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I have done this but my holdup is the cautionary note TurboTax shows that says the figures on the tax return have to match the figures on the 1099-B, which they now don't.  I'm assuming a lot of automation is used to detect whether the figures match or not and may kick the return out.  If a person were reviewing it, they would see Box 14 on the W-2 has a V and the amount that was added to the total W-2 income for which taxes were taken out.  But as understaffed as IRS is.....  Am I overthinking this?   Lillian

If you have a Form 1099-C (Cancellation of Debt) related to a 2011 bankruptcy, you must use a TurboTax Desktop program (Home & Business or Premiere) to properly file with Form 982 and exclude your cancellation of debt from your taxable income.    The TurboTax Desktop version allows you to go to "Forms Mode" to enter the bankruptcy exception, which is necessary for debt discharged in a Title 11 bankruptcy. To get to Forms Mode, you will click on Forms at the top tight of your TurboTax screen. Your forms from you tax return will appear in the left panel of your TurboTax screen .    To switch to a desktop  program in TurboTax you can see this article: How do I switch from TurboTax Online to TurboTax Desktop?   The IRS has very strict rules for determining whether canceled debt is taxable or not. This is a very complex issue and you should consult a tax professional if you are considering filing Form 982 to exclude of your taxable debt.    The exceptions to determining a canceled debt as taxable include: Debt discharged under Title 11 bankruptcy (including chapters 7, 11 & 13) Canceled debt was on qualified farms and real business property Debt was canceled due to insolvency (to qualify, you must demonstrate your total debt exceeded the Fair Market value of all of your assets right before the debt was canceled. Use Insolvency Worksheet in IRS Pub 4681 to determine if you were insolvent)   You can easily get to the screens to enter your Form 1099-C in TurboTax as follows: Click on "Search" in the upper right of your TurboTax screen. Type "Form 1099-C" in the search bar Click on the link "Jump to Form 1099-C" Answer the follow-up questions regarding your discharged debt to determine if it is excludable. To get Form 982 to generate in TurboTax you will follow the steps listed below.  In your TurboTax Desktop, click on Forms to switch to Forms Mode In your left panel of your TurboTax Screen at the top right above "Forms in my Return" click on the open forms icon. Add Form 1099-C Enter your Form 1099-C information on Form 1099-C in your right panel of your TurboTax screen In your left panel Click on Canceled Debt Worksheet Complete the section that applies to you. If you are claiming insolvency, you will have to click on the QuickZoom button to complete the statement of insolvency Then select Form 982 in your left panel and complete the sections that apply to you You can then click on Schedule 1 in your left panel to make sure your debt was excluded  Click here for Guide to Debt Cancellation and Your Taxes  Click here for Instructions for Form 982     Click here for How do I enter a 1099-C?   Click here for How do I report excludable (non-taxable) canceled debt?   Please return to Community if you have any additional information or questions and we would be happy to help.

What documents did you send? The IRS letter asked for a completed form 5695 so I downloaded it from IRS website and am filling it out. I'll also send a copy of our receipt from the Amana furnace. Would that be enough?

  You have to access your own account and/or  print it for yourself using exactly the same account and user ID that you used when you prepared the return.    https://myturbotax.intuit.com/   Start a 2025 return online and enter some personal information  so that the menu on the left opens up and lets you access your past year returns.   https://ttlc.intuit.com/community/prior-year-return/help/how-do-i-access-my-prior-year-return/01/27010     https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/save-2021-turbotax-online-return-pdf/L8dHfRkpT_US_en_US?uid=m5y4ch1y   Many people have multiple TT accounts and forget how to access them.  Log out of the account you are in now.     https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/many-intuit-accounts-turbotax/L9aVfKS1Z_US_en_US?uid=ll5g6zcx Account Recovery   https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/many-intuit-accounts-turbotax/L9aVfKS1Z_US_en_US?uid=ll5g6zcx   Or did you use the desktop version of TurboTax?  If so, the files are on your own hard drive or any backup device you used like a flash drive.     https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/find-last-year-tax-data-file-tax-file-computer/L0XJvPaJr_US_en_US   https://ttlc.intuit.com/turbotax-support/en-us/help-article/data-systems/find-tax-data-file-mac/L4VNGm33S_US_en_US?uid=m6guhab0   You can get a free transcript from the IRS or for a fee of $30, an actual copy of your tax return. https://www.irs.gov/individuals/get-transcript https://www.irs.gov/pub/irs-pdf/f4506.pdf       SAVE YOUR TAX RETURNS ! EVERY year before mid-October you should save a copy of your tax return as a pdf and print a copy of it for your records.  That way you will not be searching online frantically when you need it for a lender, FAFSA forms, your next tax return, etc.    https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/save-2021-turbotax-online-return-pdf/L8dHfRkpT_US_en_US?uid=m6guj526   https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/save-2021-turbotax-online-return-pdf/L8dHfRkpT_US_en_US?uid=m78eb8pc In order to transfer a past year return to the new return you need the tax file   https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/save-turbotax-online-return-tax-data-file/L4xwOG3LF_US_en_US?uid=m6guk3xl   NOTE:  TurboTax and the IRS save returns for seven years.  Returns older than seven years are purged.  

When you use online TurboTax software you get one return per fee.   Each return needs its own email, account and user ID.   If you use the same account and user ID for a second return, the second one overwrites the first return and it is lost forever.   https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-start-another-return-in-turbotax-online/00/25596 https://turbotax.intuit.com/personal-taxes/online/file-your-own-taxes/     How to transfer last year’s return?    https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/transfer-last-year-return-turbotax-online  

Our furnace is Amana, but I've heard its basically Daikin and they use the same QMIN number? I'm redoing the 5695 form that was downloaded from the IRS website. I entered "I7Q7" (capital i at the front). Hoping this will be fixed quickly. Anything else I should do or keep an eye out for?

Thank you so much, Rene!!  TT (TurboTax) didn't generate a F 8582 for 2024 or 2025. Upon reading the instructions my daughter meets all the criteria so she doesn't have to complete F 8582.    Her 2024 Sch C gain was $1,221 and Sch E loss was $3,082.  The net loss of $1,861 shows up on Sch 1 line 10 and also on F 1040 line 8, reducing her total income on F 1040 line 9.  But then the Sch E loss of $3,082 also shows up on the Federal Carryover Worksheet, line 29 as a Qualified Business Loss Carryforward for 2024 of $7,292 (2024 loss of $3,082 plus the 2023 loss CF of $4,210) in the section entitled Qualified Business Income Deduction (Section 199A) Carryovers.   I think I'm just confused by trying to look at this like an NOL or charitable contribution carryover which it isn't. As I read about it, I think the QBL carryover I'm seeing is not on the carryover worksheet to reduce future Sch E income, but for the purpose of calculating the 20% QBI deduction.  That makes sense because for 2025 she has a Sch C gain of $1,352 and a Sch E gain of $4,527 which isn't being reduced by the QBL carryover which it shouldn't if I'm thinking about this correctly. But that 2025 income of $5,783 (Sch C and E combined income less deductible self-employment tax of $96) reduces the QBL carryover on the federal carryover worksheet.  Does that make sense?    

I had to call the IRS 3 times as TurboTax said both returns were accepted. We already got our state refund back, but it had been a little over 3 weeks and federal hadn't appeared. TT didn't have any answers, so I called the IRS. They said our file was under review due to an error (we tried submitting our federal a few times, but TT had an issue with the 5695 form, and we all had to wait to submit it). We got a letter in the mail yesterday stating, "One or more of the QMIN numbers is missing or incomplete. Send us a completed form 5695 with the applicable QMIN.". So now I'm filling out the form by hand just to upload it and hopefully get our federal refund in the estimated SIX TO 8 WEEKS the IRS is estimating. All because TT messed up. We put in EVERYTHING and TT even let it go through. They have messed with us heavily. We asked the IRS if we could just redo it and start from scratch as it'd be quicker, but they said we couldn't as everything has been submitted and under review. 

The program usually waits to determine taxability until after you’ve entered the student’s expenses (Form 1098-T).   TurboTax doesn't ask "was this non-qualified?" right away... instead, it asks for your 1099-Q info, then asks for your 1098-T and other expenses.   For example: say your total 1099-Q distribution is $5,080 but you only enter $5,000 in qualified expenses,   The program will apply the tax and the 10% penalty to the earnings portion of that $80 difference.   Open or continue your return. Enter the 1099-Q (and if nothing happened)... you need to go to the 1098-T / Education Expenses section: Under Federal tab, Click on Deductions & Credits, then Click on Education, and finally Click on Expenses and Scholarships (Form 1098-T). Proceed through the interview screens, until you are asked about her school expenses, and then enter the actual qualified amounts (Tuition, books, room/board). * Once you finish the expense section, the program compares the expenses to the 1099-Q you entered earlier. If the expenses are lower than the distribution, it will then generate the "Amount Used for Non-Qualified Expenses" or "Taxable Distribution" screens. Note: If the 1099-Q was issued in your daughter’s SSN (Box 6 is checked or her name is on the form), the form actually belongs on her tax return, not yours.   If she is your dependent, you still enter her 1098-T on your return to get the credits, but the "taxable" portion of a 1099-Q in her name would technically be reported on her own return.   If the 1099-Q is in your name, then you enter it on your return.   You generally do not need to report a 1099-Q on your tax return if the total distribution from your 529 plan or Coverdell ESA is less than or equal to the beneficiary's adjusted qualified education expenses.   * And finally... If you bought a $80 "required" book or a piece of software that wasn't on the original tuition bill, you can add that to your "Qualified Expenses" total.  This would make the $80 qualified and allow you to skip entering the 1099-Q entirely, which is perfectly legal (and much simpler).