TurboTax Answers Most Commonly Asked Tax Questions

tax questionTax season is now fully underway, and with it comes a wide range of tax questions from filers. These questions range from those asked perennially (“can I claim my boyfriend as a dependent?”) to those specific to the events of 2012 (Hurricane Sandy, healthcare reform and the fiscal cliff). To help make the tax filing process as easy as possible, TurboTax has answered the most commonly asked tax questions for this tax season.

Who can I claim as a dependent?

Your significant other is probably many things to you—but is he or she also a tax deduction? The question of who you can claim as a dependent has confused taxpayers for years.

The short answer: You can claim a “qualifying child” or “qualifying relative” if they meet specific requirements related to residence, relationship to you, age, financial support provided and income. And yes, you may be able to claim a girlfriend, boyfriend, domestic partner or friend as a qualifying relative in some cases. Claiming dependents can give you a tax deduction worth up to $3,800 per dependent and also make you eligible for many other tax deductions like the Earned Income Tax Credit.

What is the Earned Income Tax Credit and How Do I Claim it?

The Earned Income Tax Credit is a tax credit for low to middle income wage earners that has lifted nearly 7 million people out of poverty, however many people still miss it. Why do so many people miss it? Many think they don’t make enough to file their taxes so they don’t claim it. You have to file your taxes to get this valuable tax credit, which may help a family with three dependents receive a credit worth up to $5,891.

Does healthcare reform impact my 2012 taxes?

There’s been a lot of confusion about healthcare reform and taxes. Rest assured, the requirement to purchase healthcare does not impact your 2012 or 2013 taxes. You do not have to purchase health insurance until January 2014 and there may be a few exceptions based on income, religious beliefs, and citizenship. You will not see changes to your taxes related to the purchase of health insurance until your 2014 taxes are filed in 2015 if you buy healthcare coverage at a health insurance exchange.

Are unemployment benefits taxable?

The unemployment rate has dipped to 7.9 percent vs. 8.3 percent in January 2013. But that’s little comfort to the jobless who find out their unemployment income is taxable income. The good news is that job search and moving expenses may be tax-deductible. See the next question for more details.

Can I deduct the cost of searching for a job? Are moving expenses for my new job tax deductible?

Job seekers may be able to deduct many expenses related to their search: printing resumes, fees for employment and outplacement agencies, career seminar costs and business-related travel. Moving expenses relevant to your job search may be deductible if you meet the distance and time test.

What are the tax implications of withdrawing money early from a retirement account to pay bills or debt?

In difficult economic times, many people start eyeing their retirement accounts to pay off bills or debt. While it is your money, you may be unaware of the impacts of withdrawing from your nest egg. Withdrawing money early from a retirement account comes with a 10 percent tax penalty in addition to the regular income tax on the amount withdrawn. There can be other consequences, too. The retirement money may bump you into a higher tax bracket, which can result in the taxation of other income, such as social security, that you wouldn’t have been taxed on otherwise.

What are qualified education expenses? And when can I file?

College tuition skyrockets every year, but the U.S. government provides incentives with education credits and deductions. For example, the American Opportunity Credit, which was extended through 2012, benefits full-time and part-time college students with a maximum $2,500 credit per student, provided you meet modified adjusted gross income requirements.

My house foreclosed, how does that impact my taxes?

The Mortgage Forgiveness Debt Relief Act survived the recent ‘fiscal cliff,’ receiving a one-year extension through 2013. This means you don’t have to pay taxes on the loss of your home through foreclosure or short sale, up to $2 million (or $1 million if married filing separately).

I started my own business; can I deduct my home office expenses?

Many entrepreneurs are reluctant to write off the business use of their home for fear of being audited. But home office expenses are a legitimate tax deduction you shouldn’t miss out on. Keep in mind the space you claim as a home office should be used exclusively and regularly for that purpose.

Will January tax law changes impact my taxes?

On Jan. 1, 2013, Congress kept the U.S. from going over the ‘fiscal cliff’ by passing The American Tax Relief Act of 2012. The act includes a permanent extension of the Alternative Minimum Tax (AMT) patch, the permanent reduction of tax rates and the reinstatement of several tax deductions, including the Educator Expense Deduction, the Tuition and Fees Deduction, and state sales taxes in lieu of state income taxes.

I was impacted by a natural disaster in 2012. What tax breaks are available to me?

Hurricane Sandy and other natural disasters last year left many picking up the pieces, filing insurance claims, and wondering how it will affect their taxes. It’s possible to take a tax deduction for property loss claims not compensated by insurance, or in some special cases, when you’re still waiting for compensation. These are known as casualty losses and include hurricanes, floods, earthquakes, tornadoes, fire—even vandalism and shipwrecks.

What if I still have questions?

TurboTax is here for you. Only TurboTax let’s you talk to tax experts who are CPAs, IRS enrolled agents, and tax attorneys while you prepare your taxes, free.

Comments (133) Leave your comment

  1. My daughter is 16, worked part time and earned $572.00 in 2013 and received a W2. As her parents we claimed her as a dependent. Does she need to file a tax return?

  2. For 2013 i earned roughly $4000.
    Was in college for half the year, and am being claimed as a dependent by my mother.

    Do i have to file taxes this year for 2013?

    • Hi John,
      You do not make the income threshold to require you to file taxes, but you may be able to get a tax refund if you had taxes taken out. If you do file your taxes, you will not be able to claim an exemption for yourself.
      Thank you,
      Lisa Greene-Lewis

  3. Hello,
    I am a divorced father of 2. My kids are with me a minimum of 2-3 nights per week. I pay their healthcare, pay support to their mother etc. She claims both of them on her taxes. Can I claim head of household?
    Thank you.

    • Hi,
      To qualify as head of household your kids have to live with you more than half the year. TurboTax will ask you the necessary questions to give you the deductions and credits you’re eligible for.
      Thank you,
      Lisa Greene-Lewis

  4. I’m getting slammed this year due to my wages vs lose of home deductions, dependents, head of household, etc. due to a divorce. I’m over 50 yrs of age and contribute 15% of my annual wages to a company sponsored 401K…..To lower the $5,000 amount that I owe on top of the 12,000 already paid via payroll tax deductions….Can I offset the tax burden of $5k and write a check for $5k to my 401k prior to April 15th? I’d rather pay myself rather than the government.

    • Hi Sean, Sorry to hear about your tax return for this year. You’re asking a good question, however the contributions for your 401(K) are taken out of your wages each paycheck and reduce the amount of wages that is taxable. Your contributions can only be made through your paycheck. You can’t contribute directly to your 401(k).

      Lee

  5. I receive a FERS (not CSRS) annuity from the US Postal Service. Turbo tax is not clear on which selection to make for the 1099R. It doesn’t seem right to choose the 401K category for a pension. Help would be appreciated…

  6. My boyfriend and I opened a business in 2013. We did not incorporate and instead opened it as a sole proprietor. We do business with multiple companies and received 1099′s for them. Some of the 1099′s came with his info and some came with my info. We are so confused as to how to do our taxes. We are children together but are not legally married. How do we determine what portion of the business each one claims. Can I claim everything myself?

    • Hi Liz,
      If you are not incorporated you would each have to prepare your taxes separately and claim the 1099s on each of your taxes according to who they are issued to. You could not claim everything yourself since the 1099s are tied to your individual social security numbers and the IRS will match the 1099 copies they receive to your individual tax returns so file only the 1099s that are made out to you and your boyfriend will have to file the ones made out to him on his tax return. TurboTax will guide you through accurately filing your taxes and if you have any questions while you’re preparing your taxes you can ask our tax experts who are CPAs and Enrolled Agents your question.
      Thank you,
      Lisa Greene-Lewis

  7. I didn’t pay my 2012 taxes couldn’t afford to pay I recently amended them in order to claim eic for my child and now expect a refund. I got a notice stating they Took $500 from 2013 due to non payment for 2012 will they send a check back as I no longer owe them?

  8. I’ve heard the starting next year (2014 tax season). That you’ll no longer be able to claim your child or non working spouse as a dependant. Is that true?

  9. Can i get my money back if I put dependents on my w2 forms and I was not supposed to put any?

    • Most likely you will owe IRS. Plus you are lying to the governtment when you claim dependants thst you are not entitle.

  10. If you are claiming your girlfriend as a dependent, what option do you pick from the drop down box? I don’t see an option that will fit. thank you

    • Hi,
      In the drop down menu select “other” and then answer the rest of the questions. If you claim a non-relative you have to answer the question about whether or not they live with you the entire year, you provide over half of their support, they make less than $3,900 earned income for the year, and citizenship.
      Thank you,
      Lisa Greene-Lewis

  11. My ex did not claim my daughter last year 2012 taxes. He said I could claim my daughter this year 2013 taxes. I didn’t work in 2012 can I claim her on my taxes this year for 2012?

    Im just trying to figure out what I can do for this years taxes on claiming my daughter

  12. I have been on unemployment, for 2013 collected 12,488 in income, I have one dependent, can I get a refund still?

  13. I use turbo tax to guide me through the tax process it asked my filing status and i filed married seperate return. I was asked aboit child care expenses. I answered the questions and it calculated 600 towards this expense. My return refund was changed by the ira and my refund reduced by 600 because you cant claim this deduction if your filing status is married filing separately. I am really dissatisfied with the turbo tax product and feel i should get a reduction in my preparation fees.

  14. My boyfriends in jail and he’s telling me I can file he’s taxes he never claimed from 2009 to 2010 how can I get poa and he’s w2 forms??!! He said he doesn’t have them I have to go to he’s old job but how can I do this?!?!? Please help!!

  15. Am I able to file for a tax refund I got my w2 from ihss I made 4,726 it show all $0 with federal,Medicare, social security tax withheld I called the payroll they said its because I made to little to take taxes out.. I’m so confused ?? Last year my made way lesser n I was able to do tax n some tax we’re takin out

  16. I bought a heat pump in jan 2014. Can I claim my credit on this years taxes(2013) or do I have to wait until 2014 taxes?

  17. can i file for taxes using a 1098-t form and claim my daughter if i didnt work in 2013… shes 6 months

  18. I am planning on using the Home and Business version for my husband and myself to file jointly and use schedule C to report sole proprietor income. Our college age student has income and wants to apply for his refund. Can I use the same software- chosing the 1040EZ form-or must I purchase another set of software for his return?

  19. Can i claim my mom as dependent? I support her financially regularly on a monthly basis. She lived here for about 6 months but decided to go back to El Salvador she has SSN. Does she qualify since she is in Cental America?

    Thank you.

  20. My employee benefits package includes flexible spending account which I take advantage of. This year I had expenses in excess of the amount set aside in the account. Can I deduct them?

  21. My grandson borrowed money and signed a promissory note. He and his wife divorced and he has moved out of town and has not made anymore payments since May. Can I claim this as a loss?

  22. Hey,
    Someone in my Facebook group shared this website with us so I came to give it a look. I’m enjoying the content! Outstanding blog

  23. my Va. state return keeps getting rejected because they say box 16 can not be greater than box 1 on my W-2 form. It is not,it’s the exact same number- what’s that all about?

  24. A married couples filed jointly online, this was done yearly on turbo Tax website by the husband, My questions are, is it required by law that the wife must signed the finished printed tax copies? If yes, is it okay for the husband to signed/forged the wife’s signature? If no, will this be call a violation? if the husband signed electronically and the wife signed manually where will this signed copies send to?

    • Hi – There is no need to sign (or mail) printed copies of your return if you are efiling a joint return. But you of course should print a copy for your records. Hope that clarifies! –Christopher

  25. I recently joined a medical practice where a percentage of my earnings goes back to the practice. How would I account for this, a Form 1099? Also, I’ve been told that the first 50K earned if self employed is not taxed. Is there any truth to that? If so, what if you are filling married filing jointly.Thank you!

    • Hi Rick – You may be thinking of the the $49,000 exemption for the Alternative Minimum Tax. But that does not apply to the regular federal income tax — the same exemptions and deductions apply for the self-employed as for employees. As for how your reinvested earnings are reported, there are many different possibilities that depend on factors such as the business form of the practice (partnership, LLC, etc) and whether your “earnings” are wages or profits. You’ll need to ask your colleagues. Cheers… –Christopher

  26. I am a self employed non US Citizen living abroad and started doing business in 2012 with a US Company. Do I have to pay taxes for those payments I have received ? Thank you in advance !!

    • Hi – It depends on whether the work took place within the U.S. If not, then you would likely not be subject to U.S. income tax. Hope that clarifies. –Christopher

  27. My friend does not own anything. He only made $12,500 but he did donate his car to the “Cars for Kids” not for profit agency. Does he claim the $500 tax credit or does that not apply because he does not really own anything?

    • Hi! Do you mean he doesn’t owe anything (in taxes)? There’s no federal credit for donating a car to charity — only a deduction from taxable income. So if he has no tax liability, then the charitable donation won’t help his refund at all. The attached link has more details. Hope it helps! –Christopher

  28. Here is the simple situation: Partnership with calendar fiscal year, owned 8% of another LLC. The % was set per the 2010 operating agreement of the LLC. Despite being in operation, the Company only started generating revenue in Q4 of 2012 (this was controlled by the states “go-live”, and in a panic (long story) the majority holders sold to private equity in December 2012 (prior to year-end). Our role was passive to organization. We were paid our pro-rata share prior to YE. Can I assume that this is a long-term capital gain reported on the 1065 on line 13. Just want to make certain it is LT capital gain.

    • Hello James – Long-term or short-term gain is based on the date of the investment into the asset. As long as the actual investment into the Company was over 1 year, it would be considered LT gain. Thanks, Karen

  29. How many year can you take the depriciation for the roof and furnace.
    Can I use my adult brother as dependent for he is living free in my rental property.

  30. I am the only income earner of my family and employed in the United State My wife and Daughter are Canadian residence. Can I claim my wife and daughter on my 2012 tax returns with their Canadian NI numbers since they do not have their SSN yet in the US.

  31. Hi, Will I benefit if I claim a friend I supported for nine months but owes the IRS? Or will the income tax return go towards his payment?

  32. IF YOU RECEIVE A 1098T AND THE GOVERNMENT PAYS $20000. FOR INTUITION AND YOU RECEIVE $25000. YOU DONT QUALIFY FOR A TAX CREDIT.

  33. I have a friend that I have helped with her two grand children that she is raising and they live on there SS Checks and are both are disable to work. She told me she could not claim the Children for earned income tax because her husband no longer can work, so they don’t file income tax. When her husband was able to work they were able to claim the two boys. So they are having a real ruff time making ends meet. I have helped them with the kids as much as I can. They have sole custody of the children. How can I help them? How can I help them. The money for the children would help with food and clothes for the children. Thank you for your sponse on this matter. Dorris Maggio

    • Hi Doris – There’s not much help in the tax code for families like the one you describe. SSI, SSDI and disability benefits are already non-taxable, but one must must have earned income (i.e., be employed) to receive the Earned Income Credit. The attached link has more information. Best wishes… –Christopher http://turbotax.intuit.com/support/go/GEN80354

  34. My son and his girlfriend live together and and she actually supports him. He already filed his taxes on Turbo Tax, when she went to do hers she listed him as a dependent. Hers came back as rejected. After checking for errors, no errors came up. Can she still claim him as a dependent?

  35. I had an income of less than $5,000 last 2011 and didnt file it. In 2012 i had an income of less than $5,000 as well. Can i file for my income tax return then?

    Thanks.

    • Hi – You can choose to file even if you don’t need to — perhaps to get back any withholding taken out of your paycheck, or to claim the Earned Income Credit. Note, though, that you would need a copy of TurboTax 2011 to prepare a 2011 return, you can’t use this year’s program. Hope that clarifies.

  36. Can i claim my parents as dependent? I support them financially regularly on a monthly basis. The question is are they qualied since they live overseas?

    Thank you.

  37. I worked out of town I traveled every weekend to come back home can I deduct the miles or gas that I send to get my work every week also I would like to claim lodge, meals and my work clothing?

  38. I got a letter from the the irs saying i oew $680 for my 2012 tax year. This year I already filed for my 2013 tax and the $680 that i owe from last year was detucted. When i called the irs they said that the reason why i owe that amount is becausemy tax pre parer put my dad down as a non us citizen. My dad is a United Stated Citizen! How do i get this money back? I have his passport and ssn card who do i need to talk to in order to get this issue resolve! Please help!

  39. *= mi esposo trabajo y su empleador le pago en efectivo le mando la hoja 1099 de lo ganado al momento de reportar el impuesto le dijeron que no recibiria el credito de nuestros dos hijos por que el tine solo itin para la taxes quisiera saver si es cierto

  40. my wifes mother has dimensia and is in a care facility.my wife does her laundry sometimes we pay for in house haircuts but mostly its the fuel and wear on our car.my wife probably puts on a couple thousand miles a year.its almost 100 miles round trip to facility.can we claim anything.she is executor of will and the only sibling doing anything to help

  41. I’ve been retired on SSDI since 2008 (“my” only income). My wife retired 11/11/11, drawing a pension & SSI for 2012. Her pension withheld “very little” for taxes in 2012 so for the 1st time, we owe a bundle [Married filing jointly with high itemized deductions]. Q- can we file “married filing separately” and I claim only my SSDI and she claim her pension, SDI and the itemized deductions? That should greatly lower our outrageous tax owed for 2012.

    • Hi – You are certainly entitled to file as married Filing Separately, but most couples benefit from filing jointly. Filing separately reduces or even eliminates many deductions and credits. Also, special rules apply in community property states. The attached link has more details. Hope it helps! –Christopher http://turbotax.intuit.com/support/go/GEN83639

  42. My son is a college student.His 1098 -T shows he got more scholarship and grants than his tuition fees. My question is if he is able get any kind of tax credit like hope and American education credit as he is my dependant.Thanks

    • Hi – First, if he is your dependent, then you must claim the education tax credits on his behalf. Second, if all his qualified education expenses were covered by grants and scholarships, then you likely are not eligible for the credits anyway. Indeed, if he really received more in scholarships than he was billed in tuition, then the excess may be considered taxable income. He may want to confirm with the school that his Form 1098-T is correct. More information is available at this link: http://turbotax.intuit.com/support/go/GEN12259 –Christopher

  43. My wife received a lot of clothes and old items from a friend in a different state and donated them all to the local Good Will in that state. Can we claim the deduction on our tax return?

    • Hi – Typically the thrift store will give you a receipt indicating the value of the items you donate. If you have that receipt, then you should be able to claim the value, especially if it’s a modest amount, say less than $250. The attached link has more details. –Christopher http://turbotax.intuit.com/support/go/GEN80369

  44. We own a 2 family house and have a tenant that wasn’t able to work in 2012, so couldn’t pay rent. Is there a form we can use to file for utilities and repairs as we aren’t allowed to use schedule E because we didn’t collect any rent? Thank you, JC

    • Hi – There’s no other way to report rental income and expenses other than Schedule E, but you may be able to carry over the losses to offset future income. So you should still enter those expenses, even if you collected no rent. The attached link has more information. –Christopher http://turbotax.intuit.com/support/go/GEN12255

  45. Can I claim my son, he is 37 years old, unemployed, he staying in my house for last couple years. Thanks

  46. Turbo Tax had computed our long and short term gains on stock investments. The long term gain should be taxed at 15% but Turbo Tax is showing it as earned income and lumped it together with everything else on the 1040 form. How can I be sure that Turbo Tax is only computing 15% on this portion of our income as our overall tax rate is closer to 23% Help…Help

  47. What educational expenses qualify for Lifetime Learning Credit for my children who are in grad schools full time.
    Only the ones from 1098T form or also the cost of the books purchased on line. What other cost qualify for that credit.
    Thanks.

    • Hi – Qualified education expenses under the Lifetime Learning Credit include tuition, student-activity fees, and expenses for course-related books, supplies, and equipment — BUT ONLY if the fees and expenses must be paid directly to the institution as a condition of enrollment or attendance. The attached link has more details. –Christopher http://turbotax.intuit.com/support/go/GEN80422

  48. My mother passed away August 2012. She was on Medicaid and had no money. I paid the $9000 for her funeral can I deduct that on my taxes.

    • Sorry for your loss. Unfortunately, the estate is expected to pay funeral costs out of estate assets. Any costs paid by family or friends are unfortunately not deductible. –Christopher

    • i have claimed my mother as a dependent for many years she passes away I paid cash for her funeral can I tak that expense off my tAXES

      • No, but you can still deduct her as a dependant a s long as she qualifies or meet standards for support 51per cent that you paid include room and board. Taking her back and forth to doc.

  49. Hello, recently refi my home (Nov, 2012) and they reduce the price by $207K. Do I pay taxes on that amount? Also, my partner is not working and hasn’t work in over a year, can I claim them on my taxes as a dependent exemptions

  50. Hi, my husband and myself would like to know is we can claim my parents. They both receive social security, but we have helped support them because they only receive 1500.00 a month and out of this they pay 500.00 for medical insurance to make up the difference from their Medicare Part B, car payment of 400.00 and insurance for car of 200.00. Their home was paid for but they have had to get a loan against it to have a new roof but on it. We send them money so that they are able to buy food and clothng.

  51. I have purchased my house in 2008 when I filed my taxes I was told that I qualified for almost 8 thousand; I took it but I did not know that I have to pay it back; I have friends they purchased their house in 2009 they got the same amount of money but they do not have to pay back; how come these things happen we are all people suffer from this impact of the economy; why some have to pay back and some not; what can I do to be in the same spot as my friends I need that money the IRS are deducting from my taxes.
    Please let me know!

    • Hi – Congress creates the tax code, not the IRS. And Congress, for whatever reason, decided that the 2008 Homebuyer Credit must be repaid over 15 years, but the 2009 and 2010 Homebuyer Credits do not need to repaid at all. Sorry if it seems unfair, but that’s indeed how the credits are structured. –Christopher

    • Hi – Congress creates the tax code, not the IRS. And Congress, for whatever reason, has decided that the special filing status, Head of Household, should require that a “Qualifying Person” (usually a dependent child) must live in the household. The attached link has more details. –Christopher http://turbotax.intuit.com/support/go/GEN84056

  52. can i claim all my pharmacy expenses. all medications that were paid out of pocket in the year 2012 can i get a print out and put that on my taxes? never thought of that but someone told me i should. and also my car registration receipts?

    • Hi – You can only claim your prescription medicines; over-the-counter medicines are no longer deductible. A more detailed list of qualified expenses is available here: http://turbotax.intuit.com/support/go/GEN80606

      As for vehicle registration fees – it varies by state. You should ask your local DMV for guidance. –Christopher

  53. If I claim my unemployed boyfriend as a dependent, will I become liable for his previously unpaid taxes and penalties?

    • Hi – The IRS does not apply refund offsets for delinquent debts owed by dependents, only the taxpayer. –Christopher

  54. Hi KarenL.

    We {my wife and I}filed our tax this year as married filing jointly through Turbo Tax and got the refund but told me she got nothing to give me, meaning she is taking all the money. Is there anything I can do? I am asking this beacuse if the refund is more than we are supposed to have, IRS we come after us to pay back and since I did not get my share of this year refund, I need to know what I should do. Someone told me to and report to the IRS. What do you think.

    • Hi – If a married couple files an accurate return and the IRS issues the refund expected, then there’s nothing the IRS is going to do to resolve a dispute between the two spouses about who gets to keep the refund. That’s an issue between you and your spouse.Hope that answers your question.–Christopher

      • Hi Christopher, And what happened if the refund was not accurate but the IRS had paid but one spouse kept all the money, will the IRS make both spouses pay back? Remember one of the spouses did not get a share of that refund

  55. My daughter is 26 and a full time student in Los Angeles, Calif. I live in North Carolina and have paid all her living expenses with the exception of $2000.00 during 2012. She lives in an apartment. All expenses were paid by me. Can I include her as a qualifying relative on my 2012 tax return.

    • Hi – The general rule for claiming an adult child as a dependent is that they must be single, have less than $3,800 in income (not including Social Security), and that you must provide at least half their total support. The attached link has the complete requirements. Cheers… –Christopher http://turbotax.intuit.com/support/go/GEN12426

  56. I could not figure out why my turbo tax I filed back on FEB 4 still is not in my acct. direct deposit I tried for weeks to get this answered. Finally I got a hold of IRS and they said my tax form is in a non postable acct due to wrong coding they said not my fault not turbo taxes fault but IRS fault. I said so I have to wait for someone to correct this IRS said yes. Someday I will get my money. IRS said due to changed tax laws. This I have never heard of and why does my return have to be coded? Experts can you answer this for me? Still waiting for my return. I should have had my return 21 days after filing for FEB 4. Thank you.

  57. My boyfriend and I work from home, we both have separate Ebay accounts. He has made over 20k and has received the 1099k from paypal, I have not. We are both completely lost as to what to do, what to file, who to talk to……we are both afraid were gonna go under!!!! Please HELP!!!

  58. I had a child in June, but have not yet applied for a SSN. Can I claim the Dependent and Child Care credit, or do I need to first obtain a SSN for my daughter?

    • Hi Carl,
      Sorry unfortunately you have to have your daughter’s SSN in order to claim the credit as well as claiming her as a dependent and any other dependent related credits or tax deductions.
      Thank you,
      Lisa Greene-Lewis

    • Hi Inewsom – It depends… If you are the only LLC member and have not elected to file as an S-Corp, then you will file a Schedule C with your individual return. That is easiest. If you are a multi-member LLC you will file as a Partnership (or S-Corp if you elected that) which will issue each member a K-1 form for their share of the profits/losses. If it you and your wife only on the LLC, then you will file as a Partnership or you can elect to file Schedule Cs if you live in a community property state. Please see this link http://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Election-for-Husband-and-Wife-Unincor… Thanks, Karen

  59. Where in TurboTax Deluxe do I input data from the 1099-B form I received which includes Form8949, both short (part1) and long (part 2) figures/

    • Hi John G. – You input your 1099-B in the Wages & Income area. Go to the Federal Taxes tab, Wages & Income, Explore On My Own, scroll down to Investment Income, then Stocks, Mutual Funds, Bonds, Other. The software will prepare the Schedule D and Form 8949 for you based on your input. Thanks, Karen

  60. i have deluxe program. entered income from qualified pension plan. program asked how much is a RMD. RMDs are not required of a regular pension plan. What is going on??

    • Hi Jim – The RMD rules apply to all employer sponsored retirement plans, including pensions, profit-sharing plans, 401(k) plans, 403(b) plans, and 457(b) plans. The RMD rules also apply to traditional IRAs and IRA-based plans such as SEPs, SARSEPs, and SIMPLE IRAs. The software automatically asks about it when you turn 70 1/2. Your pension plan trustee automatically calculates the RMDs in their distribution. Hope that helps. Thanks, Karen

  61. I purchased the Primier Turbotax software, can I e-file my sons State tax also? Or can I only e-file my own Stae Tax return? Can I run his State tax with the same software and mail it?

    • Hi Bonita – You can prepare and file up to 5 tax returns on the Desktop/CD version of TurboTax. Only one taxpayer is allowed for the online version. Thanks, Karen

  62. I am very frustrated. On my Federal Taxes I have an Error Check.Check This Entry
    Carryover Worksheet: Total Withheld Payments, Carryover Worksheet-1 should be equal to or greater than the sum of amount Paid with Extension and amount of Estimates Paid after 12/31.

    Total W/H Pmts I worked last night and today trying to figure out the problem but none of the help lists tell me what to do. Please Help

  63. We recently got a new computer. I saved Turbo Tax 2011 to a disk. Do I need to download that and 2011 Software before doing 2012. I want to be sure it picks all info from last year. Or does it automatically pick up the info from the IRS? I am a real dummmy when it comes to computers.

    Thank you for your help.

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