TaxAct has a tool to compare how Married Filing Jointly vs. Married Filing Separate will benefit you so you can choose how to file (add a state to your return, and the federal information will flow there so you can see how your state tax laws affect your return too). To view the Joint Vs. […]
Estimated tax payments are periodic prepayments made to the IRS and state tax agencies to cover income not subject to withholding. This includes income from self-employment, interest, dividends, rental income, capital gains, and other earnings. TaxAct provides tools to help calculate, schedule, and manage these payments efficiently. Individual Estimated Tax Payments are calculated and paid […]
See IRS Publication 504 for more information about alimony. NOTE: Amounts paid as alimony or separate maintenance payments under a divorce or separation agreement executed after 2018 are not deductible by the payer and are not included in the income of the recipient. Alimony Received To enter alimony received in the TaxAct program, follow the […]
Note: Qualifying Widow(er) with Dependent Child is now Qualifying Surviving Spouse Per IRS Publication 17 Your Federal Income Tax (For Individuals), page 27: Qualifying Widow(er) If your spouse died in 2024, you can use married filing jointly as your filing status for 2024 if you otherwise qualify to use that status. The year of death […]
The payment or receipt of child support does not affect your taxable income. You should not report child support payments in your income. If you make child support payments, you cannot deduct the amount you paid. If you receive child support payments, the amount you receive is not taxed. Do not report this amount on […]
To enter royalty income in the TaxAct program, go to our Form 1099-MISC – Royalties FAQ. Per IRS Publication 525 Taxable and Nontaxable Income, page 17: Royalties Royalties from copyrights; patents; and oil, gas, and mineral properties are taxable as ordinary income. In most cases, you report royalties on Schedule E (Form 1040). However, if […]
A person who is your qualifying relative only because he or she lived with you all year as a member of your household is not a qualifying person for the Head of Household filing status even if he or she is your dependent. Per IRS Publication 501 Dependents, Standard Deduction, and Filing Information, page 10: […]
Usually, tax relief assistance payments are not taxable. People in a presidentially-declared disaster area who receive grants from state programs, charitable organizations, or employers to cover medical, transportation, or temporary housing expenses do not include these grants in their income. In the case of a federally-declared disaster, an affected taxpayer can call 1-866-562-5227 to speak […]
Per IRS Publication 501 Dependents, Standard Deduction, and Filing Information, page 8: Head of Household You may be able to file as head of household if you meet all the following requirements. You are unmarried or considered unmarried on the last day of the year. See Marital Status, earlier, and Considered Unmarried, later. You paid […]
If your dependent receives a Form SSA-1099, you are not supposed to report it on your tax return. Your dependent needs to report the SSA-1099 on their own tax return (if they are required to file). If you need help reporting Form SSA-1099, go to our Forms SSA-1099 and RRB-1099 – Entering Social Security or […]
Per IRS Publication 531 Reporting Tip Income, page 2: All tips you receive are income and are subject to federal income tax. You must include in gross income all tips you receive directly, charged tips paid to you by your employer, and your share of any tips you receive under a tip-splitting or tip-pooling arrangement. […]
Some types of income you receive are not taxable. When you total your gross income to determine whether you are required to file a tax return, do not include your nontaxable income. Keep records of your nontaxable income. Some types of income that generally are not taxable include: Child support payments Welfare benefits Life insurance […]
Below you will find information to help you determine if you are eligible to file your tax return with the filing status of Head of Household. If necessary, review IRS Publication 17 Your Federal Income Tax (For Individuals) for additional details before making a final determination. You can also go to the IRS Interactive Tax […]
Wondering what’s changed in the tax world from last year? We put together the top six 2022 federal tax changes that taxpayers like you should know about before filing your income tax return in 2023. Tax year 2021 saw major tax changes due to the coronavirus pandemic, but many of those changes went away in […]
Where is my Adjusted Gross Income (AGI) located on my prior year return? Form 1040 U.S. Individual Income Tax Return, Line 11 – (round amount to the nearest dollar) If you used TaxAct Desktop to file the return, you can find the return file on your computer. Go to our Consumer Editions – Locating Return […]
If you need to calculate late filing or late payment penalties, you will need to work directly with the IRS. TaxAct CANNOT calculate late filing nor late payment penalties. Go to IRS Instructions for Form 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts for more information. If you owe tax and are filing […]
