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 […]
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) […]
In order to comply with IRS efforts to prevent fraud and identity theft, TaxAct Professionals must submit a copy of their IRS e-file Application Summary to TaxAct. This one-time verification process needs to be completed for each EFIN used in your organization. Follow the instructions below to submit a copy of your IRS e-file Application […]
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 […]
To check your EFIN status within your account: Sign in to your TaxAct account online, then click Practice Administration. Click the EFIN Verification dropdown to see your EFINs and statuses. If you see an item that says “Verified,” your EFIN is verified and you do not need to resubmit. You do not submit each year, […]
With TaxAct Professional Editions, 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 be […]
Permissions are a feature of multi-user networking available in TaxAct Enterprise Editions. During the initial setup for each preparer, you have the opportunity to assign permissions. Permissions can also be modified any time in Master Information: From within your TaxAct Professional Edition program, click Preparer in the upper menu bar, then hover your mouse over […]
To edit client information: From within your TaxAct Professional Edition program, click Clients in the options bar (if you are in a return), then click Client Manager (if that screen is not already visible) Right-click the client record you wish to modify or click three stacked dots next to the client to toggle quick actions […]
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 […]
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 […]
With TaxAct Professional Editions, 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 preparation […]
TPG allows you to enroll year-round for the current tax year. The ‘rollover’ from year to year happens mid-September, and you can only enroll for the current year. To enroll with TPG please complete our enrollment process. For further inquiries to TPG, you can contact TPG Customer Service.
To setup Republic Bank as your default bank product: Click Preparer on the top menu bar, click Master Information, and then click Preparers. Click the pencil icon beside your preparer name. Click the Electronic Filing Info link (tab) at the top. Click the drop-down for the Bank Product (if applicable) field and choose Republic Bank. […]
To setup Santa Barbara Tax Products Group (TPG) as your default bank product: Click Preparer on the top menu bar, click Master Information, then click Preparers. Click the pencil icon beside your preparer name. Click the Electronic Filing Info link (tab) at the top. Click the drop-down for the Bank Product (if applicable) field and […]
If you select TPG as your bank option and get an error for your EFIN not being enrolled, you will need to complete the enrollment process. After you complete the enrollment process, you will receive an email within 2 business days. If you haven’t received the email you will want to contact support.
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, […]
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, […]
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 […]
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 view your Practice ID: Sign in to your TaxAct account online. Your Practice ID will be listed at the top right of the screen as Practice ID: TA-XXXX-XXXX or CIT-XXXX-XXXX (smaller screens: the location is the top left)
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 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 […]
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 […]
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 […]
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 […]
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 […]
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 […]
To delete an existing client return from your Client Manager window: From within your TaxAct Professional Edition program, click Clients in the options bar to view the Client Manager window (if it is not already visible). Click to select the client return you want to delete. With the client return selected, you may use one of 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 […]
The TaxAct Professional program will automatically tailor the banking product list to the qualifications of the current return. This means that only the options for which your client’s return qualifies will be presented. If a client’s return does not meet the qualifications for certain products, those products will not be offered in the program. Products […]
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 […]
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 […]
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 […]
If you are a preparer e-filing returns for the first time, see the following links for helpful information: Handbook for Authorized IRS e-file Providers of Individual Income Tax Returns Become an Authorized e-file Provider Preparers must apply for an Electronic Filing Identification Number (EFIN) in order to e-file. You can contact the IRS e-Help Desk […]
All financial information and Social Security Numbers are blacked out on a redacted return. For insurance purposes, this is often done so they can confirm that your spouse and/or child(ren) are listed on your return as they expect them to be.
The 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 […]
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 […]
Sign in to your TaxAct account. Click the Bank Enrollment tile. Click the Enroll button in the Santa Barbara TPG section. Fill out the enrollment form and click the Submit button at the bottom. After you have submitted your application, we will transmit it to TPG. You should receive an email within 2 business days. […]
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). […]
