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Please explain the "rollover."  An inherited IRA can be rolled over to another inherited IRA.  It can never be rolled over or combined into an account in the person's name unless the person is the deceased person's spouse.     In other words,  if the IRA is owned by "Jane Smith as heir to John Doe" it can be rolled over into another IRA owned by  "Jane Smith as heir to John Doe", but it can never be rolled over into an IRA owned by Jane Doe alone.   Can you please explain?

@lchan wrote: @Opus 17 That is correct, for all years we had an income greater than what was eligible to claim the deduction.  We file Married Filing Jointly.     I did some more digging and realized that for several years the total contribution made between my employer's retirement account and the IRA was less than the federal limit for that year.  But between years 2016 and 2022, the total contribution between the two was higher than the limit for each year. The amount over varies year to year, but they are all over the limit. I think you are still confused about the contribution limits.  You are always allowed to contribute up to the maximum to a traditional IRA ($5000, $6000, or $7000 for the years we are talking about.), even if you contribute to a workplace plan.  The limits do not combine.   For example, in 2025, the total limit for contributions to a workplace plan like a 401(k) is $23,500 for the employee salary deferral, and $70,000 from employer plus employee.  Even if you and your employer max out the 401k, you can still contribute up to $7000 to a traditional IRA.   The problem is that you took tax deductions that were not allowed.  The contributions themselves are fine.   However, if you used software for any of these years, the software should have prevented you from taking a tax deduction based on your income.  Do you know if you actually took the tax deduction for all years 2011-2023?  If you made the contribution but did not take the deduction, you would have a form 8606 with your tax return.  If your last IRA contribution was in 2023, does your 2023 tax return include a form 8606?  

Thanks for your reply. I tried it both ways (breaking out all 50+ states and territories and just breaking out CA and the territories and lumping all the rest together).  Neither worked. TT gave an error saying the amounts don’t match, even though the total matched to the penny. I think there is a bug in TT. It may be a matching error in decimal places  past the second decimal place (pennies). I erased all entries and tried again from the start with same result.  In the end, I added a penny to the CA entry and it worked, even though the extra penny meant that the numbers were actually off by a penny. It doesn’t really make sense to me.  I did the state by state breakout in a spreadsheet using the total number provided on the 1099-DIV and multiplying that by the percentage figures given in a table in the back pages of the same 1099.  

@Opus 17 That is correct, for all years we had an income greater than what was eligible to claim the deduction.  We file Married Filing Jointly.     I did some more digging and realized that for several years the total contribution made between my employer's retirement account and the IRA was less than the federal limit for that year.  But between years 2016 and 2022, the total contribution between the two was higher than the limit for each year. The amount over varies year to year, but they are all over the limit.

This is for a IRA?  Well first of all the 1099R should be on 1040 line 4 not 5.  The 1099R should have a X checkmark in the little IRA box next to box 7.  So go back and check that box.  Delete the 1099R forms and enter them again.  That usually fixes it.  If you answered the RMD questions wrong it might have given you a penalty on 1040 line 23.  

Thanks - I was able to get to the draft 1040-SR.    Do the right amounts  show up on 1040 lines 4a and 4b?    4a and 4b show 0 (that seems to be the error as he got $17k as the RMD).   5a shows the amount rolled over and 5b shows the $17k distribution amount.  How much is the tax due on 1040 line 37?   Maybe a IRA question was answered wrong and they owe a early withdrawal penalty or an excess accumulation penalty. Tax due is $4k as stated above. 

Yes—both H&R Block and Tax Act still indicate Windows 10 is supported for their desktop software, which you’d use to file 2025 taxes (in early 2026). H&R Block (desktop/CD/download): System requirements list "Windows 10 or higher." Tax Act (desktop/download): System requirements say "Windows 10 or 11." Both consumer and pro pages indicate Windows 10 support. Why doesn’t TurboTax address the claim that it is doing this to force customers into more expensive software and services? There is credible evidence from regulators and reporting that Intuit has a history of steering customers toward paid options and is shifting other products toward cloud and subscription models. The FTC issued a final opinion in January 2024 finding that Intuit engaged in deceptive "free" advertising, prohibiting future claims unless eligibility is clearly disclosed. This reflects past practices that pushed consumers from "free" into paid TurboTax products. Multiple state attorneys general and FTC cases grew out of reporting that Intuit used design and marketing to nudge users into paid tiers, such as Pro Publica investigations and a 2022 multi-state settlement. Intuit is also sun-setting QuickBooks Desktop and moving users to QuickBooks Online, a clearer shift to recurring, higher-revenue subscription models, suggesting a broader corporate preference for more expensive cloud-based products.

It is not illegal to contribute to an IRA if you also participate in a qualified workplace retirement plan.  You might not be eligible for a tax deduction, but you can still contribute.  You just have to make certain adjustments for the nondeductible amounts.   A "return of excess" is a special procedure that can only be done up to October 15 of the year after the ineligible contributions.  If your last potentially ineligible contribution was in 2023, it is too late to even think about the "return of excess" procedure as a way to fix this.   Are you sure you were never eligible for the deduction?  In 2011, the deduction phase-out started at $56,000 for single and $90,000 for married filing jointly.  Did you make more than that, even 14 years ago?   The 2023 deduction phase-out started at $73,000 for single and $116,00 for married filing jointly.   Are you sure that you have been over the deduction limits ever since 2011?   Let's start by clarifying that, then we can see what we think next. 

Are you using the Online version?  And it says the Tax Due is $4,000+?   Before filing you can preview the 1040 or print the whole return. You have to pay any fees first before you can see all the forms, etc. https://ttlc.intuit.com/community/accessing/help/how-do-i-preview-my-turbotax-online-return-before-filing/00/26160

Thank you! Based on your answer, it seems that IRS will have to trust me that this was a total loss of my investment. I wonder, in case of an IRS audit, what would be an acceptable proof that the investment was a total loss. All I have is an email from the syndicator saying that the bank foreclosed on the property...  

Did they get two 1099R forms?  Yes What codes are in box 7 on them?  The one for the rollover amount (not taxed) is 4G, The code on the form for the taxable distribution is 4.  Do the right amounts  show up on 1040 lines 4a and 4b?    I can't seem to get to the screen that shows me the draft 1040 - any tips?  How much is the tax due on 1040 line 37?   Maybe a IRA question was answered wrong and they owe a early withdrawal penalty or an excess accumulation penalty. I can't seem to get to the screen that shows me the draft 1040 - any tips?  If the tax return is right I would ignore the strange rate, etc.  I don't want to pay $4000+ on taxable income of $1100 until I understand how this could be right, ie what is causing it. 

@jherna13  what I get from your post --> 1.    YOU a US person ( citizen ) have a tax home in Netherlands and have been there since at least 2023  ( when did you start your  foreign tax home ?  generally the first full day in  ) a foreign land. 2.     Your spouse  is s US person ( please confirm / correct ). 3.    In 2023  you used  FTC rather than  FEIE --- please can you tell why you chose this path 4.    In 2023, since all your active earnings were foreign, the form 1116 with limitations still resulted in 100%  Foreign Tax Credit -- with no carry back/forward 5.   In 2024 your earnings situation same  with the exception of  added income due to RSU vesting. Therefore TurboTax is showing a tax due ( for US return).  Please can you tell me --               (a) is the RSU from a local or US entity ?               (b) what is the quantum of the income being declared/recognized ( the diff  between FMV and the basis of the shares vested in 2024 )?                (c) Has NL taxed the vested  & therefore "imputed" income ?                (d) how are you reporting this "vesting" caused income -- part of active income, investment , "other" or what ?                (e) are you paying FICA or participating in NL FICA equivalent ? 6.    Your comment about where to enter  active income for purposes of FTC,  requires that I understand how you filed for  tax year 2023.  How did you show your active income -- as other , business income  or what ?      Sorry for all these questions but to me these need to be considered for an understanding of the situation.   I will circle back once I hear from you --yes ?   Grusse

I have undeleted the thread, but basically the answer that was originally given in March 2021 was " For SIN or identification numbers that have 6 or 8 digits only, simply put zeros in the front so that the total number of characters is 10 digits long in the RL-24 Box H." followed by multiple people saying it didn't work. The last post is me in 2023 giving the same answer I gave to you.   So, maybe try adding zeros to the number in Box H to make it 10 digits - it worked for at least one person.

all the above reasons   desktop s/w is $200mil revenue and 4mil users which is not nothing, but it's somewhat a legacy business now, and only 1% of their revenues and declining 5%, while online/live and other business areas growing 10%.  in the last earnings statement they referred to yielding share for "low average revenue per return" users and seem fine with that as long as there is growth in higher revenue areas.   this year they are killing desktop basic edition which likely most overlaps with online capabilities, ItsDeductible, Win10 and Mac OS 13 (not unusual for MacOS as they have been dropping support for an OS version and certain hardware annually in recent years).   Intuit has also been lobbying hard to kill IRS Direct File which appears to be in the works, and likely hope to capture those folks into online.   I would also think this decision was made in conjunction with MSFT to help project what % of users would convert or be lost, and help influence/accelerate Win 11 adoption within the significant Intuit user base, while simplifying support for Intuit in what is now a legacy business.   So the bottom line is Intuit doesn't mind what you do - upgrade to Win 11 in next 6 months and continue to use Turbotax, or upgrade in 12 months or never, use their desktop s/w or don't, move to online or competitor or don't - they are focused on the other $20bil of revenue and will do just fine.

Unfortunately, there is no list of which receipts have been carried forward. Only the dollar amounts are preserved.    TurboTax Online is no longer available for years before 2022, as we typically only have 3 years available at a time. 

Did they get two 1099R forms?  What codes are in box 7 on them?  Do the right amounts  show up on 1040 lines 4a and 4b?   How much is the tax due on 1040 line 37?   Maybe a IRA question was answered wrong and they owe a early withdrawal penalty or an excess accumulation penalty.   If the tax return is right I would ignore the strange rate, etc.  @dmertz