certain incomes.  

Error 190 occurs when your 2021 data file contains a state return, but the state program for that state is not installed in the 2021 software, so TurboTax doesn't know how to handle the data file.   To try to remedy that, launch 2021 TurboTax and start a new dummy return long enough to download the 2021 state program.   Once the 2021 state program is incorporated into your 2021 desktop program, TurboTax can then open the 2021 data file containing a state program.   Also see my TIP below for the best way to open a data file.   FAQ: Error 190 when opening file in TurboTax Desktop https://ttlc.intuit.com/turbotax-support/en-us/help-article/system-responses/error-190-opening-file-turbotax-cd-download/L1Q0ybjLC_US_en_US   TIP:  While clicking (or double-clicking) on the *.tax2021 data file will normally launch the 2021 program, it's not recommended to open it that way.  It's best to launch the 2021 TurboTax program first, and then open the 2021data file from within the TurboTax interface.  If using the Windows version, once TurboTax is launched, and you are at the TurboTax initial landing screen, go to the top left corner of the TurboTax program interface and click on FILE, then in the dropdown menu choose OPEN TAX RETURN.  And then choose the data file to open.  The next time you work on the return, after you launch TurboTax program, at the landing page there should be a rectangular icon, which is a shortcut to the data file.   So on subsequent uses, after launching TurboTax you can click on that rectangle to open the data file.

You are past the point where your SS benefits can be reduced by earning money by working.     Up to 85% of your Social Security benefits can be taxable on your federal tax return.  There is no age limit for having to pay taxes on Social Security benefits if you have other sources of income along with the SS benefits.  When you have other income such as earnings from continuing to work, investment income, pensions, etc. up to 85% of your SS can be taxable.     What confuses people about this is that before you reach full retirement age, if you continue working while drawing SS, your benefits can be reduced if you earn over a certain limit. (For 2021 it was  $18,960.  For 2022 it was  $19,560  —  for 2023 $21,240)  For 2024, $22,320.  For 2025 it will be $23,400   After full retirement age, no matter how much you continue to earn, your benefits are not reduced by your earnings; your employer will still have to withhold for Social Security and Medicare.  If you work as an independent contractor then you will pay self-employment tax for Social Security and Medicare.   To see how much of your Social Security was taxable, look at lines 6a and 6b of your 2024 Form 1040   https://www.irs.gov/help/ita/are-my-social-security-or-railroad-retirement-tier-i-benefits-taxable   You need to file a federal return if half your Social Security plus your other income is   Single or Head of Household      $25,000 Married Filing Jointly                  $32,000 Married Filing Separately            $0   Some additional information:  There are 9 states that tax Social Security—Colorado, Connecticut,, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont  and West Virginia These states offer varying degrees of income exemptions, but two mirror the federal tax schedule: MN and VT.         IF YOU WANT TO HAVE TAX WITHHELD FROM YOUR SOCIAL SECURITY BENEFITS   https://www.ssa.gov/manage-benefits/request-withhold-taxes https://www.irs.gov/forms-pubs/about-form-w-4-v        

Quarterly estimated tax payments are due: April 15th June 15th September 15th and January 15th The goal is to be within $1,000 of your calculated tax liability on your upcoming personal tax return to avoid penalties. They can be paid with a check or online.   To calculate each estimated payment, you will want to review your income for: January 1 through March 31 April 1 through May 31 June 1 through August 31 and September 1 through December 31 then subtract estimated deductions and credits.  Using the previous year tax return is a good starting point.  You can calculate by hand using the IRS Worksheet or you can use the calculator in TurboTax

First, please accept my deepest sympathies on the recent passing of your spouse.    I presume when you said he had an account with Charles Schwab and that the account was transferred into an inheritance account in your name, that the funds were in your husband's IRA account, and those have subsequently been moved to your IRA account.   If that is correct, based on your age, you can take a distribution for any amount you wish.  If all of your spouse's contributions to the IRA were pretax contributions, then the entire amount you withdraw will be considered taxable income to you, and reported on your tax return.   However, the decision to withdraw $75,000 may, in fact, cause an amount larger than $75,000 to be taxable to you on your tax return, assuming you (and/or your spouse) are collecting social security income. Depending on your income, social security benefits may be not taxable to you, but as your income rises, your social security benefits can start to become taxable to you, and with higher income, up to 85% of social security income can be considered taxable income.   As such, if you have historically been in a situation where none of your social security benefits were taxable, taking the $75,000 from the IRA could very well cause up to 85% of social security benefits to be taxable.  It would be difficult to calculate exactly what the impact would be on your 2025 tax return, as the impact depends on how much social security benefits are received in 2025, what other income (retirement pensions, IRA's, investment income, etc.) you have, and the amount of deductions you have.     An additional factor you will want to consider is the timing of the withdrawal from the account - and whether it saves money to take the money out this year in 2025, wait until January 2026, or even take a portion out this year and a portion out next year. As your spouse passed away in 2025, you can still file your 2025 tax return as Married Filing Joint (MFJ), taking advantage of the higher MFJ standard deduction and MFJ tax brackets.  The year of his passing would be the last year you can file a MFJ return (unless you remarry sometime down the road).  So a consideration would be what does your income tax liability look like this year as a MFJ return reporting income received by both of your in 2025, versus what your income tax liability will look like in 2026, presumably filing status as Single, with just your income being reported.   I would recommend reaching out to your financial advisor at Charles Schwab, or reach out to a local tax professional to help calculate the impact of taking money out of the account this year, and if it could be tax advantageous to take the funds out in 2025, 2026, or spread between the two years.   I hope this information is helpful as you decide how to move forward, and again, my deepest condolences on your loss.

Contributions to a Roth IRA are: 1. Taxed at the time of contribution so 2. The account grows tax free meaning 3. Distributions are not taxed   A Roth Conversion means funds were moved from a tax deferred account (like a Traditional IRA) into the Roth IRA.  The amount of the conversion 1. Is taxable as ordinary income in the year of conversion 2. There is no penalty 3. Can be done regardless of age or AGI