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To answer your questions:   1. Is this the right way to claim the credit? Yes. Even though Maryland and Pennsylvania have a reciprocity agreement for state taxes, that agreement does not cover local taxes like the Philadelphia Wage Tax.   Maryland allows a credit for income taxes paid to another state and its political subdivisions (localities). Since you paid a local tax to Philadelphia on income that Maryland is also taxing, you are entitled to a credit on your Maryland return to prevent double taxation. Using Form 502CR is the correct way to handle this. In TurboTax, entering Philadelphia's information as if it were the "state" tax is effective.   Here is the navigation path for the credit for taxes paid to other states: State > Go to state returns > Maryland  and Continue > Continue through the interview until you reach Take a look at Maryland credits > Other Credits > Credit for taxes paid to another state > Add PA. You'll get a warning that PA is a reciprocal state, but you can claim a credit on any other type of income taxed by both PA and MD.   2. Is the W-2 sufficient documentation? The Maryland Comptroller should be aware that Philadelphia does not require non-residents to file a separate city tax return if their employer correctly withholds the tax. Because there is no "local return" for you to provide, your W-2 is your primary piece of evidence.   On the W-2, you should see Philadelphia listed in the local tax boxes. When you file, including the W-2 is usually sufficient. If you are e-filing, TurboTax will package your W-2 data with the return. If you are filing by paper, you would simply attach the W-2. If Maryland ever asks for more information (which is possible), a simple letter explaining that you are a non-resident of Philadelphia and therefore not required to file a local return is all they need.   3. Will this block electronic filing? Likely no, it should not block you from e-filing. Maryland’s tax system is designed to accept Form 502CR electronically. TurboTax is built to handle this credit and will transmit the necessary data from your W-2 and the 502CR as part of your electronic tax package. If you do encounter an e-filing reject, you can print your return and mail it in.

It would be fantastic in 2026 if Turbotax, with all their automation, and AI based support, could take 5 min to use Claude and create an acknowledgement email when someone takes advantage of your referral code.    This is the going to be the first and last year I use TurboTax after over 15 years with one of their incompetent competitors if I don't see this in 45 days as indicated.

Hi Melinda. Thanks for your reply.     So the answer is to manually adjust the proceeds that were imported from the 1099-B, instead of inserting a code and adjustment amount like Form 8949 requests?     I do not see any boxes to indicate a code for adjusting the amounts that would show up on Form 8949.    

There was no digital asset but it wont accept the answer and move past this section. I cant find a form mode. Nothing in income section that has need review. The capital asset sales section only comes up when do the final federal review

I agree this is a nightmare!  I've read the instructions for 5329 at least 3x and see your point and would agree, but code 21 seems to take into account that the earnings was a result of a return of excess contributions.  I also noted line 23 on 5329 refers specifically to excess ROTH for 2025 (not withdrawn excess ROTH) and would include this amount in calculating a potential penalty. That's why I think Part 1 is for "all" IRA distributions allowing you you to select code 21 to identify  the earnings where a result of a return of excess contributions, hence no additional penalty. It's confusing because the IRS instructions keep stating a return of excess contributions before filing is treated as though it never happened, yet your being forced to show it did.      Regarding the penalty, I also went through the TT questions and I answered the excess was returned before filing and no penalty was assessed. Also, per the TT 1099 R worksheet it did correctly check "Return of IRA contribution before due date" under Explanation Statement Smart Worksheet.    Btw, when you entered your "dummy" 1099R, did you enter a "substitute 1099R" or did you enter it as a regular 1099R, and if so did you include the Payer Name and Tin info or just the amounts for Box1, 2?     I'd like to ask the Tax Experts on the thread again if a Form 5329 should or should not be generated with the return related to return of excess IRA contribution before filing due date.  And which codes should be used for the dummy 1099?   Thanks!

I seem to be going in circles here.  I tried this before when I found this article.  I can edit my self employment income, but no where do I see anything about a vehicle.  Where can I find and remove the vehicle from schedule C?

See this for the verification code - https://ttlc.intuit.com/turbotax-support/en-us/help-article/security-risk/trouble-filing-verification-code/L6X76gZlE_US_en_US   You MUST leave the window open for entering the code.  You MUST open a new window to access your email account that receives the code.

Don't enter personal use days and fair rental days.   Simply indicate that you converted the rental from personal use to rental use and the date you did so. Also, make sure to enter any assets you use in the rental and the date they were placed in service (typically the same date you converted the property to rental use).

Thank you for the response. I selected the "had different plan types at different times of the year" and it let me choose in the next screen the months I had HDHP and calculated the pro-rated amount.  I selected "None" for the one month I did not have insurance due to the waiting time. Thank you   Regards,   AD 

Log into your UMB Bank account online, and check your transactions for the year - did they send you money in a withdrawal, expense reimbursement, or minimum distribution transaction? Did you close out your account and receive a check for the balance? Check the section of the account for Tax Forms - did they prepare a 1099 or other tax reporting document for you to use this year?    What kind of account do you have with UMB? (HSA, FSA, retirement, etc.) If you can share what type of account you have with this financial institution, we can help you understand what type of distributions you may have received from them throughout the year. 

It depends. Check out the information at the bottom of the page in the link below to review the 'Free' tax situations. This will allow you to see if there are any situations on your tax return that might upgrade you to a different version of TurboTax. TurboTax Details for Simple Returns

@JATX wrote: .....i’m shopping for a new program for 26. Frankly, you will be wasting your time as no other DIY tax prep software company offers anything like ItsDeductible; the charitable donations valuation component is built in to their software, not a separate program.   There are, however, several ItsDeductible replacement programs available and you will find them if you do a Google search.

You should be able to download your ItsDeductible data using the instructions at the site below.   https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/access-manage-personal-data-intuit-account/L8nCbA0px_US_en_US

It appears as though there may be no boot. Use the details here to make the actual determination with your numbers. Here are a few details and entry procedures for your Section 1031 like kind exchange. The property was not really out of service, it was temporarily renovated and then traded. I would not indicate it was removed from service before the trade and that it was rented the entire year. This will save some unwanted steps and it's a reasonable action.   The new appliances added to the old property should be placed in service in 2025, since it was added to the property given up. See the rules below for depreciation. The property received is treated the same as your old property for depreciation.   Depreciation Rules: The basic concept of a 1031 exchange is that the basis of your Old Property rolls over to your New Property. In other words, if you sold your Old Property for $100,000, and bought your New Property for the same, your basis on the New Property would be the same. It makes sense then that your depreciation schedule would be exactly the same, and does not change! In other words, you continue your depreciation calculations as if you still own the Old Property (your acquisition date, cost, previous depreciation taken, and remaining un-depreciated basis remain the same). Add new assets for any appliances purchased in 2025 for either property.   Buy Up:  If you 'buy up' in your exchange (your New Property cost more than you sold your Old Property), the answer is easy – you treat the buy up part as you would a new addition to an existing property. In other words, you treat the amount of the buy-up the same as you would the cost of construction, for example, of a garage added to an existing house – the cost is the amount of the buy-up; the date you start depreciating it is the date you purchased the new property; and the depreciation method you use is the method most appropriate for that type of property in the year you bought the New Property (regardless of the method you used for the original house). If you think of it this way, then it's easy, even if your property is a large office building or a more complex purchase. IRS Fact Sheet-Section 1031 When you have your TurboTax return open you can use the following steps to update the original assets for the exchange. First use the Search (upper right) > Type rentals > Press enter > Click on the Jump to... link Or Wages & Income > Rental Properties and Royalties > Update > Continue to Rental and Royalty Summary > Edit the property Scroll to Assets/Depreciation  > Click Update > Select 'Edit' next to each asset Edit beside each asset > Continue to the Tell Us About This Rental Asset Select the checkbox beside 'This item was sold, retired, .... traded in ....etc. > enter the date it was traded (sold/retired) You can choose not to select this and just change the name of the assets given up in the trade to identify them with the new property. The depreciation for the year will not change on these assets. Answer the question about whether it was 100% business > Leave the original date it was placed in service (may be purchase date or later depending on your circumstances) Continue to the screen 'Confirm Your Prior Depreciation' The amount displayed is only for prior years and does not include the current year. Continue until you see the current year amount displayed and make a note to add the two amounts together for the Section 1031 like kind exchange. This completes the asset portion of the trade. Answer 'Yes' to Special Handling. Next you will complete the like kind exchange, Form 8824 (Section 1031 exchange): Use the Search (upper right) > Type like kind > Press enter > Click on the Jump to... link Select the checkbox beside 'Any additional like-kind exchanges (section 1031)' > Continue Complete the information for the 'Real estate given up'  and 'Like-Kind Property Given Up' > Continue Name the event > Continue > Complete the information for the 'Like-kind property received' If you did not give unlike property in the exchange click 'No' and  continue past these screens, if 'Yes' answer the questions. Enter any exchange expenses (sales expenses) > Continue to see your deferred gain. If you marked the original assets as sold, traded, etc (see 5. above) then go back to your rental activity and then enter new assets with the exact same information as the property given up with a new name, but with the same date placed in service as the old property, for all assets that are part of the exchange.   Enter a new asset for any buy up/added cash in the exchange including the purchase/selling expenses you paid in the trade. The new asset will begin depreciation on the completion date of the trade/like kind exchange.   These links may be helpful as well:  Where do you enter a like-kind  or Section 1031 exchange? IRS Fact Sheet for Section 1031 Exchange IRS Instructions for Form 8824 @earth777