Sold my home for $269k, purchased it for $198k in '11. It calculated $14k in taxes to pay. I thought the first $250K is tax-free. What am I doing wrong?

[Hal_Al]

At some point, the TurboTax interview will ask the home sale exclusion questions and put code H in column (f) of form 8949 and the excluded amount in column (g).

Go thru the interview again. If that doesn't work, delete the 1099-S (or 1099-B)  and re-enter at:

In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in  Home & Business)

 - Wages & Income

Scroll down to:

-Less Common Income

     - Sale of Home

[Carl]

Also, did you live in the house as your "primary" residence for at least 2 of the last 5 years you owned it? That's 731 days of the last 1826 days you owned it, counting back from the closing date of the sale. If you did not, then you do not qualify for the exclusion. Note also that the days you lived in it do not have to be consecutive either. But they all have to be within the last 1826 days you owned it.