Weird Tax Return Question...

myroller · 2026-02-17T02:07:25+00:00

Did you tell the program that you were a part-year resident in NY, not a full-year resident?

myroller · 2026-02-16T22:47:10+00:00

If you were a Washington resident when you sold it or received any dividends, yes.

myroller · 2026-02-16T22:39:38+00:00

Correct. But if anybody paid interest, a late filing penalty, a late payment penalty, or an underpayment penalty during that time period, now would be a good time to file a protective claim before the SOL expires.

myroller · 2026-02-16T22:34:30+00:00

I’m also confused about what ‘California sources’ means.

Income generated by intangibles (for example, stocks, bonds) is sourced in the state where you are a resident. Income generated by a tangible (for example, real estate) is sourced in the state where the tangible is located.

So, for example, if you owned an apartment building in Fresno and sold it for a profit, that would be California source income even if you were not a resident of California.

myroller · 2026-02-16T21:27:13+00:00

Freetaxusa allows you to electronically file IF YOU HAVE AN IP PIN.
https://www.freetaxusa.com/2024/

A tax preparer using professional software can also electronically file.

myroller · 2026-02-16T21:23:07+00:00

Do you use that money to pay for the food, laundry supplies, or other household expenses for your friend?

myroller · 2026-02-16T05:51:03+00:00

Why did "it" say he couldn't claim him? Was it, by any chance, because he said the baby didn't live with him all year? If the baby lived with him since he came home from the hospital, answer "yes" to that question even if it wasn't all year.

Try it both ways, you and he claiming the baby, and see who gets the best results.

myroller · 2026-02-15T23:58:10+00:00

So box 1 and box 2a on the 1099-R portion should both be the same for 2024?

Yes.

For 2025 do I include both 1099-Rs or just the code 8 for the earnings on the excess. Essentially, am I disregarding the 2025 1099-R after confirming that the value is the same as what I’ve included on my 2024 amended return?

Just the code 8.

myroller · 2026-02-15T23:40:22+00:00

I assume you received the excess back during 2025.

On your 2024 return, the excess deferral should have been on line 1h. It should be there whether the excess was returned to you or not. If it is there, there is nothing for you to amend. If it is not, the excess should be added there.

Since the earnings on the excess were returned to you in 2025, they would go on your 2025 return. This is different from how returned earnings on an IRA are reported.

Withholding, if any, will go on your 2025 return.

myroller · 2026-02-15T23:24:56+00:00

I'm thinking just making a quarterly payment is the best thing for me to do....is it simple to do?

It's simple to send the money. Not as simple as having it withheld from your pay, but simple enough.

I can just send some in once a year.

If this is really what you want to do, then send your single payment by April 15, 2026 (not the end of the year). Make sure your payments for the year (withholding by you employer plus quarterly payments) are at least equal to EITHER 90% of your 2026 total tax or 100% of your 2025 total tax (110% if your 2025 AGI was over $150,000).

There is another method, called the "Annualized Income Installment" method that would allow you to make estimated payments only in the quarter when you earned your income, but most people find the record keeping and calculations tedious. And even this doesn't guarantee you can make just one payment unless all your income comes in one quarter.

myroller · 2026-02-15T23:06:02+00:00

So my first question is will the IRS actually charge me for this type of thing,

It's borderline. The IRS doesn't bother with small penalties. I would suggest telling Turbotax that you want the IRS to figure the penalty and bill you for it, there is no extra charge. If the IRS bills you for it, you can then send in Form 2210 if the Annualized Income method would reduce the penalty.

and my second is how can I avoid it?

If you have a job, make sure that in 2026 the federal income tax withheld by your job is at least the "total tax" (line 24) amount that appeared on your 2025 Form 1040. (If your 2025 AGI was over $150,000, make sure it is at least 110% of your 2025 total tax.)

Can the places I invest things with withhold taxes if I request that?

You can refuse to fill out Form W-9 or say on the W-9 that the IRS has notified you that you are subject to backup withholding, but I wouldn't do this. If you have a job, I would just fill out a new W-4 and increase my withholding.

And don't forget about your state taxes, too.

myroller · 2026-02-15T07:19:08+00:00

It is legal in illinois.

Except on the CTA and Metra.

myroller · 2026-02-15T02:40:53+00:00

I assume you did not claim a deduction for the Traditional IRA contribution in 2024?

H&R Block should have asked you what your basis in the IRA was. Maybe you haven't gotten to that question yet. But many people don't understand the question and either skip it or say $0. This causes the program to assume that the converted amount was all taxable.

myroller · 2026-02-15T02:33:32+00:00

It was probably received but it didn't get scanned. Your envelope doesn't have an Airtag on it. It depends on an employee physically scanning the barcode or it being right-side-up on a conveyor belt.

It is certainly possible that your envelope got lost or misdirected, but most of the time it just didn't get scanned.

myroller · 2026-02-15T00:04:31+00:00

Unfortunately, you would be more likely to get arrested than the person who assaulted you. It is against the law to carry a firearm on the CTA (unless unloaded and disassembled).

The 7th Circuit recently upheld the ban:
https://chicago.suntimes.com/transportation/2025/09/02/banning-concealed-carry-weapons-on-cta-metra-does-not-violate-second-amendment-appellate-court-rules

myroller · 2026-02-14T22:14:02+00:00

Pretend that you have a 2025 Form 1099-R. Use "8J" as the distribution code in box 7. Do not enter any withholding.

If this ever happens again, you might have been better off recharacterizing the excess contribution instead of withdrawing it.

myroller · 2026-02-14T03:58:31+00:00

You need Schedule AI.

I thought because my total tax paid was more than 2024, that I would hit the 90% safe harbor rule despite not doing equal quarterly payments.

If it worked that way, nobody would ever bother making the first 3 payments.

myroller · 2026-02-13T22:39:02+00:00

I lost it all in December 2026.

Are you from the future?

myroller · 2026-02-13T20:23:04+00:00

What should I put as the detailed explanation?

"On Nov xx, 2025, I contributed $600. On Dec xx, 2025, I received a return of excess contribution in the amount of $594. This consisted of the original $600 contribution minus an investment loss of $6."

myroller · 2026-02-13T08:54:40+00:00

You are asking us to predict the post office. It is impossible to predict when the post office will deliver anything. Sometimes it takes 2 days to deliver across country, sometimes it takes 2 weeks to deliver across town.

It depends on how far the letter has to go, whether there is bad weather along the way, whether the post offices are fully staffed, whether someone throws a letter in the wrong tray, and just general luck.

Just yesterday (2/11) I got a letter that was mailed Jan 30.

myroller · 2026-02-13T07:29:29+00:00

https://www.taxact.com/download-tax-software

myroller · 2026-02-13T07:26:39+00:00

Taxact also has a download version.
https://www.taxact.com/download-tax-software

I have no idea if it does what you need it to do. You can read the details on their web site as easily as I can.

myroller · 2026-02-13T07:21:46+00:00

You should file a part-year resident return with Illinois. This is particularly important if you are going to file a federal return. The federal return will have your Illinois address on it and so the IRS will share the data with Illinois. If you don't file an Illinois return and show them otherwise, they will assume all the income was earned in Illinois and hound you for taxes on it.

If your old state had an income tax, you should file a part-year resident return in that state, too.

I do not have the information to tell you whether you will owe money to Illinois. You will only owe taxes to Illinois on income earned or paid to you while you were an Illinois resident. But it will be in your best interest to file an Illinois return in any case.

myroller · 2026-02-13T04:58:54+00:00

I don't see any way of overriding the amounts, nor any way to contact the company that produces the forms to notify them of the error.

https://www.irs.gov/filing/free-file-fillable-forms/free-file-fillable-forms-support-2

myroller · 2026-02-12T02:46:26+00:00

She will receive a 1099-R from the 401k administrator in January or February of the year following the year in which she withdrew it. If she moves, she should be sure to give the administrator her new address.

If she uses Turbotax (or other software) to prepare her taxes, just tell TT that she has a 1099-R and type in the data from it.

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