When you are a full-year resident of any state, generally you are required to include on that return all income earned regardless of the state you earned it in. If you also have income earned in another state where you did not live (your nonresident state), you are usually allowed a credit on your resident […]
Why am I being prompted to attach an appraisal document? The IRS groups similar donated items together when determining whether the qualified appraisal requirement applies. This applies even if the items were donated to different charities. For example, if your total claimed deduction for clothing donated during the year is $6,000, the clothing is treated […]
What are noncash charitable contributions? A noncash charitable contribution is a donation you give to a qualified charity that is not money. Instead, it is usually an item, property, or another type of asset. Common examples include: Clothing Furniture and household items Electronics and appliances Cars, boats, or other vehicles Stocks, bonds, or other securities […]
Orders are billed at the time of purchase. Multiple Charges If you see multiple charges on your credit card, review your TaxAct account to check the status of your filings. The e-filing status will help you understand why you may see multiple charges. If you purchase the federal program, and then later add a state […]
The DC EITC is equal to 100% of the federal EIC (for 2025). See the District of Columbia Earned Income Tax Credit (EITC) webpage for details.
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 […]
The Oregon Kids Credit is a refundable credit for eligible Oregon taxpayers with qualifying children. The credit is automatically calculated based on the other entries made in the return. You can review the Oregon Kids Credit calculation by going to State > Oregon > Credits and clicking Review beside Oregon Kids Credit. The Oregon Kids […]
The IRS standard mileage rates for 2025 are: 70 cents per mile driven for business use 21 cents per mile driven for medical or military moving 14 cents per mile driven in service of charitable organizations See the IRS website for more information and prior year amounts. NOTE Taxpayers cannot claim a miscellaneous itemized deduction for […]
The IRS’s standard mileage rate allowed for operating expenses for a car when you use it for medical reasons is 21 cents per mile for 2024 and 2025. Related Links Mileage – Standard Mileage Rates Publication 17
Certain state and local taxes may be deductible if you itemize your deductions on Schedule A (Form 1040). Deductible taxes generally include state and local personal property taxes that are based on the value of the property and charged on a yearly basis, such as some vehicle registration fees. Fees that are not based on […]
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 deduct […]
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. To enter state withholdings from your W-2, go to our Form W-2 – Entering in Program FAQ. To view […]
To report your 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. Online Dashboard From within your TaxAct return, click Deductions & Credits. On smaller […]
TaxAct does not calculate this allocation for state taxes. If the amounts for Prior Year State Income Tax Refund (to be included in taxable income on the current year’s return) and the deduction for Prior Year State and Local Estimates Paid After 12/31/20YY need to be adjusted, the taxpayer would need to manually perform this […]
To claim personal property taxes paid 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 Estimates & Other Taxes Paid drop-down. Click Add beside Deductible Taxes […]
Active duty military who are moving due to a military-ordered permanent change of station (PCS) can use Form 3903 to calculate any deductible moving expenses. 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 […]
The Form 8910 – Alternative Motor Vehicle Credit expired for vehicles purchased after 2021.
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) […]
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. On […]
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 […]
See Form 8801 – Entering Credit for Prior Year Minimum Tax in Program for details on how to access the Form 8801 data entry. To remove your entries, go back through the form entry steps and remove the information that you had provided. Additional Information IRS Form 8801 in certain circumstances when a taxpayer paid […]
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 […]
What changed in 2025: The cap on the state and local tax (SALT) deduction increases: From $10,000 to $40,000, if you’re filing jointly (MFJ) or as head of household (HOH) From $10,000 to $20,000, if you’re married filing separately (MFS) NOTE The limit increases by 1% each year through 2029 You can claim this higher deduction […]
What’s new in 2025: From 2025 through 2028, there’s a new deduction of $6,000 per person age 65 or older. You can still claim this on top of the regular senior standard deduction. That’s up to $12,000, if both spouses qualify on a joint return. You can claim this deduction whether you take the standard deduction or itemize. You can claim this […]
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 […]
ENERGY STAR is a joint program of the EPA and the DOE that provides information on certified energy-efficient products. For federal tax credit rules, see IRS Form 5695 Information. The Inflation Reduction Act of 2022 updated and extended residential energy credits: Residential Clean Energy Credit (Form 5695, Part I) is available through 2034. Energy Efficient […]
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 […]
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 […]
See Form 2106 – Entering Unreimbursed Employee Expenses in Program.
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. […]
See Form 1045 – Schedule A-NOL (Current Year NOL) (CARRYFORWARD) for information.
If your NOL is more than your taxable income for the year to which you carry it (figured before deducting the NOL), you may have an NOL carryover. You must make certain modifications to your taxable income to determine how much NOL you will use up in that year and how much you can carry […]
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 […]
You can report volunteer expenses as cash charitable contributions in the TaxAct program, and the program will transfer the amounts to Schedule A (Form 1040) Itemized Deductions. See IRS Publication 526 for details on what items can be deducted. Go to the FAQ Charitable – Entering Contributions and Donations in Program for details on entering […]
2024 was the last year to file Form 5405. See First-Time Homebuyer / Home Owner Credit for details about modifying the credit repayment information in prior years. Note: If the credit was originally claimed on a joint return, each spouse was treated as having been allowed half of the credit for purposes of repaying […]
2024 was the last year to file Form 5405. See First-Time Homebuyer / Home Owner Credit for details about prior year data entry. Note: If the credit was originally claimed on a joint return, each spouse was treated as having been allowed half of the credit for purposes of repaying the credit. Thus, two […]
TaxAct will automatically use whichever deduction gives you the greater benefit—your New York standard deduction or your New York itemized deduction. Because New York does not follow federal itemized deduction rules, the amount you can itemize on your New York return is different from your federal Schedule A total. Your New York itemized deduction is […]
To enter your qualifying mortgage insurance premiums as an Itemized Deduction, 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 Your Home drop-down. Click Add beside Mortgage Interest & Refinancing. […]
To enter other itemized deductions in TaxAct, follow the steps below. IRS Instructions for Schedule A only allow certain items to be listed as other itemized deductions on line 16. Online Dashboard From within your TaxAct return, click Deductions & Credits. On smaller devices, click the menu at the top left corner of your screen, […]
The standard deduction is calculated based on your demographic information and filing status. To claim itemized deductions 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 your screen, then make your selection. Under My Return, […]
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 […]
You can include in medical expenses wages and other amounts you pay for nursing services. The services need not be performed by a nurse if the services are of a kind generally performed by a nurse. This includes services connected with caring for the patient’s condition, such as giving medication or changing dressings, as well […]
To enter or review information from Form SSA-1099, including Medicare Parts B and D premiums, go to our Form SSA-1099 FAQ. To enter Medicare Parts B and D premiums not reported on Form SSA-1099, follow the steps in Medical and Dental Expenses.
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 you don’t know whether you need to use the itemized or standard deduction and you are married filing separate, review the information in the Married Filing Separate – Itemized or Standard Deduction FAQ. If you accidentally indicated in the TaxAct program that your spouse itemized deductions, follow the steps in the article listed above, […]
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 […]
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 […]
TaxAct will use the higher of your itemized deductions or the standard deduction for your filing status to maximize your tax benefit. To manually select a deduction method 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 […]
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 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. 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 […]
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, […]
To enter Sales Tax in the TaxAct program, follow the steps below. 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. Online Dashboard From within your […]
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 […]
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 Add […]
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 […]
If you are an eligible educator, you 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 you paid or incurred for books, supplies, computer equipment (including related software and services), other equipment, and supplementary materials that you use […]
To access the student worksheet, 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 Education drop-down. Click Add beside Expenses & Scholarships. Complete the rest of the interview process. Classic […]
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. Online Dashboard From within your TaxAct return, click Deductions & Credits. On smaller devices, click the menu at the top left corner of […]
The TaxAct® program will automatically determine if the credit from Schedule R is applicable on the return based on the information entered (e.g. date of birth). If you are expecting this credit to calculate on your return, and the credit is not appearing on Schedule 3 (Form 1040), make sure that you have made the […]
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 […]
If a taxpayer or taxpayer’s spouse is claimed as a dependent on someone else’s return, the standard deduction on the taxpayer’s return is generally reduced and calculated according to the Standard Deduction Worksheet for Dependents of IRS Publication 501. The TaxAct program calculates the standard deduction for you when you indicate that either you or […]
Form 6251 is used to calculate the Alternative Minimum Tax (AMT), a separate tax that limits how much certain deductions and tax benefits can reduce a taxpayer’s total tax. It applies to taxpayers with income or deductions that receive favorable treatment under regular tax rules. The form also helps determine the tentative minimum tax, which […]
When you enter the applicable basic information in TaxAct, the software will automatically calculate if a taxpayer is eligible for the additional standard deduction amount. TaxAct® will use the higher of your itemized deductions or the standard deduction for your filing status to maximize your tax benefit. The total of your itemized deductions is reported […]
When you enter the applicable basic information in TaxAct, the software will automatically calculate if a taxpayer is eligible for the additional standard deduction amount. TaxAct® will use the higher of your itemized deductions or the standard deduction for your filing status to maximize your tax benefit. The total of your itemized deductions is reported […]
Per IRS Publication 501: Higher Standard Deduction for Age (65 or Older) If you are age 65 or older on the last day of the year and don’t itemize deductions, you are entitled to a higher standard deduction. You are considered 65 on the day before your 65th birthday. Therefore, you can take a higher […]
Starting with 2024, the Minnesota Renter’s Credit is claimed by filing Schedule M1RENT with Form M1 (instead of on Form M1PR). If you are eligible to claim the Minnesota Renter’s Credit, you must attach a copy of the Certificate of Rent Paid (CRP) provided by your landlord. Your landlord is required to provide you with […]
Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit is a non-refundable credit. For more information about how this affects your tax return, go to our Nonrefundable Credit vs Refundable Credit FAQ. To access Form 8936 in the TaxAct program: From within your TaxAct return (Online or Desktop), click Federal (on smaller devices, click in […]
Taxable scholarship income impacts your total income amount as it is included on Schedule 1, line 8r and then flows to Form 1040, line 8. See IRS Publication 970 for details. If the student is being claimed as a dependent, and their educational expenses exceed the scholarship, grant, or fellowship amount, the education credit or deduction […]
The TaxAct® program automatically doesn’t print a copy of Schedule A (Form 1040) Itemized Deductions if you choose to take the standard deduction, but you can choose to print Schedule A anyway. Temporarily change your return to use itemized deductions in the TaxAct program. If you need help, go to our Force Standard or Itemized Deductions […]
Indiana’s Economic Development for a Growing Economy Credit (EDGE Credit) is calculated on Schedule IN-EDGE and carries to Form IT-40, Schedule F. You would receive a credit agreement letter along with your Indiana K-1 from the preparer of your business return. To enter the credit in the TaxAct® program: From within your TaxAct return (Online […]
TaxAct® will calculate the general sales tax for your state for Schedule A (Form 1040) Itemized Deductions, Line 5. In the Itemized Deductions section of TaxAct, you can enter the state and the number of days you lived in that state. TaxAct will then calculate the state general sales tax based on the optional state […]
Depending on where you live, the TaxAct program might ask what your locality is when you claim your State and Local General Sales Tax Deduction (if you need help accessing the sales tax section of the TaxAct program, go to our Sales Tax – Entering in the Program FAQ): From within the sales tax deduction […]
The TaxAct® program does not support the entry of more than five states on Schedule A (Form 1040) Itemized Deductions. If you have more than five states to enter, you will need to manually calculate each state, then enter one total. To manually calculate the tax, use the calculator on the IRS website, or use the […]
Before claiming a deduction for sales tax on your home, check your real estate bill to make sure you paid sales tax. Per IRS Instructions for Schedule A, page 6: Line 7. Enter on line 7 any state and local general sales taxes paid on the following specified items. If you are completing more than […]
If your locality imposes a general sales tax, you can claim this for your State and Local General Sales Tax Deduction. To claim your State and Local General Sales Tax Deduction in the TaxAct program (if you need help accessing the sales tax section of the TaxAct program, go to our Sales Tax – Entering […]
Per IRS Publication 936 Home Mortgage Interest Deduction, page 4: Mortgage prepayment penalty. If you pay off your home mortgage early, you may have to pay a penalty. You can deduct that penalty as home mortgage interest provided the penalty isn’t for a specific service performed or cost incurred in connection with your mortgage loan. […]
If you paid mortgage interest to more than one person and the amounts weren’t reported on Form 1098 Mortgage Interest Statement, you will need to enter additional mortgage interest information (if you need help accessing the mortgage interest section of the TaxAct program, go to our Mortgage Interest – Not on Form 1098 FAQ): From […]
Per IRS Instructions for Form 2106, page 1: Purpose of Form Use Form 2106 if you were an Armed Forces reservist, qualified performing artist, fee-basis state or local government official, or employee with impairment-related work expenses. Due to the suspension of miscellaneous itemized deductions subject to the 2% floor under section 67(a), employees who do […]
If you used your car while volunteering, you can report the mileage or actual expenses in your TaxAct return. The TaxAct program then transfers the information to Schedule A (Form 1040) Itemized Deductions, line 11. The TaxAct® program computes the charitable mileage deduction for you, per the IRS Standard Mileage Rates webpage. To report the cost for […]
A number of prominent charitable organizations state that gifts of frequent flyer miles are generally not tax-deductible, because they are given to you by the airline and therefore have no monetary value in the eyes of the Internal Revenue Service. You can contact the IRS at (800)829-1040 for a decision as to whether your gift […]
Income Ratio This ratio is calculated by using the income earned or received while a resident of Georgia divided by your total income earned or received. Time Ratio This ratio is calculated by using the number of days in the state of Georgia divided by the number of days in the year. Time Ratio This […]
Below is the link to the Arizona Department of Revenue’s code lists for Qualifying Charitable Organizations and Qualifying Foster Care Charitable Organizations: Contributions to QCOs and QFCOs | Arizona Department of Revenue (azdor.gov) To find your code, scroll down to the heading List of Qualifying Charities, and click QCO (Qualifying Charitable Organizations) or QFCO (Qualifying […]
TaxAct does not support Form 8834. However, you can still file with TaxAct by printing and mailing your return to the IRS and including Form 8834 separately. See our How to Mail a Paper Return (Paper File) FAQ for help. Important Information The Qualified Electric Vehicle Credit only applies to vehicles placed in service before […]
Per IRS Publication 535, Business Expenses, page 5: Capital Versus Deductible Expenses Deduction for qualified business income. For tax years beginning after 2017, you may be entitled to take a deduction of up to 20% of your qualified business income from your qualified trade or business, plus 20% of the aggregate amount of qualified real […]
Per IRS Publication 530 Tax Information for Homeowners, page 2: Nondeductible payments. 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 […]
The Taxpayer Advocate Service (TAS) has developed several tools for individuals and employers to assist in estimating ACA related credits and payments. Since these tools only provide an estimate, you should not rely upon them as an accurate calculation of the information you will report on your tax return. You should use these estimators only […]
The standard mileage deduction is not allowed for business-owned vehicles. Businesses are required to use depreciation and actual expenses when reporting vehicle expense on the business return. Businesses are allowed to use the standard mileage rate when reimbursing employees for business use of their personal vehicle. Partnerships Instead of reporting vehicle expenses on the business […]
You can deduct various federal, state, local, and foreign taxes directly attributable to your trade or business as business expenses. Generally, you can only deduct taxes in the year you pay them. This applies whether you use the cash method or an accrual method of accounting. Per IRS Publication 535 Business Expenses: Real Estate Taxes […]
You can attach a PDF copy of the other state(s) return to your tax return in order to claim a credit for taxes paid to another state or jurisdiction. If this applies to you, the TaxAct program will prompt you to do this during the interview process. For information about converting a document to a […]
Massachusetts taxpayers are able to claim a credit for taxes paid to other jurisdictions. Mandatory payments made by a Massachusetts taxpayer into a Temporary Disability Insurance (TDI) program for another state, are classified as income taxes paid to another jurisdiction. Enter the amount contributed to the TDI program as part of total income taxes for […]
Generally, scholarships are tax-free and reduce the amount of education expenses available to claim an education credit. However, a scholarship is not treated as tax free when: The scholarship may be used to pay unqualified education expenses, and The student includes the scholarship in income (if a return is required to be filed). It may […]
The IRS First-Time Abate program provides certain penalty relief to taxpayers who have been tax compliant for the previous three years or have not previously been required to file a return. If you have a clean compliance history for the last three years, you may be eligible for first-time relief from the following penalties: Failure […]
Interest and/or penalties paid to the IRS are not deductible on your tax return. Per IRS Publication 529 Miscellaneous Deductions, page 7: Fines or Penalties No deduction is allowed for fines and penalties paid to a government or specified nongovernmental entity for the violation of any law except in the following situations. Certain amounts that […]
You can exclude up to $5,250 of educational assistance benefits you received from your employer. To qualify for the exclusion, the benefits must be part of a written educational assistance program. Your employer can tell you whether your benefits are part of a qualified program. These excluded benefits are not included in wages in Box […]
Per IRS Publication 17 Your Federal Income Tax For Individuals, page 68: Recoveries A recovery is a return of an amount you deducted or took a credit for in an earlier year. The most common recoveries are refunds, reimbursements, and rebates of deductions itemized on Schedule A (Form 1040). You may also have recoveries of […]
If you need to submit supporting documentation (i.e. a statement or qualified appraisal) for Form 8283 Noncash Charitable Contributions, you are still able to e-file your return; however, you will need to complete and mail Form 8453 U.S. Individual Income Tax Transmittal for an IRS e-file Return, along with the supporting documentation, to the IRS. […]
A mortgage secured by your main home to purchase land would be deductible as long as it meets the same requirements any other mortgage must meet. However, if the mortgage is secured by the land and potential construction of your main or second home, then it must follow the rules outlined below. Per IRS Publication […]
Per CT Form CT-1040 Connecticut Resident Income Tax Instruction Booklet, page 27: Am I Eligible for the Credit for Income Taxes Paid to Qualifying Jurisdictions? If you are a resident of Connecticut and if any part of your income was taxed by a qualifying jurisdiction, you may be able to claim a credit against your […]
If you received a Form 1098-MA Mortgage Assistance Payments in addition to the Form 1098 Mortgage Interest Statement, you may use a special method to compute your deduction for mortgage interest, real estate taxes, and mortgage insurance premiums on your main home (certain conditions apply, see the following). You are NOT required to use this […]
The state sales tax worksheet in the TaxAct program calculates the General Sales Tax deduction on Line 5 of Federal Schedule A (Form 1040) Itemized Deductions (if you see this box checked on your Schedule A that indicates you are taking that deduction on your return) To view the worksheet in the TaxAct program: Online […]
Per IRS Instructions for Form 8880 page 2: Who Can Take This Credit You may be able to take this credit if you, or your spouse if filing jointly, made (a) contributions (other than rollover contributions) to a traditional or Roth IRA; (b) elective deferrals to a 401(k), 403(b), governmental 457(b), SEP, SIMPLE, or to […]
Expenses for medical care (including transportation) you receive because you are a donor or a possible donor of a kidney or other organ can be entered on Schedule A (Form 1040) Itemized Deductions or in the Itemized Deduction section of the TaxAct program. Unreimbursed medical expenses need to be more than 7.5% of Adjusted Gross […]
The creditor information from Form 1099-C Cancellation of Debt does not need to be entered into the TaxAct® program since the actual Form 1099-C is not transmitted with the return. Completing this form in TaxAct transfers the information to the appropriate sections of the return. The IRS will already have a copy of the form […]
To complete and paper file your Wisconsin Schedule H rather than electronically file it with the rest of your Wisconsin return: From within your TaxAct return (Online or Desktop), click State, then click Wisconsin (or WI). On smaller devices, click in the upper left-hand corner, then click State. Click Refundable Credits in the Wisconsin Quick […]
The following expenses are not deductible as an itemized deduction on Schedule A (Form 1040) Itemized Deductions. Per IRS Publication 529 Miscellaneous Deductions, page 6: Nondeductible Expenses In addition to the miscellaneous itemized deductions discussed earlier, you can’t deduct the following expenses. List of Nondeductible Expenses Adoption expenses. Broker’s commissions. Burial or funeral expenses, including […]
Burial or funeral expenses, including the cost of the cemetery lot, are not deductible as an itemized deduction on Schedule A (Form 1040) Itemized Deductions. They are, however, deductible on Schedule J of Form 706 United States Estate (and Generation-Skipping Transfer) Tax Return. See Instructions for Form 706 https://www.irs.gov/pub/irs-pdf/i706.pdf For a complete list of nondeductible expenses, go to IRS […]
If your filing status was Married Filing Joint when you claimed the First-Time Homebuyer Credit, but you are now divorced or separated, please review the information below. The Line 3e instructions pertain to you if you are the spouse who transferred the home to your spouse or ex-spouse. The Line 4 instructions pertain to you […]
If you claimed the First-Time Homebuyer Credit for a home purchased in 2008, and you determine you are only responsible for half of the credit repayment this year (i.e. filed jointly the year the credit was claimed, but are now filing separately or your spouse is now deceased), you will need to modify the credit […]
Tax Reform Update: Legal fees can no longer be deducted as a miscellaneous deduction. Per IRS Publication 529 Miscellaneous Deductions, page 2: Unreimbursed Employee Expenses You can no longer claim a deduction for unreimbursed employee expenses unless you fall into one of the following categories of employment, or have certain qualified educator expenses. Armed Forces […]
If you had a child born during the tax year and are filing a joint Minnesota income tax return, you may be eligible to claim a Newborn Child Care Credit even if you did not pay any child care expenses. You do not need to qualify for the Federal Child & Dependent Care Credit to […]
When you print a copy of your Wisconsin return, the printout will contain a sheet titled “Homestead Credit Notes and Attachments Checklist.” This checklist will help determine exactly what supporting documents you need to send with your I-016 Schedule H Wisconsin homestead credit claim. In addition, as noted on page 2 of Schedule H, you […]
Beginning in 2018, the moving expense deduction is temporarily suspended, unless you are a member of the Armed Forces on active duty, and due to a military order, you move because of a permanent change of station. Per Instructions for Form 3903 Moving Expenses, page 2: Line 5 If line 3 is more than line […]
If you have a Net Operating Loss (NOL) amount on Line 8 of Schedule 1 (Form 1040) Additional Income and Adjustments to Income, this amount is automatically entered as a positive number on Line 2e of Form 6251 Alternative Minimum Tax – Individuals. If the tax liability on the return did not decrease as much […]
You can deduct your home mortgage interest only if your mortgage is a secured debt. A secured debt is one in which you sign an instrument (such as a mortgage, deed of trust, or land contract) that: Makes your ownership in a qualified home security for payment of the debt, Provides, in case of default, […]
Per IRS Instructions for Form 5329 Additional Taxes on Qualified Plans (Including IRAs) and Other Tax-Favored Accounts, on page 4: Line 2 The additional tax on early distributions doesn’t apply to the distributions described next. Enter on line 2 the amount that you can exclude. In the space provided, enter the applicable exception number (01–21). […]
Per IRS Publication 936 Home Mortgage Interest Deduction, page 2: Note. Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s home that secures the loan. As under prior law, the loan must be secured by the taxpayer’s main […]
Tax Reform Update: Most of the miscellaneous itemized deductions you may have claimed in the past have been suspended under the new law. These deductions include: Unreimbursed employee expenses (travel expenses, dues/licenses, tools/supplies, education, etc.) Expenses related to the collection of income (investment fees, safe deposit box rental, tax advice, etc.) Tax preparation fees
If you reside in Massachusetts and have incurred certain commuting expenses (such as tolls and mass-transit passes) over the current tax year, you may be able to deduct some of those expenses from your taxes. You can use TaxAct to claim the Massachusetts Commuter Tax Deduction. Learn more about the Massachusetts Commuter Tax Deduction. To […]
Per IRS Publication 502 Medical and Dental Expenses (Including the Health Coverage Tax Credit), page 7: Car You can include in medical expenses the cost of special hand controls and other special equipment installed in a car for the use of a person with a disability. Special design. You can include in medical expenses the […]
Per IRS Publication 502 Medical and Dental Expenses (Including the Health Coverage Tax Credit), page 6: Capital Expenses You can include in medical expenses amounts you pay for special equipment installed in a home, or for improvements, if their main purpose is medical care for you, your spouse, or your dependent. The cost of permanent […]
Mortgage interest may be deducted on a timeshare loan. The interest is deductible only if the loan is secured by the timeshare as a mortgage. Per IRS Publication 936 Home Mortgage Interest Deduction, page 4: Time-sharing arrangements. You can treat a home you own under a time-sharing plan as a qualified home if it meets […]
The IRS does not specifically state whether expenses for the care of an Alzheimer’s patient are deductible, but they do provide information on how to make such a determination. The primary factor is whether the lodging is essential for medical care. This can vary depending on the individual circumstances (i.e. how far an individual’s Alzheimer’s […]
Per IRS Publication 502 Medical and Dental Expenses (Including the Health Coverage Tax Credit), page 2: Introduction Medical expenses include dental expenses, and in this publication the term “medical expenses” is often used to refer to medical and dental expenses. Page 15: Flexible Spending Arrangement You can’t include in medical expenses amounts for which you […]
You cannot deduct the costs of taking a bus, trolley, subway, or taxi, or of driving a car between your home and your main or regular place of work. These costs are personal commuting expenses. You cannot deduct commuting expenses no matter how far your home is from your regular place of work. You cannot […]
A charitable contribution is a donation or gift to, or for the use of, a qualified organization. Per IRS Publication 526 Charitable Contributions, page 2: Organizations That Qualify To Receive Deductible Contributions You can deduct your contributions only if you make them to a qualified organization. How to check whether an organization can receive deductible […]
When you bought your home, you may have paid settlement fees or closing costs in addition to the contract price of the property. Generally speaking, closing costs are not allowable as a deduction on your return. They are an increase in your basis or cost of the property to you. When you sell the property […]
Membership fees generally would not be deductible because a benefit is received in return for the fee. The deductible portion, if any, would be the excess of the fee over the value of the benefits received. The same applies to tickets purchased since an entertainment benefit is received. The deductible portion would be the amount […]
Per IRS Publication 502 Medical and Dental Expenses (Including the Health Coverage Tax Credit), page 5: Alcoholism You can include in medical expenses amounts you pay for an inpatient’s treatment at a therapeutic center for alcohol addiction. This includes meals and lodging provided by the center during treatment. You can also include in medical expenses […]
If you are unable to deduct charitable contributions due to the AGI limitations in the current tax year, you may be able to carry forward the excess amounts to future years. Per IRS Publication 526 Charitable Contributions, page 19: Carryovers You can carry over any contributions you can’t deduct in the current year because they […]
You can deduct impairment-related work expenses of persons with disabilities as miscellaneous itemized deductions. They are not subject to the 2% limit. Per IRS Publication 529 Miscellaneous Deductions, page 3: Employee with impairment-related work expenses. Impairment-related work expenses are the allowable expenses of an individual with physical or mental disabilities for attendant care at his or […]
Per IRS Publication 936 Home Mortgage Interest Deduction, page 4: Qualified Home For you to take a home mortgage interest deduction, your debt must be secured by a qualified home. This means your main home or your second home. A home includes a house, condominium, cooperative, mobile home, house trailer, boat, or similar property that […]
TaxAct calculates the Standard Deduction Worksheet for Dependents, but there is not a viewable worksheet within the program. You can find this worksheet displayed as Table 21-3 on page 157 of IRS Publication 17 Your Federal Income Tax For Individuals. Note that any link in the information above is updated each year automatically and will […]
Every fourth year (i.e. 2016, 2020, 2024) is a Leap Year and the calculation for the Sales Tax Deduction contains a factor in the calculation for the number of days lived in the State. In these years, if you adjust the days entered in this field to “366” (the number of days in a leap-year) […]
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 optional sales tax […]
If you had to repay any unemployment compensation (note the method would be similar for repaying any nonbusiness income) in 2024 which you received in 2024, subtract the amount you repaid from the total amount you received and enter the difference on your return. On the dotted line next to your entry, enter “Repaid” and […]
Per IRS Publication 936 Home Mortgage Interest Deduction, page 5: Reverse mortgages. A reverse mortgage is a loan where the lender pays you (in a lump sum, a monthly advance, a line of credit, or a combination of all three) while you continue to live in your home. With a reverse mortgage, you retain title […]
Per IRS Publication 17 Your Federal Income Tax (For Individuals), page 92: Higher Standard Deduction for Blindness If you are blind on the last day of the year and you don’t itemize deductions, you are entitled to a higher standard deduction. Not totally blind. If you aren’t totally blind, you must get a certified statement […]
Per IRS Publication 526, page 5: Question. I volunteer as a Red Cross nurse’s aide at a hospital. Can I deduct the cost of the uniforms I must wear? Answer. Yes, you can deduct the cost of buying and cleaning your uniforms if the hospital is a qualified organization, the uniforms aren’t suitable for everyday […]
You generally cannot deduct the full amount of points in the year paid. Because they are prepaid interest, you generally must deduct them over the life (term) of the mortgage. Per IRS Publication 936 Home Mortgage Interest Deduction, starting page 6: Points The term “points” is used to describe certain charges paid, or treated as paid, by […]
Per IRS Publication 502, Medical and Dental Expenses, page 2: What Expenses Can You Include This Year? You can include only the medical and dental expenses you paid this year, but generally not payments for medical or dental care you will receive in a future year. (But see Decedent under Whose Medical Expenses Can You […]
Per IRS Publication 502 Medical and Dental Expenses, page 3: Whose Medical Expenses Can You Include? You can generally include medical expenses you pay for yourself, as well as those you pay for someone who was your spouse or your dependent either when the services were provided or when you paid for them. There are […]
You can generally include medical expenses you pay for yourself, as well as those you pay for someone who was your spouse or your dependent either when the services were provided or when you paid for them. There are different rules for decedents and for individuals who are the subject of multiple support agreements. Go […]
To enter mortgage interest in the TaxAct program, go to our Form 1098 – Entering in Program FAQ. Per IRS Publication 936 Home Mortgage Interest Deduction, page 2: Note. Interest on home equity loans and lines of credit are deductible only if the borrowed funds are used to buy, build, or substantially improve the taxpayer’s […]
Per IRS Publication 936 Home Mortgage Interest Deduction: Home mortgage interest. You can deduct home mortgage interest on the first $750,000 ($375,000 if married filing separately) of indebtedness. However, higher limitations ($1 million ($500,000 if married filing separately)) apply if you are deducting mortgage interest from indebtedness incurred before December 16, 2017. Related Links Instructions […]
Personal interest is not deductible. Personal interest is any interest that is not home mortgage interest, investment interest, business interest, or other deductible interest. Note. You may be able to deduct interest you pay on a qualified student loan. For more information, go to IRS Publication 970, Tax Benefits for Education. Note that any link […]
Qualified Charitable Distributions (QCDs) were first made available to taxpayers in 2007. A qualified charitable distribution (QCD) is generally a nontaxable distribution made directly by the trustee of your IRA (other than a SEP or SIMPLE IRA) to an organization eligible to receive tax deductible contributions. You must be at least age 70 1/2 when […]
If you have claimed the Mortgage Interest Credit on Form 8396 Mortgage Interest Credit on the federal return, your home mortgage interest from Form 1098 Mortgage Interest Statement is reduced on Federal Schedule A (Form 1040) Itemized Deductions by the amount of the credit. The credit is generally 20% of the interest paid on the […]
As a senior citizen, you may be eligible to claim a refundable credit on your personal state income tax return. The Circuit Breaker tax credit is based on the actual real estate taxes paid on the Massachusetts residential property you own or rent and occupy as your principal residence. Massachusetts Senior Circuit Breaker Credit data […]
According to IL Publication 108 Illinois Property Tax Credit, on page 2: You must own your residence in order to take this credit. If you and your spouse each have a principal residence or if you had two principal residences during the tax year due to the sale of your home, you may claim the […]
The process of applying for the qualified education expense credit involves three Georgia tax forms, which should be completed in the following order: Georgia Form IT-QEE-TP1 Qualified Education Expense Credit Preapproval Form Georgia Form IT-QEE-SSO1 Qualified Education Expense Credit Letter of Confirmation Georgia Form IT-QEE-TP2 Qualified Education Expense Credit Computation The Qualified Education Expense Credit […]
Georgia has a number of Non IND-CR Credits and Pass-Through Credits which are entered on Georgia Schedule 2 and flow to Line 20 of Georgia Form 500. To enter these credits in TaxAct®: From within your TaxAct return (Online or Desktop), click State, then click Georgia (or GA). On smaller devices, click in the upper […]
You cannot deduct a contribution to a donor advised-fund if the sponsoring organization is a war veterans’ organization, a fraternal society, or a nonprofit cemetery company. There are also other circumstances in which you cannot deduct your contribution to a donor-advised fund. Generally, a donor-advised fund is a fund or account in which a donor […]
Pre-tax medical premiums are not an itemized deduction because you have already received a tax benefit as the premiums were not included in your gross wages in Box 1 of Form W-2.
Per IRS Instructions for Form 2106 Employee Business Expenses, page 2: Line 1. If you were a rural mail carrier, you can treat the amount of qualified reimbursement you received as the amount of your allowable expense. Because the qualified reimbursement is treated as paid under an accountable plan, your employer shouldn’t include the amount […]
Contributions to a 529 plan are not deductible on the federal return. Per the IRS 529 Plans: Questions and Answers webpage: Q. What is the main advantage of a typical 529 plan? A. Earnings are not subject to federal tax and generally not subject to state tax when used for the qualified education expenses of […]
Per the IRS Other Deduction Questions webpage: Question My spouse and I are filing separate returns. How can we split our itemized deductions? Answer If you and your spouse file separate returns and one of you itemizes deductions, the other spouse must also itemize, because in this case, the standard deduction amount is zero for […]
Per IRS Publication 501, page 24: Higher Standard Deduction for Age (65 or Older) If you are age 65 or older on the last day of the year and don’t itemize deductions, you are entitled to a higher standard deduction. You are considered 65 on the day before your 65th birthday. Therefore, you can take a […]
To calculate the vehicle expenses amount to report on Line 9 of Schedule C (Form 1040) Profit or Loss From Business (if you need help accessing Schedule C, go to our Schedule C – Entering Sole Proprietorship in Program FAQ): From within your Schedule C, continue with the interview process until you reach the screen […]
If you make a State Estimated Tax payment in January that is applied to the Fourth Quarter Tax Payment of the previous year, you would enter that state tax payment on Schedule A (Form 1040) Itemized Deductions for the year the payment was made. Example: If you made a State Estimated Tax payment on January […]
You can only deduct interest on the first $375,000 of your mortgage if you bought your home after December 15, 2017. Per IRS Publication 587 Business Use of Your Home, page 18: Home mortgage interest. You will figure the business portion of your home mortgage interest using Form 8829 (if you file Schedule C (Form […]
Noncash Charitable Contribution Limit. The TaxAct program currently allows a maximum of 45 entries for noncash charitable contributions. These would be reported on nine Forms 8283 Noncash Charitable Contributions. The total noncash charitable contributions are reported on Federal Schedule A (Form 1040) Itemized Deductions, Line 17 as an itemized deduction. Note that any link in […]
A nonrefundable credit can reduce your tax liability to 0 (zero); however, it cannot result in a refund. If, for example, you qualify for a $350 nonrefundable credit and your tax liability is only $200, you will only receive a $200 credit. If your tax liability is zero, you would not receive the credit at […]
Per IRS Instructions for Form 5695: The Consolidated Appropriations Act, 2021: Extends the residential energy efficient property credit to qualified biomass fuel property costs on line 5, and provides definitions in these instructions. Extends the 26 percent residential energy efficient property credit rate to property placed in service in 2021. For property placed into service […]
The Patient Protection and Affordable Care Act allows small businesses and tax-exempt organizations to earn a tax credit for providing or maintaining employee health insurance. Starting in 2014, businesses with ten or fewer full-time equivalent (FTE) employees with an average annual salary of $25,000 or less can earn the maximum credit of 50%, while tax-exempt […]
The TaxAct® Online program supports up to 50 entries on the Detailed Information for Contributions of cash or check in the Charitable Contributions section of the Itemized Deductions.
There is a limitation for charitable contributions as an itemized deduction on Schedule A (Form 1040) Itemized Deductions. The charitable contribution amounts are reported on Schedule A, Lines 11, 12, 13, and 14. The contribution limitation on Line 14 is computed on the Charitable Contribution Limitation Worksheet. Contributions are compared with the adjusted gross income […]
To see which fuel credits are still available, go to IRS Instructions for Form 4136 Credit for Federal Tax Paid on Fuels. Go to IRS Publication 510 Excise Taxes (Including Fuel Tax Credits and Refunds) for definitions and information on nontaxable uses. The IRS will not begin accepting 2025 returns that include Form 4136 until February […]
To deduct expenses related to the business use of part of your home, you must meet specific requirements. Even then, your deduction may be limited. To qualify to claim expenses for business use of your home, you must meet both of the following tests. Your use of the business part of your home must be […]
To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your industry. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary. Even though an […]
Per IRS Publication 526 Charitable Contributions, page 2: A charitable contribution is a donation or gift to, or for the use of, a qualified organization. It is voluntary and is made without getting, or expecting to get, anything of equal value. Organizations That Qualify To Receive Deductible Contributions You can deduct your contributions only if […]
If you use a geothermal pump, solar panels, solar water heater, small wind energy system, or fuel cells, you may be able to continue claiming residential energy credits from the use of such devices on future tax returns. Residential energy credits should be claimed on Form 5695. Access current and prior-year versions of Form 5695 on […]
See IRS Instructions for Schedule A (Form 1040) Itemized Deductions, for limits on deductions for 2024: Limitations apply to: State and local taxes Home mortgage interest deduction Casualty and theft losses Some charitable contributions Deductions eliminated in 2018 that have not been brought back: Most miscellaneous itemized deductions Note that any link in the information above is […]
If you realize a net business loss on Schedule C (Form 1040) Profit or Loss From Business, you are not required to file Schedule SE (Form 1040) Self-Employment Tax or pay self-employment taxes. However, the IRS does provide an optional self-employment tax calculation method which may give you credit toward Social Security without increasing your […]
The Tax Cuts and Jobs Act of 2018 suspended most of the itemized deductions you may have claimed in the past. Rental fees for safe deposit boxes are no longer deductible. Related Links Instructions for Schedule A Itemized Deductions Note that any link in the information above is updated each year automatically and will take […]
If you report a self-employment tax adjustment on Schedule SE (Form 1040) Self-Employment Tax, the TaxAct® program will automatically utilize Section B – Long Schedule SE. To enter or review a self-employment tax adjustment, go to our Schedule SE – Adjustments FAQ. Related Links Instructions for Schedule SE Self Employment Tax Note that any link […]
Due to tax reform, the deduction for uniform expenses not covered by your employer has been eliminated for tax years 2018-2025.
Tax reform eliminated the deduction for union dues for tax years 2018-2025. Per IRS Publication 529 Miscellaneous Deductions: This publication explains that you can no longer claim any miscellaneous itemized deductions, unless you fall into one of the qualified categories of employment claiming a deduction relating to unreimbursed employee expenses. Miscellaneous itemized deductions are those […]
All 50 States, Washington D.C., and five U.S. territories had an ENERGY STAR Appliance Rebate program in 2010. A few states still have active programs. For specific information for each state, go to the ENERGY STAR Rebate Finder webpage. For information on residential energy credits, go to our Energy Star Federal Tax Credits for Energy Efficiency FAQ. […]
For tax years 2018 – 2025, the following occupations can take this deduction: Armed Forces reservist Qualified performing artist Fee-basis state or local government official Employees with impairment-related work expenses To access the home office expenses section, go to our Form 2106 – Entering Unreimbursed Employee Expenses in Program FAQ. Related Links Business – Use […]
If you claimed the First-time Homebuyer Credit, there are certain situations (e.g. if the home ceases to be your main residence within a three-year period following the date of purchase) in which you may need to repay the credit in full. To access repayment of first-time homebuyer credit in the TaxAct program, go to our […]
The TaxAct® program will not always calculate all the possible preference items from the list on Form 6251 Alternative Minimum Tax—Individuals. Checking or unchecking certain boxes will affect the calculations on Form 6251. To access Form 6251, go to our Form 6251 – Alternative Minimum Tax – AMT FAQ. Note that any link in the information above […]
If you are completing the parents’ return, DO NOT enter the information for Form 8615 Tax for Certain Children Who Have Unearned Income but DO complete Form 8814 Parents’ Election To Report Child’s Interest and Dividends. To enter information for the child’s return (Form 8615): From within your TaxAct return (Online or Desktop), click Federal […]
Per IRS Publication 936: Home mortgage interest. You can deduct home mortgage interest on the first $750,000 ($375,000 if married filing separately) of indebtedness. However, higher limitations ($1 million ($500,000 if married filing separately)) apply if you are deducting mortgage interest from indebtedness incurred before December 16, 2017. The TaxAct® program does not calculate for […]
Per IRS Publication 936, page 4: Late payment charge on mortgage payment. You can deduct as home mortgage interest a late payment charge if it wasn’t for a specific service performed in connection with your mortgage loan. To enter home mortgage interest in the TaxAct program, go to our Form 1098 – Entering in Program […]
Per IRS Publication 17 Your Federal Income Tax, page 22: Married Filing Separately You can choose married filing separately as your filing status if you are married. This filing status may benefit you if you want to be responsible only for your own tax or if it results in less tax than filing a joint return. Special […]
You can claim both the credit and the exclusion for expenses of adopting an eligible child. Qualified adoption expenses are reasonable and necessary expenses directly related to, and for the principal purpose of, the legal adoption of an eligible child. Qualified adoption expenses include: Adoption fees Attorney fees Court costs Travel expenses (including meals and […]
Your deduction for a donated car, boat, or airplane is generally limited to the gross proceeds from its sale by the qualified organization. This rule applies if the claimed value of the donated vehicle is more than $500. In certain cases, you can deduct the vehicle’s Fair Market Value (FMV). For details, see IRS Publication […]
Form 8396 Mortgage Interest Credit is separate from Form 1098 Mortgage Interest Statement you receive from your bank or financial institution for mortgage interest paid. Form 8396 is for holders of Qualified Mortgage Credit Certificates (MCC) issued by state or local governmental units or agencies; the certificate credit rate is shown on the certificate. To […]
When you import your prior year tax return into the current year return, itemized deduction amounts will transfer to the Prior Year Comparison report, even if you used the standard deduction in the prior year. When you enter itemized deductions in the current year return, the amounts will also appear on the Prior Year Comparison report (in […]
