This is definitely a widespread TurboTax issue - I'm a volunteer tax preparer and we've seen dozens of cases like this in the past two weeks. Here's what works: 1. Download your return as a PDF first (save a copy) 2. Log out completely 3. Clear browser cache and cookies 4. Use a different browser if possible 5. Log back in and go directly to the state return section 6. Enter your direct deposit info VERY SLOWLY (literally type each number with a 1-second pause) 7. Wait 15 seconds before clicking continue This has worked for everyone I've helped so far. It's some kind of validation timing issue with their state return processing.

I've been dealing with this exact same issue for the past week! Just wanted to add that if you're still having problems after trying all the browser tricks, check if your state has any recent tax law changes that might be causing validation issues. I discovered that my state added a new tax credit form this year that TurboTax wasn't handling properly. I ended up having to temporarily remove that credit, submit the return, and then file an amendment later. Not ideal, but it got me past the freeze. Also, make sure you're not using any browser extensions or ad blockers - I found that my privacy extension was interfering with TurboTax's background validation processes. Good luck everyone!

Great question about supplemental property taxes! I went through this exact same confusion when I bought my home two years ago. Here's what I learned: Yes, supplemental property taxes are generally deductible just like regular property taxes, but there are a few key things to keep in mind: 1. **You can only deduct them if you itemize** - They go on Schedule A along with your other property taxes. 2. **SALT cap applies** - As others mentioned, you're limited to $10,000 total for state and local taxes (including property taxes and state income tax). 3. **Timing matters** - You deduct them in the year you actually paid them, not when they were assessed. 4. **Check your escrow** - Make sure to coordinate with your mortgage company. They might need to adjust your escrow account going forward. For your specific situation about whether to itemize vs. take the standard deduction, you'll want to add up ALL your potential itemized deductions (property taxes, mortgage interest, charitable donations, etc.) and compare that to the standard deduction ($13,850 for single filers, $27,700 for married filing jointly in 2023). The supplemental bill alone might not be enough to make itemizing worthwhile, but combined with your mortgage interest and other deductions, it could push you over the threshold. I'd recommend using tax software or consulting a tax professional to run both scenarios and see which gives you the better result.

Just wanted to add another important consideration that hasn't been mentioned yet - if you're planning to refinance or sell your home within the next few years, keep copies of all your supplemental property tax documentation! I learned this the hard way when refinancing. The lender wanted to see the complete property tax history to properly calculate my new escrow payments, and I had to scramble to get copies of my supplemental bills from two years prior. Having everything organized made the process much smoother the second time around. Also, if you're using a tax preparer, make sure to bring both your regular property tax statement AND the supplemental bill. Some preparers aren't as familiar with supplemental assessments and might miss including it in your deductions. I caught this mistake with my first preparer and it would have cost me about $400 in additional taxes. One last tip - if your supplemental bill seems unusually high compared to what you expected based on your purchase price, you have the right to appeal the assessment in most states. The deadline is usually pretty tight (often 60-90 days), so don't wait if you think there's an error!

I'm confused about something else related to this. If I contribute my personal laptop to my partnership but don't get any additional partnership interest, is this technically a donation? Does that mean I could claim a charitable deduction instead?

This is a great discussion that highlights how complex partnership contributions can be! I just wanted to add one practical tip that helped me when I contributed equipment to my consulting partnership last year. Make sure to document everything thoroughly at the time of contribution - take photos of the equipment, keep receipts, and get written acknowledgment from the partnership. I created a simple contribution agreement that included the original purchase price, current condition, and estimated fair market value (based on similar used equipment listings). This documentation became invaluable when our CPA prepared the partnership return and needed to set up the proper basis tracking and 704(c) allocations that @Elijah O'Reilly mentioned. Having everything documented upfront saved us time and potential headaches later. Also, don't forget that once the partnership owns the equipment, you'll need to be careful about personal use. The IRS frowns on partners using partnership assets for personal purposes without proper documentation and potential imputed income consequences.

I went through a similar situation two years ago with a rental property for my daughter's college expenses. One strategy that worked well for me was a partial gift/partial sale approach. I gifted her the maximum annual exclusion amount ($18,000 for 2025) as her share of the property equity, then sold her the remainder at fair market value with seller financing at a low interest rate. This kept her in a lower tax bracket for the capital gains while still getting me the cash flow I needed for tuition payments. The key was structuring the sale price and payment schedule to minimize the tax impact on both sides. I'd definitely recommend running the numbers on this approach compared to an outright sale, especially since you mentioned the property has appreciated significantly. Also worth noting that this strategy helped preserve some of her financial aid eligibility since the property transfer was structured as a purchase rather than a windfall.

There's another angle worth exploring that hasn't been mentioned yet - if you're over 65 and this is your first time selling investment property, you might want to look into opportunity zone investments. If you reinvest the capital gains from your rental property sale into a qualified opportunity zone fund within 180 days, you can defer the capital gains tax until 2026 (or until you sell the opportunity zone investment, whichever comes first). While this doesn't eliminate the depreciation recapture, it could give you more flexibility with the timing of when you pay the capital gains portion. The challenge is finding a suitable opportunity zone investment and making sure you'll have the liquidity when the deferral period ends, but it could be worth exploring given the $95k appreciation you mentioned. You'd still get the cash from the sale to pay for college expenses while deferring a significant portion of the tax burden.

This entire discussion has been incredibly valuable! I'm dealing with a missed RMD situation myself and want to share one more resource that helped me. For anyone who's still confused about the Form 5329 calculations, the IRS actually has a specific worksheet in the instructions that walks through examples of how to complete lines 52a-53b for different scenarios. I found it in the 2023 Form 5329 instructions under "Specific Instructions for Lines 52a through 55." What really helped me was creating a simple spreadsheet to track everything: required RMD amounts by account, actual distributions taken, shortfall amounts, and correction dates. This made it much easier to complete the form accurately and also serves as documentation if the IRS has any follow-up questions. One last tip - if you're working with a tax professional, make sure they're familiar with the recent changes to Form 5329 and the RMD correction procedures. Some preparers are still learning about the updated form structure and correction program rules. Don't hesitate to share this thread with them if it helps clarify the process! The collective wisdom here has made what seemed like an impossible tax problem completely manageable. Thank you to everyone who shared their real experiences - it's made all the difference for those of us navigating this situation for the first time.

This has been an absolutely fantastic thread! As someone who just discovered I'm in a similar situation with a missed RMD from my inherited traditional IRA, I can't thank everyone enough for sharing their real-world experiences. I wanted to add one more practical tip that might help others: when you're gathering documentation for your Form 5329 filing, make sure to get a written statement from your IRA custodian showing the original account balance as of December 31st of the prior year and their calculation of your required RMD amount. This becomes crucial evidence if the IRS ever questions your correction. Also, I've learned from reading through all these responses that timing really matters for the correction window. The key date is April 15th of the year following the missed RMD - so for a 2024 missed RMD, you have until April 15, 2025 to make the correction and still qualify for the penalty waiver. One question I still have: if you discover the missed RMD in February or March, is it better to make the corrective distribution immediately, or does it matter as long as you're within that April 15th window? I want to make sure I handle the timing correctly to maximize my chances of penalty waiver approval. Thanks again to everyone who contributed - this thread should be required reading for anyone dealing with inherited IRA RMD issues!