TurboTax: Can It Handle My Situation?

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Topic Author
Kookaburra
Posts: 1678
Joined: Thu Apr 02, 2020 11:14 pm

TurboTax: Can It Handle My Situation?

Post by Kookaburra »

Could folks help me understand whether TurboTax can properly handle my tax situation, and if so, which version I need?

-partner who receives a K-1 (1065)
-has unreimbursed partnership expenses (UPEs) that will need to be reported on Schedule E and Schedule SE
-UPEs include office-in-home (OIH) expenses which meet the de minimus rules, and for which the return needs to have a statement to this effect
-an opportunity break out the UPEs in a supporting statement as: (1) business use of home, (2) office equipment/supplies, and (3) business travel.

-interest and dividends (Schedule B)
-stock sales and capital loss harvesting (Form 8949 and Schedule D)
-Backdoor Roth and Form 8606
-Foreign Taxes paid on mutual funds (but below $600 MFJ threshold for Form 1116)
-QBI on equity mutual funds (Form 8995-A)
-Estimated taxes paid to meet 90% safe harbor; income uneven through the year (annualized income method)
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MP123
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Re: TurboTax: Can It Handle My Situation?

Post by MP123 »

Kookaburra wrote: Tue Nov 22, 2022 11:46 pm -UPEs include office-in-home (OIH) expenses which meet the de minimus rules, and for which the return needs to have a statement to this effect
-an opportunity break out the UPEs in a supporting statement as: (1) business use of home, (2) office equipment/supplies, and (3) business travel.
Generally TT won't prepare free form schedules or statements. You'd probably need pro level tax software to allow the attachment of .pdf files and that sort of thing. If you're paper filing with TT then you could create the statement yourself, of course.

The above might be an issue for you, the rest of your requirements are no problem for TurboTax. I'd recommend any of the desktop versions.
Topic Author
Kookaburra
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Re: TurboTax: Can It Handle My Situation?

Post by Kookaburra »

Does anyone know how important it is that my return include the statements I mentioned (about de minimus and a breakdown of OIH expenses)? I originally assumed they were required since my CPA has included them in past returns, but I don’t know if they are needed, highly recommended, or just supplemental “whatever” forms.
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MP123
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Re: TurboTax: Can It Handle My Situation?

Post by MP123 »

Kookaburra wrote: Wed Nov 23, 2022 11:20 am Does anyone know how important it is that my return include the statements I mentioned (about de minimus and a breakdown of OIH expenses)? I originally assumed they were required since my CPA has included them in past returns, but I don’t know if they are needed, highly recommended, or just supplemental “whatever” forms.
The instructions for Sch E do not require an attachment when reporting UPE.

https://www.irs.gov/instructions/i1040s ... 32td0e1927

Such a statement might be handy if the deductions were ever questioned, but I don't think they are required to be filed with the return.
spectec
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Re: TurboTax: Can It Handle My Situation?

Post by spectec »

Are you sure the return your CPA filed in the past actually included all the attachments? Most software creates supplemental schedules of various types and prints them in the "Client Records" package, but they are not filed with the return as attachments. Good software will have a notation at the top explaining whether it is an "Information Only" schedule or an actual attachment to the return.
Don't gamble; take all your savings and buy some good stock and hold it till it goes up, then sell it. If it don't go up, don't buy it. - Will Rogers
Topic Author
Kookaburra
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Joined: Thu Apr 02, 2020 11:14 pm

Re: TurboTax: Can It Handle My Situation?

Post by Kookaburra »

spectec wrote: Wed Nov 23, 2022 12:02 pm Are you sure the return your CPA filed in the past actually included all the attachments? Most software creates supplemental schedules of various types and prints them in the "Client Records" package, but they are not filed with the return as attachments. Good software will have a notation at the top explaining whether it is an "Information Only" schedule or an actual attachment to the return.
Yes. It includes numerous attachments (generated by the software) and a custom letter describing the UPE breakdown. It appears all of these were attached in the filing. They were all included in the version I got, so that’s all I have to go off of. None of them say “Information Only”. My CPA is admittedly conservative and likes to provide the details upfront to prevent any confusion or flags. But I don’t know to what extent these are: required, recommended, or not needed at all. That’s the ultimate question I have as to whether TurboTax is good fit for me.
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