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Yes, it's taxable income and  simply ignoring it will likely trigger an automated underreporting notice (CP2000) later. Here is the best way to handle this while keeping the IRS deliriously happy.   Step 1: Enter the 1099-MISC as "Other Income" You must enter the form exactly as received to prevent the IRS from flagging your return for a mismatch.   Open your return and go to Federal > Wages & Income. Scroll down to Other Common Income and select Start/Revisit next to Income from Form 1099-MISC. Enter the information exactly as it appears on your form (Payer name, ID, and the amount in Box 8). Crucial Step: TurboTax will ask a series of questions to determine if this is "business" income. Answer as follows: Describe the reason: Enter "Substitute payment in lieu of dividends." Does one of these uncommon situations apply? Select None of these apply. Did it involve work like your main job? Select No. How often did you get it? Select I got it in 2025 (or the relevant year). Did it involve an intent to earn money? Select No. This ensures the amount lands on Schedule 1, Line 8z, rather than triggering a Schedule C for self-employment tax.   Step 2: Create the Negative Adjustment (The "Offset") Now you tell TurboTax that this specific amount is a non-taxable Return of Capital.   Stay in the Wages & Income section.  Scroll to the very bottom to Less Common Income and select Start/Revisit next to Miscellaneous Income, 1099-A, 1099-C. Select Start/Revisit next to Other reportable income (the last option in the list). When asked "Any Other Taxable Income?" select Yes. Description: Enter "Nontaxable Return of Capital reported on 1099-MISC Box 8". Amount: Enter the amount as a negative number (e.g., -500.00). Click Continue. As an FYI, since you are treating this as a Return of Capital, you are legally required to reduce your cost basis in the underlying stock by the amount of that payment.   If you bought the stock for $1,000 and received $50 in ROC, your new basis is $950. You don't pay tax now, but you will pay more in capital gains (or have a smaller loss) when you eventually sell the shares.

@chanrobit  Avec TurboImpôt Enligne, vous activez votre code une seule fois dans votre compte. Une fois cette étape effectuée, votre code est appliqué à votre compte et vous n'avez qu'à vous connecter à celui-ci pour produire les déclarations.    Tant que votre déclaration est sous la version du produit acheté, sans ajout de service aditionnel comme Revue-Conseil ou la protection, vous n'aurez rien à payer à la fin. À la page de paiement, le système vous demandera si vous désirez appliquer la déclaration sur votre code.   Si vous ne voyez pas le compteur de déclaration dans le haut de la page d'accueil de votre compte, veuillez nous aviser.   Merci de choisir TurboImpôt.

To report that some went to a traditional IRA and some went to a Roth IRA, to accommodate TurboTax you must split the Form 1099-R into two, one for the portion that went to the traditional IRA and the other for the portion that went to the Roth IRA.  the dollar boxes on these two forms must sum to the amounts in the corresponding boxes on the original form.

In TurboTax, in the North Carolina state income tax return, I am able to report the taxpayer in NC and the spouse in NJ.   In the North Carolina state income tax return, I reported that the spouse had more than one state of residence and that the spouse dates of residence were 01/01/2025 through 01/01/2025.   On the North Carolina D-400 individual income tax return, state tax is computed using the Federal adjusted gross income.  Then the tax is cut in half.

The online software seems to have fixed itself? I logged in this morning and the HSA contribution listed last night on the non-editable summary screen has now disappeared (as it should have).    A similar thing happened in February with my business profit and loss, which stubbornly refused to display or compute the numbers I had already entered until suddenly it did a few weeks later.   Online version seems to be getting buggier with each passing year. 

Why can it not say: "State filing fees to be paid separately", instead of the BS statement "State e-file sold separately" which is definitely a misleading statement? Especially when it says "Include 1 State Download".

To show a loss on the sale of a farm truck in TurboTax Online, you need to report it as a sale of business or farm property since the truck is used for farming. Here’s how to enter the sale and report the loss: 1. Go to the Federal Taxes section, then select Business Income and Expenses. 2. Choose Sale of Business Property or Business Assets. 3. Enter details about your farm truck including description, purchase date, and sale date. 4. Input the sale price and the original cost of the truck. 5. Enter the depreciation taken on the truck. TurboTax will calculate the adjusted basis and report any gain or loss. The loss will be reflected on Form 4797, which handles the sale of property used in a trade or business, such as a farm truck. This loss can potentially offset other business income.

The 2003 windows and 2013 kitchen are not separate line items for depreciation. Because these improvements were made before the property was "placed in service" as a rental, they are rolled into the initial value of the building.    You would place the HVAC on its own depreciation schedule but the windows and the kitchen remodel will be part of the adjusted basis of the rental thus the basis of your rental is $115,000, which includes the rental, the windows, and the kitchen remodel.

When this happens, it could be due to a combination of your income attributable to the home office and your other business expenses wiping out any profit that could be reduced by the home office expense.     Go back through the early questions of the home office section and double check your answers.  Remember that if you perform all of your work in the home office, then you would put 100% of your time was spent there for the period of time you had a home office.     Or, if you are using either TurboTax desktop Premier or Deluxe, you will not see the question asking for the percentage of time spent working in your home office.  You will need to enter this information using Forms by following the steps below.    Click Forms in the upper right corner. Look for Form 8829 on the left side of the screen under Schedule C and highlight this form.   Scroll down the page to the section titled Line 8 Calculation Smart Worksheet.  It will have a box around it. Type 100 in the box on line B.  If you did not use your home office 100% of the time for your business, but you also performed work in other locations, then enter the appropriate percentage of time for your situation. This will then calculate the home office deduction.   Note:  This has been submitted to the development team for further investigation and possible program changes.  As of today, there is no update on the status.   @aide7895 

For California state taxes, your itemized deductions typically need to be larger than the California standard deduction to benefit from itemizing. However, California law generally requires you to use the same deduction type on the state return as on your federal return if you itemized federally.   In TurboTax Online, there's no separate option to choose between itemized and standard deductions for California if you itemized on your federal return. The program automatically carries over your federal deduction choice to California when allowed.   If your federal itemized deductions are less than the federal standard deduction, TurboTax will recommend the federal standard deduction, which then applies to California as well.   So, for California, itemized deductions make sense only if they exceed the state standard deduction and align with your federal itemizing choice.

Thanks @PatriciaV for replying,  I am using a single-member LLC to manage both properties, I am the owner of the properties and the LLC. I am putting the LLC Name and ID number (LLC EIN) in both properties for that reason. I am splitting the employee salary (I only have one employee, that is not me) and LLC expenses between both properties to do not charge the them to one property only, is this the right approach?. You mentioned that the Entity name should be different.   Thanks again for your help.

according to the 1099-OID instructions Box 6 is meant to reduce Box 11 for non-exempt income.  I've not seen Box 6 > Box 11, this may be a calculation error by the broker.  Given the small $ amount I would just set Box 6 to the same as Box 11, it won't matter for Fed return and have minimal impact for State if it's taxable.

@darndtjr    Broken vs just Screwed up, can depend on how close one is to the 15 Apr deadline.   Yeah, the Online software now makes you click on some extra stuff to get the whole menu of items to show up with whatever recent changes they've made...all to "supposedly" help newbies.   Instead, everyone gets frustrated trying to find the entry point for the things they know they have to enter. ________________________ Come on TTX!!!! SHOW THE WHOLE MENU of items on the Wages&Income page...or the Deductions&Credits page.   All the time!   Stop making people HUNT for what they need.