To calculate estimated tax payments needed for the current tax year (available only in the early-release version of the software): From within your TaxAct return, click Federal. On smaller devices, click the menu in the top left corner of your screen, then click Federal. Click 2025 Estimated Tax Payments, then click Yes. Continue with the […]
Safe Harbor Payment To reduce or avoid penalties, pay the following by April 15th: 90% of your current year tax, or 100% of last year’s tax (110% if your prior-year AGI amount was greater than $150,000; $75,000 if MFS) Underpayment Penalty & Interest Paying the safe harbor amount helps reduce penalties, but interest may still […]
If you need an extension of time to file your tax return, you can create and file an extension Form 4868 to request a 6-month extension of time to file your return through TaxAct. Note the following: If you expect a refund, you don’t need to file an extension, but it will protect you from late-filing […]
If you owe tax, you have several options for paying the tax due on your federal tax return. IMPORTANT: The tax liability, or balance due on the return, is paid separately from your TaxAct fees. The TaxAct fee does not include taxes owed. For more information about TaxAct product fees, see the TaxAct Product Fee Payment […]
Executive Order 14247 mandates the transition to electronic payments and phases out disbursements by paper check. In accordance with this order, the IRS will be phasing out paper checks beginning on September 30, 2025. See the news alert IR-2025-94 for details. When filing your return through TaxAct, if you have a refund you can select either Direct […]
The IRS doesn’t initiate contact with taxpayers by email, text messages, or social media channels to request personal or financial information. This includes requests for PIN numbers, passwords, or similar access information for credit cards, banks, or other financial accounts.The IRS provides tips a list of common scams on their Recognize tax scams and fraud […]
To report the sale of your main home on an installment contract 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 Installment […]
You have several options for paying the tax due on your state tax return. The available options are presented during the Q&A and shown in the filing instructions. It is essential to carefully review and print your filing instructions as prompted and to check the status of your return. Payment options vary by state – […]
Estimated tax payments are periodic prepayments made to the IRS and state tax agencies to cover income not subject to withholding. This includes income from self-employment, interest, dividends, rental income, capital gains, and other earnings. TaxAct provides tools to help calculate, schedule, and manage these payments efficiently. Individual Estimated Tax Payments are calculated and paid […]
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. To enter Form 9465, follow the steps […]
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 a return has generated a Net Operating Loss (NOL) in the current year, there will be a Green Alert in the return titled Green Alert – Net Operating Loss. The NOL amount will be reflected on Line 25 in Schedule A – NOL of Form 1045, Application for Tentative Refund. Instructions to review/modify the […]
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 Tax […]
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 […]
Form 1099-G is used to report a variety of government payments, including: Unemployment compensation (Box 1) – See Form 1040 – Unemployment Compensation for details on data entry. State or local income tax refunds, credits, or offsets (Box 2) – See Form 1099-G – Box 2 – Entering State Income Tax Refund in Program for […]
The alimony recapture rule helps ensure that alimony payments are made as true ongoing support rather than large upfront property settlements disguised as alimony. If alimony payments decrease substantially during the first three calendar years after they begin, part of the payments may need to be “recaptured.” This means the payer may have to include […]
Generally, the IRS will process and issue refunds within 21 days. In some situations, your refund may take longer to be processed by the IRS or your financial institution. The IRS Where’s My Refund? page provides an actual personalized refund date as soon as the IRS processes your tax return and approves your refund. The […]
If you choose to have your tax refund deposited onto a Serve® prepaid debit card, you can enjoy a secure, flexible, and easy way to access your funds. The Serve® card is accepted anywhere American Express® Cards are accepted, and offers a range of benefits. Benefits Free online registration No credit checks No minimum balance […]
If you claimed the Earned Income Tax Credit (EITC) or the Additional Child Tax Credit (ACTC), the IRS shows your refund will be released mid-February. Refunds should be available in your account by the first week of March if you chose direct deposit and there are no other issues with your tax return. The IRS […]
Refund or Tax Due Amount Changes at the Top of the Screen Any changes made to your return after filing will automatically update the Federal and/or State refund or tax due amounts displayed at the top of the screen. Be sure to print or save a copy of the original return you filed with the […]
The refund amount or amount owed displayed in TaxAct remains unchanged after you file, pay, or receive your refund. Just like a printed tax return, the numbers remain static for record-keeping purposes. The amount shown in TaxAct reflects what was filed with the IRS, but it does not update based on payments or refunds received. TaxAct does not provide a live update of […]
If you itemized your deductions in the previous year, all or some of your prior year state income tax refund may be considered taxable income on this year’s Federal tax return (Schedule 1 (Form 1040), Line 1). If you claimed the standard deduction, the state refund is not taxable. For information on entering the state […]
Per IRS Instructions for Schedule A Itemized Deductions, page A-7: Refunds and rebates. If you received a refund or rebate in 2022 of real estate taxes you paid in 2022, reduce your deduction by the amount of the refund or rebate. If you received a refund or rebate in of real estate taxes you paid […]
Below are links to state refund status webpages. Specific questions about a state refund should be directed to the relevant state agency. For information on the status of a federal refund, see the IRS’s Where’s My Refund? webpage. Alabama Illinois Mississippi Oklahoma Arizona Indiana Missouri Oregon Arkansas Iowa Montana PennsylvaniaPhiladelphia, PA California Kansas Nebraska Rhode Island Colorado […]
The IRS and state tax agencies have implemented policies to protect you from fraud. Many agencies have changed their approval process in order to prevent those trying to steal your refund from succeeding. As a result, some refunds may be issued later than others. Refunds are not controlled by TaxAct, so you can still complete […]
For the most current status of your Federal tax refund, download the IRS2Go Mobile App via Google Play, AppStore, or Amazon. You may also go to the Internal Revenue Service website or call them at 800-829-1954 (long hold times are possible). The Internal Revenue Service website is updated once every 24 hours with information on […]
Unlike other capital gain transactions, you cannot enter the word “Inherited” as the Date Acquired on Form 6252 Installment Sale Income. However, since the sale of inherited property is treated as long-term regardless of the actual holding period, you may leave the Date Acquired blank. This is not required for Form 6252. The TaxAct program […]
In TaxAct® Online and Desktop editions, you can add line item information to a field. This is useful if you need to add several numbers together to figure the total amount to enter on a particular form, or if you would like to add comments to a given field. Note. For Online returns, first click […]
To toggle the Refund/Owe indicator on or off in your TaxAct Professional program: From within your TaxAct Professional Edition program, click Preparer in the upper menu bar, then click Preferences. Click Miscellaneous, then scroll down to the Miscellaneous section. Make sure the checkbox next to Show the refund/owe indicator (when applicable) is checked (click the […]
The IRS instructions for Form W-4 Employee’s Withholding Certificate to calculate your allowances does not account for all possible situations. See the IRS information below relating to withholding. Per IRS Publication 505 Tax Withholding and Estimated Tax, page 5: Getting the Right Amount of Tax Withheld In most situations, the tax withheld from your pay will […]
Unfortunately, we can’t determine all the deductions and credits for which you might be eligible. To make sure you haven’t missed any possible deductions or credits, return to the Federal and State Q&A sections and review them step-by-step. If you are using the TaxAct Online software and preparing an individual return, you may add on […]
If you did not directly receive the prior year’s tax refund, meaning it was used to pay a debt on your behalf, it is still considered income to you in the current year.
If you filed a tax return with a spouse who died in 2022 and you want to change the name of the taxpayer on the refund check, you must file Form 1310 Statement of Person Claiming Refund Due a Deceased Taxpayer. This form can be e-filed with the return. To access Form 1310 in the […]
Use IRS Form 9465 Installment Agreement Request to request a monthly installment plan if you can’t pay your full tax due amount. The IRS encourages you to pay a portion of the amount you owe and then request an installment for the remaining balance. Form 9465 is available in all versions of TaxAct®. You can file Form 9465 […]
