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You can enter the amount of the Washington LTC tax for your wife in Box 14 of her W-2 in TurboTax - select the category as "Other deductible state and local tax" and that will transfer it as a deduction.   Since Washington does not have state income tax, it seems unlikely that the amount of this tax will be more beneficial than the state sales tax for deduction on your tax return.  You're allowed to used either the state and local income taxes or state and local sales taxes as a deduction, but you can't use both.  You can access the sales tax calculation in the Deductions and Credits section in the category of Estimates and Other Taxes Paid.  Click Start for the Sales Tax category to get started with that.

Thank you ReneV4. However I found bugs in Turbo tax which need to be fixed. I did sell the rental in its entirety in Jan 2025. TT was not figuring LTCGs properly even after making it 100% (BTW I have no idea where the 42% came from in TT). After that It was not allowing the Past years Passive losses in the calculation to determine LTCG. I had to manually enter the passive losses (from Prior years) on Schedule E worksheet CarryOvers to 2025 Smart Worksheet Line G ,suspended Loss under, Regular Tax column. This then flowed the correct LTCG calculation through Schedule E-> Form 8582-> Schedule D. This exact flow matters on TT as I had tried adding the Passive losses several places. TT should have asked me for the previous Passive Losses not allowed over the years to fix this.   After fixing this on my Fed return I did my AZ Non Res and CA 540 Resident  returns.  However this is where another bug came up in TT which needs to be fixed immediately.  When entering "Taxes Paid to Another state" in my CA return (from the Sale of my AZ rental) it said "This income is from Arizona  and I could not claim the credit". TT assumed this was from wages and not the proceeds from the sale of the rental I disposed of in AZ. Therefore I had to manually go and add the CA Schedule S by selecting forms then picked Schedule S and input the AZ Rental property Sale income in Column B tnen put the amount of AZ tax in there. However the drop down on Schedule S did not allow AZ to be picked so now I get an error on the CA state return.  THIS NEEDS FIXING IMMEDIATELY TURBO TAX!

Yes, you can and absolutely should attach a supplemental statement to a 1120-S, especially for ‌liquidations. However, in the "Business" or "S-Corp" versions of TurboTax, there is no ability to attach forms.  You will need to print and mail your return, with the attachments, along with a letter explaining that you wish to report the property liquidation gain as an exchange for your stock and not as ordinary income on your personal return, and here are the supporting documents to support my filing.   In the meantime, here are some suggestions for moving the gain from ordinary income into a sale of stock. To move the gain from Box 1 (Ordinary) to Box 17 code K (or properly onto Form 4797), try this:   For Section 179 Property: If TurboTax is putting this in Box 17, Code K, it’s actually doing what the IRS requires for S-Corps. The recapture of Section 179 is always passed through to the shareholder separately so they can calculate their own recapture at the individual level. For the "Exchange" Treatment: To ensure the gain is treated as an exchange for stock, the corporation should report the distribution of the property at FMV. The gain is calculated as Gain = FMV - Adjusted Basis. Rather than having TurboTax treat the asset as a sale to a third party, record it as a distribution. If your de minimis items are showing up on Line 4 of the 1120-S, the software sees them as "Other Income" (like a refund or miscellaneous fee).   Go back to the "Deductions" section. If these were previously expensed items being "recovered" during liquidation, they are often treated as ordinary income under the Tax Benefit Rule. However, if you want them on Schedule K, you may need to enter them as "Other Portfolio Income" or manually override the summary link if you are using the Forms Mode (only available in the Desktop version). One last thing to check, since you are using TurboTax Business Desktop, click the Forms icon in the top right.   Find Schedule K. Find the line where the income is incorrectly appearing. Right-click the amount and select "Data Source." This will tell you exactly which worksheet is pushing that number there, so you can go back and delete or move it.              

By "fixed my bank information for the IRS" do you mean you received a CP53a notice?   Did you follow the instructions in the notice and give banking information to the IRS?   Watch the IRS refund site for information.  TurboTax gets no information from the IRS after you file your tax return.     You need your filing status, your Social Security number and the exact amount  (line 35a of your 2025 Form 1040) of your federal refund to track your Federal refund:    https://www.irs.gov/refunds  

well, after all that, I have found a way that has probably been there all this time but I did not know about it.   - Select "Print/File" at the top of the Forms screen - When it asks 'What information would you like to save or print?' select "individual forms" - you then get a pop-up where you can select each form you want to save or print. If you select all the worksheets then hit "Save PDF copy for your records" all that have been selected will save in one PDF.  - on the same screen you can opt to select 'print for your records' and all the selected forms will print. - this is a way better option than selecting "Federal Tax Return" to save or print. In fact, you can select the tax return forms and the worksheets all in one PDF.    If you select 'Federal Tax Return' and save as PDF or print you get a bunch of unnecessary forms (despite first clearing unwanted forms and closing blank forms). If you have ever even opened a form to look at it to see what it is, a number will post in there and get saved and printed with the return even if it is not relevant to the return. For example, I once opened the Ontario Tax credit form and now it always prints/saves even though my income is too high for me to get any Ontario tax credits. This new method I have found to select only relevant forms to save and print is way better.

Itemizing your contributions on your California tax return may be beneficial, but only if your allowable itemized deductions were more than your standard deduction. The basic standard deductions in California are $5,706 for a single filer and $11,412 if filing married-joint in 2025.   You enter your contributions in the federal section of TurboTax, in the Deductions and Credits area. They will flow down to your California return. Itemized deductions also include mortgage interest, property taxes and medical expenses, with some limitations.    

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

Yes, you should report all taxable income.    If you did not receive Form 1099-MISC for this income, you may enter it as Other Reportable Income. If you are logged into TurboTax, use this link for Other Reportable Income.   Or you can follow these steps: Open your return. Go to Wages & Income. Scroll down to Less Common Income and click the down arrow. Click Start/Revisit beside Miscellaneous Income. Click Start/Revisit beside Other Reportable Income. Follow the prompts to enter the income you earned from this activity. The easiest way to find any section of TurboTax Online, is go to Tax Tools in the left column >> Tools >> Topic Search. Type in your topic, click the topic in the list and then GO to go directly to the start of that section.

The “senior deduction” is added automatically by the software based on the date of birth and filing status you entered into MY INFO.  You do not need to take any extra steps to enter it. (And…the new senior deduction has nothing to do with whether you are getting Social Security)   The deduction is not on the same line as your standard deduction.  It is shown separately on line 13b.     2025 STANDARD DEDUCTION AMOUNTS SINGLE $15,750  (65 or older/legally blind + $2000) MARRIED FILING SEPARATELY $15,750  (65 or older/legally blind +1600) MARRIED FILING JOINTLY $31,500  (65 or older/legally blind + $1600) HEAD OF HOUSEHOLD $23,625 (65 or older/legally blind + $2000)     For 2025 through 2028 there is an extra  deduction amount of up to $6000 per individual 65 or older filing Single, MFJ, or HOH which is phased out for taxpayers with modified adjusted gross income over $75,000 for single filers and $150,000 for joint filers.   (The deduction phases out completely at $175.000 Single or HOH, or $250,000 joint)   The $6,000 senior deduction will be calculated on 1040 Schedule 1-A page 2 Part V Enhanced Deduction for Seniors which goes to 1040 line 13b. It is separate and in addition to the Standard Deduction or your Itemized Deductions on 1040 line 12e.  Turbo Tax automatically includes it. IRS Schedule 1-A https://www.irs.gov/pub/irs-dft/f1040s1a--dft.pdf   Need to see it? https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-return/preview-turbotax-online-return-filing/L77WCkvnu_US_en_US?uid=m681fkhr   If you are not getting the senior deduction it is because Your date of birth in MY INFO shows that you were not 65 by the end of 2025 Your income is too high You are filing married filing separately