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I have the desktop premier version, and I can enter 1099-Q but TT considers it income.  And it wont let me enter 1099-T because it says my income is too high.   All the expenses on the 529 are valid and should be tax free, but TT won't allow me to enter it this year (it worked in 2024). So I'm stuck with the "delete 1099-Q" solution.  When will Intuit fix this bug?

I was using the Deluxe and the problem was fixed when I went directly to the form and entered the percentage.  You might try deleting the Form 8829 worksheet then when you run the final check it will re-create it.  I think the problem pulls from the worksheet.  Maybe that will help.

Enter a negative amount in the "Other Reportable Income" section of the program so that it flows data to Schedule 1, Part I, Line 8z (reducing your Total Income so you aren't taxed on the portion that legally belongs to your ex-spouse).   Open or continue your return. Under Federal tab, Click on Wages & Income. Scroll down to Less Common Income, and Click on Start/Revisit next to Miscellaneous Income, 1099-A, 1099-C. Scroll down and Click on Other reportable income. Select "Yes" when asked "Any Other Reportable Income?"  Enter your description (e.g., "Community Property adjustment (Military Ret - Ex-Spouse)". Enter the amount as a negative number (e.g., -5000). Note: Make sure you have entered your 1099-R exactly as it appears in the Retirement section first... do NOT subtract it there (the IRS computers will see a mismatch). Report the full income first, then use Line 8z to subtract the ex-spouse's share.   If your ex-spouse receives their payment directly from DFAS (Defense Finance and Accounting Service), they should receive their own 1099-R (and you should only receive a 1099-R for your portion, and won't need the Line 8z adjustment at all).

I'm going to try to refile today, and I am using the desktop version.  I'd like to hear whether there is any need to clear cache or cookies, as I would assume that step is not needed when using the downloaded desktop version.  Please also comment on whether to delete the form, and go back through all the questions.  I did have valid energy improvements in the early sections of the form, but not electrical panel improvements and it had left 25a blank, was that the prior cause for error?

Wait, So I have to pay for a whole new TurboTax on the second return?     Why does the desktop allow 5 returns and online only 1?????   GRRRRR   I am so upset because I had always used a desktop, and now, because it's not Windows 11, I can't.  

Hi Dawn, Thank you for your reply. I am using Desktop Premier. The questions were asked in the interview.  The percentage is shown on Form 8829 Line 7. The issue is that Line 8 is pulling from Schedule C Line 28 instead of Line 29.  Here is the rundown as it is currently shown on Schedule C and on Form 8829:  Schedule C Line 28: 13,446 (Total Expenses) Schedule C Line 29: 23835 (Tentative Profit) Form 8829 Line 7: 10.34% (Business Percentage) Form 8829 Line 8: -13,466 (SHOULD BE SCH C LINE 29 BUT IS FORM IS ACTUALLY SHOWING SCH C LINE 28 AND MAKING THAT NUMBER NEGATIVE) Form 8829 Line 15: 0 (Total Direct & Indirect Expenses from home ownership- in my case 0 because i rent my home) Form 8829 Line 26: 2344  (total Other Expenses) Form 8829 Line 27: 0 (Allowable Operating Expenses) As you can see, Form 8829 Line 8 is being entered as a negative number and is pulling from Sch C Line 28 instead of Sch C Line 29.   Please advise on how to fix this glitch in the system.

@CatinaT1  I am using the web version and I am still getting the same error and when I click to fix the issue, I just get the same following message:   "Description of error: There is a potential issue with the calculation regarding Form 5695, Energy Efficient Home Improvement section, Enabling Property on the Federal return What needs to be done: This return cannot be filed at this time due to a processing error that will be corrected on March 6, 2026. On or after this date, open the rejected return, review it for errors, and resubmit the return for electronic filing."   I have tried deleting the form several times and re-entering it, (per phone support) I've signed out, cleared cache and cookies, checked for windows updates, and restarted my computer. None of these things made a difference. Can you please tell me how it is fixed when the system won't get past the error? Is there a way that I can share my screen with you and show you what I am seeing? Form 5695 still shows 25a and 17a, b, and c incorrectly. If you could please help me get through this, I would greatly appreciate it! 

So, this was the last part of holdings I had in a 401K after I retired.  Those sums represented stocks that were part of the 401K employer contribution in corporate stocks and had not been taxed and is classified as Net Unrealized Appreciation (NUA).  The cost basis in my example would be the $4000 portion in Box 2a and should be taxed as it was moved from the 401K to the IRA.   I had received other stock awards over the years, but they went into a separate stock fund and were taxed as they were awarded.     The cost basis as part of this 1099-R need to be taxed as part of earnings (lower rate) as opposed to later as capital gains.  There are no other 1099s from the employer or employer programs.   The above is my understanding with discussions with my financial advisor.   Thanks!