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Thankyou so much for your detail response. I do understand the reason for the capital gain rate differential adjustment. I just feel that .4054 (which is based on 37% (15/37)) should really be .625 (15/24) to reflect the tax bracket I am in. Anyway, that is just a gripe, .4054 is the number we have to use and I know I can't change it.   I did simplify a few things in my original discussion. My actual gain was only $92,000, but I had $8,000 of depreciation which is where I got the $100K amount. I can see that turbo tax completed the "unrecaptured Section 1250 gain worksheet" and put this $8K amount in line 19 of Schedule D.   I went back to the Foreign Tax section and ticked the "some of my foreign source capital gain are unrecaptured" box and entered the $8k as the amount. This immediately increased the FTC to over $9K taking around $1,200 off my tax bill! Thanks!!   I did notice that the NIIT was not included the FTC calculations. I looked for information on using the treaty but didn't find anything concrete.   I already have some previous year foreign tax carryover, but now I'll have a lot more. I can't see situation where I'll ever be able to use it, but it's good to know it's there, at least for a few years.   I still feel I'm paying too much (but then again, who doesn't), but as long as I am not missing anything obvious, I guess I'll just have to pay it.   Thanks, Stephen

@DanaB27  Thanks again for your help with my 2024 return. I am now in the process of doing our 2025 tax year return and was reviewing the 2025 1099-R's sent by the financial institution and noticed an issue compared to the 2025 1099-R that I filed in TurboTax last year.    The 1099-R amount from the financial institution was $500 higher than the 1099-R I set up in TurboTax last year. It looks like either I made a mistake on the filing and now need to correct it or the financial institution sent an incorrect 1099. The $500 difference could be because there was a $500 excess Roth IRA contribution that was made in calendar year 2024 that related to the 2023 tax year that I did not catch for the 1099-R (but I did catch it in terms of the amendment that I filed for 2023). See details below.   How do I fix this in the 2025 tax filing? Do I need to amend the 2024 tax filing? Or is it possible that the financial institution made a mistake on their 1099-R? Can I just correct the 1099-R I filed last year somehow so that it matches the 1099-R from the financial institution?   Background info below.   Excess ROTH IRA contributions by tax year: 2021 = $6,000 2022 = $6,000 2023 = $6,500* 2024 = $7,000 *Includes $500 which was contributed in calendar year 2024, but related to tax year 2023   Last year I filed amendments for the excess contributions above as follows: 2021 = $6,000 reported on Form 5329 and 1040-X with Schedule 2 for additional taxes on $6,000 total excess contributions 2022 = $6,000 reported on Form 5329 and 1040-X with Schedule 2 for additional taxes on $12,000 total excess contributions 2023 = $6,500 reported on Form 5329 and 1040-X with Schedule 2 for additional taxes on $18,500 total excess contributions 2024 = $7,000 reported on 1040 line 4a an IRA distribution of $14,200 and 4b Taxable Amount of $7200 (earnings on excess contributions). Form 5329 line 1 was $7,200 and $18,500 reported on lines 18, 22 and 24.   For 2025 I received two 1099-R's from the financial institution: 1099-R #1: $18,000 in box 1, $0 in box 2A and box 7 has a code J. 1099-R #2: $14,700 in box 1 and $7,200 in box 2A and box 7 has code PJ.   For the 2024 tax return I created a form 2025 1099-R with gross distribution of $14,200 in box 1 and taxable amount in box 2a of $7200 . Line A5 was checked (indicating year 2025 form 1099-R).  The $14,200 consisted of the $7,000 excess contribution being a "Corrective Distributions made before due date of return" (code J) and $7,200 being taxable earnings (code P).  On Form 5329 line U was $7,200 for corrective distribution made before due date of return.      

The first step should be to get your IRS transcript to compare the numbers to your TurboTax return. If your tax return has been accepted you might also be able to access your transcript from the IRS now. Get My IRS Transcript Current Year Transcript Availability The letter may give an indicator about what was changed. Once you are able to compare and see the differences, or add additional details please update here and we will help.

If your bank rejects a refund used to pay TurboTax fees, the funds are returned to the third-party bank (Santa Barbara Tax Products Group).  They will either mail you a check for the rest of the money or  Give the money to the IRS.  This will take a few weeks or more to get to the IRS. 

Your son has a k-1 which is normally reported on his return. A child must file his own return, if investment income  is over $1,350. Unearned income is subject to the kiddie tax. Since you are using the desktop version, you can file up to 5 returns so there will not be an additional charge to create his return, if needed. Reference:  IRS Table 2 What is the Kiddie Tax?

The information below will give some guidance on filling out Form 3911. To be clear this form is to be filed when a refund check was previously issued and you did not receive it. Section I: Complete all personal information and enter NA for line 5 & 6 if you don't have a personal representative. Line 7: Select Individual, Form 1040, Tax Year you are inquiring about in Tax Period, Estimated File Date unless you have an acceptance date. Select your preferred method of payment and required information if direct deposit. Enter the amount of your refund. Section II: Enter the correct information for your situation Section III: Sign the form Mail or Fax the form to the information in this link: IRS Form 3911 Instructions Scroll to find your state to see the address and/or Fax number to send your completed form. Bes sure you keep a copy of this form.

I think you mean you filed your return and reported the wrong cost basis on your employee stock that you sold. If so, you will have to file an amended return to correct that. You should only file the amended return after your original return is processed, evidenced by having received your refund if you have one. You will see an option to amend your return when you log into your TurboTax program. On the amended return, you need to correct the investment sale entry you made in error.   You correct investment sales in the Wages and Income section of TurboTax, then Investment Income, then Stocks, cryptocurrency, Mutual Funds, Bonds, etc... On the next screen you will see your investment sales and you can use the down arrow next to them to see where you can edit them.   You will receive a Form 1099-B which will report the sale of your employee stock. Most likely, the cost basis on that form will be wrong as it may not include the discount you received associated with you receiving the stock for less than fair value. That discount will be reflected on your W-2 form as wages in box 1. There may be  an entry in line 14 telling you what the amount the discount is.    If you divide the discount amount by the number of shares you received you know what the discount amount per share is. If you multiply that by the number of shares sold you will know what the discount amount is that you may need to add to the cost basis of the stock sale reported on your Form 1099-B.   When you enter the Form 1099-B in TurboTax, there will be a screen where you enter the sales proceeds and cost basis and you will see an option to indicate that the cost basis is incorrect or missing on the Form 1099-B. Check that box and on another screen, you can enter the correct cost basis or request that TurboTax assist you in determining what the correct cost basis it. 

To delete a form in TurboTax Online follow the instructions below:   Open TurboTax and your return Select Tax Tools from the menu on the left side Select Tools In the pop-up window select Delete a form Find Schedule F and select the trash can.  Refer to the TurboTax help article How do I view and delete forms in TurboTax Online? for more details.

In California, LLCs have to pay annual fees when you have income of $250,000 or more, to pay this you must complete Form 3536.  To find this in TurboTax Online:   Select State Taxes, under Your State Returns screen Select California LLC, and select Start On the Welcome to Your 2025 California LLC Tax Return screen Continue until you locate Estimated LLC Fee and select Prepare Form 3536 Answer questions on the following prompts according to your business details On the Estimated LLC Fee for Next Year screen, enter your estimated fee amount and select Continue On the Printing Estimated Fees for LLC Voucher screen, select Print Voucher Note: Form 3522 must be printed and mailed with the voucher that is produced How to complete California Estimated Fee for LLCs Form 3536  

@MelindaS1 You see that that generated entries in the K-1s don't reflect the input. And you see that the the generated K-1 entries for the federal and the state tax are different - which is at least confusing.  Please help me. 

Yes, but it’s too late to file prior-year tax returns on TurboTax Online.  You will have to purchase TurboTax Desktop and install it on your computer to prepare your 2024 tax return.     For more information, review the TurboTax Help article How do I file a prior year tax return? and How Do I File Returns for Back Taxes?   To prepare your prior-year taxes, here's the link to get started File your 2024 tax return.

Was this question ever answered satisfactorily?  I have the same problem.  I entered the Social Security lump sum payment exactly as indicated including the portion that would have been paid in 2024.  When I did the Federal tax review, I got an error message about "more than 85%" and there is no way to fix it.  I did go back to a worksheet and shift numbers to override it.  My federal tax due increased by over $200. Is there another way to handle this? MJS 3/18/26

The numbers on the Summary(s) are not on tax forms, so we in the Community don't always know where they come from.    With a little bit of experimenting, I see that box 12 "Exempt-interest dividends" are added into the Summary screen.