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You should be able to report the wages in Box 1, so that you have qualifying wages for the IRA contribution, then report the income as a negative amount in Schedule 1. These wages qualify under the SECURE Act for the contribution.   If you are having an issue with making this adjustment, you can send us a “diagnostic” file that has your “numbers” but not your personal information.  If you would like to do this, here are the instructions for TurboTax Online users (please let us know which version you are using):    Go to the black panel on the left side of your program and select Tax Tools.  Then select Tools below Tax Tools. A window will pop up which says Tools Center. On this screen, select Share my file with Agent. You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number. Reply to this thread with your Token number. This will allow us to open a copy of your return without seeing any personal information. We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.    Here are the instructions for TurboTax Desktop users:   From the black bar at the top of your screen, select Online Click Send Tax File to Agent Click Send on the message that pops up TurboTax will create a "sanitized" copy of your return information with no personal info Post the full token number here in this thread   We will then be able to review your file to see what you are seeing, and we can determine what is going on in your return and provide you with a suggested resolution. @semiosis 

Yes, cash basis means exactly that.    Allocation can be determined if you choose, since since the January, 2026 bill received in 2026 for 2025, is for a portion of the year when it was used for personal purposes and rental purposes.    However, when the bill is paid the property is fully rental for all of 2026 and M-MTax has a valid point taking the deduction in a year when the property is rental for the entire year.     The IRS would likely go with the cash basis rules and rental property period all of 2026.   @sockfight-1  @taxmodern 

No, you would only need to file one return for each state, either jointly or separately.  Since they're both Community Property states, where you report all your income and half of your spouse's on separate returns, it could be a wash using either method, though you may lose some deductions that are limited when MFS.    You can use your joint federal return and test filing separately for each state, and test filing jointly for each state.   Here's detailed info on Filing Separate States.   @unablezhy     

I'm experiencing the same issue with TurboTax 2025 on Windows 11.   To be clear - this anomaly shows up when column 1 is simply copied to column 2. "Use 2026 tax rates" is NOT checked. So columns 1 and 2 should be identical.   The (hopefully) temporary fix is to override the value in column 2 with the correctly calculated value in column 1.   Although the ultimate goal is to do what-if calculations with the 2026 tax rates, I haven't looked into whether any differences between 2025 and 2026 tax rules would invalidate this temporary fix.

You entered the SSA-1099 in the wrong section of the program.  Delete what you entered.   To enter Social Security benefits reported on form SSA-1099 Click on Federal Taxes (Personal using Home and Business) Click on Wages and Income (Personal Income using Home and Business) Click on I'll choose what I work on (if shown) Scroll down to Retirement Plans and Social Security On Social Security (SSA-1099, RRB-1099), click the start or update button

You're just focusing on cash basis accounting rules, but that doesn't override tax law that says personal expenses for personal use of a property are never deductible as a business expense.  Cash basis accounting tells you which tax year you can deduct an expense, but it never makes personal expenses magically become a deductible business expense.  As I cited, IRC § 262(a) prohibits deducting personal expenses ("no deduction shall be allowed for personal, living, or family expenses"), and IRC § 212 which defined what expenses are eligible to be deducted as business expenses.  If you have any relevant tax law or authoritative source references for what you're claiming, please cite it.