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While it is possible to max out a Roth solo 401(k) contribution and contribute to a Roth IRA, the ability to contribute to the Roth IRA can be limited or eliminated at higher incomes.  For single filing statuses, you can make a full Roth IRA contribution up to a modified adjusted gross income (MAGI) of $150,000 and the deduction is fully phased out for MAGI higher than $165,000.  For Married Filing Jointly MAGI has to be under $242,000 and is fully phased out for incomes above $252,000.   If you aren't eligible to contribute to a Roth IRA due to income limitations, any amount you contribute will be considered an excess contribution and will be subject to a 6% excise tax for every year the funds remain in the IRA.  You can remove the contribution and the earnings on that contribution up to the filing deadline of the return to avoid the 6% excise tax, but the excess contributions will be taxable income for this year.   Check out What If I made an excess Roth contribution? for more information.

Thanks Vanessa. The numbers on my W2 and in Turbo tax are correct. My withholding is also correct based on the salary i receive. The issue it seems is that i received a one time payment from my company for partnership (got a K-1 form) and that was in 3rd quarter i think. I paid the advance tax for that amount before the due date for that quarter. So technically, i was never short on tax paid/withheld. However, when i look at the form D422, it compares the total tax payable for the year and the tax withheld by my company for the first two quarters and because of that one time payment the average tax withheld that it expects in each quarter is higher, so it calculates an underpayment. In reality i did not know that i would receive this one time payment, so no advance tax could have been paid/withheld. In form D422, the numbers are as under (not real numbers): Line 1- Tax- 10000 Line 2- 0 Line 3- 10000 Line 4- 9000 (Line 3 multiplied by 0.9) Line 5 - Tax withheld- 6000 Line 6 - 4000 (line 3 minus line 5) Line 7-    7000 (2024 income tax) Line 8- 7000   and then a lot of calculation under the Part 3- regular method.   Turbo tax gives me an option to do the calculation quarterly by entering income from each quarter. Would that ignore the 2024 tax paid or the average per quarter calculation and calculate based on 2025 income in that specific quarter?  Else, what can i change on form D422 to make the penalty zero? I do see Section B on D422 has no numbers for line 25 and 26 and just shows the penalty on line 27. Thanks again.

You can take the following steps as a workaround:   Complete and file the joint federal return along with the Ohio resident return as planned. Create a separate TurboTax account for your spouse using only her information and enter just her income. Prepare the Illinois part-year resident return in that separate account. File only the Illinois state return from that account. Don't file a second federal return. After filing, contact TurboTax Support to request a refund for the unused Illinois return that was originally attached to the joint federal filing.

See this for removing the pay with refund option and the $40 service charge - https://ttlc.intuit.com/turbotax-support/en-us/help-article/intuit-account-billing/remove-pay-refund-fees-turbotax-online-change/L7UxC6ZZp_US_en_US

@esudduth There is no need to have that box checked if you are not eligible for the Earned Income Tax Credit. You can e-file your tax return without the box being checked and the IRS will accept your tax return.  If you have a tax refund the IRS will pay the tax refund without having the box checked.   Been there....Done that

I am having the same issue with the wrong value being pulled into form 8829 from schedule C (line 28 instead of line 29 or 31). Did you figure out a solution? As someone else mentioned, it appears to be a programming issue. 

this sounds like an issue with the 1099-R entries or supplemental questions after the 1099-R.  You should go back through that section and make sure everything is answered.  You can also try deleting and re-inputting the 1099-R again, especially if it was imported.   you can also check the IRA Information Worksheet in forms mode if you are on Destkop and look for anything missing or any errors.  Double-clicking on Lines 6/7 on Form 8606 should show the related forms.  For Online you may need to look at the PDF with 'all forms and worksheets'.

That code T indicates a taxable distribution.  You should contact the folks at Fidelity and request a corrected 1099-R.  Otherwise the IRS will quite rightly expect you to pay taxes on the withdrawal of excess contributions.

Per the Ohio Department of Taxation, If the management of “Business income” means income, including gain/loss from any of the following:   Transactions, activities, and sources in the regular course of a trade or business operation; From real, tangible, and intangible property if the acquisition, rental, management, and disposition of the property constitute integral parts of the regular course of a trade or business operation; If your main business activity is real estate, then yes gain on the sale of a rental property is considered business income for purposes of the Ohio Business Income Deduction.     Income - Business Income and the Business Income Deduction

For a capital loss carryover - 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) Under Investment Income On Capital Loss Carryover, click the start or update button

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions:  (Don't forget to give us the state)   TurboTax Online: Open your return -Go to the menu panel on the left side of your return 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 and your state. This will allow us to open a copy of your return without seeing any personal information. TurboTax Desktop: If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps: Click on Online in the top left menu of TurboTax Desktop for Windows Select 'Send Tax File to Agent'* > Follow the prompts to reach the token number. Enter your email used for TurboTax > Enter your code > Send Write down or send an image of your token number and state then place in this issue. We can then review your exact scenario for a solution. Please also tell us any states included in the return. This is necessary for us to view the return. *If using a MAC, go to the menu at the top of the screen, select Help, then, 'Send Tax File to Agent')   We will be able to see exactly what you are seeing and we can determine what exactly is going on in your return to provide you with a resolution.

There is not a place on the Form 1040-X for an incorrect amount for underpayment penalties. Instead you must use Form 843. This is not a form in the TurboTax product because it's not part of the tax return. You will select a reason and complete, sign and mail the form to the IRS. Use your amendment details to complete the form. I would lean towards sending the correction with the Form 843.  Instructions Form 843

If the work you performed in New Jersey was not the final product sold to the customer, you would not report NJ income. The general rule is income sourced in a state is taxed by that state, which implies a sale or payment occurred for the work in that state.   However, if the film was produced and finalized in New Jersey, you would need to file a non-resident New Jersey tax return.