Table of contents Foreign Wages Online Desktop Foreign Retirement Income Online Desktop Related Links If you received foreign income that was not reported on Form W-2 or Form 1099-R, complete the FEC (Foreign Employer Compensation) worksheet. The foreign income will be carried to Form 1040, Line 1a or Line 5, depending on the type of […]
The TaxAct website includes a Notice Review service. Notice Review can help you understand what type of IRS notice you have received and why. More importantly, it will provide information to help you understand the notice and the steps you need to take to resolve the situation with the IRS. For more information, go to […]
Go to our Access Prior Year Tax Returns webpage for a list of available Online and Desktop programs for previous years. Note: TaxAct does not provide archived copies of returns filed through the TaxAct Desktop or TaxAct Professional Editions. If you no longer have access to your saved return file, you can receive a copy […]
If this is your first time filing a tax return, there are a few things you should keep in mind: Talk to your parents. Even if you have earned income, your parents may still be able to claim you as a dependent. Depending on your circumstances, you may need to decide whether they will claim […]
TaxAct® has developed a worksheet to assist you with the preparation of the Free Application for Federal Student Aid (FAFSA) online application. Based on the information entered into TaxAct (and the additional information entered in the FAFSA section) the FAFSA Tax Summary Worksheet will provide you with the applicable income tax information needed for you to […]
The United States income tax is a pay-as-you-go tax, which means that tax must be paid as you earn or receive your income during the year. You can either do this through withholding or by making estimated tax payments. If you do not pay enough tax, you may have to pay a penalty for underpayment […]
There are two different forms relating to injured/innocent spouses, Form 8379, Injured Spouse Allocation and Form 8857 Request for Innocent Spouse Relief. See Publication 971 for details. The TaxAct program does not support Form 8857, Request for Innocent Spouse Relief. To complete Form 8379, Injured Spouse Allocation, follow the steps below. Online Dashboard From within […]
The Internal Revenue Code only allows income averaging to farmers and fishermen. If you are a farmer or fisherman, you need to complete Schedule J, Income Averaging for Farmers and Fishermen, using the steps below. Online Dashboard From within your TaxAct return, click Resources. On smaller devices, click the menu at the top left corner […]
If you have church income (NOT including clergy, minister, or missionary wages), reported on a Form W-2 Wage and Tax Statement that are subject to self-employment taxes, but no FICA (Social Security and Medicare) taxes were withheld, you may need use the steps in the FAQ Schedule SE – Adjustments. Schedule SE (Form 1040) will […]
You can set up monthly electronic funds withdrawals for your installment request when you enter your information for Form 9465 Installment Agreement Request. Filing Form 9465 does not guarantee your request for a payment plan. The IRS will contact you to approve or deny your installment plan request. To enter Form 9465, follow the steps […]
Use Form 8960, Net Investment Income Tax—Individuals, Estates, and Trusts, to figure the amount of your Net Investment Income Tax (NIIT). To access Form 8960 in the TaxAct program, follow the steps below. Online Dashboard From within your TaxAct return, click Taxes & Miscellaneous. On smaller devices, click the menu at the top left corner […]
Certain food and beverage establishments can use Form 8846, Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips, to claim a credit for social security and Medicare taxes paid on employee’s tips. This credit is part of the general business credit and is reported on Form 3800, General Business Credit. Instructions […]
The checkbox at the top of Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts, must be selected if you would like the IRS to compute any applicable penalty and send you a bill. To check the box Check here if you would like the IRS to compute any applicable penalty and send […]
In order to complete Schedule AI, you first need to complete the Underpayment Penalty section, which transfers automatically to Part II of Form 2210, Underpayment of Estimated Tax by Individuals, Estates, and Trusts. This will determine whether you need to attach Schedule AI. To access the Underpayment Penalty entries, follow the steps below. Online Dashboard […]
To access Form 1310 in the TaxAct program, follow the steps below. Online Dashboard From within your TaxAct return, click Taxes & Miscellaneous. On smaller devices, click the menu at the top left corner of your screen, then make your selection. Click the Other Tax Forms drop-down. Click Add beside Claim a Refund For a Deceased […]
If a return has generated a Net Operating Loss (NOL) in the current year, there will be a Green Alert in the return titled Green Alert – Net Operating Loss. The NOL amount will be reflected on Line 25 in Schedule A – NOL of Form 1045, Application for Tentative Refund. Instructions to review/modify the […]
Form 1042-S Foreign Person’s U.S. Source Income Subject to Withholding is used to report amounts paid to foreign persons (including persons presumed to be foreign) that are subject to tax withholding, even if no amount is deducted and withheld from the payment because of a treaty or exception to taxation, or if any amount withheld […]
IRS Notice CP-48 is sent to inform a taxpayer that their Individual Taxpayer Identification Number (ITIN) must be renewed. ITINs now expire when they have not been used on at least one federal tax return for three consecutive tax years. Once an ITIN expires, it must be renewed before it can be used on a […]
IRS Publication 555 explains how income and deductions must be reported when individuals live in a community property state. If spouses or registered domestic partners (RDPs) file separate federal returns, they may be required to report: One-half of their combined community income and deductions, and All of their own separate income and deductions. Community property […]
To report that you or your spouse have an IRS approved Form 4361 in the TaxAct program, follow the steps below. Online Dashboard From within your TaxAct return, click Taxes & Miscellaneous. On smaller devices, click the menu at the top left corner of your screen, then make your selection. Click the Additional Tax Payments drop-down. […]
Exempt Wages Clergy, minister, or missionary wages reported on Form W-2 are subject to self-employment taxes, but no Social Security and Medicare taxes are withheld. While entering your Form W-2, you will see a screen that says W2: Tell us if any of these situations apply. Here you can select Income earned as a minister […]
2024 was the last year to file Form 5405 and the lookup tool is no longer available. The following applies to 2024 and prior only. Online Dashboard From within your TaxAct return, click Resources. On smaller devices, click the menu at the top left corner of your screen, then make your selection. Under My Return, […]
If you received foreign income, you must report it on your individual income tax return. IRS Form 2555 Foreign Earned Income, Form 1116 Foreign Tax Credit, or Schedule A (Form 1040) Itemized Deductions may provide income tax benefits. See the following for entering income or distributions from foreign entities: Foreign Earned Compensation – FEC Foreign […]
Form 5498-SA HSA, Archer MSA, or Medicare Advantage MSA Information, reports contributions to one of the following: Archer MSA Generally, contributions you make to your Archer MSA are deductible. Employer contributions are excluded from your income and are not deductible by you. If your employer contributes to one of your Archer MSAs, you cannot contribute […]
See Calculating and Paying Quarterly Estimated Taxes.
A cooperative files Form 1099-PATR, Taxable Distributions Received From Cooperatives, for each person paid at least $10 in dividends and other distributions. If you received a Form 1099-PATR, you will need to determine if the amount needs to be entered on your return. If the purchases you made from the cooperative were only for personal […]
In most circumstances, when a Federal Government agency, financial institution, or credit union cancels or forgives a debt of $600 or more, you will receive Form 1099-C, Cancellation of Debt. The amount of canceled debt appears in Box 2. Other important information may appear in additional boxes, such as: Box 1 – Date of identifiable […]
The following information is adapted from the IRS Form 1040 Instructions: If a taxpayer died before filing their return and has a filing requirement, the surviving spouse or personal representative must file the final return. If taxes were withheld, a return must be filed to claim a refund. If your spouse died and you didn’t […]
When filing a return, the first year after the taxpayer or spouse has died, you can either import the prior year information into the return, and then make changes, or skip the import process and enter return details manually. If you choose to import the prior year’s information, if the spouse was the deceased you […]
Form 4868 is used to request an extension of time to file an individual tax return, Form 1040. Generate and FileTo generate and file Form 4868, follow the steps below. NOTES: Form 4868 is only an extension of time to file, not an extension of time to pay any amount due. If you expect […]
If you were a victim of identity theft, you may receive IRS Notice CP01A containing a single-use 6-digit Identity Protection (IP) PIN. For information on IP PINs, follow this link to the IRS FAQs about the Identity Protection Personal Identification Number (IP PIN). If you have misplaced the IRS letter containing your IP PIN, you […]
Refer to IRS Publication 225 Farmer’s Tax Guide for complete instructions. Most government program payments are reported on Schedule F, Part I. This includes government payments, conservation program payments, indemnity payments for livestock killed by a natural disaster, cost-sharing payments, and forage disaster payments (cash, materials, services, etc.). If a government payment is paid and […]
The Electronic Federal Tax Payment System (EFTPS) is a free tax payment system for all taxpayers. The EFTPS system is an easy way to pay your federal taxes for individuals as well as businesses. You can make ALL of your federal tax payments including federal tax deposits (FTDs), installment agreement, and estimated tax payments using […]
IRS Form 8888, Allocation of Refund, is used by taxpayers who want their refunds to be deposited into more than one account. The taxpayer may split his/her refund into as many as three financial accounts. For example, one might designate part of the refund be deposited into a savings account, part into a checking account, […]
Once the IRS accepts an e-filed return, they do not provide us further information regarding when the refunds are mailed or direct deposited. See Refunds – IRS Questions and Answers for details. Note that any link in the information above is updated each year automatically and will take you to the most recent version of […]
Employers are required to report the cost of an employee’s health care benefits in Box 12 of Form W-2 Wage and Tax Statement, using code “DD” to identify the amount. This amount is reported for informational purposes only and is NOT taxable. It is included in Box 12 in order to provide comparable consumer information […]
TaxAct® supports the the preparation of California individual and business tax returns, but does not support the reporting requirement by employers (i.e. Forms 592, 592-A, 592-B, 592-F, or 592-V). You can obtain further information on the California Franchise Tax Board web site by accessing the following links: California Instructions for Form 592 Resident and Nonresident […]
Below are links to state refund status webpages. Specific questions about a state refund should be directed to the relevant state agency. For information on the status of a federal refund, see the IRS’s Where’s My Refund? webpage. Alabama Illinois Mississippi Oklahoma Arizona Indiana Missouri Oregon Arkansas Iowa Montana PennsylvaniaPhiladelphia, PA California Kansas Nebraska Rhode Island Colorado […]
Since 2016, the IRS has allowed Form 1040-NR U.S. Nonresident Alien Income Tax Return to be e-filed. Form 1040-NR-EZ is no longer available. TaxAct supports e-filing for Form 1040-NR. For more information, go to the IRS Instructions for Form 1040-NR. Note that any link in the information above is updated each year automatically and will […]
The IRS First-Time Abate program provides certain penalty relief to taxpayers who have been tax compliant for the previous three years or have not previously been required to file a return. If you have a clean compliance history for the last three years, you may be eligible for first-time relief from the following penalties: Failure […]
Per the IRS Offers Tips for Taxpayers Who Missed the Tax Deadline webpage: File as soon as possible. If you owe federal income tax, you should file and pay as soon as you can to minimize any penalty and interest charges. There is no penalty for filing a late return if you are due a […]
A single-member LLC is not considered a separate entity for federal tax purposes. An LLC with only one member is treated as an entity disregarded as separate from its owner for income tax purposes (but as a separate entity for purposes of employment tax and certain excise taxes). This taxpayer is by default required to […]
To enter federal or state withholding amounts when there is not an applicable section in the Q&A interview, use Form 1099-MISC Miscellaneous Income for Box 3. This will transfer the federal/state withholding to the appropriate lines of the returns. The actual Form 1099-MISC is not electronically filed with the return; only the information that it […]
If you owe Indiana state taxes, a Post Filing Coupon (PFC) will print with your return. This form must accompany any payment you make to the Indiana Department of Revenue (if you expect to receive a refund, there is nothing to mail and the PFC will not print) . If you are filing the return […]
When entering a military address, the only valid city entries are APO (Army Post Office), DPO (Diplomatic Post Office), or FPO (Fleet Post Office). Related Links What are APO/FPO/DPO addresses, and how can I send a care package to one? Note that any link in the information above is updated each year automatically and will […]
When entering names or social security numbers on the tax return, it is very important to enter them exactly as they appear on the social security card the individual was issued by the Social Security Administration (SSA). The IRS matches the name and SSN on the return with the records from the Social Security Administration. […]
Returns can still be electronically filed if the taxpayer or spouse (or any of their dependents) has an Individual Taxpayer Identification Number (ITIN) instead of a Social Security Number (SSN). If the dependent does not have a SSN or ITIN yet, the taxpayer can e-file without the dependent and file an amended return later, or […]
All financial information and Social Security Numbers are blacked out on a redacted return. For insurance purposes, this is often done so they can confirm that your spouse and/or child(ren) are listed on your return as they expect them to be.
The Patient Protection and Affordable Care Act, signed into law on March 23, 2010, amends Section 108(f) of the Internal Revenue Code of 1986 to expand the exclusion from taxable income the assistance received for student loan forgiveness for health care professionals working in underserved areas. Per the Patient Protection and Affordable Care Act, page […]
Per IRS Publication 3 Armed Forces’ Tax Guide, page 15: Combat Zone Defined A combat zone is any area the President of the United States designates by Executive order as an area in which the U.S. Armed Forces are engaging or have engaged in combat. An area usually becomes a combat zone and ceases to […]
For military personnel, your permanent residence is generally considered to be your residence when you entered the military. However, if you or your spouse have earned income in the state in which you were stationed, you may need to file a state tax return as a nonresident of that state. You will need to determine […]
Per IRS Publication 3 Armed Forces’ Tax Guide, page 35: Spouse incapacitated. If your spouse can’t sign because of disease or injury and he or she tells you to sign, you can sign your spouse’s name in the proper space on the return, followed by the words “by [your name], Husband (or Wife).” Be sure […]
If you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable. The Bipartisan Budget Act of 2018 extends the exclusion from gross income of discharge of qualified principal residence indebtedness, which generally allows taxpayers to exclude income from the discharge of debt on their principal […]
Per IRS Instructions for Form 1120-H, page 1: Purpose of Form A homeowners association files Form 1120-H as its income tax return to take advantage of certain tax benefits. These benefits, in effect, allow the association to exclude exempt function income (defined later) from its gross income. Electing to File Form 1120-H A homeowners association […]
If you filed a tax return with a spouse who died in 2022 and you want to change the name of the taxpayer on the refund check, you must file Form 1310 Statement of Person Claiming Refund Due a Deceased Taxpayer. This form can be e-filed with the return. To access Form 1310 in the […]
The TaxAct® program does not support the Heavy Highway Use Tax return on Form 2290 Heavy Highway Vehicle Use Tax Return. This is a separate tax return from Form 1040 U.S. Individual Income Tax Return. You can find it on the IRS website. Related Links Instructions for Form 2290 Note that any link in the information […]
Per Form 8888 Allocation of Refund (Including Savings Bond Purchases), you cannot have your refund deposited into more than one account or buy paper Series I savings bonds if you file Form 8379 Injured Spouse Allocation. Related Links Direct Deposit Direct Deposit Into Multiple Accounts Form 8888 E-Filing – Incorrect Bank Information for Direct Deposit […]
The Free Application for Federal Student Aid (FAFSA) worksheet in the TaxAct® program is only used if you choose to print the worksheet for help completing the application on the FAFSA website. If you do not choose to print the worksheet, it will have no effect on your tax return. By default, the worksheet starts […]
The filing requirements for a federal tax return depend on factors such as the taxpayer’s income, the taxpayer’s age and filing status, the age of the spouse on joint returns, if the taxpayer is claimed as a dependent on someone else’s return, earnings from self-employment, and more. The IRS Interactive Tax Assistant (ITA) Do I […]
The TaxAct® program does not support IRS Form 1040-C U.S. Departing Alien Income Tax Return. Form 1040-C is used by aliens who intend to leave the United States or any of its possessions to report income received or expected to be received for the entire tax year, and pay the expected tax liability on that […]
If you are a U.S. citizen or resident alien, the rules for filing income, estate, and gift tax returns and for paying estimated tax are generally the same whether you are in the United States or abroad. Your income, filing status, and age generally determine whether you must file an income tax return. If you […]
The TaxAct® program supports the preparation of business tax returns, but not the employer reporting forms (example: Form 941, Form 944, Form 940, Form 945, Form 8027, or Form 5500). You can access the forms and other information through the IRS: IRS Publication 15 Publication 15 (Circular E), Employer’s Tax Guide Publication 15-A Employer’s Supplemental Tax […]
When using Form 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts and you incur a net capital loss, by law this loss is limited to $3,000 for the tax year. When TaxAct® calculates your annualized income on Line 3 of Schedule AI and you are claiming a net capital loss, this loss limitation […]
The TaxAct program no longer supports the creation of FinCEN Form 114 (FBAR) as of tax year 2019. Since this is a Bank Secrecy Act (BSA) form, it is not processed by the IRS. You can fill out and e-file the form through the BSA E-Filing System. If you own a foreign bank account, brokerage […]
Per IRS Publication 908 Bankruptcy Tax Guide, page 3: Individuals in Chapter 12 or 13 Only individuals may file a chapter 13 bankruptcy. Chapter 13 relief isn’t available to corporations or partnerships. The bankruptcy estate is not treated as a separate entity for tax purposes when an individual files a petition under chapter 12 (Adjustment […]
Per IRS Publication 908 Bankruptcy Tax Guide, page 2: Bankruptcy proceedings begin with the filing of either a voluntary petition in the United States Bankruptcy Court, or in certain cases an involuntary petition filed by creditors. This filing creates the bankruptcy estate. The bankruptcy estate generally consists of all of the assets the individual or […]
Per IRS Publication 908 Bankruptcy Tax Guide, page 2: CAUTION! This publication isn’t intended to cover bankruptcy law in general, or to provide detailed discussions of the tax rules for the more complex corporate bankruptcy reorganizations or other highly technical transactions. Page 3: Individuals in Chapter 7 or 11 When an individual debtor files for […]
The Foreign Tax Credit is available if you paid taxes to a foreign country on foreign-source income and are subject to U.S. tax on the same income. This credit is intended to relieve taxpayers of a double tax burden. Generally, you must be a U.S. citizen or resident alien to take the credit. Foreign taxes […]
When you submit your e-filed return, TaxAct immediately begins transmitting the return to the IRS and/or your state tax agency. So, once you submit a return electronically, there is no way to stop or cancel that transmission. If you made a mistake or forgot to include something: If your return is rejected, you can go […]
The statute of limitations for saving Federal returns is generally three years after the date the return is filed. Returns filed before the federal filing deadline are considered filed on the due date of the return. Per the IRS How long should I keep records? webpage: The length of time you should keep a document […]
Per IRS Publication 525 Taxable and Nontaxable Income, page 31: Court awards and damages. To determine if settlement amounts you receive by compromise or judgment must be included in your income, you must consider the item that the settlement replaces. The character of the income as ordinary income or capital gain depends on the nature […]
If you need to submit certain forms (or attachments) with your return, you are still able to e-file. However, you will need to complete and mail in Form 8453 U.S. Individual Income Tax Transmittal for an IRS e-file Return along with the forms or attachments. Acceptable attachments to Form 8453 include Form 1098-C Contributions of […]
Preparers must apply to obtain an Electronic Filing Identification Number (EFIN) and become an Authorized e-file Provider. This application can be completed online through the IRS E-file for Tax Professionals webpage. If you need assistance, call the IRS e-help Desk number for electronic filing issues: 1-866-255-0654 (toll free), (if outside of the 50 U.S. states […]
TaxAct offers products which handle tax return preparation for Individual, Estates and Trusts, Partnership, S Corporation, C Corporation, and Tax-Exempt Organization returns (1040, 1040-NR, 1040-SR, 1041, 1065, 1120-S, 1120, and 990): TaxAct Federal 1040 for Sole Proprietorship returns. TaxAct Federal 1040-NR for Sole Proprietorship returns. TaxAct Federal 1041 for Estate and Trust returns. TaxAct Professional […]
The Patient Protection and Affordable Care Act (PPACA), commonly termed the Affordable Care Act (ACA) or “Obamacare”, is a federal statute which was signed into law by President Barack Obama on March 23, 2010. Due to this law impacting so many people, there are a number of IRS websites providing information: Affordable Care Act (ACA) […]
If you were a self-employed individual working abroad, you would still report your self-employment earnings and expenses on Schedule C (Form 1040) Profit or Loss From Business. To access Schedule C in the TaxAct program, go to our Schedule C – Entering Sole Proprietorship in Program FAQ. If you need to remove the self-employment tax […]
The following taxpayers are not eligible to use the Self-Select Pin method and need to mail a paper return: Primary taxpayers under age 16 who have never filed. Secondary taxpayers (spouse) under age 16 who did not file in the prior year.
IF the noncustodial parent qualifies, they can claim: claim the child as a dependent the child tax credit for the child (up to $2,000) ONLY the custodial parent can claim: head of household filing status due to that child earned income credit due to that child the credit for child and dependent care expenses the […]
If you electronically filed your New York return and the return was rejected for a Form W-2 Wage and Tax Statement error, you should check the W-2 and correct any input error(s). If no input error was found, please call New York State’s e-file help desk at 1-518-457-6387. They will provide you with the information […]
Self-employment income is reported on Schedule C (Form 1040) Profit or Loss From Business, and the TaxAct program will transfer the net profit or loss to Schedule 1 (Form 1040) Additional Income and Adjustments to Income, Line 3. To report self-employment income on Schedule C in the TaxAct program, go to our Schedule C – Entering […]
Form 1042-S Foreign Person’s U.S. Source Income Subject to Withholding is used to report amounts paid to foreign persons (including persons presumed to be foreign) who are subject to income tax withholding. For an individual taxpayer, Form 1042-S is a document provided to you (and the IRS) by the payer of the income reported. That […]
If you e-file your tax return, you can use EFW to make up to four (4) estimated tax payments. This is a free option. The payments can be withdrawn from either a checking or savings account. At the same time you file your return, you can schedule estimated tax payments for any or all of […]
The TaxAct program supports IRS Form 1041 U.S. Income Tax Return for Estates and Trusts, but not Form 706 United States Estate (and Generation-Skipping Transfer) Tax Return, which is a separate return from the estate income tax return. Related Links Instructions for Form 706 Publication 559 Survivors, Executors, and Administrators Note that any link in […]
The Federal Tax Calculator is a powerful tool available in the TaxAct® program that helps customers perform “what-if” scenarios for future tax years. If you need help accessing the Tax Calculator, go to our Tax Calculator FAQ. Keep in mind that the Tax Calculator is a report for taxpayers to project their earnings and expenses […]
Excess housing allowance is generated when the housing allowance the clergy member received from the church or organization is more than the amount actually used to provide a home. If you need more information refer to IRS Publication 517 Social Security and Other Information for Members of the Clergy and Religious Workers. If you need […]
To enter the death of a taxpayer or spouse in the TaxAct® program, go to our Death of Taxpayer Prior to Filing Return FAQ. If both the taxpayer and spouse are entered as deceased, the TaxAct program will show the name and date of death for both at the top of the federal return. The representative […]
You can elect to have someone of your choosing discuss your federal tax return with the IRS by completing the Third Party Designee section. To enter the Third Party Designee in the TaxAct® program: From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your […]
Identity theft occurs when someone uses your personal information to file a fraudulent tax return. Usually, the tax return is filed with your name, Social Security Number (SSN), and other identifying information in an attempt to obtain a fraudulent refund. Be alert to possible identity theft if you receive an IRS notice or letter that […]
Before you file your current year’s tax return, you should make sure you have all necessary documents including Form W-2 Wage and Tax Statement. You should receive a Form W-2 from each of your employers. Employers have until January 31, 2025, to send you a 2024 Form W-2 earnings statement. If you haven’t received your W-2, […]
Form W-2C Corrected Wage and Tax Statement is issued by an employer if they discover they made a mistake on Form W-2. In TaxAct, you enter your wage information the same way whether you receive Form W-2 or Form W-2C. If you need help reporting the corrected W-2, read our article Form W-2 – Entering in Program. If […]
If you received advance Child Tax Credit (CTC) monthly payments last year, you should be getting Letter 6419 from the IRS. This letter details the total advance payments you received last year and lets you know how much of the credit you can still expect to claim when filing your 2021 tax return. However, the […]
Are PPP loan proceeds taxable income on my tax return if my PPP loan was forgiven under COVID-19 relief? No. Loan proceeds received under the Paycheck Protection Program (PPP) are not taxable income, regardless if the loan was forgiven or not. Forgiven PPP loans are not considered cancellation of debt income, and as such, you […]
Line 30 of the Form 1040 is calculated based on entries the taxpayer has entered for the amounts received for EIP1 (Economic Impact Payment #1) and EIP2. If the amount entered as received differs from the amount of credit available, which is based on the filing status and number of dependents claimed on the return, […]
The American Rescue Plan Act of 2021 was signed into law by President Biden on March 11, 2021. For details on what this means for you, visit our Third Stimulus Payment Frequently Asked Questions page. The American Rescue Plan includes the following tax provisions: Individuals earning $75,000 or less AGI per year will receive $1,400 […]
The IRS has created several tax credits for small business to help them deal with the impacts from the COVID-19 pandemic. Credits related to offering sick pay and family leave due to COVID-19 are reported on IRS Form 7202 Credits for Sick Leave and Family Leave for Certain Self-Employed Individuals Per IRS Instructions for Form […]
Last updated: 4/13/2020 Additional COVID-19 response topics TaxAct Stimulus Registration | COVID-19 and your Taxes page | COVID-19 Response: IRS Extends Time to File and Pay Tax Bill | COVID-19 Response: State Deadlines Extended | Everything You Need to Know About the Stimulus Payments | IRS Filing and Payment Deadlines Questions and Answers | IRS […]
Use IRS Form 9465 Installment Agreement Request to request a monthly installment plan if you can’t pay your full tax due amount. The IRS encourages you to pay a portion of the amount you owe and then request an installment for the remaining balance. Form 9465 is available in all versions of TaxAct®. You can file Form 9465 […]
Per IRS Publication 559 Survivors, Executors, and Administrators, page 25: The general rule is that any gift is a taxable gift. However, there are many exceptions to this rule. Generally, the following gifts aren’t taxable gifts. Gifts, excluding gifts of future interests, that aren’t more than the annual exclusion for the calendar year. Tuition or medical expenses […]
The BluPrint Financial Savings Report is no longer available.
On December 22, 2017, President Trump signed into law Public Law 115-97, Tax Cuts and Jobs Act (clicking the link will allow you to review the entire bill from the U.S. Government Printing Office website). TaxAct’s 2018 Tax Calculator reflects the difference in estimated taxes based on the tax reform rules (calculated on the information you enter in the calculator). […]
On December 22, 2017, Congress passed a tax provision that changed reporting requirements for Section 965 of the tax code. For 2017, TaxAct will not be supporting the Section 965 reporting requirements. We will build them into our 2018 products. If you need to attach a statement for Section 965 reporting, the return will need […]
An individual can claim their spouse’s exemption if using the filing status Head of Household or Married Filing Separately, and only when specific conditions are met. In the TaxAct® program, this entry is made on the screen titled Spouse Exemption in the Basic Info section. Per IRS Instructions for Form 1040, page 15: Line 6b – […]
For tax year 2023, the Alternative Minimum Tax Exemption amounts increased to $126,500 for married filing jointly or qualifying widow(er) status, $81,300 for single and head of household status, $63,250 for a married filing separately, and $28,400 for estates and trusts. In addition, nonrefundable credits are allowed against AMT. Comparable rates by year: Year Married […]
Form 5498 IRA Contribution Information is information for your personal records and is not required to prepare your tax return. Taxpayers should retain this information for their personal records, but there are no tax consequences to the taxpayer until the funds are distributed from the account. When distributions are made, they are then reported on […]
Per IRS Instruction 1040, page 78: Death of a Taxpayer If a taxpayer died before filing a return for 2023, the taxpayer’s spouse or personal representative may have to file and sign a return for that taxpayer. A personal representative can be an executor, administrator, or anyone who is in charge of the deceased taxpayer’s […]
If you cannot get a W-2 from your employer, you can file Form 4852 Substitute for Form W-2, Wage and Tax Statement. TaxAct does not provide Form 4852, so you’ll need to print a hard copy of your return, attach Form 4852, and mail it to the IRS. To submit a substitute for Form W-2: Download and […]
The Earned Income Credit amounts have increased slightly for the 2018 tax year. The maximum amount of earned income and adjusted gross income (AGI) must be less than: $49,194 ($54,484 if married filing jointly) with three or more qualifying children $45,802 ($51,492 if married filing jointly) with two qualifying children $40,320 ($46,010 if married filing […]
If you need to remove the spouse exemption on your return, and you do not see the related screen in the Q&A, the following steps will help: From within your TaxAct® return (Online or Desktop), click on the Federal tab. On smaller devices, click in the upper left-hand corner, then select Federal. Click Basic Information to […]
In the TaxAct program, all information entered on the federal return flows to the attached state return(s). If taxpayers need to file using one filing status on the federal return (e.g. Single), and a different filing status on the state form (e.g. Registered Domestic Partner or Civil Union), it is not possible to have this filing […]
IRS Publication 555 Community Property outlines the requirements for filing the federal tax return for married filing separate spouses, California or Washington same-sex spouses, or registered domestic partners (RDPs) domiciled in Nevada, Washington, or California. See the publication for additional details and definitions. TaxAct supports the completion of these returns so they can be e-filed. […]
The IRS does not provide instructions for what to enter in the “Occupation” field, which appears at the bottom of your federal tax return, to the right of the signature lines. Enter whichever term best reflects your current occupation. Terms such as Student, Laborer, Self-Employed, Homemaker, Unemployed, and Retired are fully acceptable. The contents of the “Occupation” field do […]
Form 3922 Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c) is for informational purposes only and isn’t entered into your return. Keep the form for your records because you’ll need the information when you sell, assign, or transfer the stock. When you dispose of the stock, you’ll receive Form 1099-B […]
On January 3, 2013 the President signed the American Taxpayer Relief Act of 2012. This bill settled many of the “fiscal cliff” tax issues and extended (or made permanent) many tax cuts that were scheduled to expire. A brief overview of the tax law changes are discussed below: Above-the-Line Deductions: Tuition and fees deduction extended […]
The HealthWatch report in the TaxAct® program provides comprehensive information on the new health care law rules, how to get signed up through your state’s health insurance marketplaces, and provides a potential penalty calculation if you were not to get minimum essential health insurance in 2017. To review and/or print the HealthWatch Report in your […]
The Tax Increase Prevention Act of 2014 includes the following key provisions: Extension of deduction for certain expenses of elementary and secondary school teachers Extension of parity for employer-provided mass transit and parking benefits Extension of mortgage insurance premiums treated as qualified residence interest Extension of deduction of State and local general sales taxes Extension […]
For 2008 and 2009 tax returns it was possible to take a real estate tax deduction even if you took the standard deduction. In these years, taxpayers who did not itemize could still deduct up to $500 ($1,000 if Married Filing Jointly) of state and local property taxes paid in addition to the standard deduction […]
Correcting Name, Birth Date, or SSN (Video)
UPDATE! As of Tuesday, March 4, 2014, Form 8960 and its final instructions have been incorporated into the TaxACT program. All returns containing this form can now be filed.
The following links provide access to self-help information you may find useful while completing your return with TaxACT: Form Instructions IRS Website If the links above are insufficient in your situation, email support is always available for your tax questions free of charge – visit the Contact Us section on our website. You should anticipate […]
Cancelled Debts & Foreclosures (Video)
Alternative Minimum Tax (Video)
The IRS developed the “Did I Receive an Economic Recovery Payment?” look up tool which gives taxpayers an easy way to determine if they received the one-time ERP payment and which agency made the payment. Beginning March 8, 2010, taxpayers can call 866-234-2942 to access the phone application. The Web application will be available March […]
The IRS "Fresh Start" initiative helps struggling taxpayers avoid certain failure-to-pay penalties. Eligible taxpayers have an extra six months (until October 15, 2012) to pay tax and interest due without being penalized. Two categories of taxpayers are eligible: Wage earners who have been unemployed at least 30 consecutive days between January 1, 2011 and April […]
2010 will be the last year to purchase a hybrid vehicle and be eligible for the Alternative Motor Vehicle Credit credit on Form 8910 ‘Alternative Motor Vehicle Credit’. Vehicles must be purchased on or before 12/31/10 to claim the credit on your 2010 return. The Internal Revenue Service has acknowledged that the following 2010 and […]
Arizona legislature made the decision to not fully conform to federal changes to the Internal Revenue Code in 2009 after the 2009 tax season had already ended. Due to the fact that many Arizona return filers will now have to amend their returns, on August 16, 2010 the State of Arizona Department of Revenue released […]
For tax year 2008, the Alternative Minimum Tax Exemption increased to $69,950 for married filing joint and qualifying widow(er) status, $34,975 for a married person filing separately and $46,200 for single and head of household status. Prior to Congress passing the legislation, the Alternative Minimum Tax Exemption for 2008 returns was scheduled to drop to […]
If you are to receive a refund there is nothing to mail in. If you do owe when completing your filing, a PFC prints out with your return. This form must accompany any payment you make to the Indiana Department of Revenue for that same period. Refer to the filing instructions that print with your […]
The IRS recently updated their website Answers to Frequently Asked Questions for Registered Domestic Partners and Individuals in Civil Unions as a result of the court’s decision in the United States vs. Windsor case which ruled that same-sex couples who are married under state law are considered married for federal tax purposes. CLICK HERE to […]
Per the Federal Voting Assistance Program, Voting Residency Guidelines: Members of the Uniformed Services and Their Family Members Uniformed Service personnel and their family members may not arbitrarily choose which state to declare as their legal voting residence without meeting the state’s residency requirement. The following are basic guidelines to follow in determining voting residency: […]
While TaxACT does not support IRS Form 990, the annual information return required for some 501(c)(3) organizations, below you will find all of the information needed to complete the form which can be mailed to the IRS. Generally, tax-exempt organizations must file an annual information return. Tax-exempt organizations that have annual gross receipts not normally […]
