All Posts

To clarify, is your gross income $200,000 or less? If so, there's no reason why you can't claim it. There's an entry you need to make in your New Jersey state return.    As you navigate through the return, there is a screen that mentions New Jersey College Affordability Deductions. In the next screen, you can enter up to $10,000 for the contribution.  

You are seeing this because the amount of Medicare taxes withheld in box 6 is Not exactly 1.45% of the Medicare wages in box 5.  Remove any cents for the Medicare wages and see if the upgrade message goes away. OR - Delete the w-2 and re-enter.  Make sure the amount in box 6 is 1.45% or less of the amount in box 5.

Prior Year Tax generally means your tax liability for the previous tax year (now 2024). This is the net amount of tax calculated on your income and does not have to do with your withholding or your refund. On your 2024 Federal tax return, this amount appears on Line 24, "total tax", the last line in the Tax and Credits section.    

Yes, Form 8862 is ready to file.  If you're using TurboTax Desktop, click ONLINE at the top of the page and 'Check for Updates'.   If you're using TurboTax Online, clear your Cache and Cookies and step thru the Earned Income Credit or Child Tax Credit sections again.  If you didn't receive a letter from the IRS saying you needed to file this form, you can indicate that in the interview for the section, and try Efiling again.   If you did receive a letter, here's more info on Form 8862.       @chubhumphrey 

Thank you for your input.  Just want to be extra sure because it does state on the CP575 that I received that '' Based on the information received from you or your representative, you must file the following forms by the dates shown. Form 1065  03/15/2026''. Is that just a standard language that can be ignored in my case? Will IRS automatically recognize my LLC as disregarded entity, formed in community property state, co-owned by husband and wife only without any formal writing or request from me when I filed schedule C on my personal income tax return?   Someone told me that I should file Form 8832 for entity classification election. I am not sure if that's the correct way to proceed, looking for more clarification. Thank you.