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In TurboTax Online, if it says you are not eligible for the simplified home office deduction due to zero or negative net profit, but you show a positive net income, the issue often arises from the way business income or losses were entered. To address this: 1. Double-check your business income and expenses entries to ensure your net profit calculation is correct. 2. Review any business losses or deductions that might reduce your net income to zero or less in the software's calculations. 3. Revisit the home office deduction section and confirm your answers, especially the net profit figures. Sometimes, TurboTax may calculate net profit differently from your manual calculation due to specific expenses or adjustments.   To review and correct your business income entries in TurboTax Online, follow these steps: 1. Go to the Wages & Income section. 2. Scroll down to Business Income and Expenses (Schedule C) and select Start or Update. 3. Proceed through the questions until you reach your business summary. 4. Carefully review your income entries such as 1099-NEC or cash income to ensure all amounts are entered correctly. 5. Check your expense entries for accuracy and completeness since expenses affect your net profit. 6. After confirming income and expenses, TurboTax will recalculate your net profit. 7. Then, navigate back to the home office deduction section to re-check eligibility. This process helps ensure your net profit reflects correctly for the simplified home office deduction.

It is up to you if you want to claim the Arkansas child care credit or not.  The credit allows you to claim up to 20% of the federal credit.  To claim it, you must claim the federal child and dependent care credit.   Child and Dependent Care Credit information    

Yes, there’s a better way than overriding. The “more than 85%” error usually appears when the lump-sum Social Security entry isn’t reported correctly through the lump-sum calculation interview or when a prior-year amount is placed on the wrong line. Use the built-in lump-sum method flow and remove any overrides so TurboTax can compute the taxable portion correctly.   Remove overrides Open the return, go to the Social Security worksheet and clear any manual overrides you made. Use the lump-sum interview: Federal > Wages & Income > Retirement Plans and Social Security. Edit Social Security (SSA-1099). When asked if your Form SSA-1099 includes a lump-sum payment for prior years, select Yes. Enter the 2025 total from Box 5, then the prior-year amounts as shown on the SSA-1099 (e.g., 2024 portion). Do not net or reallocate, enter exactly as shown. Prior-year info: When prompted, enter your filing status and key income items for the prior year (2024) so the lump-sum method can test whether taxing it as if received in the prior year(s) lowers your tax. Check for common causes of the error: Only Box 5 belongs in Social Security benefits. Don’t enter the prior-year portion as a separate SSA-1099; it goes in the lump-sum section. If you have tax-exempt interest, foreign earned income exclusion, or large IRA/retirement income, make sure those are entered correctly; they affect the 85% cap. If the Error Persists in "Forms Mode" (Desktop Users) If you are using the CD/Download version:   Switch to Forms Mode (top right).  Find the Lump-Sum Social Security Worksheet.  Look at Line B and Line 19. The software is likely miscalculating the "ceiling" for the 85% rule.  Rather than overriding the final 1040, ensure the 2024 Adjusted Gross Income (AGI) and Tax-Exempt Interest from your 2024 return (If you had any)  are entered correctly in the worksheet. This usually "unlocks" the math.

@Jtrain4 wrote: Thank you so much for taking the time to explain to me things in such good detail. This has been so helpful. I'm new here, and I don't mean anything by this, I just don't know what this forum really is. Are you and the others who respond tax people preparers? People with "expert" are Turbotax employees.  People with "Champ" next to their names are experienced volunteers who have been on the board for a while, have agreed to a code of conduct, and have been vetted by the moderators for being mostly accurate most of the time.   Anyone without a label can be anyone.  (Some are former champs who object to the code of conduct for whatever reason.)   Some are accountants, or tax preparers, even attorneys, some are just knowledgeable volunteers.  I am not a paid preparer, I do this as a hobby, and I tend to stick to areas that I most comfortable, which includes church and clergy taxes because I was in that area as my church's treasurer for several years. 

To get past the CUSIP number error for a 1099-INT when you are e-filing, try leaving the CUSIP/Box 14 field blank. The IRS does not require this number for most interest income.   Sometimes a blank state box (16-17) causes an error.  Clear any data fields that may be incorrectly filled or have zeros.   If this does not help try deleting any Form(s) 1099-INT that may be incomplete or have an error.   If you are using TurboTax Online you can delete a Form 1099-INT as follows: In your left panel of your TurboTax screen click on "Tax Tools" And then Click on "Tools" Click on "Delete a Form" Scroll through your list of Forms Click the garbage can next to "Form 1099-INT" If you are using TurboTax Desktop, you can delete a Form 1099-INT as follows: Click on "Forms" in the upper right of your TurboTax screen to switch to "Forms Mode" In your left panel scroll down and look for "Form 1099-INT" In your right panel at the bottom of Form 1099-INT, click on "Delete Form" Click on "Yes" to confirm the deletion.   You can enter your forms 1099-INT manually using the instructions below: Click on Search at the top right of your TurboTax screen. Type 1099-INT in the search box Click on the link "Jump to 1099-INT" It will ask, "Did you have investment income in 2025?" Select "Yes" Select "Continue" Select "Skip Import" You will Select your investment type which is "Interest" (the box will turn green) You will "Continue" Then you will see the screen "Let's get the info from your 1099-INT" You will type in the information from your Form 1099-INT on that page. Answer the follow-up questions. You will be able to select "Add Investments" to add additional Form(s) 1099-INT.   Click here for information on entering a Form 1099-INT.   Click here for How to Delete Forms in TurboTax Desktop.   Click here for "How to View and Delete Forms in TurboTax Online.   Please return to Community if you have any additional information or questions and we would be happy to help.

ISSUE SOLVED - CHECKED WRONG BOX RE: CITIZEN LIVING HERE OR ABROAD QUESTION. PLEASE DELETE MY ORIGINAL POST AS I NO LONGER NEED HELP WITH THE ISSUE.  THANK YOU. I have the same issue.  When I looked on my IRS account for status of my return they said there was a math calculation error.  It appears as though TurboTax Desktop generated my return with ZERO taxable social security but the IRS is saying this is where the issue lies as I looked at all the transaction detail available on my IRS account.  When I used the IRS ITA it came out with an amount of my SS that is taxable and not ZERO.  Don't understand how there is this rather large error in the processing.  Not sure how to get Intuit's attention on this issue and now I'm faced with having to deal with the IRS to rectify the issue and it makes the difference between getting a refund or owing taxes to the IRS.  

MEDICAL EXPENSES The medical expense deduction has to meet a rather large threshold before it can affect your return. The amount of medical (including dental, vision, etc.)  expenses that will count toward itemization is the amount that is OVER 7.5% of your adjusted gross income. You should only enter the amount that you paid in 2025—do not include any amounts that were covered by insurance or that are still outstanding.  Of course, your medical expenses plus your other itemized deductions still have to exceed your standard deduction before you will see a difference in your tax due or refund.   To enter your medical expenses go to Federal>Deductions and Credits>Medical>Medical Expenses       2025 STANDARD DEDUCTION AMOUNTS SINGLE $15,750  (65 or older/legally blind + $2000) MARRIED FILING SEPARATELY $15,750  (65 or older/legally blind +1600) MARRIED FILING JOINTLY $31,500  (65 or older/legally blind + $1600) HEAD OF HOUSEHOLD $23,625 (65 or older/legally blind + $2000)    

Once your tax return is accepted, the IRS takes over processing. If the IRS refund tool says that your refund was issued today but it hasn't arrived, it is often due to banking processing times, which can take 1-5 additional business days.    For status updates, you can use the IRS tool Where's my Refund?. You can also use the tools TurboTax site tracking tool.   Are your fees being deducted from your refund?  Please clarify.