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I’m not sure it’s as easy as you say Dave.  I am a Canadian citizen and also a USA citizen and now an Italian citizen who moved to Italy in 2024 and became a tax resident there.  Regarding my Canadian bank sourced income and also my USA  bank sourced income, I am not sure that they can both be considered as “re-sourced by treaty” on Form 1116.  While I know for certain that the USA sourced interest income has to be re-sourced in order to be able to get a ftc for the Italian tax paid on that same USA sourced interest income, I am not sure that the Canadian sourced interest income is treated exactly the same way.  Isn’t the Canadian bank sourced income considered on a separate Form 1116 and “passive income”.  That is what I was asking about.  I pay no tax in Canada as taxation there is based strictly upon residency, not citizenship, and I haven’t resided there since 1990 when I moved to the USA.  I moved to Italy in 2024 where I procured my citizenship and also became a tax resident.

You have to go all the way through the FILE section ----enter banking information if you want direct deposit for your refund.   Then go all the way to a big orange button that says "Transmit my returns now" to e-file. You have to go to Step 2 in the FILE section.   HOW TO CHANGE OR ENTER BANKING INFORMATION FOR REFUND https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/change-transferred-direct-deposit-information/L77NCbU6D_US_en_US?uid=m6tuh572     You cannot  change banking information while your return is in pending, nor can you change it after the return is accepted.  The IRS does not allow it.     When you e-file your federal return you will receive two emails from TurboTax.  The first one will say that your return was submitted.  The second email will tell you if your federal return was accepted or rejected.  If you e-filed a state return, there will be a third email to tell you if the state accepted or rejected your state return.   First, check your e-file status to see if your return was accepted:  https://turbotax.intuit.com/tax-tools/efile-status-lookup/ If the IRS accepted it, what does it say here?   https://www.irs.gov/refunds             

Line 27 is the section for determining NY income divided by federal income and they are trying to get things as close as possible (apples to apples) to determine your actual NY percentage to calculate your NY tax liability.   It is possible for NY income to be higher than federal due to taxing differences. Review your forms for accuracy. You are doing great catching this and asking questions.  

Thanks so much for the patience, and you're very right - I am definitely getting confused by how I am supposed to treat the two separate accounts.   I can certainly do a distribution of the new excess ($130) for myself now. Should I file it with my custodian as as a withdrawal of excess or not? (I'm not sure what "straight distribution" means)   As for her, I just want to be sure that the withdrawal made in 2024 of the excess contribution (made in 2023) is properly accounted for in the 2024 filing, and that it doesn't create issues down the line with my 2024 and future contributions.    Did I get that right?