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I will try re-entering the 1099-R on my state I have already gone back to the Federal several times.  If I put the difference in as a subtraction in the Military Retirement Exclusion box it then shows as a negative amount so that didn't work.  I will try re-entering again.  It was also suggested that I file with the wrong amount and then file an amended return.  I'd rather not do that unless I have to so I will try re-entering the 1099 on my state form.   Thanks your help is appreciated. 

No, you shouldn’t have a penalty for 2025, but let’s double-check your 2024 situation to make sure you didn’t accidentally trigger a "Testing Period" violation. Here is how the "Last Month Rule" works and how it applies to your specific timeline.   The IRS allows a "full-year" contribution in 2024, even if you only had an HDHP for one month, provided you were eligible on December 1st (2024). However, this comes with a string attached: the Testing Period. If you use the Last Month Rule to contribute more than your prorated share, you must remain HSA-eligible (have an HDHP) through December 31st of the following year.    Since, you had an HDHP for all of 2024.  you were eligible for every single month, you did not need the "Last Month Rule" to make a full contribution. You earned your eligibility month-by-month. As a result, because you were covered for the full year of 2024, there is no "Testing Period" for you in 2025.   Since you lost HDHP coverage in January 2025, you are simply ineligible to contribute for 2025.  Losing coverage in 2025 does not "undo" your 2024 eligibility. You were a valid participant for those 12 months, so that money stays in your HSA tax-free.   You are ineligible to make a half-year contribution because you had no HDHD coverage on the first of any month in 2025. Your prorated limit dropped to zero. If you had HDHP coverage anytime during 2025, you could have pro-rated your contribution for the months you had coverage. For an example, if you had HDHP for six months, you could have contributed 1/2 of the yearly contribution limit for a HSA account ($4330 Self or $8550 for family).   Now to answer your original question, it sounds like your spouse was not on the plan since you were enrolled in the "self only" plan. If this is the case, you will need to delete her Form 8889-S from the list of forms if it is listed.   TurboTax Online Sign in to your account and open your return. On the left-side menu, select Tax Tools, then click Tools. In the pop-up window, select Delete a form. Find Form 8889-S (the "S" is for Spouse) in the list. Click Delete next to it and confirm. If you see a 1099-SA (Spouse) or HSA Wks (Spouse), delete those too log out and back in again to save the change. TurboTax Desktop (Windows/Mac) Open your return and look at the top right corner. Click the Forms icon to switch to Forms Mode. I In the left pane, look for Form 8889-S. Click on the form to open it in the main window. At the bottom of the screen (Windows) or under the Forms menu at the top (Mac), select Delete Form.   Confirm the deletion and then click Step-by-Step (top right) to return to the interview. Go back to the Deductions & Credits section for HSAs.   Start the interview from scratch. Only enter your information. When it asks if your spouse had an HSA or HDHP coverage, select No or None immediately to prevent the second form from being recreated. If you get that screen that you sent above, it means you selected yes and that is why the screen is being displayed as shown.              

dmertz, you seem to be very knowledgable about the issue. Thanks for all the responses here. You mentioned this thread is about 'code H'. But if I understand correctly, we are puzzled about rejection related to  "Rejected Form 1040 IRADistrbutionRolloverInd, IRADistributionQCDInd or IRADdistributionOtherInd", which might be caused by different things beyond just 'code H' handling.  Do you have any recommendation on that? We should wait for TT's fix or try out other reliable work-arounds?

To add a T4A slip to a 2025 tax return that has already been filed, you will have to file  an adjustment, but you should wait until you receive your Notice of Assessment (NOA). You can refer to this TurboTax link I've filed my tax return. Can I still make changes? for more information.   Thank you for choosing TurboTax.

Already filed, accepted, transcript shows 'Main Residence in U.S.: No' — how do I fix this? Same story as many here: TurboTax never asked me the question, box is unchecked, and my transcript is now wrong. I live in the US full time. I can't figure out how to amend it online, when I select "amend" the questions are the same as before, TurboTax support has been no help at all. Has anyone successfully amended after filing? How did you do it? Thanks!

From the sounds of it, you are doing work as a sole proprietor, reporting your income on a schedule C.  How this non-payment is handled depends on how your business is structured for its accounting.   Most sole proprietors use the cash method of accounting.  If this is the method used for your business, then bad debts cannot be written off.  So even though you already have your own time plus all the investment in the parts for the repair, you would have claimed the parts that you used for the repair as expenses on your tax return in the year you made the repair, but you would not have claimed the income because you never received it.   If you instead use the accrual method of accounting, you would have reported the income in the year that you earned it, whether or not you had been paid on that account receivable.  In that instance, you would report the bad debt as an "other expense" on your Schedule C.  In TurboTax desktop, this would be under Business Income and Expenses in the category "Other Miscellaneous Expenses".  In that category you will enter a description such as Bad Debt expense and the amount of the bad debt.  For TurboTax online, you would go to Self-employment income under the Income category, and then enter the expense under "Other Miscellaneous Expenses" category.

Personal legal fees are not deductible except on cases of unlawful discrimination, or as an adoption expense.  The entire amount of the settlement or judgement is taxable to you, even though you paid part to the attorney.  In some states, you can get a partial deduction for legal expenses, but it is an itemized deduction.  (Line 24h is for legal fee related to unlawful discrimination only.)   If the FCRA complaint included a discrimination component, the fees might be deductible, but you need to manually edit the program to make the entry on line 24h, which you can do with the desktop program installed on your own computer, but not the online version. 

@MarilynG1, thanks for sharing the reason why TT chooses Standard over Itemized Deductions when the refund amount is the same. That makes sense. However, when I explicitly chose Itemized Deductions with the popup window, and the Itemized deductions button was highlighted, when I closed that popup the Deductions page still showed I had chosen Standard Deductions. That is where I think TT should be fixed to show what I had chosen.

I don't see why TurboTax would ask you to enter a reason.  The IRS does not care why you recharacterized the contribution, they only care that it was executed properly.  The explanation just needs to show the amount of contribution recharacterized, the gain/loss-adjusted amount transferred, and the dates of the transactions.

@ThomKat I wish there was an offer for all veterans.  But there is not.  Only active duty enlisted personnel are eligible for the military discount.   https://turbotax.intuit.com/personal-taxes/online/military-edition.jsp

There is no undelete in TurboTax. Easiest would be to open the 2024 return to get the c/f info to enter into 2025.   the onlu other possibility is to start over from scratch, where you start a "New" return for 2025 so you can transfer the 2024 data. 

Helpful TurboTax Articles: What if I can't import my 1099? How can I fix my 1099 import issue? How do I import my 1099s? How do I enter a large number of stock transactions in TurboTax? If you received a "Success" message but your data hasn't appeared in TurboTax, it is likely due to recent browser security updates regarding Local Network Access.   To fix this you need to allow TurboTax to securely retrieve your data through your browser settings: Locate the View Site Information icon (the "tune" or "lock" icon) on the far left of your address bar, just before the URL. Find Local Network Access in the dropdown menu. Toggle the switch to ON. Refresh the page and attempt your import again. What do I do when my data isn't imported into TurboTax Desktop even though it says successful import in my browser? If permissions aren't the issue, one of the following factors may be at play: Brokerage Delays: While most forms arrive by January 31, many brokerages delay Consolidated 1099s (like the 1099-B) until mid-February due to complex reporting requirements. Availability: Your brokerage must specifically "release" the import file to TurboTax. If it isn’t ready, we recommend checking back. Connection Blocks: Active VPNs or aggressive Anti-Virus software can occasionally block the import feature between your bank and TurboTax. Try disabling them temporarily or switching to a different browser.