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Yes, enter the combined capital loss carryover numbers using the steps in this link. Keep in mind you are attached to a very old thread (three years ago). Be sure to have both your Schedule D and your new wife's Schedule D when making your entries. What is a capital loss carryover? How do I enter a capital loss carryover? @DougMerc 

Yes. Both the federal and state would be accurate filings. When audited, they are looking for under-reporting of taxes, illegal activities, etc. You filing your returns to be accurate, not a worry. You also have this thread showing you acted in good faith and relied on professionals. You can save a pdf of this thread to add to your tax records. In addition, let the developers know. Once you file your return, as long as the settings to receive communication from Intuit don’t block it, you will see a pop-up message or receive an email with a survey asking you about your experience. We encourage you to leave your notes and comments there. “Voice of the Customer” notes and comments are read and acted upon.  If you are using TurboTax Desktop, you can also leave feedback at the Final Steps tab.

If your income is below the phase out income level of $197,300 for single filers or $394,600 for married filing joint, it won't matter which entity the income is reported on. That is because there is no limitation on the QBI deduction based on income even if you are a Specified Service Trade or Business (SSTB), if you are below the income threshold. Otherwise, you may face a limit on your deduction based on your income.   It is likely the IRS would see through your attempts to manipulate your deduction by transferring deductions from one entity to another. As a rule, they will deny tax benefits when there is no sound business purpose for structuring things as you suggest, where the main purpose may be to evade taxes. Even if you paid the wages out of our sole-proprietorship to then prop up the income of the S corporation, the IRS would likely consider it's income SSTB like that your sole-proprietorship, since you own both entities and you are involved in an SSTB.        

If you were a public teacher in Hawaii, it is likely your pension qualifies for the exemption. Payments from the Hawaii Employee Retirement System (or ERS) are not taxed by the state. You can try checking your retirement statements to see if you can verify that you are in the Employee Retirement System or ERS.    Per the Hawaii Department of Taxation website Hawaii teacher pensions are generally not taxed by the state if they are part of the Employees' Retirement System (ERS) and you did not contribute to the plan. If you contributed after-tax dollars to the plan, only the portion attributable to your contributions is taxed.    If you are unsure what type of pension plan you are in and how it is taxed in Hawaii, you can contact your employer or benefits coordinator. They should be able to tell you.   Also, the Hawaii Department of Taxation has a General Assistance phone number. They may be able to answer your questions about the taxability of your teachers pension. · Phone: 808-587-4242 · Toll Free: 1-800-222-3239.   Please return To Community if you have any additional information or questions and we would be happy to help.  

Sorry, but simply ignoring the issue or pretending we didn't get 1099s for this doesn't absolve Intuit from solving this problem yesterday.  It has been law for a few years, it's been in prior year programs, so there is literally no excuse for not having this done weeks ago.   I spoke with someone online and they confirmed the problem and offered to have us ignore the form (while of course spending more money for audit defense!) or download printed forms and send those in...as if we all haven't paid good money to be able to file electronically.   I will wait awhile longer and decide the lesser of two evils.  But definitely going to try a different company's software next year.  Intuit?  Ya blew it.

The amount of the deduction is also reduced by any credit that you receive on the tax return and can be increased by any additional payments that are added to your return.  In order to see the exact calculation that is going into finding the deduction you would need to use the desktop version of TurboTax.  Here is how to switch to the desktop version.