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This could occur when the software misinterprets a 1099-R code or when the follow-up questions about the rollover are answered incorrectly. A properly documented rollover (direct transfer) should not increase your taxable income.    Missing the Follow-Up Questions: After entering the 1099-R, TurboTax asks a series of questions ("Did you move the money to another retirement account?"). If you skip these or answer "No," it assumes the money was taken as cash and is taxable. Incorrect Box 7 Code interpretation: If you have Code G, it should be a direct rollover. If it is being taxed, the system may think it was a rollover to a Roth IRA, which is taxable, rather than a Traditional IRA, which is not. 401(k) to Roth IRA Conversion: If you moved money from a traditional 401(k) to a Roth IRA, that is a taxable event. If Box 2a (taxable amount) has a number in it on your 1099-R, but it was a full, direct rollover, TurboTax will report that amount as taxable unless you correct it in the interview.    Sometimes, the fastest fix is to delete the 1099-R and re-enter it, paying close attention to the interview questions that follow. Verify that Box 2a is $0. If Box 2a shows the full amount, and it was a direct rollover, it is often a mistake by the payer, and you may need to enter it as $0 in TurboTax and check the "not taxable" box in the follow-up. Check the "IRA/SEP/SIMPLE" Box: Ensure you did not mistakenly check this box for a 401(k) rollover, as it causes errors in calculating taxability.   @susan-tindell-stephenson         

https://www.irs.gov/taxtopics/tc553   This seems to suggest that I can file them on my tax return, including capital gains: "If your child's only income is interest and dividend income (including capital gain distributions) and totals less than $13,500, you may be able to elect to include that income on your return rather than file a return for your child. See Form 8814, Parents' Election To Report Child's Interest and Dividends. "

Yes, I am using a qualifying Free Edition, but I still get that upgrade message. Could this actually be due to something else? I suspect that the real problem may be the Retirement Savings Contribution Credit, because I got a message about that requiring Deluxe a while ago, but it did not reappear.

If you try to edit the tax return that you have already filed then you will end up in a place to amend the tax return.  Be careful.  If you don't want to file a new tax return you don't want to amend your return.    If you haven't filed yet then you should be able to edit your return by logging in from anywhere.  

I will take a look.  By replying to your own question, it looks like it was answered, making it much less likely that any of the experts or volunteers will take a look.  (You might have been able to edit the question to add the details instead of posting a reply, but that doesn't matter now since you alerted me to it.)

Lines 16 and 18 of your form 8606 should show the net amount converted to a Roth IRA.   When entering your 1099-R, in the follow-up interview, there was a question Tell us if you moved the money through a rollover or conversion, then on the next page  I converted some or all of it to a Roth IRA, you should enter the amount converted to a Roth IRA.  You probably entered the gross amount.

The Form 1040-X for amending a 2025 federal tax return is estimated to be available in TurboTax on 03/04/2026   Forms and schedules availability website - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...   An amended return, Form 1040-X, can only be printed and mailed to the IRS if the original tax return was not e-filed. The IRS will take up to 20 weeks or longer to process an amended tax return. Before starting to amend the tax return, wait for the tax refund to be received or the taxes due to be paid and processed by the IRS. See this TurboTax support FAQ for amending a current year tax return - https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-federal-tax-return-curr...   NOTE -  Not until the IRS updates the Form 1040-X instructions for tax year 2025 can TurboTax provide a 2025 Form 1040-X. Current IRS Form 1040-X instructions are for tax year 2024 - https://www.irs.gov/pub/irs-pdf/i1040x.pdf IRS Draft Form 1040--X instructions for tax year 2025 - https://www.irs.gov/pub/irs-dft/i1040gi--dft.pdf

"I remember calling my HSA to confirm this excess," - your HSA custodian actually has no way to know if you made excess contributions because they don't have all the information that TurboTax has. All they can tell you is the maximum for any given HDHP class.   "I do not recall doing any paperwork nor was I made aware of any required paperwork with my HSA to confirm this decision" - correct. Once the money is in your HSA, the handling of any excess is a paperwork issue that is on your tax return. You did not have to report this to the HSA custodian.   The 1099-SA for the amount of $328 was triggered by your request to withdraw the excess HSA contributions from 2024, which means that you did NOT "carry over" the excess to 2025, despite what you remember. If you requested this withdrawal prior to April 16, 2025, then you "cured" this excess, so there is no impact on your 2025 return. NOTE, if you requested this withdrawal after this date, then the excess carried over to 2025 anyway, and you need to contact the HSA custodian and report a "Mistaken Distribution", i.e., you should not have withdrawn it. However, the odds are good that the HSA custodian will decline to do it because this was "last year" (be nice when you ask, because they don't have to accept the request).   If there was an excess (yet to be determined) carried over from 2024 to 2025, you correctly reduced your HSA contributions for 2025.    "my answer should be "no" since Box 12 code W was not $8,288. " - No, you should answer "no" because (1) you don't even know if you had an excess in 2025 (TurboTax should not ask you this question until it tells you that you have an excess, which I assume it hasn't yet for 2025), and besides, if there really was a carryover of excess contributions (to be determined), it would have been applied as a "personal" contribution, not "employer" contributions. But please tell me what is reported word for word on the HSA Summary when you say, "makes the $328 show as wages in turbotax under HSA".   So, please come back and let me know when (the date) you requested this withdrawal of excess HSA contributions, and we will work from here.

You do not need to report your 1099-QA (Distributions from ABLE Accounts) on your tax return as long as they were spent on the beneficiary's health, independence, or quality of life (e.g., housing, personal expenses, etc.).   However, if you used some of the money for non-qualified expense (or just want to file for your own records) you do need to enter it.   Enter 1099-QA in TurboTax: Open or continue your return. Search for "1099-QA" in the Search box. Click on the "Jump to 1099-QA" link.  This will take you directly to the screen titled "ABLE Account Distributions." or... Select Wages & Income under the Federal tab. Scroll down and select Less Common Income. Look for Miscellaneous Income, 1099-A, 1099-C. Click Start next to Taxable Distributions from an ABLE Account (Form 1099-QA). Only enter the "Taxable" portion (the program will ask you for the Gross Distribution (Box 1) and the Earnings (Box 2).   If you spent the money on qualified expenses, TurboTax will calculate that $0 is taxable.   If you don't enter the form, you should still keep the 1099-QA and your receipts for your personal records in case the IRS ever asks for proof that the spending was qualified.

it depends on how the qualified HSA contributions were made. If 100% through your employer, there should be no effect on your income taxes because wages in box 1 of the W-2 were already reduced. You do not enter them as personal contributions. They will appear on line 9 of Form 8889. Direct personal contributions will reduce your taxable income and should appear on line 2 

Replying to limited life.   Glad you had a more positive experience than many last year and again this year.  Thanks for sharing your thoughts and they may apply in some cases.  While this may be happening in some cases, the frequency of these long delays in TT sending returns to the IRS IMO goes way beyond those types of special cases at least wrt last year.   This year I used an alternate tax filing sw recommended by others last year.  Much easier to use than TT and no problem activating, none of the vigorous and obnoxious pushing online only versions and making it difficult to get desktop only versions, none of the irritating non applicable notices that keep pestering users every day,  immediately got customer service wrt one security question I had.  Got notice of successful efiling immediately and w/in 3 minutes also got another email confirming receipt by IRS/accepted for processing by IRS.  The sw indicated it may take up to 24 hours for IRS to update status when looking up for refund/filing status but in my case it happened in less than an hour.   Want to greatly thank last year users who recommended other tax sw as it has been a positive experience and a huge improvement over TT for me.

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