Why does Turbotax treat the 2024 sale of primary residence as taxable if we lived there for more than 24 months and the gain on the sale was less than $200,000?

[MindyB]

If you meet the primary residence exclusion (lived in the home for at least 2 years out of the last 5 and gain of less than $250,000 for a single or $500,000 for a couple filing jointly) and you did not receive a 1099-S, you don't need to report this.

When you enter the sale of the home in TurboTax, the exclusion will be computed for you, based on your answers about business use of the home and the dates you bought and sold it.  TurboTax will tell you why you aren't getting the exclusion if you aren't eligible, for example taxpayers who owned and lived in their home less than 2 years.  You can go back to review your entries to make sure they are correct (Federal > Wages & Income > Less Common Income > Sale of Home (gain or loss).