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Level 2
posted Feb 8, 2025 9:50:01 PM

TurboTax desktop won't let me work on my federal return unless I buy state which I do not need

I started with TurboTax online, which I have not paid for. I purchased TT desktop federal only because I live in NH, and we don't have state taxes. I've imported my online file, and it says, "Let's download your state." I can't get past it without buying a state version for $40, which I do not need. How can I get past this to complete my federal and file it.

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1 Replies
Expert Alumni
Feb 13, 2025 8:16:03 AM

Does your Federal income tax return include interest and dividends in excess of $2,400?

 

New Hampshire still imposes the Interest & Dividends tax for 2024 at a tax rate of 3%.

 

Perhaps this is why the New Hampshire tax return is being invoked.

 

The Interest & Dividends tax is repealed for taxable periods beginning after December 31, 2024.

 

This New Hampshire website states:

 

For taxable periods beginning on or before December 31, 2024: all New Hampshire residents and fiduciaries whose gross interest and dividends income, from all sources, exceeds $2,400 annually ($4,800 for joint filers). In addition, limited liability companies, partnerships, and associations with non-transferable shares whose gross interest and dividends income, from all sources, exceeds $2,400 annually must also file and pay I&D Tax.

 

The I&D is repealed for taxable periods beginning after December 31, 2024.