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You’re right about the math. If your basis is zero, then zero divided by any number is still zero. There’s no underlying tax issue here.   However, the software and the IRS require that year-end balance because of the Pro-Rata Rule and how Form 8606 is designed. This helps prevent picking and choosing which funds to report. It’s not just about this year’s numbers.   The IRS treats all your traditional, SEP, and SIMPLE IRAs as one big account. When you convert to a Roth, you can’t choose to move only the after-tax money. Instead, the IRS requires you to convert a mix of both pre-tax and after-tax funds, based on their share in your total IRA balance. To prove that slice is 100% taxable, the IRS requires a "snapshot" of your retirement portfolio as of December 31st.   Verification of the Ratio: Even if your basis is "0" the IRS uses Line 6 of Form 8606 (where that year-end value goes) to establish the denominator for the fraction. Without that number, the form is technically incomplete.  The "Paper Trail" Requirement: Even if the calculation results in 0, the IRS wants to see the inputs. If they ever audited you and saw a conversion but no reported total value for your other IRAs, they wouldn't know if you were‌ tax-exempt or if you just forgot to calculate the ratio. If the software is generating a Form 8606 and that line is blank, it could be because it used it to confirm the "Pro-Rata" math was indeed zero, but since the result was "100% taxable," it just moved the final number to your 1040.   The tax expert is likely being cautious because IRS Instructions for Form 8606 say you have to include the December 31st value if you took a distribution or did a conversion and have any basis. If your basis is truly zero, this question acts as a quick check by the software to make sure you’re not missing anything that could affect your taxes.     @jhbrown42   

Can you provide more information and clarify you question?  Did you e-file your Federal and Oregon returns with TurboTax?  Did you add your CA return to that your federal/Oregon return?  What is the exact error message you get and when?

In TurboTax Online, you can enter multiple 1099 forms from the same investment company like Vanguard by adding each form separately. Here's how: 1. Go to the Wages & Income section and select Yes when asked if you received investment income. 2. On the screen for adding 1099-DIV or 1099-INT, select Add investments or Add another 1099 form. 3. Instead of adding a new company, choose to enter each 1099 form one at a time for Vanguard. 4. Do not combine amounts from multiple 1099 forms from the same payer; enter each form separately. This allows TurboTax to process each form individually for accurate reporting.

Yes, you can list 0.0001 in the field for the number sold. Keep all of your records should you need them later. The digital asset section will go through many changes due to the required filing of Form 1099-DA that actually begins in 2026.

  If you're trying to check the status of your refund:    TurboTax uses information provided by the IRS.  Once the tax return is released to the IRS, TurboTax has no control over it.  Things that can delay a refund: If you want to know the status of your tax return,  you should use the  IRS Where's My Refund website.  You'll need Your Social Security or individual taxpayer ID number (ITIN) Your filing status The exact refund amount on your return

@johanna_anderson    Is box 2a higher or lower than the total you calculated? ___________________ <<<Other than mis-typing some numbers  (it happens)>>>   It's most commonly lower due to certain Premium amortization amounts on 1099-INT forms, box 13.  Also (on a 1099-INT) for indicating Accrued Interest you may have paid when buying a bond during 2025.   2a can be higher for certain 1099-OID amounts 2a can also be higher if you had certain K-1 forms entered that have tax-exempt amounts that you forgot to include. ______________  

TurboTax may show an error if it detects that Box 14a on your 1099-R is greater than Box 1, as this is generally inconsistent. However, if your values are correct and the error persists, the issue could be a software glitch or data entry mismatch not flagged during earlier checks. You can try these steps: 1. Review the 1099-R entry carefully to ensure Box 14a and Box 1 amounts are accurate and correctly entered. 2. Delete the 1099-R form and re-enter it from scratch. 3. Check for any extra spaces or hidden characters in the amounts entered. 4. Restart TurboTax and attempt transmission again.

If your employer included it in box 1 of your W-2, you have three options.   1. You can leave it as taxable income and claim an education credit using the amount that the employer paid since you are being taxed on it. 2. You can ask your employer for a corrected W-2 3. You can make an adjustment to your income by backing it out by entering it as a negative number by taking the following steps: Income Less Common Income Miscellaneous Income Other Reportable Income Answer Yes to Any Other Taxable Income Enter the description such non-taxable Scholarship or employer provided assistance income erroneously included in box 1 of W-2 Enter the amount as a negative number.  NOTE:  If your employer paid more than $5,250 as employer provided assistance, the amount over that is considered taxable as your employer can only contribute up to $5,250.  If this was a TRUE scholarship, then the limit would not apply.  A scholarship is free money, that you were not required to work for. If it was tied to employment and you needed to work for it, it would be considered taxable income.    If you remove this from income, you cannot include in your education expenses for an education credit the amount you are removing from income. You will need to enter YES to the employer sponsored assistance question in the 1098-T section and enter the amount you are removing from income.    Also, in order to remove it from income, it would have had to be used for qualified education expenses, not room and board.  

Would you kindly verify this information again?    Are you using the 'EasyStep' interview mode or the 'Forms' (Profile) mode? Is there a value in box 68519 or 68518 that was carried forward from a 2024 return? (Auto-fill or carry-forward data can sometimes populate fields that get missed.) Do any of the amounts in those lines (10100, 10400, etc.) include cents, or are they rounded to the nearest dollar? (Occasionally, a difference of $0.01 in the background math can trigger a "greater than" rule.)   Have you tried deleting the T1198 form entirely and re-adding it?   Let me know how it goes.  

There's no further action needed.  What you did is correct.  The IRS won't think any differently of you if the code remains as "J" or is updated to "P".  The end result is the same, no tax or penalty on the distribution.  That is all the IRS cares about.  IF (and that's a big IF) the IRS sends a letter to further inquire about the distribution, you can clarify and show your support at that time.

There are reports of processing delays due to software updates. You can track your refund here: Income Tax Refund Status, and you can contact the NY Department of Revenue here: New York (NY)   @Quezada-kelbin [Edited 03/18/2026 09:12 PM PST]