How do you get in touch with turbo tax to ask a real question?

[Sta2ned]

Hello-  I have an established SSTB but also retired last year from my position at a college. My former employer contracted me as an independent for services to bridge the gap until a replacement is found. Turbo Tax wants to treat that income from 1099-NEC as an adjustment to my QBI.  I am confused why, and if that is correct.  I was not an employee and received no benefits from them while working as an independent contractor,  just as with my other clients for that SSTB.  Is income from a former employer in every situation always non-QBI?  What if they continue to contract my service independently next year? Is that QBI?  Thanks you!   Dennis.  

[KrisD15]

If the income on the 1099-NEC is being linked to your business, and your business is a Specified Service Trade or Business, then the additional income may adjust your Qualified Business income Deduction depending on your taxable income level. 

If the 1099-NEC is for something unrelated to your SSTB, you will need to file a second Schedule C for that 1099-NEC income. 

It is not clear if the 1099-NEC income is for the same work as your SSBT. 

I am also not clear on HOW the 1099-NEC income adjusted your QBI. Are you eligible? Did it increase or lower your deduction? 

[Sta2ned]

Thank you....  The 1099-NEC income from a former employer was for doing the exact same services as my regular SSTB.  That service was also the same service I did as an employee before retirement. I have had this private service business for 40 years and was an employee for 35 years, but recently retired from my full-time position.  If they continue to contract me independently after my retirement isn't that QBI, the same as income from my other clients?  It is a small business. The 1009-NEC amount in question is only $1,240. 

Turbo Tax adjusted my QBI by $964. over my net Schedule C profit, which increased my refund. I am confused why the QBI was not adjusted the full $1,240.  I just want to make sure there wasn't a mistake and do not understand how $964. was calculated. 

thank you!

d. 

[JamesG1]

The qualified business income calculations take place on IRS form 8995 or 8995-A.

The amount of $964 instead of $1,240 may be attributed to two possibilities.

Necessary and ordinary expenses were claimed against the self-employment income on Schedule C Profit and Loss From Business.

Qualified business income is not the Schedule C Profit and Loss From Business profit.   Qualified business income is Schedule C Profit and Loss From Business profit less the Schedule SE Self-Employment Tax.

View the tax forms.

In the online versions, you may view or print at Tax Tools / Print Center / Print, save or preview this year's return / Include government and TurboTax worksheets after you have paid for the software.

In the Desktop versions, one can look at the tax return by clicking FORMS, or by viewing the PDF through the Print Center.

@Sta2ned 

[sandy-1632]

1) Received pension payout. 1099-R box is TN and am a TN resident 2) Also filing a non-resident CT state return for CT wages 3) TT is including TN pension payout as income and taxing on CT non-resident return. Why, and how do I adjust?

[DMarkM1]

You are correct CT will not be taxing your pension income. However, it may still be part of the CT tax calculations depending on your income levels.  

According to CT law here for reference, if your return does not exceed the income thresholds ($75,000 for single, married filing separate or head of household filers or 100,000 for joint filers, then pension income is 100% excluded and not counted in tax calculations.  If a return shows income that exceeds the income thresholds then 100% is taxable/countable.  

The calculations for CT nonresidents is basically, the ratio of CT source income / CT adjusted gross income multiplied by the CT tax on all income as a resident to arrive at the CT tax on CT income for nonresidents.  

If the return meets the income eligibility then pension income is not counted as CT source income and it is excluded from all source income.  You can see that subtraction in TurboTax online versions in the CT Tax Summary, Adjustments to Federal Gross Income line.  Use these steps below to see the CT Summary page.  In desktop versions you can use the forms mode to see the CT-1040NR calculations.  

However, if your income exceeds the threshold then your nonresident pension would still be in the total CT adjusted income, but would not be part of CT source income in the ratio calculation.  

Here is the CT reference.  

1. Select "Tax Tools" in the left hand menu
2. Select "Tools"
3. Select "View Tax Summary"
4. Select "Preview My 1040" in the left hand menu

5. Select "CT Tax Summary"

[judy1949]

I am unable to remove the checkmark on Box 14 Schedule K-1 1041 and on the comments that have drop down to show Code I and Code Z 

[lori 1]

I added st and lt capital LOSSES of $904.  my taxable income properly changed by $914 but my tax owed stayed the same.  why is that?  i would think it would decrease.

[lori 1]

hello

I thought I was done with my taxes and then realized i sold stock at a loss (both ST and LT).  so I entered the losses of $904.  My taxable income properly decreased by $904 BUT the taxed OWED did not change. why is that?

[MonikaK1]

@lori 1

It depends. If the change in the income you reported was subject to the capital gains rate instead of the regular income tax table, you could indeed have zero tax change despite having added a loss.

The tax rate on most net capital gain is no higher than 15% for most individuals. Some or all net capital gain may be taxed at 0% if your taxable income is less than or equal to $41,675 for single and married filing separately, $83,350 for married filing jointly or qualifying surviving spouse or $55,800 for head of household. See here for more details from the IRS.

You can preview your entire return before filing to view the forms that TurboTax has prepared from your entries and to find out how your taxes were calculated. See here for details. 

[Judy65]

I need someone at Turbo Tax to do my taxes

[DoninGA]

---

@Judy65 wrote:

I need someone at Turbo Tax to do my taxes

---

To use the TurboTax Full Service to have a CPA complete and file your tax return will cost you anywhere from $209 to $399 for the federal return depending on the Full Service option that you use.  The state return is an additional charge of $54 to $64 depending on the Full Service option you use.

Go to this TurboTax website for the Full Service option - https://turbotax.intuit.com/personal-taxes/online/

[JG37]

in turbotax federal form I entered $953.64 state taxes withheld on my 1099R. I'm not getting them transferred to my state return. I can find no way to get credit for these taxes I paid and withheld ON STATE TAX!!! please help

[Bad6745]

This is the following message i recieved from the state of Kentucky

Withholding claimed could not be verified. Forms W-2, 1099, or PTE - WH or other supporting statements must be submitted to verify withholding claimed.

Need to confirm that confirm that Turbo Tax submitted my XML e-filed return had the W-2s and 1099-Rs attached. 

[MonikaK1]

@JG37 

Return to the Federal section and review your Form 1099-R entries to ensure they are complete and correct. If you had state taxes withheld shown on your 1099-R, they should have been entered in Box 14 of the Form 1099-R entry screen. Check to see if the correct State was selected from the drop-down list for Box 15, and that the correct State ID number is entered. If you have withholding for more than one state, use the second row of boxes to make the entries for Boxes 14 through 16.

@Bad6745 

The confirmation you received that your State return had been successfully e-filed is your confirmation that the amounts on your return were successfully transmitted to your State tax agency.

It is not unusual to receive a letter from a State tax agency asking for confirmation of W-2 information. It could simply be a random check, or part of a state initiative to prevent identity theft. Kentucky is not the only state that sends these messages. Follow the instructions in the letter to respond to the State, and contact them if you have questions.

See here for information from Kentucky about their Identity Confirmation Quiz program.