The IRS standard mileage rates for 2025 are: 70 cents per mile driven for business use 21 cents per mile driven for medical or military moving 14 cents per mile driven in service of charitable organizations See the IRS website for more information and prior year amounts. NOTE Taxpayers cannot claim a miscellaneous itemized deduction for […]
You can enter Qualified Business Income (QBI) related to self-employed or sole proprietor income when entering the details about that Sole Proprietorship. See Schedule C – Entering Sole Proprietorship in Program for details. Related Links IRS Publication 535 Qualified Business Income Deduction – General Information Qualified Business Income Deduction – Pass-Through Partnership Income Qualified […]
You can enter Qualified Business Income (QBI) for a rental property when entering the details about that rental property. See Schedule E – Entering Rental Property in Program for details. Related Links IRS Qualified Business Income Deduction Qualified Business Income Deduction – General Information Qualified Business Income Deduction – Pass-Through Partnership Income Qualified Business Income […]
Active duty military who are moving due to a military-ordered permanent change of station (PCS) can use Form 3903 to calculate any deductible moving expenses. The expenses are calculated on Form 3903, Moving Expenses, and reported as an adjustment on Schedule 1 (Form 1040), Additional Income and Adjustments to Income, Line 14. See the IRS […]
The Form 8910 – Alternative Motor Vehicle Credit expired for vehicles purchased after 2021.
If you were a full-time student, and reported that in the TaxAct program, you can’t attach Form 8880 to Schedule 3 (Form 1040) to receive the retirement savings contributions credit on line 4. If you were not a full-time student, and you need to edit that information in the TaxAct program, follow the steps below. Form […]
To view a summary of your QBI deductions, follow the steps below. 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, click Federal Search. Click the Business Income drop-down, then click Qualified business income (QBI) […]
Schedule K-1 from a Partnership reports Section 199A information in Box 20, Code Z. You should also have a larger K-1 Statement attached that contains more detailed information that will be used to calculate the Qualified Business Income (QBI) deduction. The QBI deduction is a deduction of up to 20% of qualified business income, plus […]
Schedule K-1 from an S Corporation reports Section 199A information in Box 17, Code V. You may also have a larger K-1 Statement attached that contains more detailed information that will be used to calculate the Qualified Business Income (QBI) deduction. The QBI deduction is a deduction of up to 20% of qualified business income, […]
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 […]
Use Form 8839, Qualified Adoption Expenses to figure the amount of your adoption credit and any employer-provided adoption benefits you can exclude from your income. You can claim both the credit and the exclusion for expenses of adopting an eligible child. To enter information for the adoption credit (Form 8839) in the TaxAct program, follow […]
To enter information for Form 5695 in the TaxAct program, follow the steps below. Online Dashboard From within your TaxAct return, click Deduction & Credits. On smaller devices, click the menu at the top left corner of your screen, then make your selection. Click the Your Home drop-down. Click Add beside Home Energy Credits. Complete the […]
ENERGY STAR is a joint program of the EPA and the DOE that provides information on certified energy-efficient products. For federal tax credit rules, see IRS Form 5695 Information. The Inflation Reduction Act of 2022 updated and extended residential energy credits: Residential Clean Energy Credit (Form 5695, Part I) is available through 2034. Energy Efficient […]
According to IRS Publication 503, child and dependent care expenses must be work-related to qualify for the Child and Dependent Care Credit. Work-related expenses are those that enable you to work or look for work. If you are married, both spouses generally must be working or seeking employment unless one spouse is a full-time student […]
2024 was the last year to file Form 5405. See First-Time Homebuyer / Home Owner Credit for details about prior year data entry. Note: If the credit was originally claimed on a joint return, each spouse was treated as having been allowed half of the credit for purposes of repaying the credit. Thus, two […]
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. You may be able to deduct expenses from that income. See IRS Publication 525 for details. To report this in the TaxAct program, follow the steps in Deducting unlawful […]
As a self-employed individual, if you made contributions to a retirement plan such as a SEP, SIMPLE, or Keogh plan, you may be able to claim a deduction on your tax return for those contributions. The TaxAct program offers the Publication 560 Worksheet for qualified self-employed individuals to calculate their maximum deductible contribution limit. At the […]
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’ve spent money on attorney fees or court costs related to a claim of unlawful discrimination, you may be able to claim a deduction for those expenses on the tax return that you file with TaxAct. Before starting, consult Publication 525 to determine if you can claim a deduction of this type. If you […]
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 […]
An HSA or Archer MSA distribution isn’t taxable if you used it to pay qualified medical expenses of the account holder or eligible family member or you rolled it over. An HSA may be rolled over to another HSA; an Archer MSA may be rolled over to another Archer MSA or an HSA. An MA […]
If you are an eligible educator, you can deduct up to $300 ($600 if married filing joint and both spouses are educators, but not more than $300 each) of any unreimbursed expenses that you paid or incurred for books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials that you use […]
TaxAct supports two Social Security Number (SSN) entries for alimony paid from both the taxpayer and spouse. To report alimony paid for both spouses in the TaxAct program, follow the steps below. Online Dashboard From within your TaxAct return, click Deductions & Credits. On smaller devices, click the menu at the top left corner of […]
The number reported in Box 12 of Form W-2 – Wage and Tax Statement (code “W”) is the amount your employer contributed to your health savings account (including cafeteria plan contributions). You’ll need to enter this figure in your tax return when adding Form W-2 – see Entering in Program – Form W-2 for details. […]
Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit is a non-refundable credit. For more information about how this affects your tax return, go to our Nonrefundable Credit vs Refundable Credit FAQ. To access Form 8936 in the TaxAct program: From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in […]
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 IRS Publication 535, Business Expenses, page 5: Capital Versus Deductible Expenses Deduction for qualified business income. For tax years beginning after 2017, you may be entitled to take a deduction of up to 20% of your qualified business income from your qualified trade or business, plus 20% of the aggregate amount of qualified real […]
Personal interest is not deductible. Personal interest is any interest that is not home mortgage interest, investment interest, business interest, or other deductible interest. Note. You may be able to deduct interest you pay on a qualified student loan. For more information, go to IRS Publication 970, Tax Benefits for Education. Note that any link […]
To calculate the vehicle expenses amount to report on Line 9 of Schedule C (Form 1040) Profit or Loss From Business (if you need help accessing Schedule C, go to our Schedule C – Entering Sole Proprietorship in Program FAQ): From within your Schedule C, continue with the interview process until you reach the screen […]
Contributions to a 529 plan are not deductible on the federal return. Per the IRS 529 Plans: Questions and Answers webpage: Q. What is the main advantage of a typical 529 plan? A. Earnings are not subject to federal tax and generally not subject to state tax when used for the qualified education expenses of […]
A nonrefundable credit can reduce your tax liability to 0 (zero); however, it cannot result in a refund. If, for example, you qualify for a $350 nonrefundable credit and your tax liability is only $200, you will only receive a $200 credit. If your tax liability is zero, you would not receive the credit at […]
Per IRS Instructions for Form 5695: The Consolidated Appropriations Act, 2021: Extends the residential energy efficient property credit to qualified biomass fuel property costs on line 5, and provides definitions in these instructions. Extends the 26 percent residential energy efficient property credit rate to property placed in service in 2021. For property placed into service […]
The TaxAct® program allows the entry of six children on Form 8839 Qualified Adoption Expenses. If you need to enter more than six adopted children, you will need to override some fields in TaxAct and paper file your return. You may only override fields in the TaxAct Desktop (download) program. For Part II of your manually […]
The Patient Protection and Affordable Care Act allows small businesses and tax-exempt organizations to earn a tax credit for providing or maintaining employee health insurance. Starting in 2014, businesses with ten or fewer full-time equivalent (FTE) employees with an average annual salary of $25,000 or less can earn the maximum credit of 50%, while tax-exempt […]
Per IRS Publication 17, page 8: Who Should File Even if you don’t have to file, you should file a federal income tax return to get money back if any of the following conditions apply. 5. You qualify for the health coverage tax credit. See Form 8885, Health Coverage Tax Credit, and its instructions, for […]
To see which fuel credits are still available, go to IRS Instructions for Form 4136 Credit for Federal Tax Paid on Fuels. Go to IRS Publication 510 Excise Taxes (Including Fuel Tax Credits and Refunds) for definitions and information on nontaxable uses. The IRS will not begin accepting 2025 returns that include Form 4136 until February […]
Per IRS Form 8924, page 1: Who Must File An eligible entity who subsequently transfers ownership or possession (by sale, exchange, or lease) of a qualifying mineral or geothermal interest must file Form 8924 for each transfer of an interest acquired, directly or indirectly, in: A conservation sale in which the previous transferor excluded 25% […]
Commercial revitalization is the rehabilitation of a building in a distressed community. Prior year unallowed commercial revitalization deduction (CRD). If you have prior year unallowed CRDs limited by the passive loss rules, you may continue to include them in the calculations as shown in the Form 8582 Instructions In the TaxAct® program, any CRD entered […]
Alimony in solido (also referred to as lump sum alimony) is alimony in the nature of a final property settlement award that is not subject to change. It is an award of a definite sum of money to be paid in a lump sum or as installments over a definite period of time to make […]
Two tax credits that can help you offset the cost of higher education are the American Opportunity Credit and the Lifetime Learning Credit. American Opportunity Credit You may be able to take a credit of up to $2,500 for qualified education expenses for each student who qualifies for the American opportunity credit. This credit equals […]
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 […]
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 use a geothermal pump, solar panels, solar water heater, small wind energy system, or fuel cells, you may be able to continue claiming residential energy credits from the use of such devices on future tax returns. Residential energy credits should be claimed on Form 5695. Access current and prior-year versions of Form 5695 on […]
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 […]
Note: Losses you Can deduct for tax years 2018 through 2025: if you are an individual, losses of personal-use property from fire, storm, shipwreck, or other casualty, or theft are deductible only if the loss is attributable to a federally declared disaster (federal casualty loss). See Pub. 547 for more information. If the event causing […]
All 50 States, Washington D.C., and five U.S. territories had an ENERGY STAR Appliance Rebate program in 2010. A few states still have active programs. For specific information for each state, go to the ENERGY STAR Rebate Finder webpage. For information on residential energy credits, go to our Energy Star Federal Tax Credits for Energy Efficiency FAQ. […]
If you claimed the First-time Homebuyer Credit, there are certain situations (e.g. if the home ceases to be your main residence within a three-year period following the date of purchase) in which you may need to repay the credit in full. To access repayment of first-time homebuyer credit in the TaxAct program, go to our […]
A qualified tuition program (also known as a 529 plan) is a program set up to allow you to either prepay or contribute to an account established for paying a student’s qualified education expenses at an eligible educational institution. Your state government or eligible educational institution can tell you whether or not they participate in […]
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 […]
Form 8396 Mortgage Interest Credit is separate from Form 1098 Mortgage Interest Statement you receive from your bank or financial institution for mortgage interest paid. Form 8396 is for holders of Qualified Mortgage Credit Certificates (MCC) issued by state or local governmental units or agencies; the certificate credit rate is shown on the certificate. To […]
You can claim both the credit and the exclusion for expenses of adopting an eligible child. Qualified adoption expenses are reasonable and necessary expenses directly related to, and for the principal purpose of, the legal adoption of an eligible child. Qualified adoption expenses include: Adoption fees Attorney fees Court costs Travel expenses (including meals and […]
Qualified Tuition Programs (QTPs) are different from Coverdell Education Savings Accounts (ESAs). QTPs include state (529 plans) and private plans. With QTPs, ownership remains with the contributor rather than passing to the designated beneficiary. In other words, a taxpayer can own the QTP, have distributions made to them, and report Form 1099-Q Payments From Qualified […]
