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Do not use a substitute Form 1099-R Instead you must fabricate a 2025 1099-R with the codes PJ and earnings in taxable amount box. Tell TurboTax the 1099-R is a 2025 1099-R   whatever you chosse to apply to 2025 contribution it must be no more than your compensation, or $7,000 whichever is smaller. Otherwise you will be back in the same boat.   If you report the correct positive earnings now, you can ignore the 1099-R next year, assuming it agrees with your fabrication.   There is no longer a  10% penalty on the excess earnings removed before age 59 1/2. You don't need an explanation statement for this scenario.   @Emy95 

Did the 1500 show up on your return?  For 2024 Federal Extension payments should be on schedule 3 line 10. And go to 1040 line 31.   You can type estimates paid in the search box at the top of your return and click Find and it will give you a link to Jump To the screen where you enter Extension Payments.   To enter the amount you paid with an extension (including state extension) go to Federal Taxes (or Personal Tab for desktop H&B version) Deductions and Credits Then scroll way down to Estimates and Other Taxes Paid Other Income Taxes - Click the Start or Update button   Next page second section Payments with Extension Either Visit All or Click Start or Update by the extension you paid   FOR THE PENALTY If you do not pay in enough tax from withholding and estimates, you may have to pay a penalty for underpayment of estimated tax. The penalty is an Estimated amount. Even if you are getting a refund you can still owe a penalty for not paying in evenly during the year. Generally, most taxpayers will avoid this penalty if they owe less than $1,000 in tax after subtracting their withholdings and credits, or if they paid at least 90% of the tax for the current year, or 100% of the tax shown on the return for the prior year, whichever is smaller. It is included in your tax due or reduces your refund. If you get a penalty on 1040 line 38, you might be able to eliminate it or at least reduce it. You can go to Federal Taxes tab or Personal tab, under Other Tax Situations and select Start by the Underpayment Penalties. You will answer a series of questions that may reduce or eliminate the penalty. Or you can elect to have the IRS figure the penalty for you. It's form 2210. How to add form 2210 for Underpayment Penalty https://ttlc.intuit.com/community/tax-payments/help/how-do-i-add-form-2210/00/25703   It's under Federal tab or Personal (for Home & Business Desktop) Other Tax Situations Additional Tax Payments Underpayment Penalties - Click the Start or update button  

Mike -thanks for taking the time to reply!  I think 2023 & prior are correct (RE Pro status).  My husband just retired here in 2025, but has been a real estate professional which included managing our rental properties in 2024 & prior for many years.  So, for 2024 it was my intention to count him as a real estate professional (I am working under an extension with a due date of 10/15).  (We will have to change that when we do the 2025 taxes).  But I cannot find where to input the RE Professional designation in the 2024 Premier software (I have done this in prior years).  The only question I'm getting in the "interview" section has to do with are we "actively" participating.  And since I can't figure out how to designate the RE Pro, the rental property income is going over to form 8582 (line 1a), and is therefore being counted against the other passive losses.  (I even tried to manually override the "Passive Status" on the Activity Summary Smart Worksheet for my properties, which has "Active", to "RE PRO".  But that's not making the Form 8582 change). That's OK if I am still able to take the QBI deduction legitimately AND the passive loss offset.  (BTW, the software is giving me the QBI deduction AS WELL AS the Passive Loss offset right now.)  But that seems suspect to me and I don't want to screw up the return and get audited/penalties for underpaying, etc).   So I need to figure out how to get that RE Pro designation to work, or leave it as-is if I am legitimately entitled to the QBI deduction AND the passive loss offset. I really, really appreciate any insight/opinions you might provide.  I am really stuck and don't know how to proceed.

there's no way to tell, the ending balance sheet, Schedule L, likely would be all zeroes since all assets and liabilities should be gone leaving the balancing account partners' capital accounts at zero. may be a better way is to look at schedule L on each k-1 (if this was generated) which is supposed to be on the tax basis and compute the net of beginning capital, capital contributed during year, current year income (loss), and other increase/(decreases). this should be the partner's tax basis before any distributions for the year and before taking into account any change in liabilities for the year that affected tax basis.     it's even possible for there to be gain on liquidation, if liabilities allowed for the deduction of losses that exceeded the tax basis of what was actually contributed by the partners. Property contributions/distributions would affect gain/loss on liquidation. if items affecting tax basis weren't proportional each year, it's possible for one on you to have a gain on liquidation while the other has a loss.         i  

Do you mean the autorenewal for next year's program?  Or what exactly?  What do you want to change from and to?   How to update my Advantage account information https://ttlc.intuit.com/community/choosing-a-product/help/how-do-i-update-or-confirm-the-info-in-my-turbotax-advantage-account/00/25883   TO CANCEL ADVANTAGE You can sign into your TurboTax Advantage account and under Your Product, select to remove product. Once you remove the recurring product order, the TurboTax Advantage subscription will be cancelled, as well. How to Cancel my Advantage Account https://ttlc.intuit.com/community/downgrading/help/how-do-i-cancel-my-turbotax-advantage-subscription/00/25548    

When I try to file a substitute 1099R, it is asking me to explain how I tried to get a 1099R. I know I’ll receive it next year in 2026. But now, TT is saying I owe 10% on early distribution. From my understanding there is a new law that removes the 10% early withdrawal penalty on earnings removed with excess if you do it timely. Is the distribution code correct?  This is from Fidelity.   Are the earnings on my timely return of excess request subject to a 10% early withdrawal penalty if I am younger than 59.5? No, the SECURE 2.0 Act of 2022 removed the 10% early withdrawal penalty on earnings removed with excess and non-deductible contributions for IRA owners under 59.5. However, earnings must be included in income in the year the excess or non-deductible contribution was deposited into your IRA.

did you claim real estate tax professional status in 2023 but not 2024?  For 2023, if you did, the real estate activities would not be passive and not flow to form 8582.  So you would be left with those passive losses in 2023. if not, rental income with active participation should flow to 8582 line 1a, but with material participation should flow to 8582 line 2a and would offset the other passive business losses.   seems something is wrong with 2023   the special QBI rule for rental real estate does not transform it into a nonpassive activity.    rules to be a REP       1.Time Commitment: You must spend more than 750 hours during the tax year on real estate activities. This includes tasks such as property management, development, leasing, and brokerage. 2. Primary Focus: More than half of your total working hours must be dedicated to real estate. For example, if you work 1,500 hours a year, at least 751 hours must be in real estate activities. 3. Material Participation: You must demonstrate material participation in your real estate activities. This can be established by meeting one of the IRS's seven tests for material participation, with the most common being that you participate for more than 500 hours in the activity during the tax year.