All Posts

Continuing from subject line - the agent's response was that it did not look like the return was rejected - but then referred me to send the note to the group.  Since we have verified and confirmed both the AGI number and the PIN number, unless you know what the e-file numbers in the IRS data base are, then the only option that I have is to print and file our tax return by mail.  Please let me know if you agree.  Thank you. L Zorr

@jessicajude , as I see it, no loan offset distribution occurred because your husband was only away from the company for 6 weeks, so no distribution was made that was eligible for rollover.  With no offset distribution having occurred, your husband was still responsible for making payments on the loan.  Once your husband had resumed working there, no offset distribution was possible at that point.  Because the payments did not resume before the loan was declared to be in default, the outstanding loan balance became a taxable deemed distribution, not an offset distribution, reported with code L in box 7 of the Form 1099-R.   A deemed distribution does not satisfy the loan, so the loan must still be repaid.  However, repayments of the amount treated as a deemed distribution become after-tax basis in the plan, so this money will not get taxed twice.  The deemed distribution just pulls this taxable income forward into the year of the deemed distribution whereas if the deemed distribution had not occurred then this amount would be taxable in the future when distributions eventually begin and are not rolled over to another traditional retirement account.   I see no option but to include the distribution in taxable income and pay the increase in tax liaibility.

Thanks.  I am buying a book of insurance business and paying 50% in 2025 and 50% in 2026.   The seller, my partner, is doing both a 8594 and 6252.  Do I need to do a 6252 as a buyer?  Why do I have to file a 1040X when there are no changes? I am confused on that part.   I figure I will just print out the TurboTax and then attach forms to it.  My main concern is I have put the 50% of purchase price (2025) in as commission paid as I don't see anything else to put it to get a proper cost.  Do you know if there is another place to put it?   Kent

Oh that worries me because I will be filing MI 4884 soon. For comparison you could use the Michigan Department of Treasury websites " 2025 Retirement and Pension Estimator" as a double check. You don't have to put in your actual birthday but you want the birth year correct. In my case it matches turbo tax. If yours matches turbo tax that would be good backup to have if the letter gives you a way to respond to their change.  

Hello! I'm using desktop so the online doesn't apply, but thank you! I should've been clearer.   However, I did find a work around by just going to File and clicking print. I first chose preview to see if the cover sheets were there and they were. I chose "all worksheets" and then just printed the first two pages. So still not printable within the Turbotax program,  but this worked! 🙂 . 

The 1099-HC is the Massachusetts state health insurance form.  You will be asked if you had coverage in the state section.  If you do not have a 1095-A, do not complete that section.  See What is Form 1095-A: Health Insurance Marketplace Statement.

We’re currently working on an update for Form 5605.  There will be an update on March 6.  After this day you can go back through your return, and make any changes as needed, then file your return.   If you are using TurboTax Online the program updates automatically.   If you are using TurboTax Desktop make sure all updates have been run on your program. You can do this by clicking on "Online" in the black bar across the top of your TurboTax screen. And then select "Check for Updates". If you have any additional questions or information regarding this please return to TurboTax Community and we would be glad to help.   @user17723141501 

I would like to take a deeper look at this. However, I need a diagnostic file which is a copy of your tax return that has all of your personal information removed. You can send one to us by following the directions below:   TurboTax Online:   Sign into your online account. Locate the Tax Tools on the left-hand side of the screen. A drop-down will appear. Select Tools On the pop-up screen, click on “Share my file with agent.” This will generate a message that a diagnostic file gets sanitized and transmitted to us. Please provide the Token Number that was generated in the response.   TurboTax Desktop/Download Versions:   Open your return. Click the Online tab in the black bar across the top of TurboTax and select “Send Tax File to Agent” * This will generate a message that a diagnostic copy will be created.  Click on OK and the tax file will be sanitized and transmitted to us. Please provide the Token Number  (including the dash) that was generated in the response.   *(If using a MAC, go to the menu at the top of the screen, select Help, then, “Send Tax File to Agent”) @user17723182542   

This issue should have been fixed with the update that rolled out on February 27th.  Please make sure that you restart your computer in order to make sure that your software is as up to date as possible and you should have no further issues with this going forward.

No, do not report a portion of a Traditional IRA amount that was used for a Roth IRA and it occurred in the same tax year.    Any money that went into a traditional IRA or SEP IRA and then transferred to a Roth in the same year does not provide a deduction. With a conversion to a Roth IRA, you have to pay tax on the traditional IRA account funds getting moved to the Roth account.   If you recharacterize your IRA contribution properly and before your tax return due date (including extensions), the tax effect is as though the contribution to the first IRA never happened. What are IRA conversions and recharacterizations? Additional details and links about this topic. Any money moved/converted from the Traditional IRA or SEP IRA that was contributed in an earlier year will be taxable when moved to the Roth. Summary: A conversion allows you to transfer funds from a non-Roth IRA account into a Roth IRA account, often with a taxable impact. IRA recharacterization rules allow you to change your mind about your IRA contribution account type, if done within current tax year deadlines. Watch all the questions and answer them based on the details and information.   @tikitur