To enter the interest income from a seller-financed mortgage 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 Seller-Financed Loan Interest. Complete […]
As a trader (including day traders), you report all of your transactions on Form 8949, Sales and Other Dispositions of Capital Assets. If you are in the business of buying and selling securities for your own account, you may also file a Federal Schedule C (Form 1040) Profit or Loss From Business to report any […]
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 […]
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 Form […]
If your child has interest, dividends, or other unearned income, you must decide whether to file Form 8814, Parents’ Election To Report Child’s Interest and Dividends, with the parents’ return or Form 8615, Tax for Certain Children Who Have Unearned Income, with the child’s return. See the Instructions for Form 8814 and Instructions for Form […]
Federal Form 8621 is an Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund. You can use the Forms Assistant to search for and add Form 8621 to your return. In dashboard navigation, go to Resources, scroll to the Assistants section, and select Forms Assistant. In classic navigation, […]
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 […]
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 enter your capital loss carryover from a prior year 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 Investments & Savings drop-down. Click Add beside Capital Loss […]
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 […]
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 […]
According to the IRS, you may not need to report the sale of your 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. If you are required to report the sale, follow the steps below. Excluding Gain on […]
There are several options that you can use to enter or import your stock transactions and information from Form 1099-B. Once entered, the TaxAct program will complete Form 8949 Sales and Other Dispositions of Capital Assets, Schedule D Capital Gains and Losses, and Form 1040 U.S. Individual Income Tax Return, Line 7, as applicable. If […]
Generally, the IRS requires all sales and exchanges of capital assets, including stocks, bonds, etc., to be entered on separate lines on Form 8949, however, the Form 8949 Instructions provide two exceptions to this requirement. Exception 1: When basis was reported to the IRS and no adjustments are needed, totals may be reported directly on […]
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 […]
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 […]
Restricted stock is stock that you get from your employer for services you perform. It is non-transferable and subject to a substantial risk of forfeiture. You do not have to include the value of the stock in your income when you receive it. If you get dividends on restricted stock, however, you must include them […]
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 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. […]
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 may be able to exclude some of the gain on the sale of your home used for business purposes if you meet the ownership and use tests, and if the part of your property used for business is within your home (in other words, not a separate part of your property). Per IRS Publication […]
With the stock data import feature, you can import information from certain brokerages and financial institutions. Supported brokerages/institutions and steps vary depending on whether you are working in the online or desktop program. Online To access the stock data import feature, follow the steps below. Open the return. Go to Federal > Investment Income > […]
Create Spreadsheet When creating a spreadsheet to import information into your tax return, the following columns are required to report Form 1099-B: Description Date Sold Sales Proceeds Date Acquired Cost or Other Basis Some additional fields may also be needed: Additional Description: You may have a column in your file reflecting information such as the quantity […]
Restricted Stock Units (RSUs) are a form of compensation offered by some employers. These are generally taxed at the time of vesting, whereas employee stock options are usually taxed at the time of option exercise. The employer is required to withhold taxes as soon as the RSUs become vested. The employer will issue Form W-2 […]
Although you cannot enter information from Form 1099-B Proceeds From Broker and Barter Exchange Transactions directly onto Schedule D (Form 1040) Capital Gains and Losses, the following steps may help to streamline the entry process for TaxAct Desktop (download) customers. The information to be entered on Form 8949 Sales and Other Dispositions of Capital Assets […]
Per IRS Instructions for Forms 1099-INT and 1099-OID, page 3: Box 8. Tax-Exempt Interest Enter tax-exempt interest that is not OID of $10 or more that is credited or paid to the person’s account if that interest is paid on obligations issued by a state, the District of Columbia, a U.S. possession, an Indian tribal […]
The Joint vs. Separate Analysis will separate the net capital gains or losses by taxpayer and spouse, up to the amounts allowed. You may deduct capital losses up to the amount of your capital gains plus $3,000 ($1,500 if married filing separately). There is no report in the program that shows separate capital gain transactions […]
Virtual currencies such as Bitcoin or other “cryptocurrencies” are taxed differently from cash or coin currency. The IRS generally recognizes virtual currency as property, not legal tender. As such, virtual currency received as payment by an individual or business must be included as miscellaneous income as an exchange of property or service. The value of […]
To enter or review information from Form 1099-DIV, go to our Form 1099-DIV – Entering Dividend Income in Program FAQ. The following will assist with the entry of Form 1099-DIV Dividends and Distributions when the income belongs to either another person or multiple taxpayers.
Pennsylvania Schedule B provides a specific line for state tax-exempt dividends, but those dividends must qualify based upon the PA instructions. When you enter an ordinary dividend amount in Box 1 or exempt-interest dividend amount in Box 10 of Form 1099-DIV Dividends and Distributions and indicate it is tax-exempt, the TaxAct program cannot determine if […]
If dividend income on Federal Schedule B (Form 1040) Interest and Ordinary Dividends (or Form 1040 U.S. Individual Income Tax Return ) is larger than you expect (and Federal Form 8621 Information Return by a Shareholder of a Passive Foreign Investment Company or Qualified Electing Fund is a part of your return and includes dividend […]
As the calculation of adjusted cost basis of the new shares resulting from a merger or acquisition varies for each situation, TaxAct® is unable to assist with the specifics of this calculation. Please consult your brokerage firm or the company(ies) involved for assistance in calculating the new cost basis of your shares.
To view the Schedule D Home Sale Worksheet which shows the calculation of the gain/loss, exclusion and/or taxable gain of the entries made in the return: Online Navigation Instructions You need to view the worksheet as a print PDF; if you need help, go to our Printing Your Return and Individual Forms FAQ. Desktop Navigation […]
The additional 3.8% Medicare contribution tax on investment income is for taxpayers whose adjusted gross income (AGI) exceeds $200,000 (or $250,000 if married filing jointly). Investment income is defined as interest, dividends, annuities, royalties, rents, passive business income, and gains from dispositions of property (other than property used in a trade or business, excluding passive […]
If your interest is exempt from New York only: From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click in the upper left-hand corner, then click Federal. Click Investment Income in the Federal Quick Q&A Topics menu to expand, then click Interest income (Form 1099-INT). Click + Add Form 1099-INT to […]
If your interest is exempt from New Jersey only: 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). Click the Investment Income dropdown, then click Interest income (Form 1099-INT). Click + Add Form 1099-INT to create a new copy […]
To enter the amount of state exempt dividend income (i.e. due to your mutual fund investing in U.S. government obligations), follow the steps below. If your state allows this deduction, it will flow to the appropriate section of the state return. If you need help accessing Form 1099-DIV in the TaxAct program, go to our […]
With the IRS reporting requirements surrounding securities, brokers are generally required to report certain information to you about your stocks. However, when the stocks have been transferred to your current broker from a previous broker, the current broker can treat the stocks as non-covered securities. When this is the case, your current broker may not […]
Computing a property’s adjusted basis is not limited to decreases due to depreciation, amortization, and depletion. A property’s basis may also have to be increased or decreased by certain items depending on the type of property and its history. Below is a list of possible increases and decreases that affect a property’s basis, per IRS […]
IRS Publication 525 Taxable and Nontaxable Income, page 33: Gifts and inheritances. In most cases, property you receive as a gift, bequest, or inheritance isn’t included in your income. However, if property you receive this way later produces income such as interest, dividends, or rents, that income is taxable to you. If property is given […]
**The information below has not been verified for the 2021 tax year as the IRS Pub. 550 has not yet been released by the IRS.** To enter or review information from Form 1099-INT, go to our Form 1099-INT – Entering in Program FAQ. The following information will assist with the entry of Form 1099-INT Interest Income when the […]
To enter an exempt amount for your Form 1099-OID Original Issue Discount (if you need help accessing Form 1099-OID in the TaxAct program, go to our Form 1099-OID – Entering in Program FAQ): From within your Form 1099-OID, continue with the interview process until you reach the screen titled OID Interest – Original Issue Discount. Enter the […]
**The information below has not been verified for the 2023 tax year as the IRS Pub. 550 has not yet been released by the IRS.** Per IRS Publication 550 Investment Income and Expenses (Including Capital Gains and Losses), page 20: Dividends Used To Buy More Stock The corporation in which you own stock may have […]
If you received interest income, but do not have the ID number of the payer, enter the information as though you had received a Form 1099-INT Interest Income, but leave off the Payer’s Federal Identification Number (FEIN). This number is not required and the return will e-file without the number. The information required by the […]
**The information below has not been verified for the 2021 tax year as the IRS Pub. 550 has not yet been released by the IRS.** 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 […]
Per IRS Instructions for Form 1040 and 1040-SR, on page 30: Line 7 Capital Gain or (Loss) If you sold a capital asset, such as a stock or bond, you must complete and attach Form 8949 and Schedule D. Exception 1. You don’t have to file Form 8949 or Schedule D if you aren’t deferring […]
On Schedule D (Form 1040) Capital Gains and Losses, you may enter amounts of up to nine digits for such items as cost basis, sales proceeds, or gain or loss in the TaxAct program.
The TaxAct® program supports the entry of 100 Forms 1099-DIV Dividends and Distributions. If you own all the stocks that are issuing dividends in one brokerage account, you normally will receive just one Form 1099-DIV that will summarize all of the year’s dividends. It will most likely list each payer, but you don’t need to list […]
The TaxAct® program supports the entry of 100 Forms 1099-INT Interest Income. Form(s) 1099-INT is not transmitted electronically with your return; only the amounts which transfer to the Schedule B (Form 1040) Interest and Ordinary Dividends get transmitted. If Schedule B (Form 1040) is not required to be a part of the return, the total amount […]
**The information below has not been verified for the 2023 tax year as the IRS Pub. 550 has not yet been released by the IRS.** A stock split will affect your number of shares and your basis in each share. To determine your new basis per share, you would divide your total adjusted basis of […]
**The information below has not been verified for the 2023 tax year as the IRS Pub. 550 has not yet been released by the IRS.** A “put option” is the right to sell to the writer, at any time before a specified future date, a stated number of shares at a specified price. Conversely, a […]
The amount realized on the sale of your home is the selling price minus selling expenses. Per IRS Publication 523 Selling Your Home, page 12: 2. Determine your selling expenses. These are the costs directly associated with selling your home. Any sales commissions (for example, a real estate agent’s sales commission) . Any advertising fees […]
To determine the gain or loss on the sale of your home, there is a worksheet in TaxAct. However, TaxAct supports only one sale of home worksheet. If you have another home sale for the same tax year, you will need to go through the worksheet calculations manually to determine the amount of gain or […]
To report the Form W-2 you received in the TaxAct program, go to our Instructions to Enter Form W-2 Information FAQ. Per IRS Publication 525 Taxable and Nontaxable Income, page 12: Tax form. If you have income from the exercise of nonstatutory stock options, your employer should report the amount to you inbox 12 of […]
Restricted Stock Units (RSUs) are a form of compensation that is starting to be used by many employers. These are generally taxed at the time of vesting, whereas employee stock options are usually taxed at the time of option exercise. The employer is required to withhold taxes as soon as the RSUs become vested. However, […]
A “short sale” is when a home is sold for less than the amount still owed on the mortgage and an attempt is made to get the lender to forgive the unpaid balance. If you received a Form 1099-C Cancellation of Debt, this income may qualify to be excluded on your tax return if it […]
Per IRS Publication 527 Residential Rental Property (Including Rental of Vacation Homes), page 15: Basis of Property Changed to Rental Use When you change property you held for personal use to rental use (for example, you rent your former home), the basis for depreciation will be the lesser of the fair market value or adjusted basis on […]
When you sell or exchange your mutual fund shares, or if they are redeemed (a redemption), you will generally have a taxable gain or a deductible loss. Per IRS Instructions for Form 8949 Sales and Other Dispositions of Capital Assets, page 6: Average basis. You can use the average basis method to determine the basis […]
Nonbusiness bad debts are deducted as short-term capital losses on Federal Schedule D (Form 1040) Capital Gains and Losses. You may claim a loss from bad debt only in the year the debt becomes totally worthless. If you have a loss from a nonbusiness bad debt, you deduct it from capital gains, if any, and […]
Capital gains and losses are reported on Form 8949 Sales and Other Dispositions of Capital Assets and Schedule D (Form 1040) Capital Gains and Losses. For more information regarding capital gains and losses, go to: Publication 550 Investment Income and Expenses (Including Capital Gains and Losses) Publication 551 Basis of Assets ADJUSTED BASIS: Before you […]
Per IRS Publication 550 Investment Income and Expenses (Including Capital Gains and Losses), page 48: Capital or Ordinary Gain or Loss If you have a taxable gain or a deductible loss from a transaction, it may be either a capital gain or loss or an ordinary gain or loss, depending on the circumstances. Generally, a […]
If you used an accelerated method of depreciation, any gain you have on the sale attributable to this depreciation must be recaptured and reported as ordinary income. If you used straight-line depreciation, you may not have to report any recapture as ordinary income, but any gain computed would be considered capital gain income. You must […]
Your actual adjusted basis may be different from what is reported on Form 1099-B Proceeds From Broker and Barter Exchange Transactions. Per IRS Publication 550 Investment Income and Expenses (Including Capital Gains and Losses), page 40: Stocks and Bonds The basis of stocks or bonds you own is generally the purchase price plus the costs […]
Employee Stock Purchase Plan (ESPP) You will need to review the information you received on Form W-2 Wage and Tax Statement and/or Form 1099-B Proceeds From Broker and Barter Exchange Transactions before making your entries into the program. Outlined below is a series of steps you will need to review before entering your stock transaction […]
Generally, the basis in property you inherited from a decedent is the Fair Market Value (FMV) at the date of the individual’s death. However, you should refer to IRS Publication 551 Basis of Assets for additional information and exceptions. Note that any link in the information above is updated each year automatically and will take […]
The CUSIP acronym typically refers to both the Committee on Uniform Security Identification Procedures and the 9-character alphanumeric security identifiers that it distributes for all North American securities for the purposes of facilitating, clearing, and settlement of trades. This number is not the Federal Identification Number (FEIN) for a company. A CUSIP number identifies most […]
The TaxAct program does not support a separate Schedule D (Form 1040) Capital Gains and Losses for Alternative Minimum Tax (AMT) purposes. You would need to manually complete the form, enter the amount on Line 17 of Form 6251 Alternative Minimum Tax – Individuals, and paper-file the return. Note that any link in the information […]
To report sale of personal property (or inherited property that is considered personal property) on Schedule D (Form 1040) Capital Gains and Losses in the TaxAct program, you will report it in the Capital Gains and Losses section of the program, and select Adjustment Code “L” (if the inherited property is not considered “personal use” property, […]
The TaxAct program supports the entry of 20 Forms 1099-OID Original Issue Discount. Note that any link in the information above is updated each year automatically and will take you to the most recent version of the webpage or document at the time it is accessed.
Adjusted Cost Basis Calculation Cost basis times business use percentage equals Business portion cost basis Business portion cost basis less Section 179 deduction equals Adjusted cost basis Adjusted cost basis times 30% Special bonus depreciation equals Special bonus depreciation amount Adjusted cost basis less 30% bonus depreciation amount equals Adjusted cost basis to use for […]
Generally, to find the basis for depreciation: Multiply the cost or other basis of the property by the percentage of business/investment use. Subtract any section 179 expense deduction. Subtract any special depreciation allowance (50% and 30%). For more information, go to IRS Instructions for Form 4562 Depreciation and Amortization (Including Information on Listed Property) and […]
Information reported to you on Form 1099-DIV and Form 1099-B can be entered in the TaxAct program in the Investment Income section of the Federal Q&A, or directly on the forms where applicable. The Tax Summary screen will indicate if the tax has been computed on the Schedule D Worksheet or the Qualified Dividends and Capital Gain […]
If there is an amount on Line 18 (from the 28% Rate Gain Worksheet) or Line 19 (from the Unrecaptured Section 1250 Gain Worksheet) of Schedule D (Form 1040) Capital Gains and Losses, according to the IRS, the tax is calculated on the Schedule D Tax Worksheet instead of the Qualified Dividends and Capital Gain […]
Per IRS Instructions for Form 1040 and 1040-SR, page 23: Rounding Off to Whole Dollars You can round off cents to whole dollars on your return and schedules. If you do round to whole dollars, you must round all amounts. To round, drop amounts under 50 cents and increase amounts from 50 to 99 cents […]
Per IRS Instructions for Forms 1099-INT and 1099-OID, on page 4: Box 14. Tax-Exempt and Tax Credit Bond CUSIP No. For single bonds or accounts containing a single bond, enter the CUSIP number of the tax-exempt bond for which tax-exempt interest is reported in box 8 or tax credit bond (including build America bond and […]
Follow the steps below to report exempt interest. If you need help accessing Form 1099-INT, go to our Form 1099-INT – Entering in Program FAQ. To enter only interest that is exempt from State: From within your Form 1099-INT, continue with the interview process until you reach the screen titled Interest Income – 1099-INT Income. Click the data entry […]
In the TaxAct program, you can use Capital Gain Summary reports to review all of your capital gain transactions during the year. The transactions are organized by short-term and long-term. To review your short-term and/or long-term capital gains/losses summary report: From within your TaxAct return (Online or Desktop), click Review, then click Reports (on smaller […]
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 forward to later years until it is completely depleted. This “unused loss” includes any amount appearing on Line 7 of IRS Form 1040 […]
To properly report your capital gains and losses on Form 8949 Sales and Other Dispositions of Capital Assets and Schedule D Capital Gains and Losses, you will need to determine your basis (cost) of your shares sold to enter in Purchase price or other basis. Your basis should be maintained in your records. Your plan […]
If you are entering information for the sale of stock you inherited, in the Date Acquired entry field for Form 1099-B Proceeds From Broker and Barter Exchange Transactions, enter the word “Inherited” instead of an actual date (you will still be allowed to e-file your return). The program will then compute the transaction as long […]
Per IRS Publication 551 Basis of Assets, page 9: Property Received as a Gift To figure the basis of property you receive as a gift, you must know its adjusted basis (defined earlier) to the donor just before it was given to you, its FMV at the time it was given to you, and any […]
Per IRS Instructions for Form 8949, page 5: Stock acquired on various dates. If you sold a block of stock (or similar property) that you acquired through several different purchases, you may report the sale on one row and enter “VARIOUS” in column (b). However, you still must report the short-term gain or (loss) on the sale […]
You need to add expenses of sales and commissions to your original cost basis to calculate the cost or other basis amount. The TaxAct interview process does not ask for these items separately; you need to keep detailed records to complete this entry. To access Form 1099-B and report cost or other basis in the […]
When using Form 2210 Underpayment of Estimated Tax by Individuals, Estates, and Trusts and you incur a net capital loss, by law this loss is limited to $3,000 for the tax year. When TaxAct® calculates your annualized income on Line 3 of Schedule AI and you are claiming a net capital loss, this loss limitation […]
All capital gains (long-term and short-term) are reported on Form 8949 Sales and Other Dispositions of Capital Assets and Schedule D Capital Gains and Losses is used to calculate a net capital gain or loss. If there is a net gain that is all short-term, then the short-term gain will be taxed at the taxpayer’s […]
Some boxes are not presented on Schedule K-1 because they are used to report various items and they can be treated differently, or they are merely informational and are not relevant to your tax return. Because we cannot determine what the items on these lines represent, we cannot accurately transfer it to the appropriate place […]
All capital gains (long-term and short-term) are reported on Form 8949 Sales and Other Dispositions of Capital Assets, and Schedule D Capital Gains and Losses is used to calculate a net capital gain or loss. If there is a net gain that is all short-term, then the short-term gain will be taxed at the taxpayer’s […]
A second home, or a timeshare, used as a vacation home is a personal use capital asset. A gain on the sale is reportable income, but a loss is NOT deductible. If you receive Form 1099-S Proceeds from Real Estate Transactions for the sale of your vacation home, you need to report it in the TaxAct program on Form […]
You should receive a Form 1099-INT Interest Income from banks and financial institutions where you earned more than $10 in interest. Even if you did not receive a Form 1099-INT, or if you received $10 or less in interest for the year, you must still report any interest earned and credited to your account during […]
If you redeemed a U.S. Savings Bond this year and reported interest for this bond on previous tax returns, you will need to report the amount in the program that you previously reported. The amount reported as income on prior year return(s) will then be subtracted from Schedule B (Form 1040) before transferring to the […]
You need to report your Form 1099-DIV ordinary and qualified dividends in the TaxAct program for the information to transfer to your Form 1040. To report your Form 1099-DIV and enter your ordinary and qualified dividends (if you need help reporting your Form 1099-DIV, go to our Form 1099-DIV – Entering Dividend Income in Program […]
If you receive a dividend income report without a payer’s identification number, enter the information in the TaxAct program as though you received a Form 1099-DIV Dividends and Distributions, but leave the Payer’s Federal Identification Number (FEIN) blank. This number is not required and the return will e-file without the number. The information required by […]
The Form 1099-INT Interest Income or Form 1099-OID Original Issue Discount you received will show the amount of any penalty you were charged. The TaxAct program will transfer the information to line 22 of Schedule 1 (Form 1040) Additional Income and Adjustments to Income after you report it on Form 1099-INT or Form 1099-OID. To […]
Your basis is generally the cost of the investment less any prior nondividend distributions received. Once you enter the basis in TaxAct, the program will determine if there is a gain to report and it will report it on Form 8949 Sales and Other Dispositions of Capital Assets. The most common kinds of distributions are: […]
Your share of sales proceeds (generally reported on Form 1099-S Proceeds From Real Estate Transactions) from the sale of an inherited home should be reported on Schedule D (Form 1040) Capital Gains and Losses in the Investment Income section of TaxAct. Enter “Inherited” as the date the property was acquired, then enter the cost basis, […]
Financial institutions with which you do business are required to send you a Form 1099-INT: Interest Income if you earned from them more than $10 of interest over the year. Even if you haven’t received a Form 1099-INT, or if you’ve earned interest of $10 or less over the year, you’ll still need to report […]
Until you sell stocks acquired under an Incentive Stock Option (ISO), there is nothing to report as a capital gain or loss. The following information is useful if you still hold the stock at the end of the year after it has been exercised, or for the year you sell the stock. Per IRS Publication […]
Investors who sold stocks, bonds, options, or other securities will have to prepare Form 8949 Sales and Other Dispositions of Capital Assets and Schedule D (Form 1040) Capital Gains and Losses for capital gains and losses, and file them along with Form 1040 U.S. Individual Income Tax Return. In the TaxAct program, you need to […]
If you state that all your tax-exempt interest is accrued tax-exempt interest, you are essentially saying that none of the interest is attributable to you. When you buy a bond between interest payment dates, there is interest that has accrued since the last interest payment date. The price you pay for the bond will include […]
Form 3922 Transfer of Stock Acquired Through an Employee Stock Purchase Plan Under Section 423(c) is for informational purposes only and isn’t entered into your return. Keep the form for your records because you’ll need the information when you sell, assign, or transfer the stock. When you dispose of the stock, you’ll receive Form 1099-B […]
Per IRS Publication 525 Taxable and Nontaxable Income, page 23: Life Insurance Proceeds Life insurance proceeds paid to you because of the death of the insured person aren’t taxable unless the policy was turned over to you for a price. This is true even if the proceeds were paid under an accident or health insurance […]
