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) […]
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
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 […]
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 […]
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
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 […]
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
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 […]
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. […]
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 […]
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 […]
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, […]
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 […]
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 […]
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 […]
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. […]
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, […]
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 […]
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 […]
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 […]
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 […]
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, […]
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 […]
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: […]
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 […]
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 […]
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 […]
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 […]
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: […]
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 […]
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 […]
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 […]
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 […]
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) […]
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 […]
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® 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
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 […]
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 […]
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 […]
