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If your employer included it in box 1 of your W-2, you have three options.   1. You can leave it as taxable income and claim an education credit using the amount that the employer paid since you are being taxed on it. 2. You can ask your employer for a corrected W-2 3. You can make an adjustment to your income by backing it out by entering it as a negative number by taking the following steps: Income Less Common Income Miscellaneous Income Other Reportable Income Answer Yes to Any Other Taxable Income Enter the description such non-taxable Scholarship or employer provided assistance income erroneously included in box 1 of W-2 Enter the amount as a negative number.  NOTE:  If your employer paid more than $5,250 as employer provided assistance, the amount over that is considered taxable as your employer can only contribute up to $5,250.  If this was a TRUE scholarship, then the limit would not apply.  A scholarship is free money, that you were not required to work for. If it was tied to employment and you needed to work for it, it would be considered taxable income.    If you remove this from income, you cannot include in your education expenses for an education credit the amount you are removing from income. You will need to enter YES to the employer sponsored assistance question in the 1098-T section and enter the amount you are removing from income.    Also, in order to remove it from income, it would have had to be used for qualified education expenses, not room and board.  

There's no further action needed.  What you did is correct.  The IRS won't think any differently of you if the code remains as "J" or is updated to "P".  The end result is the same, no tax or penalty on the distribution.  That is all the IRS cares about.  IF (and that's a big IF) the IRS sends a letter to further inquire about the distribution, you can clarify and show your support at that time.

There are reports of processing delays due to software updates. You can track your refund here: Income Tax Refund Status, and you can contact the NY Department of Revenue here: New York (NY)   @Quezada-kelbin [Edited 03/18/2026 09:12 PM PST]

You have some options to correct this, depending on whether you want to avoid paying the 6% penalty or if you are willing to pay the 6% penalty on your 2025 tax return.   Take a look at the following TurboTax help article to learn more about the options you can choose:   What if I made an excess Roth IRA contribution because my income is too high?  

If you have not completed the rest of your return, or have no income tax (self-employment tax does not count towards income tax for this credit), this may be why the credit is not appearing. The energy credit is non-refundable, so if you don't have enough income tax being computed, the credit won't be generated.   I have tested the heat pump section of the 5695 input area and it is working as expected and producing the maximum $2,000 when qualified.  Double check your answers and make sure you have income tax being shown on your 1040, line 18.  You can check this by by navigating to Tax Tools on the left of your screen, choose Tools, then View Tax Summary. On the left of the screen, select Preview my 1040.   See this article for a summary of the credit amounts available: Energy Efficient Home Improvement Credit (EEHIC)  

The 1099-B should include a Supplemental information section where it lists the adjusted cost basis for those shares that reflect zero basis on the 1099-B.  Depending on the brokerage company, the supplemental information may need to be requested or downloaded from your account.   The supplemental information is generally included toward the end of the 1099-B (aka 1099-COMP), review each page carefully and if it's not there, check with the brokerage firm.

When your manually entered overtime amount exceeds one-third of your income and Box 14 on your W-2 is empty, TurboTax may trigger a review for accuracy since it expects overtime amounts to be reasonable and related to your wages. To address this: 1. Make sure you have entered your W-2 wages exactly as they appear on the form. 2. Use your year-end pay stub to calculate the overtime premium, which is the extra pay above your regular hourly rate, rather than the total overtime pay. 3. Re-enter the overtime amount as the premium portion only if you have been entering the full overtime pay. 4. On the review screen, select the box next to "Overtime" to let TurboTax guide you through questions to verify and adjust your entry. If you still cannot proceed, double-check your entries for accuracy and consistency with your paystub details.  

Mortgage points paid at loan origin are usually reported on your Closing Disclosure (page 2, Section A: Origination Charges), or Box 6 of Form 1098 (Mortgage Interest Statement).   To enter your mortgage interest in TurboTax, please follow these steps:   Open your tax return Select the Federal Taxes tab Click on the Search link on upper right of the screen (look for small magnifying lens) Type in Mortgage Interest Click on Jump to Mortgage Interest Under "Mortgage Interest and Refinance" you will follow screens to Let's get the details from your Bank 1098 now Where do I enter my 1098 mortgage interest statement?    

Catina, YES!!!!  THAT'S WHAT I AM LOOKING FOR!!!  Thank you so much for pointing this out to me. All the other agents before you, while extremely helpful, did not point this out. I was looking for the supplemental worksheets in my federal return..... And didn't find them there so I thought they were not available. Thank you for being the first person to point out where these are! I am one happy camper. Thank you so much.

No, AmyC's advice was not incorrect.  The distinction is whether you used the space for personal purposes or not during the time it was being advertised and/or rented.  If there was no personal use at all when it was being advertised and rented, then AmyC is correct.     If there was personal use during the time it was being advertised and/or rented, then you should follow the advice referenced by ThomasM125.  The sections of IRS Publication 527 that he referenced are explaining how to determine rental days when the property in question is being used personally and being treated as a rental property during the same time period.   @paulkeskeys 

1099-S is normally given to you along with the closing documents upon selling the home.  It may also be mailed to you during the beginning of the year, like any other 1099 or W-2.  You can also download your IRS Wage and Income Transcript via your IRS account and it should have the 1099-S information there.   If can't retrieve your Form 1099-S, just use the Sales Price of the property that is listed in the closing statement documents.   Here's a link to the IRS website were you can login or make your IRS account so you can download your wage and income transcript for the year:   Online account for individuals

If your New Mexico amended return shows changes as the result of filing an amended federal return, attach a copy of your federal amended forms and schedules.   If this isn't the case, you generally only need to send the completed and signed PIT-X form to the New Mexico Taxation and Revenue Department.