All Posts

I discovered the cause. I became eligible for a non-qualified pension during the year, and its present value was included in Box 11, so that FICA could be paid on it up front. Turbotax asked whether I had taken a distribution or made contributions to the pension (i.e. no option to choose deferred compensation). I chose "taken a distribution", and it then deducted the total Box 11 amount from my Box 1 wages, making Box 1 negative. This meant that it was showing the IRA contributions as excess, because they were greater than my (negative) earned income.   Changing the option to "making contributions" to the NQ pension removed the issue, and I can't see that it causes any issues elsewhere (yet), so that workaround seems to be OK.   It looks like Turbotax needs to be adjusted to deal with deferred compensation for NQ plans, where FICA is paid up front, but the earnings (and income tax) are deferred.   Rgds Martin

Dawn,   Thanks so much for your reply!  To ensure I understand what you are saying:  When you say to select multiple countries (and not various), are you saying to do that on the foreign income tax credit input screen, or when I input the countries on the 1099-DIV screen?     What I tried to do was enter "Various" on the 1099-DIV input screen (which is the way it's reported on my 1099-DIV), and then input all of the countries covered by that "Various" in the country selection screen in the foreign tax credit entry.  Is that the correct way to proceed??   Thanks!  Ed

To fix your rejected return, complete the following steps per this help article: Sign in to TurboTax. Select Fix my return to see your rejection code and explanation. Select Fix it now and follow the instructions to update the info causing the reject. Input the correct prior year AGI amount (as per your MyTax Illinois account) and drivers license number to ensure it matches to what the state has on file for you. Once you've fixed the error, select File and follow the instructions to e-file your return.

this is a lot to unpack and analyze, I'd enter the 1099-Rs into Turbotax and have it do the math then ask questions here if the math doesn't math.  I was a bit confused with your Vanguard numbers as your numbers on the 1099-Rs didn't match the earnings amounts higher up on your timeline.   For whatever reason it looks like Vanguard treated the reversal of the 2025 Roth contribution as a recharacterization ("N" on 1099-R) so you would enter that as tho you made the initial Roth contribution for 2025 in Turbotax and answer the questions about recharacterizing it to Trad IRA which will flip it over to Trad contribution.  But TRP undid it back to non-retirement and you made a separate Trad IRA contribution so you would enter that as a regular Trad IRA contribution.  Be careful not to answer questions about recharacterizing that "to" Roth in that section - not to be confused with conversion, the 1099-R's with code "2" will trigger the final Roth conversions on Form 8606.  For TRP that part will following more traditional Backdoor Roth, see here for the general steps https://ttlc.intuit.com/turbotax-support/en-us/help-article/retirement-benefits/enter-backdoor-roth-ira-conversion/L7gGPjKVY_US_en_US   See Pub 590b for the 1099-R codes and info on penalties etc https://www.irs.gov/pub/irs-pdf/p590b.pdf   J8 = Early Distribution + Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2025. JP = Early Distribution + Excess contributions plus earnings/excess deferrals (and/or earnings) taxable in 2024 or a previous year.  

Yes.  It is true that under current law, the repayment cap has been removed for 2026 by Section 71305.  So if you receive too much of a credit in 2026, you could potentially have to pay back the entire Premium Tax Credit you received throughout the year.     Yes.  Contributing to an IRS, 401K or HSA could bring your MAGI back below the 400%.  This could lower or eliminate the repayment of the credit depending on your specific situation.   Since the credit is based on ranges, if you were in the estimated range of 250% but ended up at 399%, you would still have to repay the difference between what you received and should have actually received without the cap of previous years. Also, remember though there are contribution limits and over-contributing can lead to a penalty.    For those making less than 100% of FPL, if they acted in good faith when giving their estimate, this safe harbor has NOT been repealed.  So, for someone who makes less than 100% of FPL but legitimately estimated they would make more, they will still fall under this safe harbor.  

If you are still working on your NYS return, you should enter your STAR credit as per the information listed here (or on the portal here) if you are unsure of the amount.   If the amount you entered is significantly off and you already filed your return, you may have to file an amended return if the state does not adjust your return automatically. For more information on amending your state return, click here. 

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:   TurboTax Online:   Sign into your online account. Locate the Tax Tools on the left-hand side of the screen. A drop-down will appear. Select Tools On the pop-up screen, click on “Share my file with agent.” This will generate a message that a diagnostic file gets sanitized and transmitted to us. Please provide the Token Number that was generated in the response.   TurboTax Desktop/Download Versions:   Open your return. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” * This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us. Please provide the Token Number  (including the dash) that was generated in the response.   *(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”)  

Hi Patricia, Thank you for your reply! We completed the interview, checked the boxes for properties that do not operate in Hawaii and entered zeros for the gross receipts for those properties. We have a correct loss on Line 16 of our Hawaii N-15 ($36800). My question was about the carryover amount to the next year, which I thought was to be calculated on form 8582. I would think that if in 2025 we lost $36800 from our Hawaii properties, then next year we would be allowed to write off up to $36800 of the 2026 income. But Hawaii doesn't have it's own 8582, and Turbo Tax includes the federal 8582, which offsets the $36800 Hawaii losses with $22500 non-Hawaii income. Does it mean that we are losing the full carryover of $36800 and will only have $36800 minus $22500 = $14300 as a carryover loss for 2026?

It sounds like you need to fix a reject, not amend your return.   The IRS uses your prior year AGI to combat fraud. Make sure you take into account the information below.   You can find your 2024 Adjusted Gross Income (AGI) by: Looking at line 11 on page 1 of your 2024 Form 1040 Requesting a transcript of your 2024 tax return from the IRS. You can request your transcript online at the following link: Get Transcript Please click on this TurboTax article for more information.    Check these items as well to ensure you have the correct number.  If you:  Filed late last year after mid-November or your return was processed after that time—try entering 0. Amended your return last year—make sure you’re using the AGI from your original return, not the amended one. (If you only have a 1040X form, it’s on line 1, column A). Rounded your AGI to the nearest dollar—be sure to round up when it’s 50 cents or more and down when it’s 49 cents or less. Filed with your spouse last year—you and your spouse have the same 2024 AGI. (Don’t split the AGI amount or enter  0  for one of you).   Time-saving Tip: If what you entered is correct and you continue to get a reject, you won't be able to e-file. There's probably a data mismatch at the government, or some other situation beyond your control that prevents your return from being e-filed. In this case, your only option would be to print and mail in your return.    This article will give you instruction on how to print and mail your return. 

If you want to list multiple countries, do not choose VARIOUS.    You can list each country individually from the list as long as you don't start with Various.     If you own shares in a mutual fund or a Regulated Investment Company (RIC), then you may simply identify the foreign country as "RIC" rather than identifying each individual country.