All Posts

I was able to call Schwab, and they are sending me a 1099-R with Code R (box 7). I would have to wait for it (3/25/26) and report it in my 2025 tax year documents.    How would I report this in TurboTax? 1. Do I report that I contributed $7k to a Roth IRA, then recharacterize it to $7k in a rollover IRA, and report the loss of $92.32 and the original amount of $7,000 in an explanation statement?  Recharacterization amount for Roth IRA to Rollover IRA for 2025 = $6,907.68    (Ineligible for Roth contributions)    2. How would I know that the Recharacterization $7k is counted as a non-deductible basis in the 2025 tax form, so I can convert all my money from a traditional IRA into a Roth IRA for a backdoor Roth conversion in 2026 without being taxed again? What line and amount would it be on Form 8606?   In an explanation statement, what I write:  2025 Recharacterization Amount $6907.68, Loss of $92.32  Please correct me if I'm wrong     @MonikaK1 @ReneV4 

Thank you.  With the exception of about $400, non qualified dividends, the remaining $1200 is capital gains and qualified dividends.  I trust since the majority is cap gain and qual div, the result is no tax liability. Appreciate your prompt response.  

So if you are saying that RIGHT NOW, you do NOT have a 1099 from Uber that includes your tips, then you would not be able to take the deduction for tips.  If the tips are included on the 1099, then you WOULD be able to claim the tips.     A statement from Uber does not count, but the 1099 they sent you DOES count as they DO include your tips on it.  Do NOT enter the statement from Uber separately.  The only type of tips that would not count with your Uber services would be cash tips that Uber is not aware of.  They are even offering to give those who earned less than the $600 the option of opting in to get a 1099.     The statement that you received from Uber is in addition to the 1099, so you can enter the tip amount.  Once you enter the 1099, click the button that says you received tips and then enter the amount that is on the statement.    Tax Deduction for Qualified Tips Beginning in 2025, a new federal tax law allows individuals to claim an income tax deduction for qualified tips (“no tax on tips”). To claim this deduction, the IRS requires that your tip income be reported on a 1099 Tax Form. If you do not meet the IRS threshold, you can opt in to receive Forms 1099-K (and 1099-NEC, if applicable) by updating your Tax Settings through the web driver portal or the Uber Driver app. This can help support your claim for a federal deduction on qualified tips. We recommend consulting a tax professional or service, such as TurboTax, for advice on federal and possible state deductions related to tip income.

Yes, you can deduct ad valorem taxes in Oregon, the same as on your federal tax return. The tax must be based on the value of the property to be allowable. You can learn more about the deduction in this IRS article.

To find your tax data files that were saved on your computer, refer to the TurboTax articles:   How do I find my tax data file (.tax file) on my Windows computer?   How do I find my tax data file (.tax file) in Mac?  

Follow these steps: Look further down the page. Is there a field specifically for digital wallet addresses or crypto platforms? If there is any data in those fields, the program believes the "Digital Asset" question is Yes. Clear those fields first. Try selecting yes in the program, continue, then go back and change it to no. This sometimes will get rid of stuck data. Order of entry issue: Delete the entire row for that specific asset. Re-add it from scratch. Select "No" for the digital asset question before you type in any other numbers. Switch browsers: If you are on Chrome, try opening the form in an Incognito/Private window to disable extensions that might be interfering with the form's logic or switch to Safari or Firefox. Caution: The IRS (and most state authorities) has become extremely strict about this checkbox. Even if you didn't sell "coins," remember that the definition includes NFTs or using crypto to pay for goods. If you definitely didn't engage in those, the form is simply being stubborn.

Thanks for the guidance, however, I am not presented with that page. I see what you are referring to if I mark my wife as having an HSA that screen comes up but I cannot get it to present for me (she does not have a separate HSA).

@CatinaT1 Thanks and your answer is fair. I went through these steps. Still have a doubt why two softwares produce different taxable social security benefits. Do you know IRS only uses 50% and 85% to calculate the taxable amount, or there is other % and how it is determined?

@Jampard wrote: Is there a way that the IRS can find out what my cost basis is for some stock that I sold last year? Nope, but then you are the one who has the burden of proving the basis you report on your return if ever questioned by the IRS.