In TaxAct Professional Enterprise Edition, checking in/out a client return is a multi-user networking feature. In a multi-user or office network setup, a user may check files in or out of internal document storage or cloud repositories (such as TaxAct’s secure servers or a local server directory) to control concurrent access and editing rights. See […]
You can create a customizable, dynamic onboarding form in Client Portals. Add your own questions and use a client’s prior-year return to generate a personalized document checklist. Watch the video Guided Organizer for a demonstration. Preparer steps To get started, in TaxAct Pro click the Portals tab. Alternatively, log in to My Account and click […]
You can manage your data within your TaxAct account by submitting a privacy request to delete certain personal information. To submit a privacy request, follow the steps below: Individual To remove certain personal information from your account: Professional To remove certain personal information from your account: Privacy Portal You can also submit a request by […]
Form 4868 is used to request an extension of time to file an individual tax return, Form 1040. See Form 4868 – Filing a Federal Individual Tax Return Extension for more information. To enter the amount paid with Federal Form 4868 on your return, follow the steps below. Then, click on the About dashboard (Dashboards) […]
A return may need to be paper-filed in the following situations: Before mailing the return(s), be sure to read the filing instructions. They will include important information such as where to file, what to attach to the return (i.e. W-2s, 1099s, etc.), refund or balance due, information about estimated tax payments, etc. Returns Rejected on […]
To select or change a taxpayer’s filing status in the TaxAct program, follow the steps below. Desktop TaxAct Online Dashboard Classic Related Links
TaxAct calculates both the itemized deduction and the standard deduction for the taxpayer’s filing status and applies the option that results in the greatest tax benefit. To manually select a deduction method in TaxAct program, follow the steps below: Desktop TaxAct Online Related Links
Steps to Check for Program Updates: Open your TaxAct program. Click Online in the upper menu bar. Select Check for Updates from the dropdown menu. Follow the on-screen instructions to select and install the federal or state updates you need. NOTE: This process verifies and installs the latest program updates. Your data will remain intact and will not be lost during the update.
Arizona’s e-file system will undergo scheduled maintenance from 12:00 PM on Friday, October 9, 2026, through 7:00 AM on Tuesday, October 13, 2026. During the maintenance period, all processing will be paused. You can continue to submit returns; however, they will not be processed until after the maintenance period has ended.
Desktop You can access worksheets in TaxAct Professional Editions as a form in the Forms Explorer. See Entering in Program – Fillable Forms for detailed instructions. If an Unable to open form directly pop-up appears, it will have a list of forms that you still need to enter your data into first. TaxAct Online You […]
Estimated tax payments are advance payments of federal and, where applicable, state income tax on income not subject to withholding. Common sources include self-employment income, interest, dividends, rental income, capital gains, pass-through income, and other forms of taxable income. Individual estimated tax obligations are generally calculated and remitted using Form 1040-ES, Estimated Tax for Individuals. […]
To navigate back to the Q&A Interview view, follow the steps below: Desktop You can get back to the Q&A from the Forms view by clicking Q&A near the top of your screen. TaxAct Online Dashboards Classic Navigation From the left menu, you can select the relevant topic type (Income, Deductions, Credits, Taxes, Miscellaneous) and choose […]
To determine which forms/schedules are “active” in the current return, as opposed to those forms that are not being used in the current return, you need to view the Forms and Schedules list. Active forms/schedules are either automatically created (and required as a part of every return), or you have entered information in the TaxAct […]
TaxAct is committed to protecting your tax information. We partner with the IRS, state tax administrators, and other software providers to prevent tax and identity fraud. As part of this effort, we implement advanced security measures, including: We continually update our security protocols to keep your information safe. The TaxAct Service & Support team: Update […]
If you are required to include additional files with a client return, you will be prompted to attach those files during the e-filing process. Check the Federal and State sections of the TaxAct program to make sure you’ve added any necessary attachments. You can attach a PDF document to your Federal return for the following […]
If a taxpayers employer offers a tax-deferred retirement plan, such as a traditional 401(k) or 403(b), contributions made to the plan are generally pre-tax and are not included in taxable wages. Because these contributions are already excluded from income, they are not deductible on a tax return. Some taxpayers may still be able to make […]
A taxpayer may receive Form 1099-MISC or Form 1099-K reporting income or transactions related to their rental or royalty income. You will be able to enter information for those income forms during the Schedule E interview process. You can enter Qualified Business Income (QBI) for a rental property when entering the details about that rental […]
Rule F8962‑070 is an IRS e‑file rejection code that means the return was rejected because the IRS has records showing the taxpayer had advance premium tax credit (APTC) from a Health Insurance Marketplace, but Form 8962 Premium Tax Credit was not included with the e‑filed return. A taxpayer would receive Form 1095-A if they or […]
To enter capital loss carryover from a prior year in the TaxAct Professional Editions program, follow the steps below: Related Links
If you own a business, freelance, or earn money through gig work, you are generally considered self-employed. You can enter Qualified Business Income (QBI) related to self-employed or sole proprietor income when entering the details about that Sole Proprietorship. You may receive Form 1099-NEC or Form 1099-K reporting income or transactions related to your self-employment. […]
The standard deduction is calculated based on your demographic information and filing status. To compare your itemized deductions with your standard deduction or to force the program to switch to one or the other, go to our Force Standard or Itemized Deductions FAQ. Desktop To claim itemized deductions in the TaxAct Professional Editions program, follow […]
NOTE: You can deduct either the sales tax deduction or the state income tax deduction – if you want to override the system default, see Sales Tax – Elect General Sales Tax Deduction or State Income Tax Deduction. See the IRS Instructions for Schedule A for details on what types of taxes can be entered […]
To enter or review an adjustment on Schedule SE (Form 1040) (example: if some of your self-employment income is exempt from self-employment tax), follow the steps below. Alternatively, you can access this form directly through the Forms Assistant navigation: Related Links
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 Professional Editions program, follow the steps below: Alternatively, you can access this form directly through the Forms Assistant navigation: Related Links
Taxpayers must file Schedule H with their Form 1040 when they have household employees and meet certain IRS wage or withholding thresholds. A household employee is someone you hire to perform work in or around your home and you control what work is done and how it is done. This generally includes workers such as […]
Desktop To add farm income information, filed on Federal Schedule F, in the TaxAct Professional Editions program, follow the steps below: TaxAct Online To add individual farm income information in the TaxAct Online program, follow the steps below: Dashboard Classic Form 1099-K If you received Form 1099-K related to your farming income, enter or edit […]
Desktop To enter the interest income from a seller-financed mortgage in the TaxAct Professional Editions program, follow the steps below: TaxAct Online To enter the interest income from a seller-financed mortgage in the TaxAct Online program, follow the steps below: Dashboard Classic Related Links
If the taxpayer who made contributions to a retirement plan such as a SEP, SIMPLE, or Keogh plan as a self-employed individual, they may be able to claim a deduction on their tax return for those contributions. The TaxAct program offers the Publication 560 Worksheet for qualified self-employed individuals to calculate their maximum deductible contribution […]
Stock Assistant is a valuable tool to provide a quick entry (spreadsheet style) mechanism for capital gain transactions reported on Form 1099-B. You may quickly add new stock transactions by selecting the bottom table row. A new entry will be automatically created, and you may enter all the necessary details. Follow the steps below to […]
You can use the Tax Calculator to answer a few simple questions about a taxpayer’s income and expenses to get an idea of whether they should expect a refund and how much, or if they’ll owe the IRS when they file taxes in the future. To use the Tax Calculator in a TaxAct return: Desktop […]
The disability status information entered in the Basic Information section is transferred to other parts of the TaxAct return: To enter or modify either the taxpayer’s or spouse’s blind or totally disabled status in your TaxAct return, follow the steps below: Related Links
To view this report at any time from the Professional Reports page, click Dashboard in the Navigation menu. For help accessing the Professional Reports, see Accessing Professional Reports for detailed instructions. This report is broken into a couple different parts. E-Files Over Time Click Daily, Weekly, or Monthly to view the E-Files Over Time graph […]
You can access Professional Reports in two ways: From Practice Manager From within TaxAct Professional Editions Menu and Navigation Once you access Professional Reports, your home page is the E-File Details Report. See Professional Reports Guide for reports available in the Navigation menu. Related Links
For help accessing the Professional Reports, see Accessing Professional Reports for detailed instructions. Once you have accessed Professional Reports, you can view reports from the navigation menu, including: Dashboard Reports To view this report at any time, click Dashboard in the navigation menu. This report is broken into a couple different parts. See Dashboard Reports […]
You can choose to edit your preparer preferences during setup by clicking the Preparer Preferences button. You can access and edit this information any time by clicking Preparer > Preferences. In the Preparer Preferences window, you can choose settings for your Client Manager, Electronic Filing Manager, and specify general preferences. Preference Options Client Manager Appointment […]
Search for a Client Click the Search button at the top of the screen next to Add Client and enter text. Click Next. Add, Edit, or Delete a Client You can add, edit, and delete client records in the Client Manager, which displays all current client information and the status of each return. See Adding, […]
Installation Before proceeding, ensure that you have TaxAct Professional Editions installed. See Downloading and Installing TaxAct for installation procedures. Setup Import Master Information Returning users can save time by utilizing TaxAct’s Import Prior Year Online Master Information feature. Practice, Preparer, Client, and General information will be automatically populated based on last year’s entries. When you […]
When you’re ready to e-file a client return, we recommend using the E-file Center, where you can submit single or multiple returns. From here, you can also view e-filing information for other preparers in your practice and navigate to e-file and refund status reports. To access the E-file Center, you must be in a client’s […]
The Print Center offers multiple printing options in one convenient place. Multiple documents can be printed in one job. The Print Center also consolidates the printing of client returns, organizers, consent forms, labels, and blank forms. You can access the Print Center in any of the following ways: What is a Client Organizer? The Client […]
The Print Center offers multiple printing options in one convenient place. Multiple documents can be printed in one job. The Print Center also consolidates the printing of client returns, organizers, consent forms, labels, and blank forms. You can access the Print Center in any of the following ways: From the Print Center, click the Labels […]
The Print Center offers multiple printing options in one convenient place. Multiple documents can be printed in one job. The Print Center also consolidates the printing of client returns, organizers, consent forms, labels, and blank forms. You can access the Print Center in any of the following ways: From within the print center, you can […]
TaxAct offers several methods for you to keep your client returns safe and secure, including: You will be required to sign in each time you open the software and after 30 minutes of inactivity on your PC, or every 24 hours (whichever comes first). The IRS Security Summit’s requirements apply to all professional tax products […]
The first time you launch the software, the TaxAct Setup Wizard will walk you through steps to set up Master Information, including Practice, Preparers, Client Status, Directories, and General categories. You can edit and access your Practice, Preparer, Client, and Return information through a secure online account anywhere, anytime. You’ll need to sign in to […]
Integrated E-Signatures, Powered by Drake Software, is fully integrated with TaxAct Pro. This makes it easier to get the signatures you need to e-file. You must have a Client Portals subscription to purchase and use Integrated E-Signatures. See Professional Editions: Client Portals – Overview for more information about Client Portals. Once you have a Client […]
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. TaxAct Online Dashboard Classic Desktop Related Links
A valid SSN or ITIN must be obtained by the extended filing deadline in order to receive certain credits on the 20YY return. For most calendar year taxpayers, the extended filing deadline is October 15 of the following year; however, there may be an exception for taxpayers living outside of the country. See IRS Publication […]
To report state and/or local income taxes paid (NOT withholding or estimated tax payments), follow the steps below. The TaxAct program will transfer this information, and state taxes withheld on Form W-2, to Schedule A (Form 1040) Itemized Deductions, Line 5. TaxAct Online Dashboard Classic Desktop Related Links
To access the student worksheet, follow the steps below. TaxAct will generally determine which education benefit is most advantageous for you based on the data entered on your return (such as income, filing status, amount of qualified expenses, etc.). TaxAct Online Dashboard Classic Desktop
A state income tax refund received during the current tax year may be taxable at the federal level if the taxpayer claimed an itemized deduction for state and local taxes on the prior-year federal return and received a tax benefit from that deduction. If the taxpayer claimed the standard deduction on the prior-year return, the […]
Federal income tax operates under a pay-as-you-go system, requiring taxpayers to remit tax throughout the year as income is earned or received. This obligation is generally satisfied through wage withholding, estimated tax payments, or a combination of both. Taxpayers who fail to pay sufficient tax during the year may be subject to the underpayment of […]
Based on the Modified Adjusted Gross Income (MAGI) on a return, the student loan interest deduction allowed on the return may be phased out or eliminated. The TaxAct program automatically calculates the eligible amount of student loan interest deduction for the return, based on the student loan interest expense entered in the program (in conjunction […]
Amounts a taxpayer receives as workers’ compensation for an occupational sickness or injury are generally excluded from income if they’re paid under a workers’ compensation law or statute. This type of income is not included on the taxpayer tax return using the TaxAct program. If you an IRS Form W-2 Wage and Tax Statement was […]
Using SmartExtractTM (Beta) Powered by Drake Software, you can upload your client’s supported tax documents and import extracted tax data directly into a tax return. This helps streamline data entry by importing information from supported tax forms. This feature uses AI-assisted extraction to help reduce manual data entry from supported tax forms. SmartExtractTM (Beta) is […]
To open an online return in the Desktop app, you must first have the TaxAct Desktop software installed. See Downloading and Installing TaxAct for steps to download and install the Desktop software. Once the Desktop app is installed, follow the instructions below to open an online return in the program:
A special allocation on Form 1065 Schedule K-1 allows a partnership to allocate income, losses, or other tax items to partners in a manner that differs from their ownership percentages, based on the partnership agreement. To make a special allocation for partners share of recourse/non-recourse debt, follow the steps below: TaxAct Online Desktop Related Links
You can check the status of a client’s e-filed return through the Professional Reports dashboard within your Practice Manager. Visit the Preparer’s e-Filing Center webpage for more information.
The Michigan Department of Treasury is transitioning additional tax types to a new processing vendor. The transition will affect Michigan e-filed returns submitted between October 30 and November 12, 2026. ACH direct debit payments included with affected submissions will not be withdrawn until November 13. No additional penalty or interest will be charged because of […]
To enter the credit for taxes prepaid to Utah in TaxAct: NOTE: If an amount has already been entered in the Estimated Payments section of the Federal Q&A, they will already appear on this screen. TaxAct Online From within your TaxAct return, click on the State Q&A tab and then click on Utah directly below the […]
Virginia Schedule FED is generally required when a Schedule C business includes a vehicle expense/mileage deduction (car and truck expenses) that requires federal line-item detail to be reported on Schedule FED. The appropriate expense amounts and other information entered in the Federal Q&A section for Schedule C will automatically flow to Schedule FED. If you […]
TaxAct will transfer the amount of W-2 income entered during the Federal Q&A to the amount in the Gross Wages from Federal box, including your military income. To view or verify your U.S. Military Enlisted Pay in the TaxAct program: TaxAct Online From within the TaxAct return, navigate to the State tab from the side menu. […]
Below are instructions for entry of multiple state estimated tax payments. These steps are necessary to ensure that the correct amount flows to the individual state return you are currently filing and the Federal Schedule A line 5 State and local income taxes or general sales tax in the event you are itemizing deductions on the […]
Michigan Schedule of Apportionment (MI-1040H) is not limited to businesses with assets or employees. It is used to apportion business income when that income is taxable both within and outside Michigan. The form uses a sales factor apportionment method which is calculated by dividing total Michigan sales by total sales everywhere. “Sales” includes gross receipts from […]
If you were a Massachusetts resident for part of the tax year and also received Massachusetts-source income while you were a nonresident, you may need to file Form 1-NR/PY as both a nonresident and a part-year resident. Complete Schedule R/NR, Resident/Nonresident Worksheet, to calculate the portion of income earned while a Nonresident and the portion […]
The public pension exemption is calculated on Missouri Form MO-A, Part 3 (Section A). It applies to eligible federal, state, and local government pensions, including but not limited to military and Missouri state employee retirement benefits. Eligible taxpayers may subtract public retirement benefits up to the maximum Social Security benefit amount, subject to coordination with […]
The Arizona Credit for Increased Excise Taxes is a refundable credit available to taxpayers who are not claimed as dependents by another taxpayer and whose federal adjusted gross income is: $25,000 or less if married filing jointly or head of household $12,500 or less if single or married filing separately. The credit is generally $25 […]
An amount up to $50,000 per tax year shall be exempt from Alabama state income tax if received as severance, unemployment compensation, or termination pay, or as income from a supplemental income plan, or both, by an employee who, as a result of administrative downsizing, is terminated, laid off, fired, or displaced from his or […]
If you are an Idaho resident but are not required to file a tax return, you may still be eligible to receive the grocery credit refund. To enter the appropriate information in TaxAct, depending on your situation, follow the steps below. TaxAct Online From within the TaxAct return, navigate to the State tab from the side […]
To adjust the income on California Form 540NR California Nonresident or Part-Year Resident to reflect only the income received while a California resident or received from sources within California while a nonresident: TaxAct Online From within the TaxAct return, navigate to the State tab from the side menu. Click California under the State tab to access […]
Delaware allows eligible taxpayers aged 60 and older to subtract up to $12,500 of qualifying pension and eligible retirement income. For taxpayers under 60, the limit is $2,000. This exclusion applies to certain retirement income sources. For more information, visit Delaware.gov – Personal Income Tax FAQs To review or modify Pension Exclusion subtractions for a […]
Georgia allows a Retirement Income Exclusion on Form 500 Schedule 1 for taxpayers who are: Age 62-64, or Permanently and totally disabled regardless of age. The maximum retirement income exclusion is $35,000 for those 62-64 (or permanently disabled under 62). For taxpayers 65 or older, the retirement exclusion is $65,000 per qualifying individual. This exclusion […]
Any child support received should be reported on Line h of Vermont Schedule HI‑144 in the column for the household member who received it. It is included in the household income calculation, subject to any applicable adjustments, and contributes to the final Household Income amount reported from the schedule. To enter or review this information […]
The Indiana Partnership Long-Term Care deduction will be reported Form IT-40 Schedule 2, Line 11 using code 608. To enter the Indiana Partnership Long-Term Care deduction in TaxAct: TaxAct Online From within the TaxAct return, navigate to the State tab from the side menu. Click Start/Edit to begin the State return. On the page Review and […]
If you are eligible to claim the Indiana Renters Deduction and paid rent to more than one landlord during the year, follow the steps below to enter the information into TaxAct. TaxAct Online From within the TaxAct return, navigate to the State tab from the side menu. Click Indiana under the State tab to access the […]
New Mexico Form RPD-41326 Rural Health Care Practitioner Tax Credit Claim is a fillable form. Once the fillable form is completed, it will become a part of the return and will be electronically filed and/or printed with the return. NOTE: New Mexico requires documentation to support a claim for the Rural Health Care Practitioner Tax Credit. Eligible […]
Contributions to eligible West Virginia SMART529 college savings programs may qualify for a modification reducing federal adjusted gross income on your West Virginia income tax return. Taxpayers who make payments or contributions to qualifying prepaid tuition contracts or college savings plans administered under West Virginia’s SMART529 program may claim the modification in the year the […]
Military personnel stationed inside or outside Virginia may be eligible to subtract up to $15,000 of qualifying military basic pay received during the taxable year if they are on extended active duty for more than 90 consecutive days. If qualifying basic pay exceeds $15,000, the subtraction is reduced dollar-for-dollar by the excess amount. For example, […]
Maine allows certain individuals who collect sales tax on casual rentals of living quarters to report and remit that tax on their individual income tax return instead of filing separate sales tax returns, provided they meet eligibility requirements and the tax due does not exceed the filing threshold. Casual rentals include the rental of a […]
If you lived in Iowa for only a portion of the year, you should file a part-year resident Iowa tax return and allocate your Iowa income. The information entered in this section will flow to Schedule IA 126, and from there the credit will flow to Line 51 of Iowa Form IA 1040. TaxAct Online […]
Massachusetts allows renters to deduct 50% of rent paid for a principal residence, up to $4,000. The Massachusetts rental deduction is reported on Line 14 of Massachusetts Form 1. The program will automatically determine your rental deduction based on the amount of qualifying rent you paid during the tax year. TaxAct Online To enter the […]
Form 4013 – Resident Tribal Member Annual Sales Tax Credit, Line 4 requires a two-digit Tribal Code which from a federally recognized Tribe in Michigan. Only Tribes with a State/Tribal Tax Agreement can file Form 4013. To access the Form 4013 Michigan Resident Tribal Member Annual Sales Tax Credit: TaxAct Online From within the TaxAct […]
TaxAct supports Form MI-1040CR-7 (Home Heating Credit). To enter the information for Form MI-1040CR-7: TaxAct Online From within the return, navigate to the State tab from the side menu. Click Michigan under the State tab to access the Michigan Quick Q&A Topics screen. Click Credits from the list of topics. On the screen titled Credits for […]
If you received any FIP (Family Independence Program) and other DHS (Department of Human Services) benefits, please enter the amount of those benefits into TaxACT to correctly calculate the Homestead Credit Claim. To enter the Michigan Homestead Property Tax Credit: TaxAct Online To enter the Michigan Homestead Credit Claim in TaxAct Online: From within the […]
Paid Family Medical Leave (PFML) is a state-offered benefit designed to provide eligible employees who work in Massachusetts with up to 26 weeks of paid leave for medical or family reasons. PFML is funded through employer and employee contributions and is separate from both the federally mandated benefits offered by the Family Medical Leave Act […]
A CP14 notice is issued when IRS records show a tax balance due after processing a return. The notice shows the tax reported on the return, the payments the IRS applied to your account, and the remaining underpayment they have calculated. Check the payments as outlined on the notice the IRS has applied to your […]
Preparers have the option to use the “Do Not File Client Copy” watermark on the printed client copy of a return. This is in addition to the “Do Not File” watermark. To print the client copy with this watermark: From within your TaxAct Professional Edition program, on the Client Manager screen, double-click the client’s return […]
If a date of death is entered in the Basic Information section of the Federal Q&A, then the month and day will transfer to the Indiana return and be displayed on Schedule 7 Line 6, and Item 5 in Section 2 of Schedule H. Indiana Schedule 7 reports additional information required for the Indiana return. […]
You can now download files for all your clients at once by following the steps below: For more information about using Client Xchange, see the Client Xchange User Guide. Error If your clients have a large number of files, you may get an error that says: “There was a problem preparing your download. The page […]
As 2025 TaxAct state editions are updated, details will be added below to highlight what’s new in each release. Download Information | Federal Update Information | https://www.taxact.com/forms Alabama 2025 1040 V1.0 01/09/2026 – Form 40NR (Nonresident return) not approved for paper or electronic filing. V1.01 01/15/2026 – Form 40NR can be e-filed or paper-filed. No limitations. […]
Overview TaxAct proudly offers Audit Defense, Powered by Drake Software. This offering is a post-filing service that gives your clients (taxpayers) access to credentialed tax experts when they receive an IRS notice, state notice, audit inquiry, or experience tax-related identity theft. For eligible cases, the Audit Defense team assists with case communications and documentation related […]
Overview Beginning with Tax Year 2026, E-Signatures will be offered through TaxAct Professional’s new Client Portals software. While the e-signature experience may look a little different, the new solution is designed to give professional tax preparers more flexibility, lower-cost signature options, and a more integrated client collaboration experience. Signature Options As part of this change, […]
If your preparer has requested approval on one or more files, follow these steps to review and submit your decision: Click Approve File in the email you receive. Log in to your account. Click the Files tab. Under From [Company Name], locate the file. Click the yellow Pending Approval button to review the file, then […]
In TaxAct Pro, click the Portals tab. Alternatively, log in to My Account and click Client Portals. Click the Clients tab. Locate the client in the list and click once to open their Portal details. Tip: You can use the Search bar or click a column header to sort. Click the Client Files tab. Click […]
You will receive an email that says [Firm Name] has requested files. The email includes two links. If the firm entered an optional message, it also appears in the email. The first link is the direct upload link and can only be used once. The second link opens your regular portal login page. To upload […]
The Request Files feature sends an email to the client with a secure link they can use to upload files directly to the To [Company Name] folder without logging in to their portal. The link can only be used one time; however, the client can upload as many files as needed during that upload session. […]
Upload Files Navigate to your preparer’s Client Portals website and locate the Guest Exchange panel. Click Upload Files. The upload screen is displayed. Complete the required information fields. Click Select to browse for the file(s) to upload. Click Upload. A verification window appears. Click Upload again to confirm. An email notification is sent to the […]
The Guest Exchange is a panel that appears on your Client Portals login page. Clients can use this panel to upload files to you or as an alternate way to download guest exchange files from you. Before using Guest Exchange, you must turn it on so it is accessible to you and your clients. Outgoing […]
You have received an invitation to use a Portals account from your tax professional. This article provides an overview of how to use your new portal to connect with your preparer. Activation When your tax preparer creates your portal, you will receive an invitation email. This email contains your username and a link to create […]
The following tabs are client-specific and are visible after opening the client details using these steps: In TaxAct Pro, click the Portals tab. Alternatively, log into My Account and click Client Portals. Click the Clients tab. Locate the client in the list and click once to open their Portal details. Tip: You can use the […]
Upload To upload documents to your clients (taxpayers), follow the steps below. In TaxAct Pro, click the Portals tab. Alternatively, log into My Account and click Client Portals. Click the Clients tab. Locate the client in the list and click once to open their Portal details. Tip: You can use the Search bar or click […]
New Portal To add a new portal for your client (taxpayer), follow the steps below. Steps vary depending on whether you have already created a client return in the Client Manager or not. Bulk client account creation is not supported. Client Return Already Exists Client Return Doesn’t Exist Yet Activation Email To send an activation […]
Using Client Portals Messenger, you can: Exchange messages with your client. Export a transcript of your conversation with that client. To message your client (taxpayer), follow these steps: In TaxAct Pro, click the Portals tab. Alternatively, log into My Account and click Client Portals. Click the Clients tab. Locate the client in the list and […]
When you purchase Client Portals for TaxAct Pro, you will have access to a new tab within your desktop program. This tab is visible to the Firm owner once your purchase is complete (you may need to log out and log back into the desktop program to see the new tab). Edit Access To add […]
Client Portals has the features you need to provide appointment-free tax preparation. The following guide will walk you through the steps for purchasing, configuring, and using your new Client Portals subscription. If you have not purchased, review product information in Professional Editions: Client Portals – Overview or visit the Client Portals product page. Purchasing You […]
Client Portals Powered by Drake Software provides a secure client file exchange, allowing preparers and their clients to exchange confidential tax documents securely and conveniently. It is web-based and works with most browsers and computers. Since it is a paperless document exchange, preparers spend less time printing, faxing, emailing, or mailing returns and other documents […]
Once you receive your order confirmation, you can download and install your TaxAct Desktop program. NOTE You can also download and install previously purchased software at no additional charge by following the steps below. To download TaxAct (Consumer), follow the steps below: Sign in to your TaxAct Account online. Click My Account > My Downloads. […]
To print a client return or forms, you must have the TaxAct program and return file on your computer. If you no longer have the return file, contact the IRS at 1-800-829-1040 to request a copy. TaxAct does not retain copies of returns that were prepared and e-filed with the TaxAct Desktop program. The print […]
New Customers There are multiple options available to accommodate the specific needs of your tax practice. See https://www.taxact.com/professional/products/pricing for detailed package and pricing information. Once you determine the type of returns you’ll be preparing and how many users you need (Single User or Multi-User), choose the edition or bundle that fits your practice and click Pre-Order. […]
To update your payment information, follow these steps: Sign in to your TaxAct Account online. Click Orders & Downloads. Select the blue link update credit card information. Click the Order ID and follow the on-screen instructions to update your payment details. This option may not be available for all account types. For more information, see […]
You can e-file extension requests for a group of eligible individual taxpayers by following the steps below. Open the Client Manager. Select the clients you want to include: Click the first client, then hold CTRL and click additional clients. Right-click on one of the selected clients and choose E-File > 1040 Extension (Batch). Alternatively, click […]
To delete a return, follow the steps below. If you wish to add or remove a state from a return, see Add or Delete State Return for more information. Important Notes: Once a return is deleted, it cannot be restored. You cannot delete a return if: It has already been e-filed or printed. An extension has […]
Annual PCI compliance validation is required for all merchants who process credit card payments through Drake Pay®. This validation ensures alignment with current PCI Data Security Standard (PCI DSS) requirements and industry best practices for secure payment processing. Drake Pay has partnered with MAXpci to facilitate PCI compliance. After enrolling in Drake Pay, you will receive an […]
Enterprise Editions files can be shared on a network, either your own local server or online to TaxAct’s secure servers. During the TaxAct Professional Edition setup process, you’ll be prompted to set up your practice. At this point, you need to choose whether to save shared files on your local network, or on TaxAct’s secure […]
To access or print the application summary, follow these steps: Go to https://www.irs.gov/tax-professionals/e-file-provider-services . Log in to your account. Steps vary depending on which login type you use with IRS. Select your organization from the choices given and click Submit. Read and accept the Terms of Service. You will be redirected to the External Services […]
Oregon taxpayers are eligible for a tax credit for contributions made to an Oregon College Savings Plan account and/or to an ABLE account. The credit limit is calculated for each account type and varies depending on the tax year. To qualify for these credits, you must make the contributions by April 15 of the filing […]
TaxAct State Editions Anticipated release dates for TaxAct State Editions are listed below, with most releasing in January. For more details about forms available in each return type, go to https://www.taxact.com/forms. For more information on state release information, including updates on the availability of forms to print, see State Program Updates. 2025 Alabama Anticipated Release […]
Tax return preparers who prepare all, or substantially all, of a federal tax return for compensation are subject to certain requirements including registration in the IRS PTIN Requirements for Tax Return Preparers webpage. The Preparer Tax Identification Number (PTIN) is mandatory for all paid preparers since January 1, 2011. Tax preparers must pay a fee […]
To allow families in need of financial aid to complete their FAFSA sooner, the financial information from the previous year’s return is used. Students and their families will use their financial information from the prior year tax return to complete the FAFSA. In TaxAct, if you import your prior year return to your current return, […]
You can purchase the professional program for the current and immediately prior tax years online. If you want to use a TaxAct professional edition program for an earlier year, call Sales at (319) 536-3571 for assistance. Go to our Previous Year Editions webpage for more information. You can electronically file returns for the current and […]
If you provide care to an individual who has a physical, mental, or emotional handicap, the difficulty of care payments you receive are generally excluded from income. Review the information below to determine how to report these payments, if necessary, on your tax return. See the IRS Certain Medicaid Waiver Payments May Be Excludable From […]
To report the sale of your main home on an installment contract in the TaxAct program, follow the steps below. By completing this section, you are calculating: The gain or loss on the sale of your main home, If a gain, how much will be excluded, Total gross profit from sale (Form 6252, Line 16), […]
Generally, you do not report contributions to your 403(b) account (except Roth contributions) on your tax return. Your employer will report contributions on your Form W-2. Elective deferrals are reported in Box 12 and the Retirement plan box will be checked in Box 13. If you are a self-employed minister or chaplain, see below. See […]
Jury duty pay is generally taxable and must be reported on your return. If you were required to remit your jury duty pay to your employer because your employer continued to pay your wages during your jury service, the amount paid to your employer is deductible as an adjustment to income. Jury Duty Pay To […]
If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it; OR if the amount you repaid is more than $3,000, you may be able to take a credit […]
If you had to repay an amount that you included in your income in an earlier year, you may be able to deduct the amount repaid from your income for the year in which you repaid it. Method 1 — Deduction Figure your tax for 20YY claiming a deduction for the repaid amount. If you […]
Rental Income from Personal Property To report rental income from personal property in the TaxAct program, 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. Click the Explore More drop-down. Click Add beside Other […]
When a return results in a refund, taxpayers have several options for receiving their refund proceeds. Direct Deposit You can elect to have a refund directly deposited into up to three accounts at a bank or other financial institution (such as a mutual fund, brokerage firm, or credit union) in the United States. If you […]
When you enter your state withholdings from Form W-2, Wage and Tax Statement, they automatically transfer to Schedule A (Form 1040), Itemized Deductions, as an itemized deduction and do not need to be entered again in the program. Box 15 on Form W-2, Wage and Tax Statement, must list the state for which the employer withheld […]
If you have a situation where you made a contribution to a Roth IRA and later recharacterized part or all of it to a traditional IRA, review the IRS Instructions for Form 8606. NOTE: A conversion of a traditional IRA to a Roth IRA, and a rollover from any other eligible retirement plan to a […]
If you have a situation where you made a contribution to a traditional IRA and later recharacterized part or all of it to a Roth IRA, review the IRS Instructions for Form 8606. NOTE: A conversion of a traditional IRA to a Roth IRA, and a rollover from any other eligible retirement plan to a […]
If you are not seeing code “106” (long-term premiums) as a selection in the Virginia program, it is likely because first the long-term premiums must be entered in the Federal program, under Itemized Deductions (not to be calculated and taken on the Federal return, only to let code “106” appear on the Virginia return). Once […]
To enter long-term care premiums paid, 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 your screen, then make your selection. Click the Medical drop-down. Click Add beside Medical Expenses. Enter your medical insurance premiums paid (if applicable), […]
To claim personal property taxes paid in the TaxAct program, follow the steps below. The TaxAct program will transfer the information to Schedule A (Form 1040). If you don’t know if your vehicle registration fees are based on value, contact your taxing authority for verification. NOTE: For tax purposes, taxes you pay on your home […]
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). TIPS: If you review the […]
For futures contracts, the Form 1099-B that you receive needs to be reported on Part I of Form 6781, Gains and Losses From Section 1256 Contracts and Straddles. You cannot import this type of transaction into the TaxAct program; you need to manually enter it. To access Form 6781 in the TaxAct program, follow the […]
In certain situations (such as recharacterization of an IRA contribution or Roth IRA conversion, return of IRA contributions, or return of excess traditional IRA contributions), a statement must be attached to your return explaining the recharacterization or distribution. IRS Instructions for Form 8606, Nondeductible IRAs, provides the most definitive guidance for reporting recharacterizations. You can […]
TaxAct customers can enter multiple Form 1099-B Proceeds From Broker and Barter Exchange Transactions quickly and easily by importing a CSV (comma separated values) file. To import transactions, you will need to either: Obtain a spreadsheet file from your broker and import it using the steps below, or Create your own spreadsheet – see […]
All TaxAct Customer Support: (319) 373-3600 Tax Professional Support: (319) 731-2682 Refer to our Contact TaxAct Service & Support page for support hours.
Generally, you can recharacterize (correct) an IRA contribution by making a trustee-to-trustee transfer from one IRA to another type of IRA. Trustee-to-trustee transfers are made directly between financial institutions or within the same financial institution. You generally must make the transfer by the due date of your return (including extensions) and reflect it on your […]
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 […]
To indicate in the TaxAct program that you receive your mail in care of a third party, 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 amount you can contribute to a Health Savings Account (HSA) is limited to zero for any month you are enrolled in Medicare. See IRS Publication 969 for details. To enter HSA contribution amounts in the program, follow the steps below. Online Dashboard From within your TaxAct return, click Deductions & Credits. On smaller devices, […]
You may or may not receive Form W-2G, Certain Gambling Winnings, but you can report all gambling winnings in the same place in the TaxAct program. Gambling winnings are reported as Other Income on Schedule 1 (Form 1040) Additional Income and Adjustments to Income, Line 8. If you are able to itemize your deductions, gambling […]
See IRS Publication 519 for details on which forms you are required to file, including information regarding the different rules for your period of residence and period of nonresidence. TaxAct supports the creation of dual-status returns. To accommodate for this situation, taxpayers need to prepare multiple returns in TaxAct. An example of how taxpayers would […]
You may or may not have received a Form W-2G, Certain Gambling Winnings, for your gambling winnings. To enter your gambling winnings, follow the steps below: TaxAct 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. Click […]
If you received Form(s) W-2, Wage and Tax Statement, and some or all of your wages are exempt by tax treaty, you will need to manually adjust your W-2 entry to reflect only the wages that are not exempt by tax treaty. Wages which are exempt by tax treaty should be reported on Schedule OI. […]
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. If the IRS doesn’t approve your installment […]
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 […]
You must file IRS Form 8938, Statement of Specified Foreign Financial Assets, if you have an interest in specified foreign assets and the value of those assets is more than the applicable reporting threshold. See the IRS Instructions for Form 8938 and Basic Questions and Answers on Form 8938 for more information. To enter […]
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, […]
Form 8862, Information To Claim Certain Credits After Disallowance, is used to claim the Earned Income Credit (EIC) if this credit was previously reduced or disallowed by the IRS, and you now wish to claim the credit on this year’s return. To enter information regarding Form 8862 in the TaxAct program, follow the steps […]
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 […]
To access Form 8845 Indian Employment Credit in the TaxAct program, follow the steps below. The credit amount in the TaxAct program will transfer to Form 3800, General Business Credit, which will transfer to Line 6 of Schedule 3 (Form 1040), Additional Credits and Payments. Online Dashboard From within your TaxAct return, click Resources. […]
Income earned from assets held in a UGMA or UTMA account is generally considered the child’s unearned income for federal tax purposes, even if the assets were gifted by a parent, grandparent, or another person. If your child has interest, dividends, or other unearned income, you must decide whether to file Form 8814, Parents’ Election […]
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 […]
Federal Form 8801, Credit for Prior Year Minimum Tax – Individuals, Estates, and Trusts is for the calculation of a credit in certain circumstances when one has had the Alternative Minimum Tax (AMT) in a prior year. Certain numbers are automatically pulled into the form from the current year’s return in anticipation that the form […]
If you did not electronically file 8379 Injured Spouse Allocation when you filed your original tax return, you need to send the form to the Internal Revenue Service Center for the area where you live. Be sure to attach a copy of all Forms W-2, W-2G, or 1099, showing federal income tax withholding, to Form […]
To complete Form 8332, Release/Revocation of Release of Claim to Exemption for Child by Custodial Parent, (usually only done by the custodial parent), 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 […]
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 […]
Form 4797, Sales of Business Property, reports the sale of business property. To enter the sale of business property, 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. Click the Business & Self […]
To enter a loss for the sale of business property that was not previously entered as a depreciable asset, 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. Click the Business & Self […]
Investment (margin) interest deduction is claimed on Form 4952, Investment Interest Expense Deduction and the allowable deduction will flow to Schedule A (Form 1040) Itemized Deductions, Line 9 to be claimed as an itemized deduction, up to the amount of your investment income. To enter the information for Form 4952 in the TaxAct program, follow […]
To enter a loss from a Ponzi-type investment scheme in TaxAct, 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 Itemized or Standard Deductions drop-down, then […]
Use Form 4684, Casualties and Thefts, Section B to report a casualty or theft loss on property used 100% for business. In TaxAct, enter the loss by following the steps below. Once entered, TaxAct will automatically carry the information to Form 4797 and then to Schedule 1 of Form 1040 as needed. Online Dashboard From […]
If you enter an amount in Box 8 of Form W-2, Wage and Tax Statement for Allocated Tips, the TaxAct program will transfer the amount to Form 4137, Social Security and Medicare Tax on Unreported Tip Income, for the calculation of social security and Medicare tax on the tips to be reported on Line 5 […]
Form 3903 calculates the deductible moving expenses for active-duty military due to a military-ordered permanent change of station (PCS). 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 Instructions for Form 3903 for details. […]
Form 2848, Power of Attorney and Declaration of Representative, is used to authorize an individual to represent the taxpayer/corporation/partnership before the IRS. The authorized individual must be eligible to practice before the IRS. This power of attorney authorizes the representative to perform duties such as signing consents, extending the time to assess tax, recording […]
To complete Form 2441, follow the steps below. At the end of the entry process: If the credit is not allowed, a reason is shown. If the credit is allowed, the amount will be displayed. The credit carries to Form 2441 and Form 1040, Schedule 3. Online Dashboard From within your TaxAct return, click Deductions […]
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 […]
Form 2106, Employee Business Expenses, can be claimed only by Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, and employees with impairment-related work expenses. To file Form 2106 for Armed Forces reservists, qualified performing artists, fee-basis state or local government officials, follow these steps. Online Dashboard From within your TaxAct return, click […]
Form 8283, Noncash Charitable Contributions, is used to report information about noncash charitable contributions. To enter this information 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 your screen, then make your selection. […]
To enter undistributed capital gain information from Form 2439, Notice to Shareholder of Undistributed Long-Term Capital Gains, 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. Click the Explore More drop-down. Click Add beside […]
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 your return generates a Net Operating Loss (NOL) for the current year, the TaxAct program will display a Green Alert titled “Explanation: Net Operating Loss.” This alert indicates that an NOL has been calculated and requires review. If your NOL is more than your taxable income for the year to which you carry it […]
To enter household employee wages not reported on Forms W-2 in the TaxAct program, 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. Click the Wages & Salaries drop-down. Click Add beside Household Employee […]
To enter Form 1098, Mortgage Interest Statement, follow the steps in the Form 1098 – Entering in Program FAQ. To enter Form 1098 for real estate (property) taxes paid, follow the steps below: TaxAct Online Dashboard From within your TaxAct return, click Deductions & Credits. On smaller devices, click the menu at the top […]
If you are completing the form and not filing the return, you will need to print the form and mail it to: Internal Revenue Service ITIN Operation P.O. Box 149342 Austin, TX 78714-9342 If you don’t want to mail your documents to the IRS, you may be eligible to use an IRS-authorized Certified Acceptance Agent […]
To enter or review health insurance coverage information 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 your screen, then make your selection. Click the Medical drop-down. Click Add beside Affordable Care Act […]
Generally, the IRS does not require all transactions to be reported on Form 8949, Sales and Other Dispositions of Capital Assets. For transactions with reporting category “A” or “D” (meaning the cost basis was reported to the IRS), if there is no adjustment code/amount they can be reported directly on Schedule D (Form 1040), Capital […]
Bona fide residents of Puerto Rico generally don’t have to file a U.S. federal return if all their income is from Puerto Rico. A federal return is required only when they receive income from outside Puerto Rico that exceeds the usual IRS filing thresholds, and Puerto Rico–source income is typically excluded from that return. U.S. […]
Per IRS Publication 530, you can’t deduct any of the following items. Insurance (other than mortgage insurance premiums), including fire and comprehensive coverage, and title insurance. Wages you pay for domestic help. Depreciation. The cost of utilities, such as gas, electricity, or water. Most settlement costs. See Settlement or closing costs under Cost as Basis, […]
Before you claim a deduction, you can go to IRS Publication 529, Miscellaneous Deductions, to see if you’re eligible to claim it. To claim a deduction in the TaxAct program, 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 […]
To enter your medical and dental expenses 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 your screen, then make your selection. Click the Medical drop-down. Click Add beside Medical Expenses. Complete the rest […]
If your filing status is Married Filing Separate (MFS), you will need to indicate whether you lived with your spouse during the year. Online Dashboards From within your TaxAct return, click About. On smaller devices, click the menu at the top left corner of your screen, then make your selection. Beside your name, click Edit. […]
Per IRS Publication 504, if one spouse itemizes deductions on a Married Filing Separately return, the other spouse cannot claim the standard deduction. To indicate that your spouse filed MFS and itemized deductions on their return, follow the steps below. TaxAct Online Dashboard From within your TaxAct return, click About. On smaller devices, click the […]
Per IRS Publication 504, if one spouse itemizes deductions on a Married Filing Separately return, the other spouse cannot claim the standard deduction.To indicate that your spouse filed MFS and itemized deductions on their return, follow the steps below. Online Dashboards From within your TaxAct return, click About. On smaller devices, click the menu at […]
Under IRS rules, a married couple generally cannot file a joint return if either spouse was a nonresident alien during the tax year. However, when one spouse is a U.S. citizen or resident alien and the other is a nonresident alien, the couple may choose to file jointly by electing to treat the nonresident spouse […]
According to IRS Publication 519, most nonresident aliens cannot claim the standard deduction, however, a special rule applies to students and business apprentices from India who are eligible for the benefits of Article 21(2) of the United States-India Income Tax Treaty. They can claim the standard deduction if they do not claim itemized deductions. Except for […]
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 enter or review information on Schedule K-1 (Form 1120-S), Shareholder’s Share of Income, Deductions, Credits, etc., 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. Click the Business & Self Employed drop-down. Click […]
To enter or review information on Schedule K-1 (Form 1065), Partner’s Share of Income, Deductions, Credits, etc., 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. Click the Business & Self Employed drop-down. Click […]
To enter or review a beneficiary’s share of income, deductions and/or credits in the TaxAct program, from the information on Schedule K-1 (Form 1041), Beneficiary’s Share of Income, Deductions, Credits, etc., follow the steps below. Online Dashboard From within your TaxAct return, click Income. On smaller devices, click the menu at the top left […]
If you receive distributions from a Qualified Tuition Program (529 plan) or Coverdell RSA during the tax year, you will receive a Form 1099-Q. The amount of your gross distribution (Box 1) shown on each form will be divided between your earnings (Box 2) and your basis or return of investment (Box 3). The part […]
If you are a self-employed nonresident alien living in the United States, the information below will help determine whether you are subject to self-employment tax. If you are not, but the tax is calculating on your return, the navigation steps below will allow you to stop that from calculating. Online Dashboard From within your TaxAct […]
For taxpayers or spouses with an IRS approved Form 4361, follow the steps below to report the exemption in TaxAct. 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. Click […]
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’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 […]
Interview questions for Part III of Federal Schedule B (Form 1040) only appear automatically in the TaxAct program if you have: Over $1,500 of taxable interest or ordinary dividends, Had a foreign account, Received a distribution from, or were a grantor of, or a transferor to, a foreign trust. If you would like to enter […]
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 […]
Canadian sourced retirement income may be entered in one of two ways. The amounts are then carried to the applicable lines of Form 1040. Social Security Benefits Foreign Employer Compensation (FEC) Worksheet Social Security Benefits Under the income tax treaty between the U.S. and Canada, benefits paid under the Canada Pension Plan (CPP), Quebec […]
Federal To apply a federal refund to next year’s estimated taxes, 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 Return Info drop-down. Click Add beside 20YY Estimated […]
If you want to elect to take the sales tax deduction or the state income tax deduction (even though one of them is a greater amount), 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 […]
You can elect to deduct state and local GENERAL SALES TAXES instead of state and local INCOME TAXES as an itemized deduction on Schedule A (Form 1040) Itemized Deductions. You cannot deduct both. To figure your state and local general sales tax deduction, you can use either your actual expenses or the state sales tax […]
To enter a foreign address in TaxAct, follow the steps below. Online Dashboard From within your TaxAct return, click About. On smaller devices, click the menu at the top left corner of your screen, then make your selection. Locate the Address line and click Start or Edit. Below the City/State, click Enter a foreign address. […]
The TaxAct program supports the following worksheets for Social Security Benefits. These worksheets are used to calculate your taxable social security benefits. Worksheet 1 – Figuring Your Taxable Benefits from IRS Publication 915 Worksheet 2 – Figure Your Additional Taxable Benefits (From a Lump-Sum Payment for a Year After 1993) Worksheet 4 – Figure Your […]
Retired railroad workers can receive two different forms for reporting retirement benefits. The forms have similar names, so make sure to pay attention so you can properly report them in the TaxAct program. Form RRB-1099 reports Social Security Equivalent payments. See Forms SSA-1099 and RRB-1099 – Entering Social Security or Railroad Retirement in Program […]
Form SSA-1099 (or SSA-1099-SM) shows the total amount of social security benefits you received during the tax year. Social security benefits include monthly retirement, survivor, and disability benefits. They do not include supplemental security income (SSI) payments, which are not taxable and do not need to be reported on your tax return. The taxable portion […]
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 […]
Health Savings Account (HSA) distributions are reported on Form 1099-SA, Distributions from an HSA, Archer MSA, or Medicare Advantage MSA, and the information transfers to Form 8889 Health Savings Accounts (HSAs). To enter distribution information in the program, follow the steps below. Online Dashboard From within your TaxAct return, click Income. On smaller devices, click […]
Medicare Part C (Medicare Advantage Plans) is another way to get your Medicare benefits. It combines Part A, Part B, and sometimes Part D (prescription drug) coverage. Medicare Advantage Plans are managed by private insurance companies approved by Medicare. These plans must cover medically necessary services. Medicare C is reported on Form 1099-SA, Distributions from […]
To report Form 1099-OID, 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. Click the Explore More drop-down. Click Add beside Original Issue Discount. Complete the rest of the interview process. Classic From within […]
To enter the data on Form 4835 for farm rental in the TaxAct program, 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. Click the Business & Self Employed drop-down. Click Add beside Farm […]
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 […]
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 […]
According to the IRS, taxpayers may not need to report the sale of their main home. Reporting is required only if either of the following is true: You cannot exclude all the gain. You received Form 1099-S for the sale. Excluding Gain on the Sale of Your Home Most taxpayers can exclude up to $250,000 […]
When there is an amount in Box 4 and/or Box 6 of the Form 1098-T, Tuition Statement, and you claimed an education credit in a prior tax year (i.e., American Opportunity Credit or Lifetime Learning Credit), you need to recalculate that credit, taking into account the adjustment, and then enter the decrease in credit on […]
Student loan interest will be reported to you on Form 1098-E, Student Loan Interest Statement. When you report this in the TaxAct program, the information is transferred to Schedule 1 (Form 1040). Follow the steps below to enter information from Form 1098-E. Online Dashboard From within your TaxAct return, click Deductions & Credits. On smaller […]
Use the steps below to enter mortgage interest that you paid if the amounts were not reported on Form 1098. Online Dashboard From within your TaxAct return, click Deductions & 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 […]
Follow the steps below to enter information from Form 1098-C in TaxAct. See the IRS Instructions for Form 1098-C for details about claiming the contribution deduction. Online Dashboard From within your TaxAct return, click Deductions & Credits. On smaller devices, click the menu at the top left corner of your screen, then make your selection. […]
To enter the information in your TaxAct return when another individual (other than your spouse if filing a joint return) received a Form 1098, Mortgage Interest Statement, for interest you also were liable for, follow the steps below. Online Dashboard From within your TaxAct return, click Deductions & Credits. On smaller devices, click the menu […]
You may need to enter points not reported to you on Form 1098, Mortgage Interest Statement, to determine if they are fully deductible in the current year or if you must deduct them over the life of the loan. See IRS Publication 936 and IRS Topic No. 504 Home Mortgage Points for details. To enter points […]
When you enter Form 1098 (Mortgage Interest Statement) in TaxAct, the information flows to the Itemized Deductions section and, if you itemize, appears on Schedule A of your federal return. TaxAct compares your itemized deductions to the standard deduction and uses whichever provides the greater benefit. Mortgage interest is deductible only when the loan is […]
Whether your child was born alive depends on state or local law. There must be proof of a live birth shown by an official document, such as a birth certificate. If the child died before they were issued a social security number (SSN), enter “DIED” in the Social Security Number field (see Dependents – Entering Information […]
This amount is generally only taxable if you itemized deductions in the prior year. To enter or review your state income tax refund in the TaxAct program, follow the steps below. The program automatically uses the Form 1040 State Refund – State Refund Worksheet to determine the taxable amount based on the information entered for […]
Entries on Form 1099-G Certain Government Payments, Box 6 (this covers certain government payments) are generally reported on IRS Schedule 1 (Form 1040) Additional Income and Adjustments to Income, Line 8. If the item relates to an activity for which you are required to file Schedule C, Schedule E, Schedule F, or Form 4835, you need […]
See below for the detailed steps on how to enter or review your unemployment compensation information in the TaxAct program. It is reported on Schedule 1 (Form 1040). For more information, review Publication 525. Online Dashboard From within your TaxAct return, click Income. On smaller devices, click the menu at the top left corner of […]
Eligible educators 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 were paid or incurred for books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials used in the classroom. NOTE For courses in […]
The IRS allows qualifying education expenses to be applied to one of the following education benefits: American Opportunity Credit Lifetime Learning Credit Tuition and Fees Deduction (Tax Years 2020 and earlier only) See IRS Publication 970 for more information about education credits. Entering Education Expenses To enter your education expenses and qualifications, follow the steps […]
The Earned Income Credit (EIC) is calculated by the program automatically if the return qualifies for the credit. To remove the credit from a return that qualifies for it, you need to select the item that disqualifies your return or check the box I don’t want to or cannot claim the earned income credit this […]
The Federal Government offers relief to those in areas who were impacted by certain Presidentially declared disasters. Federal casualty losses, disaster losses and qualified disaster losses are three categories of casualty losses that refer to federally declared disasters. The requirements for each loss vary. For more information, see Publication 547 or the Instructions for Form 4684. […]
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 you import a prior-year return, all of the applicable information is carried forward to your current year return. To change your filing status from “Married Filing Joint” to “Head of Household” after importing, you will need to remove any spousal information from your return. If you want to remove certain information, you will have […]
Preparer Notes can be used by the paid preparer, electronic return originator, or taxpayer to provide additional, voluntary information related to the Form 1040, but it is not required to attach it. These notes are added to the return in the same area where the Election Explanations and Regulatory Explanations are entered. Online Dashboards From […]
If you have an inherited IRA, there are various possible scenarios that determine how you will complete your return using the TaxAct® program. These scenarios are listed below, along with instructions for entering the information in the TaxAct program. Inherited IRAs If you inherited an individual retirement account (IRA), you may have to include […]
You can locate the question regarding whether you can be claimed on someone else’s tax return using the steps below. Online Dashboard From within your TaxAct return, click About. On smaller devices, click the menu at the top left corner of your screen, then make your selection. Click the Edit beside your name. As you […]
Capital gains and losses are reported on Form 1099-B and are automatically carried to Schedule D and/or Form 8949, as applicable. The 1099-B form you received might not report the date acquired or the cost basis, but you are responsible for acquiring and entering that information to properly report the transactions. Sale Dates – If […]
When stocks, stock rights, or bonds (not held by a securities dealer) become completely worthless during the tax year, they are treated as if sold on the last day of that year. The resulting capital loss is short-term or long-term depending on the holding period. See IRS Publication 550 for details. In TaxAct, follow the steps […]
If, while holding a short sale, a dividend was issued which ultimately came from your brokerage account, the amount may be able to be deductible as an investment expense on Federal Schedule A (Form 1040). If the payment you had to make to the lender, in lieu of dividends distributed on stock borrowed for a […]
Section 1202 is an exclusion of gain on Qualified Small Business (QSB) Stock. To enter the information for your QSB gain and exclusion, follow the steps below. The TaxAct program will automatically transfer this amount and enter it as a positive number per the previous instructions on the 28% Rate Gain Worksheet. You are responsible […]
See below for steps on entering the Alaska Permanent Fund Dividends (PFD). Per IRS Publication 550, “Alaska Permanent Fund dividends. Do not report these amounts as dividends. Instead, include these amounts on Schedule 1 (Form 1040), line 8g.” Online Dashboard From within your TaxAct return, click Income. On smaller devices, click in the upper left-hand […]
To enter or review short-term and long-term capital losses carried over from a prior year, follow the steps below. This allows the TaxAct program to transfer the info to Schedule D Capital Gains and Losses. If you import your prior year return in TaxAct, these amounts will be transferred automatically from your prior year TaxAct […]
Follow the steps below to enter Form 1099-DIV Dividends and Distributions in the TaxAct program. 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. Click the Investments & Savings drop-down. Click Add beside Dividends. Complete the rest […]
Collectibles include works of art, rugs, antiques, metals (such as gold, silver, and platinum bullion), gems, stamps, coins, alcoholic beverages, and certain other tangible properties. If you have a gain or loss on the sale of a collectible, you must create a Form 1099-B Proceeds From Broker and Barter Exchange Transactions in the TaxAct program […]
To enter or review Form 1095-A Health Insurance Marketplace Statement in TaxAct, follow the steps below. Access your HealthCare.gov account to review your uploaded Form 1095-A. Online Dashboard From within your TaxAct return, click Deductions & Credits. On smaller devices, click the menu at the top left corner of your screen, then make your selection. […]
The IRS has an annual maintenance period (called a “blackout”) during which certain types of returns are not accepted electronically. This is also referred to as the e-filing shutdown or cutover schedule. Individual Returns The individual shutdown for tax year 2025 begins on Saturday, December 26, 2026 at 11:59 a.m. Eastern Time. The IRS […]
TaxAct Federal Desktop programs are available in early and final release versions. The early release version is usually released in late October for Professionals and December for Individual Consumers. The final versions of our Federal 1040 software programs are typically released in early January. The state modules begin releasing in early January and can continue […]
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, […]
Each time you sign in, you may be prompted to verify your identity via a 6-digit verification code sent by text (standard text rates apply), email (only if you do not receive the code via text), or using an authenticator app. This extra layer of protection ensures only you can access your account. To choose how to […]
Follow these steps if you have forgotten your password: Click Sign In at the top-right of the TaxAct website. On the Sign In screen, enter the username, email address, or the mobile phone number associated with your TaxAct account. Click Sign In. On the Sign in with Password screen, click I forgot my password. Follow […]
Use Form 8606 to report the following: Nondeductible contributions you made to traditional IRAs; Distributions from traditional, SEP, or SIMPLE IRAs, if you have a basis in these IRAs; Conversions from traditional, SEP, or SIMPLE IRAs to Roth IRAs; and Distributions from Roth IRAs. For info on entering Form 1099-R in the TaxAct program, go […]
IRS Form 5329 is the federal tax form used to report additional taxes on: IRAs Other qualified retirement plans Modified endowment contracts Coverdell ESAs QTPs Archer MSAs HSAs ABLE accounts To enter, review, or delete information for Form 5329 in TaxAct: TaxAct Online From within the TaxAct return, click Federal. On smaller devices, click the menu […]
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 […]
The IRS may reject your tax return if you did not include information about your Advanced Premium Tax Credit on IRS Form 8962 from the federal healthcare marketplace. This occurs when the IRS database shows that you should have provided this information (whether this is accurate or not). If you did receive Form 1095-A showing […]
If you are not engaged in the activity for profit, then the activity may be considered a hobby. You are still required to report hobby income on your tax return. See IRS Publication 17 for details. NOTE: You may not claim hobby expenses (at least through 2025, pending further legislation). Online Dashboard […]
To report a Roth IRA distribution, begin by entering the data from your Form 1099-R (gross amount, taxable amount, Box 7 code). Then follow the instructions for Form 8606 to compute how much (if any) is taxable or subject to penalty. Finally, if the distribution incurs the 10% early-distribution penalty (or a recapture) and no […]
TaxAct uses the entries made for all Forms 1099-R to calculate the amounts that appear on Lines 4a, 4b, 5a, or 5b of Form 1040. If you think an amount regarding your retirement plan income is incorrect on Form 1040, review your Form 1099-R entries by following the steps below. If you change any of […]
To enter a description and an amount for “Other Income” that needs to be reported on Form 1040, follow the steps below. This would be any income that is not reported elsewhere on another form or schedule. The amount flows to Schedule 1, line 8z with “Worksheet attached” on the description line. The worksheet […]
If you were not an employee of the company or person who paid you, your payment (compensation) is reported on Form 1099-NEC instead of Form W-2. To enter the applicable Schedule C information, and Form 1099-NEC, follow the steps below. Refer to IRS Publication 334 for additional information regarding self-employment tax, what it is, […]
To indicate that a Form 1099-INT is foreign Interest for a mutual fund or a regulated investment company, follow these steps. Online Dashboards 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. Expand Investment and Savings. Click Add beside […]
To report Form 1099-INT, Interest Income, in the TaxAct program, follow the steps below. Online Dashboards 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. Expand Investment and Savings. Click Add beside Interest to add a new Form 1099-INT. […]
If you believe you may be at risk for tax-related identity theft, fill out IRS Form 14039 and either fax or mail it to the IRS so they can mark your account to identify any questionable activity (the fax number and mailing address are provided below the signature section on the second page of the form). […]
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 […]
If your dependent received an Identity Protection PIN (IP PIN), you will need to enter this PIN on your tax return. To enter your dependent’s IP PIN, follow the steps below. Online Dashboards From within your TaxAct return, click Federal and then Taxes & Miscellaneous. On smaller devices, click the menu at the top […]
Charitable contributions are entered on Schedule A (Form 1040), Lines 11-12. To be deductible, a contribution must be made to a qualified organization. See the IRS Tax Exempt Organization Search tool for a searchable list of qualified organizations. Donation Assistant TaxAct Deluxe, Premier and Self-Employed users can quickly and easily enter information for donated items […]
Anyone who prepares and files Oregon Personal Income Tax Returns for compensation must be licensed with the Oregon Board of Tax Practitioners; unless they are a Certified Public Accountant (CPA), a Public Accountant licensed by the Oregon Board of Accountancy, or a member of the Oregon State Bar. Additional information is provided on the Oregon Board of Tax Practitioners website. Enter your state […]
TaxAct® automatically calculates the Earned Income Credit (EIC) based on the information in your return. If you have a dependent that is a qualifying child, enter your dependent information (including name, SSN, relationship to you, year of birth, number of months lived with you, and student status). TaxAct will then use dependent information in the […]
If you are claimed as a dependent on another person’s tax return, you must indicate this when filing your own return. Selecting this checkbox: Limits your standard deduction amount. Prevents you from claiming dependents of your own. May make you ineligible for certain tax credits and deductions (though you may still qualify for others depending […]
When you enter the dependent information, it flows to Form 1040. The dependent’s data (social security number, year of birth, relationship, number of months lived with you, etc.) is also used to calculate credits such as the Child Tax Credit (CTC) or Other Dependent Credit (ODC). For information on how to enter or edit […]
To enter or edit a dependent in the TaxAct program, follow the steps below. Online Dashboard From within the TaxAct return, click About. On smaller devices, click the menu at the top left corner of your screen, then make your selection. Click Add Dependent. If a dependent was updated from the prior year, you can […]
If the Box 13 Statutory employee is checked on your Form W-2, the income needs to be reported on Schedule C. To enter statutory employee income, Add or edit Form W-2 (see the Form W-2 – Adding, Reviewing, or Deleting FAQ for details). During the interview process, on the screen titled W-2: Enter Your information, below […]
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 Form W-2 – Adding, Reviewing, or Deleting for […]
Substantiated employee business expense reimbursements are reported on Box 12 of Form W-2. If you don’t use this expense, the unused amount would be taxed as wages. Excess reimbursements. If you are not a member of the Armed Forces reserves, a qualified performing artist, a fee-basis state or local government official, or an employee […]
Nontaxable combat pay is generally reported on Form W-2 Wage and Tax Statement in Box 12 with code “Q.” To fill out Form W-2, Box 12 – Letter code and Amount, you must first add Form W-2. If you need help, go to the Form W-2 – Adding, Reviewing or Deleting FAQ. Then, follow the […]
Reporting income from Form W-2 is simple in TaxAct. In the TaxAct program, you can import, add, review/edit, and delete multiple copies of Form W-2. To add multiple copies of Form W-2, see Form W-2 – Filing Multiple Copies for instructions. Adding To add a Form W-2 in TaxAct: Desktop From within the TaxAct return, […]
To enter or modify the taxpayer’s (or spouse’s) name, Social Security Number (SSN), or date of birth in the TaxAct return, follow the steps below: TaxAct Online Dashboard From within your TaxAct return, click About. On smaller devices, click the menu at the top left corner of your screen, then make your selection. Review the […]
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 complete the […]
How do I get paid? Funds are deposited into the bank account you provided during the merchant application process. How quickly are payouts deposited into my account? Typically, payments are deposited into the bank account (provided during the merchant application process) within 2 business days from the date of sale. Is there a minimum amount […]
To have your preparation fees deducted from your client’s refund, you must apply to work with a TaxAct partner bank who offers this service. To start the application, log into your TaxAct account and click on Bank Enrollment. Once your application is accepted, you can offer your clients the option to pay their fees via their […]
Your account will be temporarily locked or disabled after multiple failed sign-in attempts. To regain access, either: Wait 15 minutes and try again Recover your password (steps below) Ensure that you are using the correct username. Password Troubleshooting If you have issues signing in: Double-check password spelling (use the “eye” icon) Turn off caps lock […]
Each time you sign into your account, you are prompted to verify your identity with a 6-digit verification code sent by text (standard text rates apply) or authenticator app. You must have a valid, domestic phone number associated with your account to use TaxAct and complete verification steps. This extra layer of protection ensures that […]
Online Sign In Go to Sign In Enter your username. Select Remember this device if using a private device. Click Sign in. Complete the ReCAPTCHA. Enter your password and click Continue. Enter the verification code to complete sign-in. See Related Links for details. NOTE: You must use the online sign in to manage or update account […]
In accordance with the IRS guidelines set forth by the IRS Safeguards Program and the Security Summit, TaxAct Professional account passwords expire every 90 days. If you recently received an e-mail notifying you that your password will expire within seven days, you may follow the instructions below. To reset your password before it expires: Sign […]
TaxAct supports the use of several different third-party authenticators. For common issues that arise during verification, please see the troubleshooting links for each authenticator below. Duo Mobile https://guide.duo.com/common-issues Authy (mobile devices only) https://help.twilio.com/categories/19752372315419 Google Authenticator https://support.google.com/accounts/answer/185834?hl=en Microsoft Authenticator https://support.microsoft.com/en-us/account-billing/troubleshoot-problems-using-microsoft-authenticator-a3a74493-566b-4c2e-b949-a2789bac0fd3
If you re-file a return after it was initially rejected, the TaxAct program may prompt you to enter a credit/debit card number, even if you already paid when you first filed. You will not be charged again if: The primary identification number remains the same (Social Security Number (SSN) for personal tax returns or Employer […]
What is the Drake Pay® Back-Office Portal? The Back-Office Portal is a tool available to all users so they can review transaction data, disputes, and deposits for all locations. Users can also view their fee profile, other business specific information, and export data with which reports can be created. How do I access the Drake […]
When you purchase prepaid or unlimited e-filing, that purchase is assigned to your account. When you sign into TaxAct with the username and password associated with that account, your Practice ID should automatically be added to your Preparer Information. To enter the verification information for your e-filing: From within your TaxAct Professional Edition program, click […]
A feature of the TaxAct Enterprise Edition is the ability to store, share, and collaborate with others on a network. It’s great for offices with multiple preparers who wish to share workloads, data, and responsibilities. The program can be used with your existing Local Area Network (local storage option) or an Internet connection (cloud-based storage) […]
You can complete Form 4868 within your TaxAct Professional Edition program by following these steps: Open the client’s return. Click on the Filing tab and select File Extension. For the question Would you like to complete a Federal Extension?, click Yes. Follow the walk-through Complete Form 4868 or Estimate My Tax (prior to completing Form 4868). […]
If you live outside the United States of America, you can still order TaxAct software through the website, as long as all of the following are true: You have a valid US address, You have a valid US phone number, You will pay for your order with a US-based credit card. If you are a […]
Important Security Updates for the 2024 Tax Season As part of the IRS Security Summit, all professional tax products across the industry—including TaxAct Professional Edition solutions—must comply with enhanced security requirements to better protect both your data and your clients’ information. To meet these standards, TaxAct Professional has implemented the following multi-layered security measures for […]
As a Professional Preparer, you can choose different options of paying for e-filing with TaxAct Professional software. If you have not already verified your EFIN information with TaxAct, see EFIN Verification Process. Unlimited e-Filing If you decide to purchase a professional bundle, unlimited e-filing is included. Pre-Paid e-Filing If you are interested in Pre-Paid e-filing, contact […]
Troubleshooting: Professional Reports Not Displaying in TaxAct If Professional Reports is not displaying in your TaxAct program, it may be due to settings related to your Internet Options, Windows network, firewall, or security software. Step 1: Check SSL and TLS Settings Close the TaxAct program or any open TaxAct webpages. On your Windows taskbar, click the search field (typically labeled “Type here to search”) and […]
If you get an error message that the prXXmaster.dat (or other DAT) file is locked or the program is unable to read or write to it, there has been an interruption of, or conflict with, the TaxAct program (substitute XX for the tax year in use). This could be caused by security software, Windows rights […]
If you’re using TaxAct Professional Editions, you can enter data directly into forms using Forms View. Here’s how to navigate and input data effectively: Accessing Forms View From within the client return, click Forms in the options bar to open the Forms Explorer (if not already visible). Use the Search Forms field at the top of Forms Explorer to find a specific […]
To order a state module for your TaxAct Desktop program: Log in to your TaxAct Professional program. At the top, click Online, then click Order State Program. This launches the TaxAct website. Add the necessary state to your shopping cart and complete your purchase. While still logged into the website, from the Navigate menu, select Orders […]
The default location for TaxAct Professional Edition files is: C:\TaxAct\TaxAct [20XX*] Professional [Preparer’s] Edition\Client Data\[Practice ID] (Where XX is the last two digits of the TaxAct program year.) When you find the file, make sure the TaxAct program is closed, and Double-click the file to open it in the TaxAct program. If you […]
At this time, there are no plans to release a TaxAct Desktop product for Mac operating systems. However, Mac users can still complete their tax returns by using TaxAct Online Products, which are fully compatible with most modern web browsers. For details on supported browsers and system compatibility, please visit our System Requirements page.
To help prevent identity theft, protect our tax professional customers, and comply with IRS regulations, you will be required to sign in each time you open the software, and again after 30 minutes of inactivity or every 24 hours—whichever occurs first. These requirements are part of the IRS Security Summit initiatives and apply to all professional tax software solutions across the industry, including TaxAct […]
TaxAct has simplified the Professional Editions installation process, starting with 2024. You can now click one link and install all desired products at the same time. For Enterprise Editions, once you install the program, you will be prompted to set up your practice the first time you launch the program. See Professional Editions – Online […]
You need a TaxAct Professional account to sign in to the program, and you need to purchase your TaxAct Professional Edition products before installing. See Professional Editions – Downloading and Installation TaxAct for more information. Installing State Editions To install state editions in TaxAct Professional Edition, follow the steps below: Open your return, then click […]
You can create a new personal or client return in TaxAct using the following methods. To create a new return in TaxAct Online, follow the steps below. If you need to delete a return, see Delete a Return for more information. Desktop To add a new client return in TaxAct Professional Edition: Go to File […]
Ensure Adobe Acrobat Reader is Installed. You will need Adobe Acrobat Reader to view, print, or save the tax return. You can view the saved return at any time by opening it in Adobe Acrobat Reader. To generate and save the return as a Portable Document Format (PDF) file, follow these steps: TaxAct Online From within […]
All TaxAct products can be purchased on our website. Product offerings include: Individual (Form 1040): To order the TaxAct online program, go to our TaxAct Online Products webpage. To order the TaxAct download/desktop program, go to our TaxAct Download Products webpage. Business (Forms 990, 1041, 1065, 1120, or 1120-S): To order the TaxAct business programs, […]
If a page fails to load or you experience difficulties signing in to your account, it can be caused by your web browser cache (temporary browsing data for helping pages load more quickly the next time you access them). Clearing your cache will most likely resolve the issue. Before clearing your cache, close all other […]
Per IRS Publication 524 Credit for the Elderly or the Disabled, page 4: Permanent and total disability. You have a permanent and total disability if you can’t engage in any substantial gainful activity because of your physical or mental condition. A qualified physician must certify that the condition has lasted or can be expected to […]
As a professional preparer, you may e-file returns for the current tax year as well as the previous two tax years, when supported by the Modernized e-File (MeF) system. For example, during the 2026 filing season (tax year 2025) you may e-file 2025, 2024, and 2023 returns. Note. The IRS shuts down its Modernized e-File […]
For information about whether you can claim the mortgage interest paid on a foreign loan for a foreign home, go to the IRS website. Online Dashboard From within your TaxAct return, click Deductions & Credits. On smaller devices, click the menu at the top left corner of your screen, then make your selection. Click […]
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 […]
TaxAct now includes the ability to convert previous year 1040 ProSeries, TaxSlayer Pro™, and Taxwise® client data. Below are some Frequently Asked Questions: What types of returns are converted to TaxAct? ProSeries 1040 Individual (all files ending with .23i or .23I extension), TaxSlayer 1040 Individual (all files ending with .23.ir_ extension), and TaxWise 1040 Individual […]
During times of high volume, there may be slow response or timeouts with Electronic Filing Manager or Pro Reports because there are many customers checking statuses at the same time. To reduce the likelihood that you will experience these issues, narrow your search criteria so the program doesn’t need to search through as many files. […]
For an overview of features for the Professional Editions for Professional Preparers listed below, please visit our TaxAct Professional Tax Software website. Professional 1040 Professional 1040 State Professional 1065 (Partnerships) Professional 1065 State Professional 1120-S (S-Corp) Professional 1120-S State Professional 1120 (C-Corp) Professional 1120 State Professional 1041 (Estates and Trusts) Professional 1041 State (Limited states […]
To reflect all of the changes to the IRS’s ever-changing tax code, all TaxAct software packages are updated on a regular basis. We release TaxAct federal programs in Early Release and Final versions. As a TaxAct customer, you can download the latest versions of your TaxAct software from within your account. Use the table below […]
Permissions are a feature of multi-user networking available in TaxAct Enterprise Editions. The first preparer you add to your practice will be the Practice Administrator by default (this cannot be removed). Anyone with the Practice Administrator permission will be able to: Invite other preparers to join the practice Modify other preparer’s permissions, Deactivate (or reactivate) […]
TaxAct Pro users can download and save PDF versions of all of their clients’ tax returns. Prior to Tax Year 2023 To download your clients’ tax return data from your TaxAct Pro account: Sign in to your TaxAct Professional app. In the top menu, click Preparer > Print Returns. In the Client Returns tab of […]
If you received RTAA payments and are required to report them as income, they must be reported as “Other income” on Schedule 1 of Form 1040. 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. Click the […]
The TaxAct® Professional Edition program can be used to prepare your own return. To remove the preparer information from your Form 1040 U.S. Individual Income Tax Return: From within your TaxAct return, click Forms in the options bar to view the Forms Explorer (if it is not already visible). Click to expand the FEDERAL Forms folder, […]
You can add, edit, and delete client records in the Client Manager, which displays all current client information and the status of each return. You can also import previous year returns from the Client Manager. See Professional Editions – Importing Prior Year TaxAct Returns for more information. Add Client Click the Add a Client button. […]
A “Wash Sale” is trading activity in which shares of a security are sold at a loss and a substantially identical security is purchased within a 61-day window that extends from 30 days before the date of the sale to 30 days after the date of the sale. The portion of the loss associated with […]
What is Drake Pay®? Apply online and be ready to take payment within 48 hours of application submission if approved. Enable in-person payments as well as mobile and online. Provide your customers with credit, debit, and contactless payment options that typically get you paid in 2 business days. Why should I choose Drake Pay? Drake Pay […]
TaxAct Professional customers can update information within their TaxAct account by signing into their account here: https://www.taxact.com/auth/. If you would like to update Firm, Preparer or Client information, you must sign-in to your TaxAct Professional Software to make these changes. Important: To the extent your request relates to your clients’ tax return information, such information […]
If you receive an error message when installing WebView2, this may be caused when the update to WebView2 is done by the Managed User and not the Admin User. To correct the error, update as the Admin using the following steps. Log in as Admin User. Navigate to the Download the WebView2 Runtime page on […]
There is a size limitation of 3 MB total for attachments in the TaxAct Online program (2 MB for the Desktop program). If the file is over the size limit, there are several options to reduce its size. First, confirm how big file is. On a PC: 1. Open File Explorer. 2. Right-click on the […]
Taxpayers who receive certain notices requiring them to send information to the IRS may now upload their documents online through IRS.gov, rather than mail them in. Please note that taxpayers may securely respond to these notices regardless of having an IRS Online Account. The following notices are currently available for electronic upload: CP04, relating to […]
With TaxAct Professional Edition, you can offer bank services through Republic Bank; however, you must first establish an account with the bank. Deadlines for applying with Republic Bank can be found via TaxAct’s Republic Bank product page. If you miss the bank application deadline, you can still provide tax preparation services with TaxAct, but you’ll […]
If Practice information (Practice name, address, etc.) is not saving successfully when entering it in the Preparer Master Information section of the Professional program, you can try and go through the following steps.Click on Preparer > Master Information > Preparers > Click on the pencil icon beside the preparer’s name > In “Preparer Info” click […]
Per the IRS instructions, a 2023 S corporation does not need to complete and file with the IRS Schedules K-2 and K-3 or furnish to the shareholder(s) their Schedule K-3 if each of the following 3 criteria are met: No or limited foreign activity Foreign activity is defined as Foreign income taxes paid or accrued, […]
Prior year Net Operating Loss (NOL) amounts are entered on the Net Operating Loss Worksheet. To access the worksheet Net Operating Loss Worksheet: 1. From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in the top left corner of your screen, then click Federal). 2. Click Business Deductions dropdown, then […]
Preparer Notes can be used by the paid preparer, electronic return originator, or taxpayer to provide additional, voluntary information related to Forms 1120, 1120-S or 1065 tax returns, but it is not required to attach them. These notes are added to the return in the same area where the Election Explanations and Regulatory Explanations are […]
If you have a client with a return that was filed, but the Fed EF (short for Federal E-Filing) Status column is not showing a result on the Client Manager screen, you can update the column. To update the Fed EF Status column: From within your TaxAct Professional Edition program, click Clients to view the […]
When there are new posts in Notifications, a pop-up notification will appear on your screen. The alert will not disrupt what you are currently working on. If no action is taken, the alert will disappear after ten seconds, or you can close the alert by clicking X in the top right of the notification. To […]
The amount of excess premium tax credit repayment, calculated on Line 29 of Federal Form 8962 Premium Tax Credit (PTC), has a different calculation if there was a self-employed health insurance deduction claimed on Line 16 of Schedule 1 (Form 1040) Additional Income and Adjustments to Income. Per IRS Instructions for Form 8962, page 15: […]
How to successfully file VITA/TCE returns using the TaxAct Professional software: Make sure the preparer completing the return has a valid SIDN (STIN) entered – you can enter the SIDN as the PTIN included in your Preparer Master Information so it flows into the return. On the Basic Information worksheet, select Do not include paid […]
TaxAct Professional Edition allows you to lock returns after e-filing, to prevent changes to the filed returns. To automatically lock returns after e-filing (or to deselect this option): From within your TaxAct Professional Edition program, click Preparer in the upper menu bar, hover your mouse over Master Information, then click General. In the Filing/Printing Options section, click the Checkbox next […]
When you use the TaxAct Enterprise Edition with a shared network, the master information, preparer information, and return files are kept in the same shared folder. The TaxAct program connects to the shared folder when you set the Preparer Master Information Directory locations to the shared network folder. If the internet connection to the shared […]
To enter default credit card or bank product information: From within your TaxAct Professional Edition program, click Preparer in the upper menu bar, hover your mouse over Master Information, then click Preparers. Click the Pencil Icon next to the preparer name, then click Electronic Filing Info. Click Enter Credit Card, and enter your information. Click Continue, and click Save and […]
To grant network access to other preparers in your practice, the practice owner must “Invite” them to join your practice via email (instructions below). The email will include a unique link the preparer must click to create their own TaxAct Account so that the account will use your Practice ID. NOTE: If you are the […]
To search in Forms Explorer: From within your TaxAct Professional Edition program, Double-click to open a client return (if you are not already in one). In the Forms Explorer window, click the Search Forms field. Type a form number or related word (example: “4868” or “extension”), and Forms Explorer will show the related forms. Click […]
Keyboard shortcuts available in the TaxAct Professional Edition program: Action Command Add Client Return Ctrl + N Add Line Item Details Ctrl + D Back Ctrl + Left Arrow Basic Info Ctrl + T Client Manager Ctrl + B Cut Ctrl + X Document Manager Ctrl + Alt + D Review Alerts Ctrl + A […]
Per IRS Form 8453-FE U.S. Estate or Trust Declaration for an IRS e-file Return page 2: The ERO is one who deals directly with the fiduciary and either prepares tax returns or collects prepared tax returns, including Forms 8453-FE, for fiduciaries who wish to have the return of the estate or trust electronically filed. The […]
California law requires business entities that prepare an original or amended return using tax preparation software to e-file returns. Failure to e-file will be penalized if the failure to e-file is due to willful neglect and not reasonable cause. The penalty is $100 for the initial e-file failure and $500 for each subsequent failure. Business […]
The Practitioner PIN method allows taxpayers to authorize the Electronic Return Originator (ERO) to enter or generate the taxpayer’s PIN. To set the program to automatically use the Practitioner PIN: From within your TaxAct Professional Edition program, click Preparer in the upper menu bar, hover your mouse over Master Information, then click Preparers. Click the […]
To set up or edit your practice, preparer, or master information: Click Preparer, then click Master Information from the drop-down. Enter your practice information, then click Continue to Preparer Information. Edit, add, or remove preparers as needed, then click Continue to Master Info. Click Set Up Master Information Now to select preferences for returns, invoicing, […]
The Import Wizard allows you to import prior year master information that you saved locally or online. The first screen you will see upon logging into your TaxAct Professional software will give you the option to import prior year Master Information, if available. To import prior year’s information: From within your TaxAct Professional Edition program, […]
If you receive a red alert for an invalid firm EIN during the Massachusetts e-file steps, you must enter a valid SSN in Preparer Information. To enter a valid SSN in Master Information for a preparer: From within your TaxAct Professional Edition program, click Preparer in the upper menu bar, hover your mouse over Master […]
The TaxAct Professional Editions install so they integrate into the same program file (.exe). This means that if you have installed multiple federal editions (1040, 1065, 1120, etc.), all editions will run from the same program. TaxAct integrates editions so you can manage all return types from the Client Manager. After installing the federal edition […]
If you receive a message when printing that states, “You are trying to print state items, but no states have been selected for printing,” you can fix it by following the instructions below: From within your TaxAct Professional Edition program, click Print in the options bar. Scroll to the bottom of the window and click […]
To transfer your TaxAct program from one computer to another computer: Sign into your TaxAct account online and download and install the TaxAct program on the new computer. Copy the Client Data folder from the old computer using a flash drive, external drive, DVD/CD, or network connection. Paste the Client Data folder in the same […]
Each preparer entered in your program must have a separate individual PTIN. The default preparer’s entry should be the practice owner. The practice owner must invite other preparers. If the preparer you are trying to invite is set as the Practice Owner, then they can’t be invited. You need to be set as the Practice […]
TaxAct assigns each practice a unique alphanumeric identification code called a “Practice ID” when the software is purchased. If you have multiple preparers in your practice, each preparer will have the same Practice ID. This ID links your software with your TaxAct account and allows all preparers in your practice to share resources. The Practice […]
To access your E-File Billing Summary in the TaxAct Professional Edition program: From within your TaxAct Professional Edition program, click Preparer in the upper menu bar, then click Professional Reports. Click E-File Billing Summary, and your total paid fees will be displayed as well as a detailed list of e-filing fees by client. To access […]
If you are self-employed, you need to indicate that in the returns you file professionally. You can’t go to the Paid Preparer’s Use Only section of the forms to indicate your self-employment in the TaxAct program. You need to indicate your self-employment in Master Information, and then it will show up on the forms automatically. To […]
To edit Return Information for a client: From within your TaxAct Professional Edition program, on the Client Manager screen, Right-click the return you want to edit, then click Edit Client Information. In the window that appears, scroll down to the Return Information section, and you can edit the Preparer, Return Status, Payment Status, Amount Paid, […]
If you see only one preparer or one preparer’s e-filed returns listed in Pro Reports, this may be due to one of the following: You are not logged into the program or website as the practice owner. Only the preparer assigned as the practice owner will have the ability to view information for all e-filed […]
TaxAct Professional Editions require a unique Preparer Tax Identification Number (PTIN) for each preparer to be entered and verified in Master Information. This is due to strict IRS requirements to prevent tax fraud, as stated on the IRS Frequently Asked Questions: Do I Need a PTIN? webpage, under General Guidance #4: “Can multiple individuals or […]
The Withholding Summary report lists all sources for Federal, State, and Local Withholding by form (W-2, 1099-MISC etc.). At the bottom of the report, there is an All Other Withholdings field that applies to only federal withholding. Sources for withholding that are reported in the All Other Withholding field are: Form 8959 Line 24, Total Additional […]
When you print organizers for your clients, prior year amounts will only show if the prior year return imported correctly, both returns have the same forms, and the forms have amounts in the same fields. For help importing, go to our Professional Editions – Importing Prior Year TaxAct Returns FAQ If the Organizer has fields […]
If you receive the following error message: “Republic has informed us that based on your EFIN you are not enrolled to do bank products.” Please make sure you have set up an account with the bank. You must contact Republic Bank to do so. You can locate further information regarding the bank products by visiting […]
If you receive this notification while using your TaxAct Enterprise Edition program: “Warning: Master Information is currently opened by: [computer\username]. It is not recommended that multiple users access Master Information at the same time. Do you wish to proceed?” You have not received an error notification. The program is warning you that more than one […]
Switching to TaxAct Professional Editions is EASY! With our Data Conversion feature, you can directly convert prior year individual (1040) returns prepared by the following: Intuit ProSeries (Professional & Basic) TaxSlayer Pro TaxWise You can also create PDFs of prior year individual (1040) returns by importing data from returns prepared by the following: […]
Based on your entries in a return, you may be prompted to enter an amount for a self-employed health insurance deduction adjustment. This entry is necessary due to the calculations detailed on pages 56-72 of IRS Publication 974 Premium Tax Credit (PTC). The actual calculation for the self-employed health insurance deduction adjustment is automatically done […]
Tax-exempt income received by an estate or trust requires an allocation of expenses between taxable income and tax-exempt income. The allocation must be included with the estate or trust tax return. Per IRS Instructions for Form 1041 and Schedules A, B, G, J, and K-1 U.S. Income Tax Return for Estates and Trusts, page 36: […]
If you want to add back all of the clients that you deleted or removed from Client Manager, you can rebuild Client Manager. Rebuilding will only add back clients that you deleted or removed from Client Manager, it will not add back clients whose files you deleted in that process. If you’re not sure how […]
Online backup is a manual process unless you use the Professional Enterprise Edition online option. You must perform the operation in your program each time you choose to back up your client returns online: From within your TaxAct Professional Edition program, click File in the upper menu bar, hover your mouse over Backup, then click Client Return(s). Click […]
The IRS explains the guidelines and provides FAQs for preparers using the Self-Select PIN Method for Forms 1040 and 4868 Modernized e-File (MeF) on its website: The Self-Select PIN Method ( Personal Identification Number ) is one option for taxpayers to use when signing their electronic Form 1040 and Form 4868. The PIN is any […]
All New York returns filed by a paid preparer must include the following paid preparer information on all paper and e-filed returns, if applicable: Preparer’s name Firm’s name (or preparer’s name if self-employed) Address Preparer’s NYTPRIN or NYPTRIN exclusion code (as applicable) Preparer’s PTIN (or SSN if preparer does not have a PTIN) Firm’s EIN […]
All paid tax return preparers must obtain or renew their Preparer Tax Identification Number (PTIN) annually. The PTIN renewal period begins in mid-October and all PTINs expire on Dec. 31. If you must pass the Registered Tax Return Preparer test, do not delay in making your appointment. Learn more about PTIN renewal and CE requirements […]
The online backup service included with the TaxAct® Professional Enterprise Edition for the 2016 tax year had expired on May 1, 2020. You can no longer access your 2016 client data online. Please contact your Professional Edition representative for more information.
The taxpayer’s address at the top of Form 8606 Nondeductible IRAs, as well as the preparer information at the bottom of the form, are only used if the form is filed separately from the taxpayer’s return. As a result, this information does not automatically populate in TaxAct®. If Form 8606 is filed separately, it cannot […]
Per the New York Tax return preparer e-file mandate web page (Important notes about the mandate, note 4): If you can’t electronically file the return because it’s not supported by your approved e-file software or it can’t be filed on our website, then you aren’t required to e-file it. Additional information for preparers is available […]
To add or remove a state return from a client return: From within your TaxAct Professional Edition program, on the Client Manager screen, double-click the client you want to edit. Click Return in the upper menu bar, hover your mouse over State, then click Add/Remove State… To add a state, click the checkbox next to […]
Continuing education (CE) requirements will vary based on your professional designation. Attorneys, certified public accountants, and enrolled agents each have their own CE requirements. Other tax professionals may now participate in the IRS’s Annual Filing Season Program. Click the links below for additional information. Related Links IRS List of Approved Continuing Education Providers CE FAQs: […]
If columns are missing or pushed to a different page when you print a report, it may be related to the system default font size. You most likely have increased the Dots Per Inch (DPI) of your system fonts within the Windows Display settings. You can first try this (if you’re using the desktop program): […]
If you are required by law to electronically file all of your clients’ tax returns, but need an exception to this requirement for a particular return, you should file Form 8948 Preparer Explanation for Not Filing Electronically. This form is available in the TaxAct Professional Edition of the software and is accessed through the Forms […]
To complete and paper file your Wisconsin Schedule H rather than electronically file it with the rest of your Wisconsin return: From within your TaxAct return (Online or Desktop), click State, then click Wisconsin (or WI). On smaller devices, click in the upper left-hand corner, then click State. Click Refundable Credits in the Wisconsin Quick […]
If you entered a zero in the AGI entry field or left it blank, and did not check 2022 AGI was 0 during the e-filing steps, you will receive this Red Alert: Error or Omission: Incomplete Self Select Information Taxpayer You have indicated you wish to file a paperless return; however, the taxpayer’s 2022 Adjusted […]
Per IRS Publication 17 Your Federal Income Tax For Individuals, page 28: Age Test To meet this test, a child must be: Under age 19 at the end of the year and younger than you (or your spouse, if filing jointly); A student under age 24 at the end of the year and younger than […]
If you file returns for another preparer (or need another preparer to file returns for you), there are a few extra steps to complete in your TaxAct® Professional Edition program. To e-file returns as the Electronic Return Originator, but not as the Paid Preparer: From within your TaxAct Professional Edition program, click Preparer in the […]
To change any of your preparer information that appears on the returns, cover letters, and invoice: In your TaxAct Professional Edition program, click Preparer in the upper menu bar, then hover your mouse over Master Information, then click Preparers. In the window that appears, click the Pencil Icon next to the Preparer Name you want to edit. […]
The TaxAct Enterprise Edition allows preparers to attach and associate documents and images with client returns for record keeping purposes. It allows the attachment of scanned images of client documents (W-2, 1099, etc.). Although this does not automatically import the document into the return, you are able to keep scanned images of client documents with the […]
With your TaxAct Professional Edition program, you can back up client returns and preparer information by following the steps below. NOTE: It’s a good idea to back up preparer information any time you make changes to it and to keep a backup in the Client Data folder of the default install location of the computer. […]
Restore a Local Backup File From within your TaxAct Professional Edition program, click File in the upper menu bar, hover your mouse over Restore Backup, then click Client Return(s). Click the circle next to Local, then click Next. Click Browse, then navigate to the folder where you saved your backup return, click the folder, then […]
You must be covered under a High Deductible Health Plan (HDHP) in order to establish and take a deduction for contributions to a Health Savings Account (HSA). Per IRS Publication 969 Health Savings Accounts and Other Tax-Favored Health Plans, page 4: High deductible health plan (HDHP). An HDHP has: A higher annual deductible than typical […]
In your TaxAct Professional Edition program, you can import a prior year return when you create a new return or after you create a return. If you have already created a return, you can use either import method. If you are importing when creating a new return, you need to start on the Client Manager […]
You may deduct capital losses up to the amount of your capital gains, plus $3,000 ($1,500 if married filing separately). If part of the loss is still unused, you can carry it over to later years until it is completely used up. Any capital loss carryover to the next tax year will automatically be calculated […]
To remove the Paid Preparer information from your Form 1040 U.S. Individual Income Tax Return: From within your TaxAct Professional Edition, click Forms in the options bar to view the Forms Explorer (if it is not already visible). Click Federal from the dropdown in forms explorer, and click the Information Worksheets dropdown, then click Basic Information to see the […]
There are three main categories of income: active income, passive income, and portfolio income. “Passive income” does not include earnings from wages or active business participation, nor does it include income from dividends, interest or capital gains. For tax purposes, it is important to note that losses in passive income generally cannot offset active or […]
Bank products are services that tax preparers can offer to their clients. Cash Advances are loan products for taxpayers that are secured by their tax refund. With an Easy Advance from Republic Bank or a Fast Cash Advance from Santa Barbara TPG, you can provide a loan to your customers before e-file starts. The TaxAct […]
To add state(s) to each new or imported client return in your TaxAct Professional program: From within your TaxAct Professional Edition program, click Preparer in the upper menu bar, then click Preferences. Click Miscellaneous, scroll down to the Miscellaneous section, then click the Checkbox next to Automatically attach selected states with new or imported returns. Click Select States, then […]
To auto-complete Form W-2 Wage and Tax Statement boxes based on income related entries: From within your TaxAct Professional Edition program, click Preparer in the upper menu bar. Now hover your mouse over Master Information, and click General. Scroll down to the Calculation Options section, and you can click the Checkbox next to the options relating to […]
Credit card refund processing time for a TaxAct product vary from 3 to 10 business days depending on your credit card company or banking institution. TaxAct processes refunds for our TaxAct products immediately, but processing time varies between credit card companies and banking institutions. Contact your credit card company or bank to determine when you […]
TaxAct offers professional preparers the option to electronically file client returns in batches. To do this, you can choose to submit your client returns later, then E-file the client returns all at once. To save a return for later: From within your TaxAct Professional Edition program, Double-click the client return you want to save for […]
Per IRS Instructions for Form 8275 Disclosure Statement: Purpose of Form Form 8275 is used by taxpayers and tax return preparers to disclose items or positions, except those taken contrary to a regulation, that are not otherwise adequately disclosed on a tax return to avoid certain penalties. The form is filed to avoid the portions […]
Various functions for the TaxAct Professional Editions are toggled on and off through the Preparer Preferences dialog box: From within your TaxAct Professional Edition program, click Preparer in the upper menu bar. Click Preferences, then click Miscellaneous, to control the following: Client Manager Display Settings Show preview of selected client information Show only the last […]
As you go through the electronic filing process for your clients, you will see information regarding the regulations under Internal Revenue Code Section 7216 Disclosure of Use of Tax Information by Preparers of Returns, which you are required to follow. Per IRS Section 7216 Frequently Asked Questions: A8 A taxpayer must provide written consent before a tax […]
IRS Publication 1345 Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns, provides rules and requirements for participation in IRS e-file by Authorized IRS e-file Providers filing individual income tax returns and related forms and schedules. Related Links IRS E-file for Tax Professionals IRS Modernized e-File (MeF) Program Information Note that any link […]
TaxAct participates in the IRS Free-File Alliance and abides by all IRS Security and Privacy standards. IRS Publication 1345, Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns, specifically describes the standards for e-file security and privacy and details the requirement for external vulnerability scans starting on page 9. The Handbook states: External […]
To access professional tax materials compatible with the TaxAct program, visit TaxAct Professional Resources. Visit Nelco Office Supplies to access information about obtaining folders, envelopes, and covers for your clients’ tax returns.
Donation Assistant is not available in TaxAct Professional Editions. We appreciate customers’ comments and suggestions as we use these to help determine ways to enhance TaxAct programs each year. A compilation of these comments and suggestions are maintained every season and are reviewed prior to the start of development for the following year’s product. Please […]
When you check for (and run) updates for your TaxAct Professional program, any client returns affected will automatically be updated. When the update is complete, you’ll be prompted to view the Update Summary Report to review which client returns changed due to the update. The steps below allow you to view that report at a […]
Per IRS Publication 3112 IRS e-file Application and Participation, on page 14: Registration of Websites with the IRS To safeguard taxpayer information, the IRS requires Providers to register with the IRS all websites that collects taxpayer information, either directly or through third parties, and used by the Provider for federal returns that are filed electronically. […]
Form 9325, Acknowledgement and General Information for Taxpayers Who File Returns Electronically can be used to convey information to customers by an Electronic Return Originator (ERO), and would be completed by the ERO as the filer of the return. At the bottom, this form states: “Note: EROs can use the Acknowledgement File information, translated by […]
Per IRS Publication 946 How to Depreciate Property, page 3: Overview of Depreciation – Introduction Depreciation is an annual income tax deduction that allows you to recover the cost or other basis of certain property over the time you use the property. It is an allowance for the wear and tear, deterioration, or obsolescence of […]
Modified Accelerated Cost Recovery System (MACRS) is the method of depreciation used to expense the cost of most property placed in service after 1986. Under MACRS, the cost of qualified property is expensed over predetermined periods. For more information, go to IRS Instructions for Form 4562 Depreciation and Amortization (Including Information on Listed Property) and […]
While the at-risk limitations are calculated on IRS Form 6198 At-Risk Limitations and the passive activity limitations are calculated on IRS Form 8582 Passive Activity Loss Limitations, there is not an IRS form for the potential limitations on the amount of corporate losses that you may deduct based on your basis in the corporation. You would need to enter only […]
Why are my Schedule L, M-1, and M-2 printing blank even though amounts have been entered? If the corporation’s total receipts for the tax year AND total assets at the end of the tax year are less than $250,000, Schedules L, M-1, and M-2 are not required. But even if the balance sheet (Schedule L) […]
A signed Form 8453 U.S. Individual Income Tax Transmittal for an IRS e-file Return must be attached to a federal partnership or corporation return whenever a taxpayer electronically files a business return without the assistance of a Paid Preparer. A signed Form 8453 authorizes the transmitter to send the return to the IRS. Form 8453 […]
The TaxAct® Accuracy Guarantee does not cover the Professional Editions. Paid preparers are responsible for reviewing the return for accuracy. If you are signing the return as a paid preparer, the IRS will ultimately hold you accountable for the return’s accuracy. If you determine there is a problem, you can either override the entry or […]
If you are a preparer e-filing returns for the first time, see the following links for helpful information: An Electronic Filing Identification Number (EFIN) is required to e-file returns. If you don’t already have an EFIN, apply today using the IRS’s e-Services – Online Tools for Tax Professionals. Learn more on the IRS Become an […]
If there are spaces remaining in any of the fields, the TaxAct desktop program interprets those spaces as data (even though you do not see any letters or numbers in that field). To ensure empty fields don’t have spaces in them: From within your TaxAct return (Desktop or Professional), click the data entry field (if a […]
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.
Per the IRS Due Diligence Law webpage: Requirements for paid preparers when claiming certain credits or head of household filing status Under the Internal Revenue Code, a penalty can be assessed against a paid tax return preparer for not meeting due diligence requirements when preparing a return or claim for refund claiming the: Earned income […]
An ERO PIN (Practitioner PIN) is used when a preparer is including Form 8879 IRS e-file Signature Authorization in the submission of a client’s return. The number is created by the preparer following the IRS criteria listed in the IRS Self-Select PIN Method for Forms 1040 and 4868 Modernized e-File (MeF) webpage. What is an […]
To view the Submission ID Number and the status of your e-filed returns: From within your TaxAct Professional Edition program, click Client Manager in the options bar to view the Client Manager screen (if it is not already visible). Click Professional Reports. Click the Refresh Professional Reports icon (Green arrows). The Submission ID Number displayed on […]
You may e-file your clients’ tax returns using either the Self-Select PIN method or Practitioner PIN method (Form 8879 IRS e-file Signature Authorization). Self-Select PIN method (aka Paperless Option) Selecting the Self-Select PIN method means your client(s) will be entering their own PIN numbers directly into your computer (they will also need to provide information […]
Form W-12 IRS Paid Preparer Tax Identification Number (PTIN) Application and Renewal will not be supported in the TaxAct® program as it is not a part of the federal return; however, it is accessible through the IRS website. Form W-12 replaced Form W-7P Application for IRS Individual Taxpayer Identification Number, last used by the IRS […]
To report Form 1099-MISC Miscellaneous Income, Box 12 (if you need help reporting Form 1099-MISC, go to our Form 1099-MISC – Entering in Program FAQ): From within your Form 1099-MISC, continue with the interview process until you reach the screen titled 1099-MISC: Enter information on form. Click the data entry field below Box 12 – Section […]
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 […]
If an electronically filed return was accepted by the IRS but did not include valid direct debit banking information (entered either during the e-file process or on the Electronic Filing Worksheet), the balance due must be paid using an alternative payment method. Available options include: Electronic Federal Tax Payment System (EFTPS) – Submit the payment […]
The TaxAct® Desktop and Professional programs support up to 250 entries on the Detailed Information for Contributions of cash or check in the Charitable Contributions section of the Itemized Deductions. Related Links Charitable – Entering Contributions and Donations in Program
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 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 […]
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 product guarantees for each of our product formats, online and download: Guarantees for TaxAct Online $100k Accuracy Guarantee (consumer 1040, 1065, 1120, and 1120-S products only) Maximum Refund Guarantee (consumer 1040 products only) Satisfaction Guarantee Guarantees for TaxAct Download $100k Accuracy Guarantee (consumer 1040, 1065, 1120, and 1120-S products only) Money-Back Guarantee Maximum […]
You will need to complete the filing steps again, and enter different credit card information: From within your TaxAct return (Online or Desktop), click Filing (on smaller devices, click in the top left corner of your screen, then click Filing). On the screen titled Paper/E-Filing – Federal Balance Due Options, click the circle next to […]
General Instructions To view and/or print an instruction letter: Print Client Instruction Letter While E-Filing Print Client Instruction Letter While Paper Filing Choose Paper Filing, E-Filing, or Client Instruction Letter If you are attempting to mail a paper return and the instruction letter is indicating the return will be e-filed, or vice versa, you can […]
To view or edit the Bank Account Worksheet which contains the banking information for direct withdrawal of estimated tax payments: From within your TaxAct Professional Edition program, in your client’s return, click Forms in the options bar to view the Forms Explorer (if it is not already visible). Click Federal from the dropdown in forms […]
Electronic Filing (e-filing) goes through TaxAct® to be transmitted to the IRS. The e-filing module is included in the TaxAct Professional Editions. E-filing with TaxAct is available for Federal 1040, 1065, 1120-S, 1120, 1041, and 990 returns. State e-filing is available for those states that assess personal income tax and for many business and estate […]
Personal casualty losses attributable to certain qualified disasters may be claimed as a qualified disaster loss on Form 4684 for the year the loss was sustained. See the current Instructions for Form 4684 and IRS Publication 547 for the definition of a qualified disaster loss and the disasters that qualify. If you have a casualty […]
Per IRS Publication 936, page 8: Refinancing. Generally, points you pay to refinance a mortgage aren’t deductible in full in the year you pay them. This is true even if the new mortgage is secured by your main home. However, if you use part of the refinanced mortgage proceeds to substantially improve your main home […]
Once you make all your Master Information selections, the Setup Wizard prompts you to set defaults for various forms you use in your practice. Once you complete the setup for each form, a green checkmark will appear on the tile so you can easily see which you have not yet completed. Set Master Forms Defaults […]
Individual preparer information can be added and/or modified in the Preparer Master Information dialog box. The preparer section allows you to: Click Add New Preparer to add a new preparer. Click the Pencil icon to edit a preparer. Click Inactive to remove a preparer from the active list. NOTE: The first preparer you add should […]
To authorize the IRS to discuss your return with someone else (for example, a relative or paid tax preparer), you must provide that person’s name, phone number, and PIN (any 5-digit number created by the designee). This information will be entered into the Q&A. Tax professionals should complete the Third Party Designee section on Form […]
In order to obtain the mailing address for your federal or state return, you can go to the the IRS Where to File Paper Tax Returns With or Without a Payment webpage, or check the filing instructions from within your TaxAct return; go to our Print Filing Instructions Online and Desktop FAQ for help. The […]
What is the PCI Secure Software Standard? The PCI Secure Software Standard provides a set of security requirements as well as assessment procedures for performing PCI Secure Software Assessments. The Secure Software Assessor training covers the PCI Secure Software Requirements and Assessment Procedures (PCI Secure Software Standard). What is the Validated Payment Software list maintained by […]
With TaxAct Professional Edition, you can offer bank services through Santa Barbara Tax Products Group (TPG); however, you must first establish an account with the bank. Deadlines for applying with Santa Barbara Tax Products Group (TPG) can be found via TaxAct’s Bank Product page. If you miss the bank application deadline, you can still provide tax […]
If a taxpayer is unable to pay the full balance due, they may request a monthly payment plan by filing Form 9465, Installment Agreement Request. The IRS generally recommends paying as much of the outstanding tax liability as possible before requesting an installment agreement for the remaining balance. Form 9465 is available in all versions […]
The TaxAct Professional programs are designed to allow Federal return information to flow to the state return(s). Although you can e-file a state return without e-filing the federal return, you must first complete Federal Q&A. The State Q&A interview section will prompt you for additional information specific to the state return. In order to then […]
The IRS imposes a limit of five on the number of tax returns that you may file electronically (“e-filing”). This limitation is imposed by the IRS, not by TaxAct. Note: The IRS imposes the five-return limit specifically on electronically filed returns. If you reach the five-return e-file limit, you may submit paper copies of any additional tax returns. […]
The IRS requires all paid preparers who anticipate preparing and filing 11 or more individual returns during a calendar year to e-file those returns. Members of firms must count returns in the aggregate. A summary of the new requirements appears in the IRS Most Tax Return Preparers Must Use IRS e-file webpage. The measures are […]
Understanding commonly used terms and their acronyms can make it easier to prepare and file your tax return. Taxpayer Identification Number (TIN): Refers to the number issued by the IRS or Social Security Administration to identify taxpayers. For individual filers, TIN is usually the taxpayer’s Social Security Number (SSN) or individual taxpayer identification number (ITIN). […]
