All Posts

Just looked this up - You’re right — Roth conversions are allowed on Michigan Form 4884 as long as the distribution is from an IRA and you are age 59½ or older. But the key detail is this: the distribution code must reflect that it was actually a distribution, not a rollover. Here’s how Michigan law treats it, based on the search results: ✅ What Michigan allows as retirement income Michigan’s rules say: • IRA distributions qualify if you are over age 59½ This is the exact line from the Michigan guidance: A Roth conversion from a traditional IRA → Roth IRA is an IRA distribution, so it qualifies as long as you are 59½ or older. ❗ But the distribution code still matters Michigan uses the 1099‑R distribution code to decide whether the income flows to Form 4884. Here’s the rule: ✔ Code 2 or 7 (IRA distribution) • These do qualify as retirement income (if age 59½+). • A Roth conversion from an IRA normally uses Code 2 (if under 59½) or Code 7 (if 59½+). ✘ Code G (rollover) • Michigan treats Code G as a rollover, not a distribution. • Rollovers are not eligible for the retirement subtraction. • Code G is used when converting 401(k)/403(b)/457 → Roth IRA, not IRA → Roth. Michigan’s software guidance confirms that distribution code determines eligibility.  

@pekkis44 paper filing seems like it will delay getting my CA refund by the months it takes FTB to process manually. So the other thing I was considering is just sending it in electronically with my tax return knowing that it's wrong. I get my CA refund for taxes. Then for refunding the $800 LLC tax, I'm thinking maybe the FTB will flag it and upon review send me a letter saying "we're not going to refund you $800". In which case I will say "fine, don't refund me". And call it a day.

@satella  Did you get a 1099-B? To enter a residual stock disbursement (often a final payout ) in TurboTax a year later, report it as a new stock sale under Federal Taxes > Wages & Income > Investment Income > Stocks, Mutual Funds, Bonds, Other. Use the date of the final disbursement as the sale date and zero as the cost basis to report the full amount as a gain, or enter the prorated basis if known.  To determine long term or short term would be based on when shares were issued or you vested.  You can enter "Various as the date purchased".  If no cost basis, then say LT or ST as option no basis reported to the IRS section. Most likely this is LT no basis reported to the IRS.

I think I finally figured out the issue, Turbo Tax included a lump sum pension payment with a distribution Code of G, direct rollover to a ROTH IRA in my retirement income for the State of Michigan.  That is not allowed by Michigan, and may be why the total Retirement and Pension Benefits Subtraction was set to $0.00.  Even though the eligible amounts were still enough to get a subtraction and a refund.  I'm filing an amendment to remove that item from Line 8 of Form 4884.  Turbo Tax should correct or auto check this. 

@pekkis44 @jbinsantamonica @PatriciaV @RobertB4444 @MonikaK1  Hi @pekkis44 I am having the exact same issue. Using TT online. Closed my LLC in Dec 25. Paid $800 in Q1 2025. Trying to file "Final" 568 now. It's not putting the $800 where it should on line 3 (it shows 0), and shows a Refund of $800, which is wrong. I also find the suggested "uncheck Final" for this year and file an empty 568 form marked Final in 2027 unacceptable, as CA requires you to file a final return within 12 months. I'm guessing CA would consider us still in operation and expect us to pay a pointless $800 in 2026 for an LLC we closed. This seems to be bug. @PatriciaV indicated in your other thread this won't be fixed in time to file. Curious @pekkis44 what you ended up doing? Seems paper mailing the 568 in with the waiver request is the only solution?

@lemonswee  Seems your NY employer still had you assigned as a NY employee and allocated to the NY office.  As you moved for your own convenience and not that of your employer, NY may tax all your income as a non-resident unless you met the Convenience of employer tests and/or NEVER went to the NY office at all nor were you required to ever go to NY.  If your contract never required you to enter the NY Office and you never went to NY, you may have a valid argument to not owe NY taxes. Unless your work contract met the rules, you would owe NY Non resident taxes as you were employed by a NY entity.  So read the rules, if you still feel your work contract met them, you may expect a NY audit and have complete documentation.  For more reading on a complex situation and all the applicable rules NY CONVENIENCE rules ,  the only person who can decide is you or a tax professional knowing your specific circumstances.  To get a refund, you would have file a non-resident NY tax return  and if you feel you met the rules, allocate all income out of NY.   You enter W-2 as received and during the interview, you allocate all out.

Same thing just happened to me. Even the subtotal of charges showed $118 and my card was charged 294. I’m going to complain to Apple and contest the charges. I will never use TurboTax again. I’ve used this company for the last 10 years. But never again. 

Thank you @SteamTrain !   I thought that sentence was non-sensical -- like it was missing something.  Enough to send me here looking for answers.  Thank you for relieving my pain!   I will post my feedback to Inuit if I make it to the end of this exercise alive. 

I am agreeing with this. The fact is I got the amount in 1099-B is also way lesser than the $70 itself.    Is there any way to bypass this? If I need to pay @200 for the simple tax, I better go to HR Block or go to some freelance CPA. 

IN a 1031 Exchange the BASIS of the old Property rolls into the new property. But, if this was rental property it gets more complex as you need to report sale of all assets to take into account depreciation taken in the past which reduced your basis.  You would have to allocate the old basis to the new assets.   https://ttlc.intuit.com/turbotax-support/en-us/help-article/import-export-data-files/enter-like-kind-section-1031-exchange-form-8824/L4yci9pFQ_US_en_US Where do I enter a like-kind or Section 1031 exchange (Form 8824)? by TurboTax •      Updated March 17, 2026 2:29 PM To enter a like-kind or Section 1031 exchange, follow these steps: Navigate to the like-kind section: TurboTax Online/Mobile: Go to the like-kind screen under Income in the Federal section. TurboTax Desktop: Search for like kind (two words, no dash) and select the Jump to link. On the Any Other Property Sales?  screen, select Any additional like-kind exchanges (section 1031) and select Continue. Follow the onscreen instructions. We'll fill out Form 8824 for you. If you accidentally generate a Form 8824 that you don't need, you can delete it by repeating steps 1 and 2. This takes you to the Like-Kind Exchanges summary screen where you can delete the unwanted form.

Check the box "A portion of these dividends is US Government interest and enter an amount on the next screen. Later, return to the same page and uncheck the box "A portion of these dividends..." When calculating a state return, it will still think the dividends are US Govt and exclude the amount from being taxed--even though the box is no longer checked!

@kristinelbly , @TomD8 ,  Hi everyone, I’m facing a similar tax issue. I started a 100% remote job (8/18/2025) with a NY-based bank but work entirely from my home in Cleveland, OH. I’m not required to go to NY and only visited one day in December 2025 for a company xmas party and to meet colleagues. Withholding issue: My employer withholds NY state tax and refuses to withhold OH tax due to the cost of setting up Ohio payroll. I have an email from HR stating they do not currently file in OH and would incur additional costs to do so, so they plan to continue NY withholding and asked me to consult a tax professional. Filing: I filed a NY nonresident return (MFJ). TurboTax didn’t allow $0 NY income, so I entered $1. I expect to receive an audit letter (request for additional information) from NY within two weeks. Questions: Based on my situation, do I qualify for exclusion under the “convenience of the employer” rule? Do I have any NY tax liability?  What type of letter should I request from my employer? (They are concerned it could trigger OH tax obligations.) For 2026, should I avoid traveling to NY altogether (even for a 1-day company event) to prevent tax issues? Thank you in advance for any guidance!