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A tax refund is generally not considered taxable income, so you do not need to declare it on your 2026 return unless you itemized deductions on your 2024 return and that refund represents a recovery of state taxes that previously lowered your federal tax bill. Note- many taxpayers were limited to $10,000 in state and local taxes in 2024, yet had much higher income tax expenses.  If that applies to you, you may not have received a benefit of the tax this refund is attributable to.   If you did itemize deductions on your 2024 return and received a benefit of the state tax deduction, you must report the state refund as taxable income on your 2026 return because that is the year you will actually receive the funds.

If your completed Form 5695, Residential Energy Credits does not agree with your step-by-step interview questions you didn't do anything wrong. It was correct to go back and override these answers in Forms Mode in TurboTax Desktop. That is the proper way to correct this issue.   You can go back through your TurboTax screens that you answered regarding your energy credit and review them, but overriding them in Forms Mode will have corrected the issue.    You can get to these screens in TurboTax as follows: Click on Search in the top right of your TurboTax screen Type (exactly) 5695, residential energy credit in the search box Click on the link Jump to 5695, residential energy credit This will take you to the input screen in TurboTax to enter your information regarding your heat pump Your screen will say Energy Efficient Home Improvements Continue through your TurboTax screens to make sure you have answered everything correctly Make sure that the improvement is for your main home.   Click here for Where do I enter qualified energy-saving improvements?  Click here for Energy Efficient Home Improvement Credit. Click here for 2024-2025 Energy Tax Credit: Which Home Improvements Qualify? Please return to Community if you have any additional information or questions and we would be happy to help.

@RogerD1  Desktop version of TT   I effectively started in AZ (has income tax). Was there for less than two months. Rented apartment. Worked in that state. Moved to UT(has income tax). Was there for 6 months. Rented apartment. Worked out of this state. Moved back to TX. (no income tax). Finished the rest of the year there.   Do my filing mechanics change based on the above?

If I understand correctly what you are saying in your question, I would not file a 1041 Estate Tax Return in this situation.  Just make sure the interest (and any other income, if there is any) is reported on either the decedent's tax return or the beneficiary's tax return.  If that's done, I see no reason to file the 1041.  

No, he cannot report rental income for a property he does not own.  You can pay him a management fee equal to the amount of rent, or whatever amount you want.  But only you can report the income and expenses (including depreciation) as rental. 

TurboTax does recognize this law.  For 2025, navigate to State Taxes > Virginia > Income > Income that Virginia taxes differently.  Select Military Benefits Subtraction, and on the next screen, enter the subtraction.   If you missed this in prior years, you can file an amended return. Log in to TurboTax, go to Tax Home, scroll down to your tax returns & documents, select the year you want to amend. Then select the Amend (change) return drop-down. Choose  Amend using TurboTax Online. On the "Why are you amending?" screen, choose "The IRS or state contacted me" and "Continue," this will allow you to just amend the state and leave the federal return as it was.   See: How to amend your state tax return - TurboTax Support Video for more information.    

Thank you so much for your quick and thorough response!  Your knowledge is much appreciated. I am surprised the institution let me contribute to an IRA.  I will take the necessary steps to withdraw my contribution.   jnjmt

If you have already paid, this does not work for the online filing version, Marilyn. The algorithm will continue looping you back to needing to correct your state return, because there is an error in the Turbo Tax system that will not allow the WFTC worksheet to be deleted once you have created it. You can even backpedal into the Tools option, select "Delete a Worksheet" and you will discover that the WFTC worksheet cannot be deleted. TT needs to internally fix this. I spent four hours today trying to remove this to no avail.

You don't have to complete the EITC section if you don't wish to or know you won't qualify.    If you aren't required to file a return but would qualify for $2 of earned income credit, you can still file.   There is no need to enter the tax portion of your car registration unless you will have a tax liability and have enough deductions (more than the standard deduction) to itemize.   See this TurboTax tips article for more information about the Earned Income Credit. TurboTax can calculate the credit for you. To claim the Earned Income Tax Credit (EITC), you must have what qualifies as earned income and meet certain adjusted gross income (AGI) limits.   @CompleteNoob   

Your tax return has not been e-filed due to a pending product update related to South Carolina's adjustment of the Federal Standard Deduction due to OBBB.    This update is now live. Please log in to ensure your product has been updated (online versions update automatically). Once updated, review for any applicable changes, complete a final review, and resubmit your return.    

It could be that you entered an IP PIN for one of your dependents and you should not have.  To review what you entered:   Open your return Go to IP PIN On the Identity Protection PIN screen, answer Yes. Select Add and enter your IP PIN in the space provided Select Continue, then select Done If you made any entries here that should not be there, delete them and submit your return again.  

Got the same error today, using TT online. Got rejected 3 times immediately. I'll wait until March 6th as the message says. Any workaround for people using TT online? I answered NO to the "Enabling Property" question as my installation is only for a heat pump. Which is right and getting rejected. It's frustrating.       Description of error: There is a potential issue with the calculation regarding Form 5695, Energy Efficient Home Improvement section, Enabling Property on the Federal return What needs to be done: This return cannot be filed at this time due to a processing error that will be corrected on March 6, 2026. On or after this date, open the rejected return, review it for errors, and resubmit the return for electronic filing.      

Yes.  If you are receiving a distribution from a defined benefit pension plan  answer that The entire distribution was an RMD then on the following page, to the question What is the RMD for your account? enter the amount of the distribution from that IRA account.   By doing this, you are telling TurboTax that all RMDs are satisfied and TurboTax will not calculate any penalty. The information you entered in TurboTax is to enable TurboTax to calculate any penalty where applicable, and is not reported to the IRS.