All Posts

Hi David,    Do you have any guidance when the plan servicer refuses to amend the 1099R? Backstory... my husband's role was eliminated March of last year. He did go back to work for the same employer after being off work for ~6 weeks. However, payroll did not resume loan payments until the loan was already defaulted in the July timeframe. Since the loan payments were being withheld from his paycheck from that point on, it was quite a surprise when we received a 1099R for the full defaulted loan amount (with code L in box 7). Through research, I came across the QPLO, which I believe this qualifies for as it was due to termination. However, Empower, the servicer of his 401(k), has been no help whatsoever. They have no intention of complying with the QPLO guidelines per the IRS. We have called multiple times and the "backoffice" will not have anything to do with a QPLO. They are telling us we should handle with an accountant. It's been very frustrating and we are at a loss in how to proceed. The tax liability is ~$10,000. Do you have any guidance on how to handle?

If the business is not an ongoing business activity (you are not recruiting customers, you are not performing work) then you have "startup expenses."  (But, if you are "open for business" -- recruiting clients and performing work-- then you would file a return with your expenses even if you have not received any revenue yet.)    Your startup expenses are saved and reported on the business return for the first year that the business has ongoing business activity.  The startup costs can be deducted in the first year, or can be spread out over 15 years, according to a formula that I don't know but is built in to Turbotax.  Note that this only applies to expenses, your startup costs that are assets are listed as assets and depreciated in the usual way for assets.    Also note that in most cases, an LLC with more than one member must file using Turbotax Business, which is a different program from the personal tax program.  The business return issues a 1099-K to each member that is reported on the member's personal return. 

Whether you did or did not receive a 1099-DA (not required until 2026), use the steps below to enter your transactions.   Your IRS form 1099-DA reports gross proceeds, the digital asset, the number of units and the number of transactions. Select Wages & Income. Scroll to Investments and Savings. Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B) >  Add investments. On the Save time and connect your financial accounts screen, select Enter a different way > Select Type it in myself, then Continue. OK, let's start with one investment type, select Digital Assets > Click Continue. On the screen Which bank or brokerage is on your 1099-DA, enter the information > Continue. On the screen Did you get a 1099-DA from XXX?, select Yes.  Click Continue. Answer the questions at the screen Tell us about the sales on your 1099-DA When I land back on the 'Review Sales' screen the 'Needs Review' is no longer there.   Any digital currency you purchase becomes income at the time you redeem or sell the digital currency and must be reported . Cryptocurrency Guide (digital currency) Holding Periods: Long term is a holding period of more than one year (one year plus one day) and receives capital gain tax treatment (0%, 10%, 15%, 20% depending on your regular rate of tax) Short term is a holding period of one year or less and receives ordinary gain tax treatment (your regular rate) A solution can be to enter summary transactions if you have many transactions. Your brokerage statements should include a summary of your transactions, grouped by sales category, for example, Box A short-term covered or Box D long-term covered.   You can always use direct entry if you choose, with summary totals.  The only exception if wash sales, which must be entered separately, if you have any. How do I mail Form 8453? (review if alerted)

Thank you for the reply.   If I could ask 1 more question. . .  Is there a way to move this question to the Retirement and Income Group instead of it being in the Investors and Landlords group?   Thank you again for your time. Sincerely appreciate it.

Si tienes problemas con TurboTax, puedes intentar lo siguiente:   Desactivar los bloqueadores de ventanas emergentes. Prueba usando otro navegador web. Por ejemplo, si usas Chrome, intenta usar Firefox o Safari. Borra las cookies de tu navegador.

You can install TurboTax Desktop on up to 3 computers. Re-installations of the Software on the same computer may count as an installation for the purposes of the 3 computer limit if the computer has been sufficiently changed (ex: hardware added or replaced).     If you feel that you are seeing the 'Error Code 603 All available activations for that code have been used.' message in error, please contact our phone support team for more assistance.       

 The IRS has issued a correction to the 2025 Instructions on their end. We  are looking into it to see if this is related to the IRS correction or if it is something else.  We have corrected the calculation for joint occupants of a home who are claiming the energy efficient home improvement credit in Part II of the 2025 Form 5669. Please refer to the instructions below with respect to the joint occupancy section on page 3 of the 2025 Instructions for Form 5695. If you downloaded or printed the 2025 Instructions for Form 5695 prior to Jan. 26, 2026, please note the correction. Although, the IRS is saying March 6, if this is the date that they will have the forms corrected, TurboTax software will take a little bit to then make the changes.  You can attempt to refile on the 6th or wait for several days after that.