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She does not need to be a dependent but must have the income to support the ROTH contribution. If none of the rollover is taxable, the Q should not be entered.    IRS Publication 970, Tax Benefits for Education states: Any amount distributed from a QTP isn't taxable if it's rolled over to: Another QTP for the benefit of the same beneficiary or for the benefit of a member of the beneficiary's family (including the beneficiary's spouse), An ABLE account for the benefit of the same beneficiary or for the benefit of a member of the beneficiary’s family (including the beneficiary’s spouse). But this doesn’t apply to the extent the amount distributed when added to other amounts contributed to the ABLE account exceeds the annual contribution limit. For more information about ABLE accounts, see Pub. 907, Tax Highlights for Persons With Disabilities, or A Roth IRA for the benefit of the same beneficiary, if the distribution is a direct trustee-to-trustee transfer from a QTP account that has been open for more than 15 years and the amount distributed does not exceed total contributions (and attributable earnings) made to the QTP more than 5 years before the distribution date. However, this doesn't apply to the extent the amount distributed when added to other amounts contributed to Roth IRAs exceeds the annual contribution limit. For more information about contributions to Roth IRAs, see Publication 590-A.

The down side of using the HSA to pay the expenses is that that money is no longer in the HSA to continue to grow tax free (as long as it is eventually used to pay for qualified medical expenses).  Knowing which way to pay for the medical expenses now depends a lot on predicting the future.

Thank you so much for your explanation. My MFJ taxable income is far less than the $94,051 - $583,750, but TurboTax uses ordinary dividends as the total taxable income. I don't understand why? Is anyone can help? 

Since the excess was corrected in 2024 by making an ordinary Roth IRA distribution, your 2024 Form 5329 will show that the excess has been eliminated and that there is no 6% penalty for 2024.  There will only have been 6% penalties for 2022 and 2023.   Despite the contribution in 2022 being an excess contribution, this contribution added to your Roth IRA contribution basis.  Because your contribution basis comes out first, your distribution of the excess is a nontaxable distribution of contribution basis that will be determined on Form 8606 Part III.  Because the distribution is nontaxable, it is also not subject to an early-distribution penalty because early-distribution penalties only apply to taxable amounts.   Simply enter the Form 1099-R, indicate that you cashed it out, then click the Continue button on the page that lists the Forms 1099-R that you have entered and make sure that TurboTax shows your correct Roth IRA contribution basis from years prior to 2024.

It depends on your income.     Generally, you are required to file a Maryland income tax return if: You are or were a Maryland resident You are required to file a federal income tax return; and Your Maryland gross income equals or exceeds the level listed at Maryland filing requirements for your filing status.   

Refer to the TurboTax Help article Where do I enter a like-kind or Section 1031 exchange (Form 8824)? for navigation instructions.     A 1031 exchange allows real estate investors to defer their capital gains taxes by reinvesting the proceeds from the sale of one business or investment property into a new Like-Kind property.  Review the TurboTax article 1031 Exchange: How it Works for more information.

@DaveF1006    Thank you for your swift reply. Another question, even though I'm on a research scholar visa, since I'm a PhD student, would the IRS consider me as a student? In the end, I'm trying to determine if I'm able to apply the US Belgium tax treaty, which I did last year, and is valid for two years. I should mention that for 2022 I filed as a resident, not knowing much but I guess it doesn't really change. I'm just hoping that I would be able to claim the second year for 2024 and not lose a whole year of tax relief because I came for two months.   Thank you.

You should qualify for a spousal IRA unless the income level is too high. IRA contribution limits states: Spousal IRAs If you file a joint return, you may be able to contribute to an IRA even if you didn’t have taxable compensation as long as your spouse did. Each spouse can make a contribution up to the current limit; however, the total of your combined contributions can’t be more than the taxable compensation reported on your joint return. See the Kay Bailey Hutchison Spousal IRA Limit in Publication 590-A. If neither spouse participated in a retirement plan at work, all of your contributions will be deductible.

Thanks Champ! 🙂  ...so, if I'm not able to get it in under the gun in April, any tax on my conversion done this year would have to be paid in full? - and then figure out the annualized penalty?  Is that done using form 2210 or just when I file next year?

Yes.  Are you filling out a personal 1040 return with Schedule C for your Business?  What Turbo Tax version do you have?   To Add a W2 enter it under Federal Taxes or Personal (Home & Business) Wages & Income   Then Wages and Salaries- Click the Start or Update button   Then if you are married you should have 2 buttons...Add w-2 for (taxpayer name) and Add w-2 for (spouse name). Click on the correct button to add a W-2.