In 2025 I participated in a paid fellowship program with the University of Texas HSC - Houston for a professional certification. Disbursement of the funds required completion of milestones at various intervals throughout the fellowship program, and continued participation until the fellowship ended in August 2025. What…
Hello, My understanding is we need to declare the life insurance policy details as part of the Foreign Investment and it is needed to declared on FBAR as well as Form 8938 depending on the amount. But I wanted to check whether should we declare the life insurance in the foreign country also declared in this form 8938.…
I have seen similar posts, but that do not answer my question about reporting income on excess contribution using FreeTaxUSA softwared. ---When working on our 2025 return (in February 2026) we realized our 2025 MAGI income exceeded limits for Roth IRA contributions. ---We notified American Funds and they returned the…
The 2025 IRS Form 1040 instructions page 23 stipulates the following: Report distributions from foreign pension plans on lines 5a and 5b. This is the way I have done it (manually for years), however in FreeTaxUSA the only way I can access those lines (5a and 5b) is by creating a fake 1099-R. Is this the recommended method…
I am a student in a non-compensatory role who receives a stipend categorized under a 1099-MISC every year. When I put it into the software, it notes that I have an excess Roth IRA contribution this year due to the 1099-MISC not counting as "earned income". Is that correct? A few sources online I've seen note that since…
My wife & I both received checks from the settlement of a Class Action lawsuit. The lawsuit had to do with the retirement program offered by our former employer. Federal taxes were withheld from both of our settlement checks. I thought that I'd enter this income as Other Income but that option doesn't provide me with an…
In 2024, I had a property that we lived in for January and February, then rented out starting 3/1/2024 through the end of the year. Thus, I figured I had 60 days of personal use of the property and 306 days of rental use, about 83.6% rental use. My question concerns the allocation of expenses for the rental property…
My wife has income derived from sale of vacation home that was the sole asset of a partnership with her siblings that was dissolved last year. Her share of the net proceeds was reported as other income (Code S, Gain from long-term sch d) on line 11 of the partnership K-1. The partnership was not publicly traded. Free tax…
This is my first time having to complete the Net Investment Income Tax Information (Form 8960) because of capital gains on an investment. FreeTaxUSA automatically put in the dollar values in the section I copied and pasted below. Where did FreeTaxUSA get those dollar amounts? Can you explain how they come up with those…
Prior to my husband's passing, we set up a Transfer on Death instrument to pass his house to me. We made a verbal agreement that after his passing, I would pay out to his three children half the value of the house. Do the rules for me paying them their portions fall under the rule for Gifts? The amounts will be more than…
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