Tax on sale of home

[Myeend]

I have been using Turbotax for many years to file my income tax returns. In 2022 we sold our house we owned for 29 years for a gain that was just below $500,000 so it is my understanding there is not tax consequence. When completing the tax return for 2022 I indicated sale of home as a life event. I cannot remember if a question was prompted if the gain was less than $500,00 or not. However, the program did not prompt me to complete any worksheet to show the gain or complete a Form 8949. My tax return does not show any schedule regarding the sale of the house. I am concerned that not having anything to support the gain was less than $500,000 might prompt an audit. Should I have completed anything else in the tax return process or was that not needed since the gain was less than $500,000. Thank you for your response.

[vithalanin]

Congratulations on the sale of your home! On your 2022 tax return, in the Federal section in Wages and Income you should have reported the sale of your home. Your not reporting it does not automatically mean that you will get an audit. Sometimes on the sale of a home, you are given the Form 1099-S. If one was issued then you will receive a notice from the IRS asking for more taxes to be paid. Please do not panic at that time. Contact us so that we can give you the next steps to resolve this notice issue. If you have not received the notice already, I would recommend amending your tax return to report he sale of your primary residence.  The exclusion is available as long as you have not sold another home and claimed the exclusion credit in the 2 years pre or post this sale. You would report the sale in the Wages and income section, under Investment sales even though this is the sale of your primary residence. When you start the entry in there, it will ask you details such as sales proceeds, sales expense and cost basis of the home along with date of purchase and sale. At the end, if it is not taxable it will give you the option to report or not report it. I recommend reporting it. This sale will show on Sch D under long term sale. Please contact us and we assist in making this entry.

[Myeend]

Thank you for this reply and suggestion to contact you for next steps. Can you please let me know the best way to contact you on this topic. It is not clear to me how to contact experts direct in Turbo Tax. I would really appreciate the guidance. 

I did not receive a Form 1099-S. I am interesting in submitting an amended tax return just to be safe. I am not sure how I missed completing that section when originally completing my 2022 tax return. 

[mmaherTE]

If you are interested in amending your 2022 return please do the following.

Sign into your TurboTax account.

Scroll down to your prior returns and documents, choose the 2022 oval.

In the menu choices you will see an option for amending or changing your return, click on that and choose to amend your return.  Follow the prompts to begin an amend.  Once you are in your return you should be able to click on either the live tax help icon on the bottom right of your screen, You will be able to choose getting a call or beginning a chat with an expert who will be able to assist you.

[Myeend]

Thank you. I really appreciate this opportunity to ask my question. 

[vithalanin]

It has been a pleasure to answer your question today.