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Q.  I thought my entire 2.3K should be tax-free if they are qualified education expenses. A. Yes.    Q. Please help with my questions above. A. No. That's way to complicated with a desired goal that can be accomplished much more easily.    The interview is complicated, even when it isn't broken (and it's still broken) and it's easy to make mistakes. Avoid it if you can and you can, since you know none of it is taxable. When the box 1 amount on form 1099-Q is fully covered by expenses, TurboTax will enter nothing about the 1099-Q on the actual tax forms and nothing about it is sent to the IRS.  You get the same results doing nothing or manipulating complicated workarounds.    It's been many years since I've seen a post, in this forum,  about the IRS questioning a 1099-Q.  I got one myself, about 11 years ago.  It was easily explained and accepted by the IRS.         

We're aware that some customers are still experiencing issues when trying to file but are looped back instead of being able to proceed and file.  We're actively investigating this issue. We'll inform you once the program is updated.  

The detail for that would be on the Tax and Interest Deduction Worksheet. If you are working online with the program, you will only be able to see that when you have paid for your program. On the desktop version of TurboTax you can use the Forms menu option to bring up that form.

This is due to the State and Local Tax (SALT) deduction limit , the One Big Beautiful Bill (OBBBA), increased the limit for 2025 for federal returns but some states did not increase the limit.  This is why the amount in your state return is $10,000.     SALT Deduction Explained: Limits, Eligibility, and Tax Planning Tips   @ND207

The same just happened to me. I just completed my taxes using the desktop version, and all of a sudden the tax file is gone. I did a file search on the whole disk, no luck. I tried a system restore, which didn't work. I used a recovery program looking for deleted files with no luck. I did a chkdsk which found no errors. I looked at the Windows logs but nothing showed errors about that time. 

If your SMLLC is chartered in Texas and all business was transacted in Texas, you shouldn't need to file Form CD401 in North Carolina. As a remote employee, you may owe North Carolina state taxes on your W-2 income for the period that you lived in NC. But as long as your company didn't earn income in NC, it shouldn't need to pay franchise tax in that state.   Per the North Carolina Department of Revenue Who Should File, "...all active and inactive domestic corporations, and all foreign corporations with a Certificate of Authority to do business, or which are in fact doing business in this state, are subject to the annual franchise tax levied under G.S. 105-122."

Thank you for the response.  I did take a regular distribution of the $280 a few days ago.  Will just be paying that extra $17 but be clear for 2026.  I’ll be paying close attention to limits as we go.  If it hadn’t been in the phase out range it wouldn’t have been such an issue.  Just something to be mindful of.   Fortunately,  it was only $280 short.  $17 for 2 years isn’t a big deal especially as I had a very good year in the market.  Still, it’s nice to avoid amending a return or any penalties.  So I’ll just be more careful at year end.  

No, if you originally filed a Married Filing Separately (MFS) return, and the amended return is filed with the same status, your wife does not need to sign the 1040-X.    In addition: The signature block on the 1040X states "Spouse's signature: If a joint return , Both must sign," This is clearly not a joint return. @chungcw3 

Thank you so much, Bill. This was not at all apparent, as you said.   So it seems I now have two problems:   I still haven’t eliminated the excess contribution. I had the HSA custodian produce an inaccurate 1099-SA. Hopefully I can contact the custodian and ask them to reclassify the distribution as a normal distribution?

I believe this info is outdated.  I followed these instructions and the IRS is using a new chatbot that seems to prevent me from talking to a human.  It would be helpful for TurboTax to investigate and update instructions

after about 4 hrs on phone and 2 different days of calling back, it was resolved. (Needless to say the waiting time was over 45 minutes to just get to talk to anyone!) the Truth is, this is a nightmare and no way it was setup thas way with any good faith in mind. that in itself is a no use ever again.

Unless you know of a reason for the distribution to not be taxable, you would enter the full distribution amount as taxable. One reason it may not be taxable in the US is because you are a Canadian citizen and as such you report the income as being taxable in Canada. It cannot be taxed in both countries as a result of a treaty.