All Posts

This represents the new Overtime Deduction under the One Big Beautiful Bill Act (OBBBA). The following information will help with your federal return. Starting in 2025, Pennsylvania (pa) workers can benefit from federal tax deductions on tips and overtime under new legislation, allowing qualified individuals to deduct up to $25,000 in tips annually through 2028. This federal provision applies to Pennsylvania employees in tipped industries, reducing taxable income on tips and overtime pay.   The overtime description is as follows under the One Big Beautiful Bill Act (OBBBA):  'For tax years 2025 through 2028, individuals who receive qualified overtime compensation may deduct the pay that exceeds their regular rate of pay (generally, 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.' Your employer must meet specific Fair Labor Standards Act (FLSA) requirements to qualify.  If your employer doesn't meet these qualifications, then you do not have qualifying overtime. Qualified Overtime Deduction Rules Steps to Claim the Overtime Deduction   Verify Eligibility: You must be a non-exempt employee with a valid Social Security number, not filing married separately, with a MAGI below $150k (single) or $300k (joint). Locate Overtime Amount: Check Box 14 of your W-2 for "overtime premium" or "OBBB". If not listed, find the total overtime pay on your final 2025 paystub. Calculate the Deduction: You can only deduct the premium portion (the "half" in time-and-a-half). Time-and-a-half: Divide total overtime pay by 3. Double-time: Divide total double-time pay by 4. Enter in TurboTax Online or TurboTax Desktop: Navigate to the Federal tab and enter your W-2. After the W-2 screen, look for the "Let's check for uncommon situations" or similar screen. Check the box for Overtime. Follow the prompts to enter the calculated premium amount @tamicka-dollard01   

  You have to access your own account and/or  print it for yourself using exactly the same account and user ID that you used when you prepared the return.    https://myturbotax.intuit.com/   Start a 2025 return online and enter some personal information  so that the menu on the left opens up and lets you access your past year returns.   https://ttlc.intuit.com/community/prior-year-return/help/how-do-i-access-my-prior-year-return/01/27010     https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/save-2021-turbotax-online-return-pdf/L8dHfRkpT_US_en_US?uid=m5y4ch1y   Many people have multiple TT accounts and forget how to access them.  Log out of the account you are in now.     https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/many-intuit-accounts-turbotax/L9aVfKS1Z_US_en_US?uid=ll5g6zcx Account Recovery   https://ttlc.intuit.com/turbotax-support/en-us/help-article/account-management/many-intuit-accounts-turbotax/L9aVfKS1Z_US_en_US?uid=ll5g6zcx   Or did you use the desktop version of TurboTax?  If so, the files are on your own hard drive or any backup device you used like a flash drive.     https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/find-last-year-tax-data-file-tax-file-computer/L0XJvPaJr_US_en_US   https://ttlc.intuit.com/turbotax-support/en-us/help-article/data-systems/find-tax-data-file-mac/L4VNGm33S_US_en_US?uid=m6guhab0   You can get a free transcript from the IRS or for a fee of $30, an actual copy of your tax return. https://www.irs.gov/individuals/get-transcript https://www.irs.gov/pub/irs-pdf/f4506.pdf       SAVE YOUR TAX RETURNS ! EVERY year before mid-October you should save a copy of your tax return as a pdf and print a copy of it for your records.  That way you will not be searching online frantically when you need it for a lender, FAFSA forms, your next tax return, etc.    https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/save-2021-turbotax-online-return-pdf/L8dHfRkpT_US_en_US?uid=m6guj526   https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/save-2021-turbotax-online-return-pdf/L8dHfRkpT_US_en_US?uid=m78eb8pc In order to transfer a past year return to the new return you need the tax file   https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/save-turbotax-online-return-tax-data-file/L4xwOG3LF_US_en_US?uid=m6guk3xl   NOTE:  TurboTax and the IRS save returns for seven years.  Returns older than seven years are purged.    

Federal and state refunds come from completely separate entities,  There is no rule as to which one will come first or how much time there will be between their arrivals.  Some states process returns quickly and some are very slow.   STATE RETURN Make sure your state return was accepted:  https://turbotax.intuit.com/tax-tools/efile-status-lookup/   To track your state refund:       ttps://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-refund/track-state-refund/L3jgO8PGs_US_en_US?uid=lt447ebr https://ttlc.intuit.com/turbotax-support/en-us/help-article/state-taxes/contact-state-department-revenue/L9qVToi02_US_en_US?uid=m6e06um0

If you are itemizing deductions and your state is one of the states in which you can enter vehicle registration, you can enter the amount paid via the dealer for registering your car.  Unless you have enough other itemized deductions like mortgage interest, property tax paid, etc, car registration will have no effect.

If the original owner died in 2020 or later and you are not a surviving spouse (or another "Eligible Designated Beneficiary"), you are generally not required to take an annual RMD. Instead, the 10-Year Rule applies and you must empty the entire account by December 31 of the 10th year following the owner's death.   Even though Roth distributions are typically tax-free, TurboTax may incorrectly flag an "excess accumulation" penalty if the RMD questions are not answered specifically.   First, you must delete the erroneous Form 5329 that was already generated:   Go to Tax Tools on the left hand panel inside of TurboTax Click on the down arrow and scroll down to Tools Click on Tools and select Delete a form from the menu items that appear in the Tool Center Click on the trash can icon to the right of Form 5329   Next, to designate the entire distribution as the RMD amount from Form 1099-R, do the following:   Return to your 1099-R entries by clicking Review to the right of IRA, 401(k), Pension Plan Withdrawals (1099-R) in the Federal Wages & Income Click on the pencil to the right of the 1099-R Click Continue through the entries you've made Note: Box 7 should have Code 4 (Death), as well as the IRA/SEP/SIMPLE box unchecked "Let's get more information about your Required Minimum Distribution (RMD), enter the amount of your distribution as your RMD that was due by December 31, 2025, Continue On the next screen, "How much of this distribution applied to your December 31, 2025 RMD?", select "The entire distribution applied...", Continue When you reach, "Review your 1099-R summary, Continue (not the pencil) When you reach, "Let's go over any required minimum distributions (RMD), Continue (not the pencil)*   *Note: If deleting only Form 5329 and following the above steps does not resolve the error message, it will be necessary for you to delete Form 5329 again, as well as the Form 1099-R entry and then re-enter the Form 1099-R, so that the RMD is properly calculated when applicable.

There is no Payer ID  or EIN for a SSA1099.  You are trying to enter it in the wrong place.      Go to Federal> Wages & Income>>Retirement Plans and Social Security  (SSA1099 and 1099RRB) to enter your SSA1099.

Because the IRS allows any "reasonable method" for this allocation, TurboTax uses a standard ratio-based formula. TurboTax divides your Total Investment Income (Form 8960, Line 😎 by your Adjusted Gross Income (AGI) (Form 1040, Line 11). Your total deductible state and local taxes from Schedule A, Line 5a (state/local income taxes) is multiplied by the investment income ratio to find the amount reported on Line 9b.   Your $7,000 Indiana exemptions and $2,500 state deductions do not directly enter this federal formula. 

Thank you for your excellent reply!  However, I am wondering why Turbotax is calculating that I have a balance owed for the state of Ohio taxes.  Yes, I can see where all the earnings are flowing over to the Ohio state return and my social security taxable earnings are being deducted and my spouse's earnings are NOT reported as earnings from a neighboring state, but my W-2 wages taxed in Michigan still seem to be part of the calculation.  In addition, there are no state taxes paid reported (that is accurate since they were all paid to Michigan) but that results in a balance owed.  Should I simply not file a return for Ohio?

  When you use online TurboTax software you get one return per fee.   Each return needs its own email, account and user ID.   If you use the same account and user ID for a second return, the second one overwrites the first return and it is lost forever.     https://ttlc.intuit.com/community/using-turbotax/help/how-do-i-start-another-return-in-turbotax-online/00/25596 https://turbotax.intuit.com/personal-taxes/online/file-your-own-taxes/

To use the Expert Assist feature, follow these steps:   1. Click the Get Expert Help icon on the right corner of your screen 2. Select Connect with an expert 3. Next, type in the question(s) that you need answered, then click Continue 4. On the screen you will get options for us to contact you, and you can choose your preferred method.