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We have tested the Schedule K-1 Box 8 entry but are unable to reproduce the experience you have seen. It would be helpful to have a TurboTax ".tax2025" file to test this issue further.   If you would be willing to send us a “diagnostic” file that has your “numbers” but not your personal information, please follow these instructions:    In TurboTax Desktop, open your return and go to Online in the TurboTax header. (On a Mac computer, choose Share or Help.) Choose Send Tax File to Agent. You will see a message explaining what the diagnostic copy is.  Click Send on this screen and wait for the Token number to appear. Reply to this thread with a screenshot of your Token number (this avoids Community filters for numbers with a dash) and tag (@) the Expert requesting the token from you. Please include any States that are part of your return - this is VERY important. We will then be able to see the same experience you are having. If we are able to determine the cause, we'll reply here and possibly provide you with a resolution. 

Your best option is to return to business where this QBI At Risk Operating Loss was reported.  Work through the interview until you read the business summary page.  Edit the topic under Uncommon Situations for "Unused expenses, carry overs, non-depreciable assets, etc." Depending on the activity you're working on, the actual text may be different. Or you may need to edit the business profile to find the carryover topic. Be sure to check the box for carryover losses.  You should see a page with boxes for different types of carryover losses. Enter the information from your prior year return in the appropriate box or enter zero.  You may then see a page with a list of years and a total. Enter the carryover loss in the box for the correct year or enter zero. Your entries must match the total at the bottom. Continue through the interview until you are back on the business/rental summary page. Now run Federal Review >> Smart Check again.

The "filed" date is based on the time zone of the receiving authority. In the case of the IRS and New York State, that is Eastern Time. However, TurboTax has no control over when the return is accepted. You might contact your state agency and provide proof of submission in case there is any question of when you sent the state return.

This experience has been reported to our development team but an update is unlikely for the 2025 tax year. It's highly unlikely that your entries will be scrutinized or cause a delay in the processing of your return. Entering zeroes doesn't affect your tax liability.

@drrmned22  To access your current or prior year online tax returns sign onto the TurboTax website with the User ID you used to create the account - https://myturbotax.intuit.com/   When you sign onto your online account and land on the Tax Home web page, scroll down and click on Add a state.  This will take you back to the 2025 online tax return. Click on Tax Tools on the left side of the online program screen.  Then click on Print Center.  Then click on Print, save or preview this year's return.  Choose the option Include government and TurboTax worksheets   If you used the desktop CD/Download editions installed on your computer, the only copy of your tax data file and any PDF's will be on the computer where the return was created.  TurboTax does not store online any returns completed using the desktop editions.

Since you already received a review letter from the IRS, your best option is to wait until you hear from them. In most cases, reporting income in the wrong place doesn't affect the tax you owe or the refund you will receive. This is mostly an administrative review to match the IRS records with the information on your return.   If you decide to go ahead and file an amended return, follow these instructions: How to File an Amended Tax Return with the IRS.

1) Yes, you can call the IRS to discuss the notice. It may resolve the situation more quickly, if you can get through to a helpful agent. Use the phone number on the letter you received.   2) If you don't have a history of mistakes on your return, it's more than likely that the IRS will waive the penalty since it didn't impact your tax liability.   3) An individual qualifies as a U.S. resident if they 1) have a green card or 2) are physically present in the United States for at least: 31 days during the current year, and 183 days during the current year and the two preceding years, calculated using the following formula: All the days present in the current year, 1/3 of the days present in the previous year, 1/6 of the days present in the year before that.  

 "Other contributions previously taxed by Massachusetts"   this is an interesting way to  cook up a workaround in state of MA. But it is essentially a false statement.   "I'm not sure why this is necessary"   It's not necessary, when the entry is done correctly. Your Traditional IRA contribution should be on Form 8606 Line 1 and that should take care of the issue you were seeing.   @bryonthego  @user17710097333 

I'd like a file that has all records for my tax return.  In past years, there was the option to download just the version of the tax return filed with the IRS in addition to a version that included every applicable form.  It's the latter that I no longer see an option to download.  I have already downloaded the .tax file.

You might try these tips from Expert AmyC:   If you are not using a foreign tax credit for the current year, and you have carryforward, Form 1116 is not required. The IRS holds the information for the 10-year carryforward period.    However, if you have FTC carryovers to report and need to force Form 1116 to file, follow these steps: Go to Federal > Deductions & Credits. Scroll down to Estimates and Other Taxes Paid and click Start/Revisit next to Foreign Taxes. Answer Yes to "Did you pay any foreign taxes?" (Answer yes even if you only have a carryforward from a previous year). When asked if you want the deduction or the credit, select Take a Credit. Continue through the interview screens. Eventually, you will reach a screen titled "Do you have any Foreign Tax Credit Carryovers?" Select Yes. You will then see a grid where you can enter the Foreign Taxes paid in prior years and the Amount Used in previous returns. The difference is what TurboTax will carry forward. Troubleshooting: If the software won't generate it, you can add a "dummy" entry of $1 in foreign interest/tax and then remove it before filing to see if the carryover screen triggers. Usually, simply completing the "Foreign Taxes" section under Deductions & Credits is enough.

Was your average stay less than 7 days? Did you claim material participation (which makes you a real estate professional?)   Does this rental have a net loss or are the expenses offsetting the income with the balance reported as passive losses that are carried forward?    To resolve this, you might return to the Rental Property topic and work through the interview from the beginning. Be sure to read all the questions, including the blue links to learn more.

thank you for your response. I do plan to mail the new form with copies of the letter.  A couple of follow-up questions: 1. The penalty notice has a due date of 5/2. Should I call IRS to explain the situation while getting the forms mailed?  2. With this type of clerical error, what are the chances they will waive or abate the penalty?  3. My partner became a US resident in April 2025, can I claim her to be US resident in my 2025 tax return? 

The material participation question appears at the beginning of the Rental Property interview. When you first begin the topic, look for the page "Let's see if you're a real estate professional." If you check both boxes (more than 750 hours and more than 50% of work-related time), the follow up questions will determine if the material participation box will be checked for each rental property.   Also, for your property to be eligible to offset active income, it must not be defined as a "rental activity" under Section 469. You meet this if: The average guest stay is 7 days or less. Alternatively: The average stay is 30 days or less AND you provide "significant personal services" (like daily cleaning or breakfast, similar to a hotel). If you don't meet the short-term rental criteria above, you might fall back on the "Active Participation" rule, which allows a deduction of up to $25,000. However, this benefit starts to phase out if your Adjusted Gross Income (AGI) is over $100,000 and disappears entirely at $150,000.  

To claim an exclusion that was recently released, you would need to manually complete the relevant form(s) and file your return by mail. The software is not normally updated for new laws after the filing deadline.

You can report Form 1042-S as other reportable income.   Open your return in TurboTax  Click on Wages & Income  Scroll down to Less Common Income  Scroll down to Miscellaneous Income, 1099-A, 1099-C   Scroll down to Other reportable income  Answer yes  Enter description and amount.    To report the US tax paid: With your return open Click on Deductions & Credits Scroll down to Estimates and Other Taxes Paid Click on Other Income Taxes Scroll down Other Income Taxes Click on Withholding not already entered on a W-2 or 1099

Thank you!! This is still a problem in 2026. At first I couldn't find the page you mentioned but after going through the whole state flow again I saw it. This worked!   +1 on Turbotax handling this VERY poorly on both federal and state.