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How to Estimate Your Refund with the FreeTaxUSA Tax Calculator
FreeTaxUSA has launched a simple-to-use tool to estimate your refund or tax due. The FreeTaxUSA income tax calculator gives you a quick estimate, and starting your free federal return in FreeTaxUSA turns that estimate into a figure based on your full tax information. For the most accurate refund, use FreeTaxUSA Use the…
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SALT cap: What changed for 2026?
Contributed by: AnthonyS, FreeTaxUSA Agent, Tax Pro Will the higher SALT deduction cap lower your 2026 tax bill? For taxpayers in high-tax states, the answer may be yes—but the benefit is not as straightforward as the $40,000 headline suggests. Income limits, phaseouts, and scheduled changes may determine how much of the…
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How to determine the land value of a real property asset
Contributed by: BreeS, FreeTaxUSA Agent Why do you need to know the land value of a real property asset? If you use real property such as a building for an income-producing purpose, and the building qualifies as a depreciable asset, you must separate the cost of the land from the cost of the building. The IRS doesn’t…
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What do I do if I overcontribute to my traditional IRA?
Contributed by: AnthonyS, FreeTaxUSA Agent, Tax Pro It's tax time, and you discover you contributed too much to your traditional IRA. While this might seem intimidating at first, it's usually a simple issue to fix if you catch it before the tax filing deadline. What is an excess contribution? An excess contribution occurs…
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How is retirement income taxed?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro As you approach retirement, you may be wondering how your different sources of retirement income will be taxed. Understanding this can help you prepare so you avoid big surprises come tax time. Below are the main types of retirement income and how they’re taxed. Traditional…
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What are the consequences for filing late?
Contributed by: AnthonyS, FreeTaxUSA , Pro Support It's already April, and you haven't had time to prepare your tax return. Maybe you're still waiting on important tax documents, or life simply got in the way. If you're wondering, "What happens if I don't file by the deadline?" you're not alone. This is a common situation…
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Do I have to pay California Kiddie Tax?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro What is the Kiddie Tax? Officially known as the Tax Computation for Certain Children with Unearned Income, the California Kiddie Tax is an additional tax that may apply to certain children who have unearned income over $2,700. The child’s unearned income above the…
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How to correct income reported to the wrong SSN or EIN using the nominee method
Contributed by: AnthonyS, FreeTaxUSA Agent, Tax Pro Do you perform work or receive income that belongs to another entity that you own? At the end of the year, you may receive a Form 1099-NEC reporting the income under your name and Social Security number when the income should have been reported to another entity, such as…
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What is an HSA pass-through contribution?
Contributed by: JanaA, FreeTaxUSA Agent, Tax Pro Health savings accounts (HSAs) are one of the most valuable ways to save for qualified medical expenses. If you're enrolled in an HSA-eligible high-deductible health plan (HDHP), you may also have access to a helpful feature called a pass-through contribution. While the term…
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How do I report the sale of a business on my tax return?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro Selling a business is a rare occurrence, and most small business owners won’t have to deal with the situation; however, it does happen. In this article we’ll discuss the steps to take and how to report the sale of a business on your tax return in FreeTaxUSA. When you sell…
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Do I need to report my dependent’s SSA-1099 for survivor benefits?
Contributed by: JanaA, FreeTaxUSA Agent, Tax Pro If your dependent received Social Security survivor benefits, the benefits generally belong to your dependent, not to you. This means the income should be reported on your dependent’s tax return if they’re required to file one. This income won’t be reported on your personal…
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What is the annualized income installment method for Form 2210?
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro If you didn’t pay enough tax during the year through withholding or estimated tax payments, the IRS may charge an underpayment penalty. Form 2210 is used to figure the penalty. In many cases, the IRS can calculate the penalty for you and send a notice later. However, you…
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What is taxable and nontaxable income?
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro When you file your federal tax return, one of the first things you’ll need to know is whether the money, property, or services you received count as taxable income. In general, the IRS treats income as taxable unless a law specifically excludes it. That means some income…
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Congress is looking at the marriage tax penalty
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro Believe it or not, some married couples end up paying more tax than they would if they had stayed single. This is called a marriage tax penalty. Congress is now looking at ways to fix it. What is the marriage tax penalty? Imagine two people who both work and earn money. If…
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How do I claim the adoption credit?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro Adoption can be an exciting and meaningful way to grow your family, but it can also come with significant expenses. The adoption credit may help offset some of these costs by giving eligible taxpayers a dollar-for-dollar credit for qualified adoption expenses. For 2026, you…
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When might you need to allocate New York wages using the calendar method?
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro If you changed your New York residency during the year, or your Form W-2 includes wages tied to more than one state, you may need to allocate your New York wages. The calendar method is one way to estimate the part of your wages connected to your New York resident period.…
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What is the HSA last-month rule?
Contributed by: Joshua C, FreeTaxUSA Agent, Tax Pro A Health Savings Account (HSA) can be a valuable asset. It can help you pay certain medical expenses with tax advantages. If you have an employer who contributes to your HSA through payroll deductions, and/or if you contribute your own money, those contributions may…
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How are taxes handled when selling an inherited house with multiple heirs?
Contributed by: BreeS, FreeTaxUSA Agent This article focuses on the tax implications of selling an inherited home with multiple heirs after the original owner has passed away. When a home is inherited by multiple individuals and then sold, reporting the sale on your tax return can seem complicated. Fortunately, it doesn’t…
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How does getting divorced affect my taxes?
Contributed by: JanaA, FreeTaxUSA Agent, Tax Pro Divorce can significantly change your tax situation. It may affect your filing status, eligibility for certain credits, treatment of alimony and child support, claiming of dependents, and the tax consequences of dividing property or retirement accounts. Understanding these…
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How do I use the Taxpayer Roadmap?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro The Taxpayer Advocate Service (TAS) is an independent organization within the IRS that provides free resources to help people understand and resolve tax issues. It can help with IRS letters, return changes, exams, and audits. One helpful TAS tool is the Taxpayer Roadmap. It…
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Is converting my traditional IRA to a Roth IRA taxable?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro Are you interested in converting your traditional IRA to a Roth IRA to take advantage of its tax benefits? If so, there are tax implications to consider. Why convert your traditional IRA to a Roth IRA? If any of the following apply, you may consider converting your funds from…
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How do I file taxes as a freelancer or self-employed worker?
Contributed by: Joshua C, FreeTaxUSA Agent, Tax Pro There are many advantages to working as a freelancer, contractor, or other self-employed person, but taxes often don't feel like one of them. Unlike traditional employees, you don't have an employer withholding taxes for you or providing a W-2 to easily report your income…
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When do I need to file Form 2210 for an underpayment penalty?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro Do you owe more than $1,000 on your tax return? Did you receive a letter from the IRS stating you owe a penalty for underpayment of estimated taxes? If so, Form 2210 may help you. What is an underpayment penalty? A common misconception is if you pay all your tax owed by April…
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How do I enter my home as a depreciable asset when renting part of the home?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro With the introduction of online rental portals, some homeowners are making additional income by renting part of their home, from a single bedroom to an entire section of the house. Renting out part of your house while you still live there can create tax complexities. For…
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How to calculate partnership basis when a distribution is greater than the basis
Contributed by: AnthonyS, FreeTaxUSA Agent, Tax Pro It’s nearing the tax filing deadline, and you finally get a copy of your Schedule K-1 from your partnership. As you enter the information into tax software, it asks questions about partnership basis and distributions. What does all of this mean, and why is the software…
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How do I report the withdrawal of excess Roth IRA contributions on my tax return?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro Did you contribute too much to your Roth IRA? One way to correct the mistake is to withdraw the excess contribution and any earnings it generated. If you make the withdrawal properly and on time, the IRS generally treats the excess as if it was never contributed, helping you…
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Excess Roth IRA contribution withdrawn after the correction window
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro The correction window is the period of time when you can remove an excess Roth IRA contribution and treat it as though the contribution was never made. This window closes on your tax filing deadline, including extensions. If you remove the excess after that deadline, the…
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Excess Roth IRA contribution withdrawn before the tax year ended
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro If you discover an excess Roth IRA contribution for a given year before the end of that tax year, the tax reporting is straightforward. Consider James’s situation: In February 2025, he makes a Roth IRA contribution for 2025. He later realizes he contributed too much and…
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Excess Roth IRA contribution withdrawn the following tax year
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro An excess Roth IRA contribution often isn’t discovered until you prepare your tax return the following year. When that happens, you generally have until the due date of the return, including extensions, to withdraw the excess and avoid the penalty. Although you might not…
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How does getting married affect my taxes?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro You’ve tied the knot and need to file your taxes. Now what? Getting married can affect several areas of your tax return. Understanding the filing-status choices, deductions, credits, and withholding rules can help you avoid surprises when you file. Filing status For federal…
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How do I enter a business/rental asset in FreeTaxUSA?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro If you own a business or rental property, you likely have assets you need to depreciate over time. This article explains how to enter those assets in FreeTaxUSA. It doesn’t explain which depreciation method to use or how to calculate depreciation. For more information about…
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What is the new IRS rule for penalty relief and do I qualify?
Contributed by: KristineS, FreeTaxUSA Agent, Tax Pro Beginning in Summer 2026, the IRS may automatically grant relief for certain penalties on your originally filed tax return. The relief will initially apply to tax year 2025 returns and 2026 quarterly returns for employers/business owners. You may qualify automatically if…
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Why do I owe an underpayment penalty?
Contributed by: JoshuaC, FreeTaxUSA Agent, Tax Pro An underpayment penalty is a charge the IRS may add when you don’t pay enough tax during the year. In some cases it can apply even if you pay the full amount by the tax filing deadline. As you prepare your tax return in FreeTaxUSA, you may see a prompt to enter information…
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How do I contact the IRS?
Contributed by: BreeS, FreeTaxUSA Agent Do you need to contact the IRS? There are many reasons you may need to—from checking your tax balance to resolving a filing issue. This article explains when and how to contact them. The most common reasons to contact the IRS may be: Your refund is taking longer than expected (4-6…
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How do I make sense of a depreciation schedule/worksheet?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro Are you preparing your own tax return for the first time? If you have a business or rental property, depreciating your assets can feel intimidating — especially if you’re not familiar with the depreciation schedule that accompanies your prior tax return. When you have a…
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Is rental income taxable if you rent for 14 days or less?
Contributed by: KristineS, FreeTaxUSA Agent, Tax Pro If you’re like many Americans, you may be renting out a portion of your home on platforms such as Airbnb or VRBO for additional income. Or you may even have an entire house you rent out regularly for short-term stays or long-term rentals. In most instances, this income…
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How do I file my taxes for the first time?
Contributed by: BreeS, FreeTaxUSA Agent Filing your taxes for the first time can seem like a daunting task. You likely have many questions: What if I do something wrong? Will I be audited? How much will I owe? Will I get a refund? We’re here to help answer these questions and build your confidence as you gear up to file.…
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How to report an excess Roth IRA withdrawal without a Form 1099-R
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro If you withdrew an excess Roth IRA contribution and its earnings after the tax year ended but before your tax filing deadline (including extensions), the earnings need to be reported as income on the tax return for the year the contribution applies to—even though the excess…
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Do I need to change my W-4 after getting married?
Contributed by: KelliP, FreeTaxUSA Agent, Tax Pro Getting married can change more than your filing status. It can also affect how much tax should be withheld from your paychecks throughout the year. Because your W-4 tells your employer how much tax to withhold from your paychecks, it’s a good idea to review and update it…
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What is the alternative minimum tax (AMT) and what changed for 2026?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro If you've ever heard the term "alternative minimum tax" and felt a flicker of dread, take a breath — most filers will never owe it. The alternative minimum tax (AMT) was designed to make sure very high earners with certain kinds of income or deductions still pay at least a…
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Why did I get Form 1099-K — or why didn’t I?
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro If you use payment apps or online marketplaces, Form 1099-K can be confusing. You might receive one when a payment platform reports payments you received for goods or services. You might not receive one if your payments didn’t meet federal reporting requirements. Either…
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What is IRS Notice CP30, and what do I do?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro The IRS sends a CP30 notice when they charge the underpayment of estimated tax penalty on a tax return. This usually means the IRS believes you didn’t pay enough tax throughout the year through withholding, estimated tax payments, or a combination of both. If you receive…
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How to claim the small employer auto-enrollment credit, Form 8881, Part II
Contributed by: KristineS, FreeTaxUSA Agent, Tax Pro If you own a single-member LLC (SMLLC) or sole proprietorship, one method of planning and saving for retirement is to add a qualified individual retirement plan, such as a solo 401(k), to your business plan. With a solo 401(k), you can make contributions as both the…
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What do I need to know about the 2026 midyear standard mileage rate increase?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro Have you been feeling some pain at the gas pump lately? If you use your vehicle for business or medical purposes – or for moving purposes as a member of the active-duty military or as an employee or new appointee of the intelligence community – there's some good news. Due to…
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How will the "No Tax on Overtime" deduction work from 2026 through 2028?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro The "No Tax on Overtime" federal deduction applies to tax years 2025 through 2028. It retroactively took effect on January 1, 2025, and is currently set to expire after December 31, 2028, unless Congress passes new legislation to extend it. History of the OT deduction On…
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How do I correctly complete my tax withholding on Form W-4?
Contributed by: KelliP, FreeTaxUSA Agent, Tax Pro When you start a new job, your employer will give you paperwork to complete or send you a link to complete it online. One of the documents is Form W-4. How you fill out this form tells your employer how much federal income tax to withhold from your paychecks throughout the…
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Do I need to use the NY wage allocation as a nonresident or a part-year resident?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro New York has one of the most complicated state tax codes in the country. One of the most challenging parts of the NY tax code is how the state taxes wage income earned by nonresidents, part-year residents, or even former residents. Preparing your NY return correctly can…
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How do I allocate HSA contributions between my spouse and me?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro and Tess, FreeTaxUSA Agent Health Savings Accounts (HSAs) are a great way to pay for qualified medical expenses while receiving tax advantages. If you have a high-deductible health plan (HDHP), you may be eligible to contribute to an HSA. However, the IRS sets annual HSA…
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How does the One Big Beautiful Bill change the Premium Tax Credit in 2026?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro If you buy health insurance through the Marketplace, the Premium Tax Credit (PTC) can help lower your monthly premium. In 2026, the rules are changing, and it’s good to know how those changes may impact you. Some changes come directly from the One Big Beautiful Bill Act…
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How do my taxes change when I move?
Contributed by: JanaA, FreeTaxUSA Agent, Tax Pro Moving is stressful enough without adding taxes to the list. But if you’re crossing state lines, changing cities, or even just working remotely from a new place, your tax situation can change more than you might expect. Where you live, where you work, and when you move all…