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I just received the same notice from the State of Michigan.  They zeroed out the retirement benefits submitted on Form 4884.  My husband is 64 (birthday in 1961) and qualifies for this deduction.  I manually went through the instructions and can subtract up to $64,040 if married filing a joint return.  His retirement income is less than that so 100% qualifies per Worksheet 3.3 on page 25 of the 1040 instructions.  I just submitted a response to the letter via their online portal and asked for more information because I can't respond correctly if I don't know why it was adjusted.  TurboTax completed the same calculation and forms for 2024 and that went through ok.  I think the State is incorrect.  

@LT1903 Oui, les analystes nous avisent qu'il y a un problème qui sera réglé le 2 avril prochain dans la prochaine mise à jour.  CEPENDANT, vous pouvez contourner le problème en entrant $ 0 à la ligne 110 du TP-80. Avec ce contournement, les revenus du T2125 seront les mêmes que ceux du TP-80.   Avisez-nous si cela fonctionne. Merci de travailler avec nous pour identifier et régler le problème. 

Is line 6B on Virginia Form 763 (VA SOURCES, Capital Gains) a manual entry?  If so, at some point I must have entered 333,078 out of a total Capital Gains (ALL SOURCES) of 360,884.  We sold our rental property in VA. The number should be higher.....but I don't know if this number is automatically populated from somewhere, or if I am supposed to enter a correct number manually. 

If you’re an employee (not self-employed), you can only claim the employment-use portion of your phone and internet if your employer required you to pay those expenses and gives you a completed T2200. You would claim them as employment expenses on Form T777 / line 22900.   Thank you for choosing TurboTax.

@Tax-Novice7 wrote: I am leaving TT as soon as I finish my return because as I said in my initial post months ago, you guys have absolutely NO loyalty to your long-time customers.... Best of luck, but you should be aware that no other DIY tax prep software provider has any loyalty to their "long-time customers" either. No one pays enough each year for that despite the fact that some people are trying to pretend they deserve the world as if they're paying thousands of dollars annually.

For federal tax purposes, if the value of the gift was more than $19,000 to any of the recipients, you need to file Form 709, United States Gift Tax Return. It is filed by the individual or entity that gave the gift. Gifts are not taxable to the recipient.

Hey  I am in the same boat as you are. Looking at the instructions for 3468, they first tell you that you don't need form 7220 and then later on they tell you that you do in the "Increased Credit Amount" section. This just blows my mind. That whole statement is repeat info already on the 3468. Seem like we need IRS input on this. FYI my tax return is 92 pages in length. Thats why I want to E-file!

Yes, you should  use her Social Security Number to file her final return and pay any taxes she owes.   You will still file a standard Form 1040 for her (there is not a special "death form").  She is also still entitled to the full Standard Deduction for her filing status.   Open or continue HER return. Enter her legal name and Social Security Number in the "Personal Info" section of the program.   Make sure you check the checkbox that asks: "Did [Name] pass away before filing this return?"  Enter the date that she passed away (8/3/2025). This tells the program to print "DECEASED" at the top of the form automatically. If there is a court-appointed executor: That person signs and attaches the court certificate.   If there is no court appointment: You (as the parent/survivor) can sign as the "Personal Representative."  In the signature area, you would sign your name and write "filing as personal representative."   If she owes money, you can pay via the estate's funds or your own using her SSN on the IRS Direct Pay website. Choose "Balance Due" and "2025" as the tax year.   Note: You may still be able to claim her as a dependent on your own 2025 tax return (if she lived with you for more than 6 months, and if she meets the other standard dependency rules (age, support, etc.).   I am very sorry for your loss.

If you are having trouble importing your 1099:   Make sure you are selecting the correct entity, there are some entities that have similar names.   You also need to consider that both TurboTax Online and TurboTax Desktop support up to 10,000 of any combination of transactions and imports.  If your file is larger, you will not be able to import it.   Check to see if your web browsers require permission to let a website send data to a program on your computer.  See the following TurboTax help article for more information.   Make sure that your pop-up blockers are off.   Switch to a different browser.  Make sure that you enable third-party access to your brokerage account information. If these do not work see the following TurboTax help article for more troubleshooting ideas:   What if I can't import my 1099? How can I fix my 1099 import issue? @btleeks 

Neither of those numbers sound right and definitely not on a sch C. The sch C is for self-employed. The $3628 should be the maximum taxed and you don't want to pay a 10% penalty on it. Let's look at a few things.   The 529 covers room and board and I don't see that amount listed among your numbers. On or off campus, most colleges have a guide for expected amounts. The 529 should cover room and board first, then the eligible expenses. For example: Room and board $13,000 Books $675 The scholarship is another issue. If the scholarship is required to be used on tuition, then it must be used there. The majority of scholarships can be used for anything the student needs, personal expenses. If the scholarship can be used, make a portion of it taxable income (not on sch C) and let the Q cover everything. The "Penalty Exception" Screen: Look for a screen titled "Did [Student] Receive a Scholarship?" or "Penalty Exceptions." You must explicitly enter the $9,000 here. This tells the software: "Yes, this money was non-qualified, but don't charge me the 10% penalty because of the scholarship." Education credit- if you are trying to claim education credit with $4,000 paid out of pocket, numbers must be arranged to accommodate.  For example: Room and board $13,000 Books $675 Total used $13,675 with remainder $17,697 AOTC $4,000 tuition needed. $22,057 tuition paid - 4k for credit = $18,057 to be covered by 529 and scholarship. 529 has $17,697 to go toward tuition leaving $360 of scholarship money to go towards tuition. End result, 529 not taxable at all, $4k for full education credit on your return, taxable scholarship income to the student of $8640. Find out more about your room and board expenses along with the scholarship rules. I imagine you will end up closer to my example. If you don't need the education credit, that will be less taxable income to the student.    The 1099-Q is not even entered when it is not taxable. You would just enter the 1098-T for $4k box 1 on your return - no box 5. The student will enter the 1098-T missing $4k in box 1 and full box 5 amount.   IRS Publication 970, Tax Benefits for Education states that nontaxable distributions should not be entered.   Please check your other thread for more about the current program calculations.

Thank you, but it did not fix it. However, when I click on All Official forms required for filing, it doesn't look like that gets filed with the return, it looks like it is just for my records. Does it matter that it is not saving it properly in the worksheets as long as the forms view shows it correctly for my records? It is still reporting the 1098-T correctly in that none of the scholarship is income because it is a working condition fringe benefit because it maintains or improves skills need for present work.