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No, I am talking only about documenting medical expenses for the "$1,000".    The IRS allows you to withdraw excess contributions before the original due date (and extension). So the $3,000 (if that was the actual excess) is OK - you can do anything you want with it since that excess should have been added back to income if it was part of the code W amount on your W-2.   The issue is what to do with the $1,000 difference - the amount that you withdrew in excess of your excess, as it were. Clear?

Q. Are  there are some taxes I owe based on the information on the 1098-T? A. Yes, because "Box 5 is a little over double the amount in Box 1".   Scholarships that pay for qualified educational expenses (QEE - tuition, fees, books and other course materials) is tax free.  Scholarship amounts that exceed QEE is taxable income, on the student’s tax return. If box 5 of the 1098-T exceeds box 1, TurboTax (TT) will treat the difference as taxable income, unless you enter additional QEE at books and other expenses. Room & board are not QEE.   Q. When it explicitly asks if I "received tax-free education assistance from an employer, GI Bill, or veterans’ program" after I input the 1098-T information, I'm not supposed to put the housing/book benefits I received from the VA? A. Correct.  That is correct, although it's academic in your case.  Only GI benefits that are specifically designated for tuition are to be entered in that place. The intent is to reduce the amount of tuition eligible for the tuition credit.  But, you are ineligible for the credit because box 5 is more than box 1.     

If the IRS does not catch your mistake and credit you with the estimated payments you will need to amend.   Wait until your original return has been fully processed before you amend, and make sure you have saved a pdf of the original return before you amend. (If you do not save it as a pdf, the amended return will overwrite the original, and the original will be lost forever)     See this TurboTax support FAQ for amending a tax return -   CURRENT YEAR https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/amend-federal-tax-return-current-year/L7eS6o1qh_US_en_US?uid=lfunevhk   Do not expect quick results from amending. It can take four months or more for the IRS to process an amended return.     You can watch for information here: https://www.irs.gov/filing/wheres-my-amended-return  

If you want to make changes or add a document to a tax return that has already been filed and accepted by the taxing agency, you should follow these guidelines.  You must first wait until the initial return is completely processed.  You will have to use the same TurboTax account that you used for the original tax return.  Once you begin your amendment, you'll see your original return.   The refund calculator will start new at $0 and only reflect the changes in the refund or tax due  Only make changes to the areas of your return that need to be corrected.  You have three years from the date you filed your return or two years after you paid the tax due (whichever is later) to file an amendment  Select your product below and follow the instructions.  Amend TurboTax Online  Amend TurboTax CD/Download 

Are you sure that the funds left the IRA? It is perfectly possible for an IRA to have a CD in it.   I would want to confirm that the dollars left your IRA - if they didn't, this could explain why you did not receive a 1099-R.   When did they think that they send you the dollars from the IRA? 2023? 2024? 2025? 2026?   There are too many unanswered questions here.

I am assuming you are an employee and got stock. Some of it was sold to pay the taxes. In the "How did you receive this investment?" dropdown, you should select: Employee Stock Plan (or Employer Stock) By selecting this, TurboTax will trigger a special interview specifically for RSUs, ESPPs, or Stock Options. This is vital because your company often reports the "income" on your W-2, and without this specific path, you might get double-taxed. Check the "Employee Stock" Box: When you start entering the 1099-B, TurboTax will ask, "Do these sales include any employee stock?" Say Yes. Identify the Type: It will ask if it’s an RSU, ESPP, or NQSO. Choose the one that applies to your grant. Correct the Cost Basis - Most 1099-Bs for employee stock show a $0 cost basis (or the price you paid, which might be discounted). Your true "Cost Basis" is usually the Fair Market Value (FMV) on the day the shares vested (became yours). This amount is already included in your W-2 (Box 1). If it was something else, please give us more information so we can help.

My 1099-INT does show exactly how much coupon payment I received for this bond for the year.  Should I just deduct $40.29 from the total received?     I am a CA resident and since this is a CA bond, it shouldn't affect my overal tax however, I just want to do it accurately.   I also have two other bonds with a value inside Box 10 causing the same "error" and on these two, they are out of state bonds, WI and TEX.     By the way, are you a Tax Expert working with TT? Thanks.

Did YOU enter the payments?     How would TurboTax know you actually made those payments unless you entered them when you prepared your tax return?   TurboTax receives no information from the IRS -- TT would not have any confirmation from the IRS that you made those payments even if you had 1040ES vouchers to use.   To enter estimated tax paid in 2025  Go to Federal>Deductions and Credits>Estimates and Other Taxes Paid>Estimates  

oh wait as I re-read your comment it says "entire distribution". I was thinking that I would only have to document the difference between the Return of Excess and what I got back. So in my case I over contributed $4000, but my wife did $7000 and the limit was $8000 (I realize I am being very approximate here). So I got a Return of Excess of $3000 and the extra $1000 I took out was actually money I could have left in (hence the Fidelity guy saying I could EFT it back). But it sounds to me like you are saying I should be expensing all $4k. Is that what you are saying? -Ben

Hi, I have the same situation with 2 retirement plans connected to 2 separate entities (Sch C.). I've completed on 8881 and connected it to one of our sch C.,but I don't see an option to add a form to connect to the other schedule C. In both Sch C. worksheets the option for the auto-enrollment credit is checked Yes. How do I add a second form 8881?

The entry for the desktop version is similar although the ability to flip between 'form view' and the entry through the wizard will help you with that looking back thing.   Here is how to switch from the online version to the desktop version.