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This can happens if the sale was entered once in the general Rental Income/Expenses section and again in the specific Depreciation/Asset section.   First, check if the math is actually wrong or just confusing. The sale of a rental is split: The portion of your gain equal to the depreciation (recapture) you took is taxed at ordinary rates (capped at 25%) and appears on Form 4797, Part III. Any profit above your original purchase price is a capital gain and appears on Schedule D. For example, you are being double-taxed if your total gain (Sale Price minus Adjusted Basis) is $100k, and your tax summary shows $100k in Capital Gains PLUS $30k in Recapture. But, if they total $100k combined, the software is working correctly.   In TurboTax Business, users often report the sale in the "Sale of Business Property" interview and also mark the asset as "Sold" in the Depreciation section. This creates two separate versions of the same sale. If this is the case, here is how to fix it: Go to the Federal Taxes tab -> Income -> Rental Real Estate. Look for the section "Sale of Property / Depreciation". Make sure you didn't enter the sale under "Sale of Business Property" if you already marked the individual assets (Building, Land, Improvements) as sold within the Asset Summary. It is better to report the sale through the Asset Entry section. When you mark an asset as "Sold" there, TurboTax automatically generates the 4797 and carries the numbers to Schedule D.   If you have used Overrides, you might have "broken" the background calculation, which is why your numbers won't flow to Form 4797. Overrides in TurboTax often disable the automated links between forms. Here's how you can reset it: Switch to Forms Mode (top right). Locate Form 4797 and Form 8949 in the list on the left. If they contain red "Override" marks, right-click the field and select "Cancel Override". If the numbers are still wrong, delete Form 4797 entirely from the Forms list (File -> Remove Form 4797). Go back to Step-by-Step mode and re-enter the sale info for the assets. Deleting the form forces the software to re-calculate from scratch. Another common error taxpayers make is that Land is not depreciable and should never have recapture. Ensure that when you enter the sale, you have allocated the sales price between the Building and the Land separately. If you put the full sales price on the Building asset, you will have more recapture than you should.

J'ai le même problème ici. Comme pour ma déclaration de 2024, il est pour le moment impossible de transmettre mes déclarations de 2025 (la déclaration fédérale et la déclaration du Québec).  Je suis un client de très longue date de turboImpôt, depuis que turboimpôt a été lancé dans les années 1990. Mais là, c'est terminé. Les personnes qui répondent, au service à la clientèle, ne sont pas au courant des problèmes, ou feignent de ne pas l'être. Elles se limitent à dire que c'est la faute des agences du revenu, l'ARC pour le fédéral et Revenu Québec, pour la déclaration au Qc. Pour les personnes qui produisent leur déclaration de revenu au Canada, il faut se rappeler que turboimpôt appartient à Intuit. Intuit Corporation est une multinationale américaine spécialisée dans les logiciels financiers. Ses principaux actionnaires sont des holdings financiers. Dans le contexte actuel aux États-Unis, est-ce que Intuit Corporation va réellement se préoccuper de sa clientèle canadienne? Nous avons la réponse depuis les deux dernières années (déclarations 2024 et déclarations 2025).  J'envisage de demander un remboursement et aller vers une applications canadiennes qui fonctionnent.

Illinois requires that you must have your Federal amended return approved and finalized prior to filing the amended Illinois return.  Since your return will generate a Federal refund, you will need to wait until that refund is received before filing Illinois amended return.  You can select that you will file Illinois later when you go to file the Federal amended return.   Once you are cleared to file your Illinois amended return, you will check the box for Federal change and enter the date of acceptance.  Box C will be checked yes since you did do a Federal amendment.  You may need to file Illinois by mail since you need to have the Federal finalization - an IRS account transcript of the amendment will serve as the Federal finalization.   See Illinois Amended FAQ for more information

Still error on Fed tax side on amending so followed your instructions and cleared cache and cookies, then even did re download per instruction...and still shows owing $21000 federal when in reality I should owe $134 from over refunded Fed $ received (and about same to state).

Still error on Fed tax side on amending so followed your instructions and cleared cache and cookies, then even did  re download per instruction...and still shows owing $21000 federal when in reality I should owe $134 from over refunded Fed $ received (and about same to state).  

No, this doesn't count as earned income for the question "Did you provide over half of your own support with earned income during 2025? You can answer this question "yes" as a result.   This is mentioned in Publication 501, which mentions "A scholarship received by a child who is a student isn't taken into account in determining whether the child provided more than half of his or her own support". This is mentioned in the Qualifying Child section under a subheading titled Support Test.

Q. On my return you are saying only enter 4000 for box 1 of 1098-T and 0 for box 5 A. Yes   Q. And then on my daughters return, follow the workaround and enter $1,186 as the amount? A. Yes   Q. I don't need to enter the 1099-Q on either mine or hers? And if I follow the above, I should be all set? A. Yes and yes. Verify that it shows up on line 8z of Schedule 1.    One other after thought: It's unclear, to me, what the $1000 room & board (R&B) scholarship is and why isn't it included in box 5 of the 1098-T.  Although it was issued for R&B, is it restricted to R&B? Technically a scholarship restricted to R&B would be taxable income to the student (R&B is not a qualified expense for tax free scholarship). But, if it can be used for tuition, then deducting $17K instead of $16K is correct.   In other words, if you're sure there was actually $17K of scholarship, and not the $16K shown in box 5 of the 1098-T, then use  the original calculation of $1691 as the taxable amount of the 529 distribution, rather than  $1186.