Help. State taxes are wrong

Forum|Forum|7 years ago
June 28, 2019
3 replies
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DoninGA

Level 15

What state? Describe what you mean "State taxes are wrong"

raslmh

Level 2

I sold a summer house in NC , resident of Fl, help me on federal, $250,000 does not apply to summer house?

DoninGA

Level 15

There is no capital gains exclusion on a second home. The $250,000/$500,000 capital gains exclusion is only when a primary home is sold.

To enter an investment sale other than from a brokerage account (1099-B), follow the steps below.

Click on Federal Taxes (Personal using Home and Business)
Click on Wages and Income (Personal Income using Home and Business)
Click on I'll choose what I work on (if shown)
Under Investment Income
On Stocks, Mutual Funds, Bonds, Other, click the start or update button

Or enter investment sales in the Search box located in the upper right of the program screen. Click on Jump to investment sales

On the next screen, click Yes

On the next screen, click No

On the next screen, choose Second Home and continue with the section until it completes.

jeffbabesh1

Level 2

My state tax is saying that I owe $1,038 and I usually break Even every year

xmasbaby0

Level 15

No one else can see your tax return. Check all of your data entries for accuracy. Click Review to see if your state forms have been finalized by your state—they might not be ready.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

clmack69

Level 2

My Arkansas state tax allows for $6000 deduction for retirement income. Neither one of us received this deduction. I looked at actual arkansas stste tax form and deduction of $6000 was available but wasnt deducted by Turbo Tax. Thank you.

BillM223

Level 15

Please check the underlined sentence below...

Did you have a military pension? In Arkansas, you can choose to exclude the entire military pension, or you can choose to add the military pension to other pensions and take the $6,000 exclusion.

Also, did you check that you would take the "65 Special" credit of $26 on line 7A? If you did, then you do not get the $6,000 pension exclusion.

For background, see the AR1000F instructions on page 11, line 7a, and page 12, lines 17-18.

Also see this answer for another taxpayer:

A taxpayer can choose to take the exclusion for all the military retirement benefit, or waive that and add the military retirement benefit to the other retirement benefits and apply the $6,000 exclusion. You cannot exclude the total military retirement benefit AND take the $6,000 exemption.

This is laid out in an opinion issued by the Arkansas Department of Finance and Administration (www.ark.org/dfa-act896/index.php/api/document/download/20180814.pdf) The opinion is full of legalese, but the salient line is

"A taxpayer claiming an exemption under subsection (e) of this section is not eligible for an exemption under subsection (a) of this section."

Subsection (e) refers to the total exemption of military retirement benefits; subsection (a) refers to $6,000 exclusion.

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