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Who is a qualifying person for head of household filing status?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro Using head of household filing status usually gives you a lower tax rate than the rates for single or married filing separately. It also provides you a higher standard deduction. You may be able to file as head of household and take advantage of these benefits if you: are…
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When to report Paid Family Leave and Family Leave Insurance on your taxes
Contributed by: BarbaraL, FreeTaxUSA Agent, Tax Pro Taking time off for the delivery of a new baby or to care for a family member? You might get money from Paid Family Leave (PFL) or Family Leave Insurance (FLI). No surprise—this income can affect your taxes. Don’t worry! In this article, we’ll explain what PFL and FLI…
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What is the IRS Gig economy tax center
Contributed by: KristineS, FreeTaxUSA Agent, Tax Pro Do you make money part-time online through platforms like FiVRR, Etsy or eBay? Did you create an App that’s earning you money every time it’s used? Or maybe you’re running a full-time retail shop through Amazon, renting out a spare room in your house, or letting others…
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Why is my mortgage interest deduction limited?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro The IRS allows homeowners to claim a mortgage interest deduction for mortgage interest and points paid on a loan secured by your home, whether it’s your main home or a second home. However, to prevent disproportionately benefiting higher-income homeowners, the IRS has set…
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Are my car loan interest payments deductible?
Contributed by: KristineS, FreeTaxUSA Agent, Tax Pro With the signing of the One Big Beautiful Bill Act into law, you may be wondering if your car loan interest is now deductible, or you may have heard there’s no tax to pay on car loan interest. In this article we’ll cover all you need to know to see if you qualify for the…
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What do I do if box 2a is blank on my 1099-R?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro When you receive a Form 1099-R, the retirement company that issues the form doesn’t always calculate the amount in box 2a for you. How do you know what portion of your retirement distribution or payment is taxable? In many cases, it’s up to you to figure out what amount to…
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What if more than one person can claim a child?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro In certain situations, a child can meet the tests to be a qualifying child of more than one person. This means multiple individuals could potentially claim the child as a dependent or designate them as a qualifying person for the head of household filing status. However, a…
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IHSS income: what is it and is it taxable?
Contributed by: BarbaraL, FreeTaxUSA Agent, Tax Pro If you're an IHSS (In-Home Supportive Services) provider, you might receive a W-2 for your caregiving work, even if that income isn’t taxable. Thanks to IRS Notice 2014-7 some caregivers are allowed to exclude (subtract) this income from their federal Adjusted Gross…
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How do scholarships and grants affect your ability to claim an education credit?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro Paying for higher education can be expensive, so any financial assistance is helpful. Scholarships and grants are invaluable resources that can reduce the cost of tuition and other educational expenses. Additionally, education credits, such as the American Opportunity Tax…
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Why is my refund lower than what FreeTaxUSA calculated?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro When you prepare your tax return with FreeTaxUSA, our goal is to help you file an accurate tax return while maximizing your refund or minimizing the amount of tax you owe. If you’re due a refund, the IRS will send it to you after they finish processing your tax return.…