All Posts

This is a result of a major 2025 Wisconsin tax law change that forces you to choose between two benefits.   Starting with the 2025 tax year, Wisconsin introduced a $24,000 retirement income subtraction for individuals aged 67 or older. However, there is a "catch" built into the legislation: If you claim the $24,000 retirement income subtraction (on Schedule SB), you can't claiming the School Property Tax Credit, the Married Couple Credit, and several other state credits.   TurboTax is programmed to perform a "Best Interest" calculation. For most taxpayers, subtracting $24,000 from their taxable income saves significantly more money than taking a $300 credit off their tax bill.   If you or your spouse are 67 or older, TurboTax likely applied the $24,000 subtraction automatically because it resulted in a lower total tax.    Here's how you can verify this is what happened: Go to Forms Mode. In the list of forms on the left, find Schedule SB. Look at Line 16 (Retirement Income Subtraction). If there is a number there (like $24,000 or $48,000), that is why your Property Tax Credit is missing. Also, check your WI Form 1, Line 17. If your "Tax from tax table" is already $0 because of the retirement subtraction, the property tax credit (which is non-refundable) would have nothing to offset anyway.

Once a tax return has been Accepted by the IRS or a State, TurboTax receives no further information concerning the tax return or the status of any tax refund.   After the tax return has been Accepted by the IRS (meaning only that they received the return) it will be in the Processing mode until the tax refund has been Approved and then an Issue Date will be available on the IRS website.   Call the IRS: 1-800-829-1040 hours 7 AM - 7 PM local time Monday-Friday   Or you can contact your local IRS office.  See this IRS website for local IRS offices - http://www.irs.gov/uac/Contact-Your-Local-IRS-Office-1 or call 1-844-545-5640 to set up an appointment You may want to contact a Taxpayer Advocate in your area.  See this IRS website for Taxpayer Advocate - https://www.taxpayeradvocate.irs.gov/ or call 1-877-777-4778

No.  You would not move it to the general category.  Since your foreign sourced income is $0, the High Tax Kickout does not apply to this situation.   The foreign tax credit limitation for 2025 will be $0, however, you can carry the unused amount back one year or forward up to 10 years.

Did you e-file your tax return and was it accepted? Only the IRS and your State control when and if a Federal or State tax refund is Approved and Issued.   You complete your tax return by finishing all 3 Steps in the File section. In Step 3, to e-file your tax return, you must click on the large button labeled "Transmit my returns now".   After completing the File section and e-filing your tax return you will receive two emails from TurboTax. The first email when your tax return was transmitted and the second email when the tax return has either been accepted or rejected.   Note - Once a tax return has been Accepted by the IRS or a State, TurboTax receives no further information concerning the tax return or the status of any tax refund.  Only the taxpayer listed on the tax return can obtain the status of a tax refund or a tax return.   To check the status of an e-filed return, open up your desktop product or log into your TurboTax Online Account. You can find your status within the TurboTax product. If accepted by the IRS use the federal tax refund website to check the refund status - https://www.irs.gov/refunds If accepted by the state use this TurboTax support FAQ to check the state tax refund status - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/track-state-refund/L3jgO8PGs_...   After the tax return has been Accepted by the IRS (meaning only that they received the return) it will be in the Processing mode until the tax refund has been Approved and then an Issue Date will be available on the IRS website.

For those talking about changing the "I" to an "L"...  Per the official Goodman website (https://www.goodmanmfg.com/resources/tax-credit), the "I" is correct.  (I'm sure that Amana and Daikin have similar sites.)  I would highly recommend not putting an "L" just because someone said it might have worked for the time being.  I'm not a professional tax person but "L" is NOT CORRECT and I assume it could only cause you more headaches later.

Because they both fall into the Passive Category, TurboTax tries to link them, which reduces your credit limit.   You can try this in the Interview mode: Navigate back to the Foreign Tax Credit section. Proceed past the income entries to the screen titled Lessor Common Exemptions or Foreign History. Look for a screen titled Directly Related Expenses or Deductions Allocated to Foreign Income. There should be a field here to manually adjust or override the amount of interest expense allocated to the foreign source. By manually entering $0 for interest related to the rental, you should be able to move that expense into the 'not definitely related' bucket, which preserves your credit limit. For the Basis error in Smart Check, entering 1 is a common workaround to satisfy the software's ratio calculation without changing your tax outcome. If that doesn't work, go to Forms mode and try this: Open the Foreign Tax Credit Compilation Worksheet. Find the section for Interest Expense or Apportionment. Look for the line that pulls from Form 4952 (Investment Interest). You can right-click and select Override on this worksheet to set it to $0. This will flow forward and fix the math on Form 1116.

Do you see the Skip Import button now?   I have never imported a 1099-DIV, but have entered plenty of them manually.   Make sure your software is updated - You should definitely see the Skip Import button on the Partner import page.      Where do I enter my 1099-DIV in TurboTax?   Since you are using the desktop software, you can click on Forms and add the 1099-DIV from there.   

@CatinaT1    Hi Catina, Thank you so much! That is an incredible relief. Trying to figure out the exact daily APY for those middle-of-the-month gaps was driving me crazy, so knowing the IRS accepts the last official statement as a "reasonable method" takes a huge weight off my shoulders.   So, just to be absolutely crystal clear and put this to bed: I am good to go ahead and submit a second "Excess Contribution Correction" form to Optum for exactly $1.25 right now? Once they process that $1.25, I am fully compliant, the excess is 100% resolved, and I can just go ahead and file my 2025 tax return with peace of mind?   Thank you again for making this easy to understand!

You may wish to talk directly with TurboTax Support to determine if an amended return was filed. See: What is the TurboTax phone number? Customer support is available from 5 a.m. to 9 p.m. Pacific time daily.

My form I filled out from TurboTax had the correct I7Q6 when I pulled it from the TT site. But as requested in the letter I received from the IRS, I submitted a PDF on the IRS secure site and went ahead and included my receipt and certificate and my return was accepted quickly and I received my refund no longer than two weeks later.  

Software for tax years 2020 and earlier is no longer supported by TurboTax (as of 2023). You may be able to find another software program or a local tax professional to prepare an amended return. Note that you have three years from the date you filed your return or two years after you paid the tax due (whichever is later) to file an amendment. Some exceptions apply, like bad debt, worthless securities, foreign tax credit, or an IRS audit.   If you choose to purchase software from a vendor other than TurboTax, we caution you to use due diligence to ensure it is a legitimate vendor.

Did you itemize your deductions in 2023 and 2024? If not, your state tax refunds are not taxable income for federal purposes.   If you used TurboTax to prepare your 2024 return, your 2024 federal and state tax payment and refund information transfers to 2025, and, in most situations, the program automatically computes the taxable refund amount. In this case, you would not make any additional entries for the 2024 payment or refund. The software handles this whether you itemized or not.   If you itemized your deductions in 2023, you would need to manually calculate the taxable amount of the refund to enter on the State and Local Income Tax Refund Worksheet Part VII. You may wish to see IRS Publication 525, Taxable and Nontaxable Income, for information about how to recalculate a prior year's tax and for related examples. Or you can choose to omit this step by claiming all of the refund as taxable. Again, if you didn't itemize, the refund isn't taxable.   For tax year 2025, if deductions are itemized on Schedule A, the prior year state tax payments will be included, as state and local taxes that were paid in 2025. However, if the refunds you received are not taxable, you may wish to omit these payments from your 2025 return since you received the benefit of the deductions on the returns filed for each year.

Rick - the "cumulative adjustment to basis" is on the separate schedule (sales schedule) mailed with all the K1 forms I received.  That schedule also includes other values such as:  gain subject to recapture as ordinary income, AMT gain/loss, adjustments for bonus depreciation, etc.    I was also able to determine that on all the K1 sales schedules that this "cumulative adjustment to basis" number is equal to the "current year net income/loss" number in the Capital account section of the K1 MINUS the value in Box 19A of the K1.   So I guess my last remaining question is if I should adjust my basis by this number.