If you don’t know whether you need to use the itemized or standard deduction and you are married filing separate, review the information in the Married Filing Separate – Itemized or Standard Deduction FAQ. If you accidentally indicated in the TaxAct program that your spouse itemized deductions, follow the steps in the article listed above, […]
Self-employed individuals may be able to deduct the cost of their health insurance premiums—including medical, dental, and qualified long-term care coverage—for themselves, their spouse, and dependents. This deduction is taken above the line on Form 1040, which means you can claim it even if you don’t itemize. To qualify, the insurance policy must be established […]
The Self-Employment Tax Adjustment Worksheet shows the adjustments used in the calculation of Line 2 on Federal Schedule SE, Self-Employment Tax. To access the Schedule SE – Adjustments – Clergy Worksheets in the TaxAct program, follow the steps below. Online Dashboard From within your TaxAct return, click Taxes & Miscellaneous. On smaller devices, click the […]
To enter Form 1099-MISC, follow the steps below. Online Dashboard From within your TaxAct return, click Income. On smaller devices, click the menu at the top left corner of your screen, then make your selection. If the 1099-MISC is related to your business or rental, click the Business & Self Employed drop-down and click Add beside the […]
Changing any of the key entries listed below will affect the outcome on your tax return. The important entries on Form 1099-R include Boxes 1, 2a, 2b, 7 (numeric and alpha), and the IRA/SEP/SIMPLE checkbox. Additionally, if you need to use the Simplified Method, have converted a traditional IRA to a Roth IRA, or have […]
If you need help reporting Form 1099-MISC in the TaxAct program, go to our Form 1099-MISC – Entering in Program FAQ. Generally, report this amount from Form 1099-MISC Miscellaneous Income, Box 3 on the Other Income line of Schedule 1 (Form 1040) Additional Income and Adjustments to Income, Line 8. The amount reported in Box 3 […]
Per the IRS Simplified Option for Home Office Deduction webpage: Beginning in tax year 2013 (returns filed in 2014), taxpayers may use a simplified option when figuring the deduction for business use of their home. Note: This simplified option does not change the criteria for who may claim a home office deduction. It merely simplifies […]
To deduct expenses related to the business use of part of your home, you must meet specific requirements. Even then, your deduction may be limited. To qualify to claim expenses for business use of your home, you must meet both of the following tests. Your use of the business part of your home must be […]
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary. Even though an […]
Per IRS Form 8919, you must file this form if all of the following apply. You performed services for a firm. You believe your pay from the firm wasn’t for services as an independent contractor. The firm didn’t withhold your share of social security and Medicare taxes from your pay. One of the reasons listed […]
