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On Schedule C?  Should you have a profit or show a loss?    If you are not showing a loss on Schedule C.... Some expenses, such as home office or section 179 depreciation can only be used to reduce your schedule C taxable income to zero, and not to create a loss. Excess deductions for these carry over to the next year. And you have to answer yes to both questions about exclusive and regular use, not just one. The area of your home office must be used regularly and exclusively for business to deduct it.   Or you checked the box on Schedule C line 32b saying Some Investment is Not at Risk. If you have money not at risk you can not take a loss on schedule C. If you don't know what it means then probably All your Investment is at Risk (check Box 32a). It means you are using your own money for the business. People usually check the wrong box.

Thank you for responding. I am extremely reluctant to provide my tax file as described in your feedback. One reason is that I have no way of knowing what is being transmitted to Intuit if I upload the file. While it may be scrubbed of person information I do not have a way of verifying that. A second reason is that if I provide the “token” to the reply to my message then that clearly links my account to the case or file I upload. Since my login here is through my Intuit login (with my email address) that token is linked to me. I don’t consider that anonymous at all.   My post makes clear exactly where there is an error. Specifically it describes that the California Form 5808, Part II, Line 5 number is determined by a calculation based on the correct data shown to me on Line 2 of the “California Carryover Worksheet for 2025”. While I have no doubt that having my data file would make it easier to debug this issue, I would expect that my clear description in my original post should allow examination of how the field on California Form 5808, Part II, Line 5 is programmed to work.   Happily, TurboTax offered me the option to have the state of California calculate any penalty rather than file my taxes with the incorrect penalty information computed by TurboTax. Unless this bug in TurboTax is corrected prior to the time I file my taxes that is what I plan to do.   That this issue exists brings up 3 thoughts: How many other errors is TurboTax making in my tax computations?  How many Californians will file with incorrect penalties being assessed? I’ve used TurboTax now for a very long time but this makes me question whether I will choose to do so next year.   Thank you again for taking the time to respond. I hope that TurboTax can address investigate and address this error so that others do not encounter it.

It will tell you that the Kiddie tax form 8815 is trigger (and you can't use the free edition of TT) but there is no actual kiddie tax because his taxable income is $0 (his standard deduction is more than the $11K "earned/hybrid income").  See the calculations on form 8815.    Q. Other than trying to override the schedule 1 to get the information on line 8r, how do I answer the questions in TT to get it to go there? A. The way to enter stipend/scholarship income, in TurboTax, is at Deductions and Credits / Education / Expenses and Scholarships.  After answering no to having a 1098-T*, answer yes to qualifying for an exception (that gets you to the entry screens). You will have to go thru the whole education interview to get to the scholarship screen. At the scholarship screen, enter the amount of the grant. When asked if any was used for room and board, answer yes. Then enter the amount you want to be taxable (usually all of it), in the pop up box. R&B are not "qualified educational  expenses".  So, this is how you tell TT that it is taxable. Note the wording at that screen “or other expenses”. You didn’t have to literally use the scholarship for R&B.  This will put it on line 8r of Schedule 1.   *If you do have a 1098-T, one of the follow-up questions will be do you have any scholarships not shown on the 1098-T. Enter the additional scholarship/stipend there.  

Your financial institution may report transactions where one or more data elements are unknown by the institution and cannot be reported.   In such a case, you have to determine cost basis from your own records.  For instance, if you purchased the investment, the cost basis is what you paid for it.   At the time that you received the shares and received a report from the bankruptcy court, what value were you told that the shares held?     You may have held some investment that then precipitated your involvement in the bankruptcy proceeding.  What was your cost basis in that investment?   Were the shares received in a bankruptcy settlement that took place in 2025?  Or at an earlier date?  This date may give you a idea whether the investment should be reported as held on a long-term or short-term basis.   In addition, you might ask the broker if they have any information about the acquisition date and purchase price. Sometimes they have the information, even though they do not report it on the IRS form 1099-B which they issue.       

Yes. The purchase of a used electric vehicle is eligible for the New Clean Vehicle Credit if purchased by September 30, 2025. The credit is equal to the lesser of $4,000 or 30% of the sales price, but there are AGI limitations and other requirements that apply.   See this TurboTax article for details: Understanding the New Clean Vehicle Credit

A good first step is to try deleting, and re-entering Form 1099-G.   Your state tax refund may not be taxable, in which case it wouldn't appear on Schedule 1. This occurs if you didn't itemize your deductions on your federal tax return for the year the refund covers. Furthermore, even if you did itemize deductions, the refund still may not be taxable, depending on several other factors.  

@Rakeshchru Pardon my mis-read of the question.  ONLY Oklahoma capital gains can be excluded.   Oklahoma Capital Gain Deduction  68 OS Sec. 2358 and Rule 710:50-15-48 The sale of real or tangible personal property located within Oklahoma that has been owned for at least five uninterrupted  years prior to the date of the transaction that gave rise to the capital gain;  The sale of stock or an ownership interest in an Oklahoma company, limited liability company, or partnership where such  stock or ownership interest has been owned for at least two uninterrupted years prior to the date of the transaction that  gave rise to the capital gain; or The sale of real property, tangible personal property or intangible personal property located within Oklahoma as part  of the sale of all or substantially all of the assets of an Oklahoma company, limited liability company, partnership, or an  Oklahoma proprietorship business enterprise where such property has been owned by such entity or business enterprise  or owned by the owners of such entity or business enterprise for a period of at least two uninterrupted years prior to the  date of the transaction that gave rise to the capital gain.

The work on this section of TurboTax is continuing and expected to be completed with an update coming after Thursday night (2/19).  The best time to check for a change will be Friday (2/20). @toofan1 

Thanks for responding.  I get the accounting of it.  I am asking the TT of it. I guess I can override the current year depreciation and change the basis to equal current and prior year depreciation to have $0 ending depreciable basis?  I try to avoid overriding whenever possible. I am hoping not to have to paper file.

If TurboTax is not letting you continue, you can try the following: Go out of your program and go back in. Clear your cache and cookies. Try a different Web Browser. If you are using TurboTax Desktop make sure all updates have been run on your program. You can do this by clicking on "Online" in the black bar across the top of your TurboTax screen. And then select "Check for Updates". If you have any additional questions or information regarding this please return to TurboTax Community and we would be glad to help.   The tips deduction only reduces federal income tax. The tips are still subject to Social Security tax, Medicare tax (FICA), and in some states, state/local taxes.   Also remember that the deduction is limited based on your income.  The phase out  starts if your income is over $150,000 ($300,000 for Married Filing Jointly).  If your income is over $400,000 ($550,000 for Married Filing Jointly) you will not get the deduction.