All Posts

Go back through the California interview. It includes a screen that asks about Capital Loss Carryovers to allow you to identify whether your carryover loss needs to be adjusted due to differences between California and Federal law. It shows the amount of your Federal carryover and asks you to enter the California amount in a box on that screen. If you know for certain that your California carryover should be the same as the Federal amount, enter it in the box provided. Otherwise, review the information below and adjust your Federal loss carryover as needed to account for the California differences.   There is a link on the screen, "How do I know if I have a different capital loss carryover for California?" If you click on the link, the information below appears:   There are a few differences between California and federal law regarding treatment of Capital Gains or Losses. See below for a few examples of when California law differs and requires an adjustment to account for these differences:   - Capital assets - The TCJA amended IRC Section 1221 excluding a patent, invention, model or design (whether or not patented), and a secret formula or process held by the taxpayer who created the property (and certain other taxpayers) from the definition of a capital asset. California does not conform. Report your capital assets on Schedule D (540 or 540NR), California Capital Gain or Loss Adjustment, and to figure the adjustment to make on Schedule CA (540 or 540NR). - Deferral and exclusion of capital gains in qualified opportunity zone funds - The TCJA established Opportunity Zones. IRC Sections 1400Z-1 and 1400Z-2 provide a deferral of inclusion of gross income for capital gains reinvested or invested in a qualified opportunity zone fund, and exclude capital gains from the sale or exchange of an investment of such funds. California does not conform. For federal purposes, the capital gains deferred as a result of reinvesting or investing are included in gross income in the year of sale or disposition of the investment. California does not conform. Use California Schedule D (540 or 540NR) if you claim the federal IRC Sections 1400Z-1 and 1400Z-2 on your federal return. Enter the entire gain realized on line 1, column (e). If, for California purposes, gains from investment in qualified opportunity zone property had been included in income during previous taxable years, do not include the gain in the current year income. - Gain on sale or disposition of a qualified assisted housing development to low-income residents or to specified entities who maintain housing for low-income residents - Federal law does not allow special treatment on gains related to the sale of certain assisted housing. California law permits the deferral of such gain, under certain conditions, if the proceeds are reinvested in residential real property (other than a personal residence) within two years of the sale. Enter the transaction on California Schedule D (540 or 540NR), line 1. In column (e) enter "-0- R & TC Section 18041.5." Reduce the basis of replacement property by the gain deferred. Attach a schedule to your return reflecting computation of basis in the replacement property, or a statement of intent to replace within the replacement period. - Gain on sale of personal residence - For sale or exchanges after May 6, 1997, federal law allows an exclusion of gain on the sale of a personal residence in the amount of $250,000 ($500,000 if married filing jointly). The taxpayer must have owned and occupied the residence as a principal residence for at least 2 of the 5 years before the sale. California conforms to this provision. However, California taxpayers who served in the Peace Corps during the 5 year period ending on the date of the sale may reduce the 2 year period by the period of service, not to exceed 18 months. If there is a difference between the amounts excluded (or depreciated, if recapture applies) for federal and California, complete California Schedule D (540 or 540NR). Transfer the amount from California Schedule D, line 12a, to Schedule CA (540), Part I, Section A or Schedule CA (540NR), Part II, Section A, line 7, column B (if gain is less than federal). Transfer the amount from California Schedule D, line 12b, to Schedule CA (540), Part I, Section A or Schedule CA (540NR), Part II, Section A, line 7, column C (if gain is more than federal). - Undistributed capital gains for regulated investment company (RIC) shareholders - Federal law requires certain undistributed capital gains reported on federal Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, to be included in the gross income of the mutual fund shareholder and allows a tax credit for the capital gains tax paid by the RIC. California has no similar provision. Do not enter the amount of undistributed capital gains on California Schedule D (540 or 540NR). - Gain or loss on sale of property inherited before January 1, 1987 - Federal gain or loss may differ from the California gain or loss due to differences in the basis of property. For property inherited on or after January 1, 1987, the California basis and the federal basis are the same. Report the amount of California capital gains and losses on California Schedule D (540 or 540NR). - Capital loss carrybacks - Federal law allows a deduction for carrybacks of certain capital losses. California has no similar provision. Report the amount of California capital gains and losses on California Schedule D (540 or 540NR). - Exclusion of deferral and gain on the sale of qualified small business stock - Federal law allows deferral and exclusion under IRC Section 1045 and IRC Section 1202 of the gain on sale of qualifying small business stock, that was held for more than five years. California does not conform. Use California Schedule D (540 or 540NR) if you claim the federal IRC Section 1045 deferral or IRC Section 1202 exclusion on your federal return. Enter the entire gain realized on Schedule D (540 or 540NR), line 1, column (e).  

The program's internal "math engine" is likely counting both the start and end dates as full units (or sees 1/01 and 12/31 as overlapping with a previous year).   The easiest way to clear this "error" without changing your tax liability is to shift one date by 24 hours (Change the dates to: 1/02/2025 to 12/31/2025 or 1/01/2025 to 12/30/2025).   Tennessee has no state income tax, so shifting your residency by a single day will have zero impact on your state tax return.     You should also check your "Personal Info" section for the question: "Did you live in another state in 2025?"  If you lived in TN for the whole year, make sure this is marked "NO."  If it’s marked "Yes," the program generates a "Part-Year Resident" worksheet that demands dates.   Note: the only reason TurboTax cares about these dates is to calculate your Sales Tax Deduction on your Federal Schedule A (missing one day will change this deduction by only a few pennies.).

To enter, edit or delete estimated taxes paid (Federal, State, Local) - Click on Federal Taxes (Personal using Home and Business) Click on Deductions and Credits Click on I'll choose what I work on (if shown) Scroll down to Estimates and Other Taxes Paid On Estimated Tax Payments, click on the start or update button   On Federal estimated taxes for 2025 (Form 1040-ES), click the start button   On State estimated taxes for 2025, click on the start button   Federal estimated taxes paid are entered on Form 1040 Line 26

Your estimated tax payments will serve as a credit against your Federal and/or State tax liability and have to be entered on your tax return.   In TurboTax Online, you can enter estimated taxes you paid by following these steps: Open your tax return Click on Federal in the left-hand column, then Deductions & Credits Navigate to the list of Deductions and Credits  Locate the section named Estimates and Other Taxes Paid and click on the arrow on the right  Click on Start next to Estimated Tax Payments On the next page, click Start next to Federal estimated taxes for 2025 (form 1040ES) For state estimated taxes, click Start next to State estimated taxes for 2025.

No. You do not add them together.   Box 12 of form W-2 can show different numbers each with a different code which mean different things. You have to enter them all.   On the entry screen of your form W-2, after entering the first line in box 12, click on + Add another Box 12 item, and another line will appear for you to enter the second line, and so on.   See this TurboTax Help article for more information.    

Revenu Québec a eu des problèmes techniques le weekend de Pâques et leurs serveurs ne répondaient plus aux transmissions. Effacez les cookies et videz la mémoire-cache de votre navigateur. Voici comment au besoin:  Vider la mémoire-cache Enregistrez, fermez et ouvrez de nouveau le logiciel.   Essayez de transmettre de nouveau.   Merci de choisir TurboImpôt

If you are a resident of Tennessee for the all of 2025, in the My Info section of the program you should have indicated that your Resident state was Tennessee.  If you did not live in another state in 2025 or make money in another state in 2025 then you should have answered NO to those questions in the My Info section.   When you a resident of a state for the entire year, the program will not ask you for your residency dates.  Since you are resident of Tennessee leave boxes 15, 16 and 17 blank (empty) on the TurboTax W-2 or on the TurboTax Form 1099-R boxes 14,15 and 16.

Revenu Québec a eu des problèmes techniques le weekend de Pâques et leurs serveurs ne répondaient plus aux transmissions.  Effacez les cookies et videz la mémoire-cache de votre navigateur. Voici comment au besoin:  Vider la mémoire-cache Enregistrez, fermez et ouvrez de nouveau le logiciel.    Essayez de transmettre de nouveau.   Merci de choisir TurboImpôt  

Not necessarily.   The Qualified Overtime Deduction is defined as the “half” portion of “time-and-a-half” compensation that is required by the Fair Labor Standards Act and reported on a Form W-2, Form 1099, or other specified statement furnished to the individual. As an example, if the employee’s regular rate of pay is $20 per hour and the employee worked one hour of overtime, the employee’s full overtime pay would be $30 ($20 x 1.5).  The Qualified Overtime Deduction would be $10.    Even if your union contract negotiated overtime pay of $40 per hour, the Qualified Overtime Deduction would remain $10 because the deduction is defined by what is required by the Fair Labor Standards Act.    Other Qualified Overtime Deduction information:     Maximum annual deduction is $12,500 ($25,000 for joint filers). Deduction phases out for taxpayers with modified adjusted gross income over $150,000 ($300,000 for joint filers). The deduction reduces federal income tax liability, it does not exempt overtime pay from Social Security and Medicare taxes.  Employees will still owe these taxes on their overtime earnings. Taxpayers filing as married filing separately are not eligible for the deduction. The deduction is available for both itemizing and non-itemizing taxpayers. See this TurboTax Help.