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To report the income as non-passive, be sure you indicate you materially participate in the investment. Also note that all income reported in Box 1 is considered business income (non-passive). If the material participation checkbox doesn't report non-passive income, create a new K-1 with the same information from Part I and only the problematic income in Box 1.   To summarize: Enter the K-1 as received, except for the income that you need to be non-passive. Report that income in Box 1 on a separate K-1.   @musiclover 

Market discount is the difference between what you paid for a bond, and the maturity redemption price.  If you bought a $1000 bond for $950, your market discount is $50.  This discount must be included in your income, as interest, either over the period you own the bond, or when it is sold.  In box 1f your broker is reporting the accrued amount of discount over the time you held the bond. TT will show it as interest income on Schedule B (look and see if it's on that form), and then subtract the same amount from your gain on the sale (Form 8949), since it's already been reported elsewhere.  @AwesomeTom               

The misconception that none of the contributions are taxed, seems to be a common theme, with financial advisors.  I have used the steps in TT Community to enter Backdoor Roth.   You need to enter contributions 1st Then you add in the 1099R form   There is a AGI limit Contribution Limit anything beyond the contributions is considered taxable.   

Can someone please clarify for me? I bought my investment property brand new last year Feb 2025. Solar came pre-installed with it. When I signed the contract in October 2024, the property was under construction.   In For 3468, where is the right place to request Solar credit, under Section 48 (Part VI) or under Section 48E (Part V)? Reading through online it seems I am at crossroads between the "old" Section 48 and the "new" Section 48E. Thanks in advance

Medical Expenses are only deductible if you itemize your deductions.    You can switch to itemized to see the difference, but TurboTax will default to better (higher) deduction.      How do I change from the standard deduction to itemized (or vice-versa)?    This link has instructions to manually change your deduction - you will be able to change it back and forth if you manually change it.  

TurboTax has a built-in Final Review/Smart Check that scans the return for errors, missing info, and audit risks before you file. We also offer a 100% Accurate Calculations Guarantee so you can feel assured your refund is correct if everything is entered appropriately. 

The error with Box 12a Code TT (Qualified Overtime Compensation) in TurboTax occurs because some employers began using the new 2026 tax year codes early, while the 2025 TurboTax does not yet have "TT" in the dropdown menu. The code "TT" represents the "and-a-half" premium portion of overtime pay that is tax-free at the federal level.   Delete the entry- Do not try to select a code from the dropdown menu for the "TT" entry. Finish entering all other information from your W-2 (Boxes 1, 2, 16, etc.) and click Continue. Continue through the interview until the program asks, "Do any of these uncommon situations apply to this W-2?" Choose the checkbox for Overtime pay.  A follow-up screen will allow you to enter the dollar amount listed next to code TT on your W-2. On the screen "Let's see if your overtime qualifies as tax-free," select "No help needed—I know what to enter". 

Thank you as always @Hal_Al for a quick and helpful response.  I really appreciate your taking the time to help and educate us. I initially had interpreted that the living expenses such as rent and utilities of a “dependent” college student, should be allocated based on the period that they were “physically” present at the parents’ home.  This is usually 3-4 months a year for a full-time student who returns home for summer and winter breaks.  By reading Pub 501 and your explanation, it seems that the lodging expenses or “Fair Rental Value” is allocated to dependent students on an annual basis, whether they have “physically” lived at home with the parents for the whole year or they attend an out-of-state college and only return home for breaks and holidays.  This method certainly helps parents to meet the support test for a qualifying child and claim the students as their “dependents” on the parents’ returns. The total of my son’s wages and Sch C (self-employed) earnings was about $9k.  As you mentioned per Pub 501, scholarship and savings of student-child are not used in determining whether the child provided more than half of their own support”.  And it seems we do not need to include federal, state and local income taxes paid by students from their own income and scholarships in the total support calculation either.  These are all great news.  However, Pub 501 did not seem to address how to treat the income from Form 1099-Misc.  I assume if the 1099-Misc income is from rental property then it is considered “earned income”.  But if it’s from summer internships, travel or research stipends, fellowships and such, the 1099-Misc income is not considered “earned income” for purposes of the child dependent support test so they can be excluded like scholarship monies.  Is that correct?  Thank you again for your time and insight.

This IRS Publication, page 13, states:   Transportation    You can include in medical expenses amounts paid for transportation primarily for and essential to medical care.   You can include:    • Bus, taxi, train, or plane fares or ambulance service;  • Transportation expenses of a parent who must go with a child who needs medical care;

If you received a 1099-Q and the full distribution was used on qualified education expenses, you should delete it as the form does not represent taxable income.    When you receive IRS Form 1099-Q, you'll need to report this information on your tax return if the distribution is used for non-qualifying expenses.   If your distribution matches or is less than the qualifying educational expenses, you don't need to report it as income; however, any excess is typically taxable and could be subject to a penalty.  See 1099-Q   How to delete forms in TurboTax Online    How to delete forms in TurboTax Desktop   If you do have taxable income from a 1099-Q, you can enter that information in the 1098-T interview.   Where do I enter a 1099-Q?  

Yes. Considering the estate is settled and there is nothing left for you to be paid from, any amount that you were not paid back would be deductible as nonbusiness bad debt.   To enter this in TurboTax select the following: Federal Deductions and Credits Other Deductions and Credits Non Business Bad debt

In TurboTax Online, you can enter multiple 1099-C forms by adding each one separately in the Income section. To enter multiple 1099-C forms: 1. Go to the Federal section and then Wages & Income. 2. Scroll down to Less Common Income and select Start or Revisit next to 1099-C Cancellation of Debt. 3. After entering your first 1099-C details, look for an option such as Add another 1099-C or a button to add another entry. 4. Repeat the process to enter the information for your second 1099-C form. If you do not see the option to add another form, try completing the first entry and then returning to the 1099-C section again to add the second form separately.

No, school nurses don't qualify for the Federal Educator Expense Deduction. The IRS limits this deduction to K–12 teachers, instructors, counselors, principals, or aides working at least 900 hours in a school year.