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What is happening to the clean vehicle credits, and when will the changes take effect?
Contributed by: Joshua C., FreeTaxUSA Agent, Tax Pro The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, has introduced sweeping changes to federal tax policy, including a dramatic shift in how clean vehicle credits are handled. Previously, under the Inflation Reduction Act, the clean vehicle credit…
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How do I report mined cryptocurrency and capital gains from crypto sales?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro The IRS requires you to report digital currency on your tax return each year if you’ve received, sold, exchanged, or otherwise acquired cryptocurrency or other digital assets. If you mine cryptocurrency, there are different reporting requirements when you first acquire the…
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How does the One Big Beautiful Bill Act (OBBBA) impact energy efficient home improvement credits?
Contributed by: TriciaD, FreeTaxUSA agent, Tax Pro In 2025, President Trump enacted the One Big Beautiful Bill Act (OBBBA), introducing significant revisions to deductions related to energy-efficient home improvements. This legislation reduced or eliminated numerous tax credits and deductions previously provided under the…
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How will the OBBBA changes to charitable contributions affect my tax bill in the future?
Contributed by: JanaA, FreeTaxUSA Agent, Tax Pro In July 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA), which includes significant changes to charitable contribution deductions, effective for tax years beginning after December 31, 2025. Here’s a look at the new changes and how they may affect your tax…
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How do I report depreciation for a rental that was repeatedly converted between rental and personal use?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro There are many reasons people may choose to convert a home into rental property instead of selling. For example, during the Great Recession, housing prices dropped below what many people had paid for their properties. In some cases, homeowners had to decide between…
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How many years back can you file taxes?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro Technically, you can file back taxes for any past year you are missing. However, in most situations, only the past six years are required to be in good standing with the IRS. The recommendation is to file all past due tax returns, regardless of whether you can pay past…
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Can I file multiple prior year tax returns?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro Life can throw you curve balls, and you may end up in a situation where you need to file your current year tax return along with a couple past due returns from previous years. You’ll want to get caught up as soon as you can. You may have a refund for one year but owe…
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Taking advantage of the stepped-up basis loophole for inherited stocks, property and investments
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro When you inherit stocks, property or other investments, you may have a capital gain to report on your tax return when you sell them. Using the tax provision known as the "step-up in basis" can reduce or eliminate the capital gains tax you owe. How step-up basis works:…
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How do I report rental income and expenses for a co-owned property?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Many people have rental properties that are co-owned with a group of people. Whether the group is your family or a pool of investors, knowing how to report rental income, expenses, and depreciation for co-owned property is crucial to filing a correct tax return. Different…
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What are FinCen and the FBAR?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro If you have foreign financial accounts and you are a “United States person”, you have likely heard of the FBAR or FinCen. However, you may not be familiar with what these acronyms stand for and if they relate to your tax return. What is FinCen? FinCen stands for the US…
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How do I file multiple state tax returns in FreeTaxUSA?
Contributed by: JoshuaC,FreeTaxUSA Agent, Tax Pro There are several situations that may require a taxpayer to file two or more state income tax returns. These situations include (but are not limited to): You moved from one state to another during the year. You live in one state while working in another. You earned income…
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What is IRA basis, and why is it important?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Most people contribute money to traditional IRAs to help save them money on their tax return with the IRA deduction. If the contribution is deducted from income, all the money is taxable when it is withdrawn. Deducted IRA contributions have zero basis because the…
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What are nondeductible IRA contributions?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Anyone can make contributions to a traditional IRA if they have compensation. Most commonly, compensation includes income from working a W-2 job or from self-employment, either as a sole proprietor or through a pass-through entity. There are a few other rare forms of…
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What are the advantages/disadvantages of the increase to $40,000 in the State and Local Taxes deduction limit from the OBBBA?
Contributed by: BariS, FreeTaxUSA Agent, Tax Pro If you itemize your deductions, you may be eligible to deduct the State and Local Taxes (SALT) you paid during the year. While the deduction was previously capped at $10,000, the OBBBA temporarily raises the limit to $40,000 for tax years 2025 through 2028. You may be…
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What do I need to know about retirement contributions for my taxes?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro There are several options to save for retirement, each with its own tax advantages and rules. Understanding how retirement contributions affect your taxes is important for saving money on taxes now and planning for lower taxes in retirement. Here are some of the most…
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One Big Beautiful Bill Act’s effect on gambling losses
Contributed by LynR, FreeTaxUSA Agent, Tax Pro Among several changes to the tax code, introduced by the One Big Beautiful Bill Act (OBBBA, signed into law July 4, 2025), gambling (or wager) losses took a hit. Starting January 1, 2026, deductible gambling losses are limited to 90% of gambling losses and may not exceed your…
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What if I overcontribute to my Roth IRA?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro A Roth IRA can be a great investment vehicle for retirement savings. However, it’s important to know the rules for how much and when you can contribute to a Roth. Mistakes can always be fixed, but there may be penalties if they’re not corrected by the tax deadline. Common…
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How is the child tax credit affected in the One Big Beautiful Bill Act?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro The One Big Beautiful Bill Act (OBBBA) passed this year and will introduce several tax law changes, affecting 2025 tax returns. One of these changes is the child tax credit (CTC). Many taxpayers with dependents find a lot of relief with the child tax credit on their tax…
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Do I qualify for the new deduction of qualified tips?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro The new tax law was signed on July 4, 2025. It includes a provision that allows people who are paid in tips to take a deduction of up to $25,000 if they meet certain requirements. The new law allows the deduction from 2025 until 2028. While the IRS has additional guidance…
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What should I do if I just discovered I didn’t file my tax return last year?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro If you just realized you didn't file last year’s tax return, don't panic! It’s an easy fix to get your return filled out and filed, even if it’s late. You’ll want to get your return filed as soon as possible to avoid any potential late fees or penalties. We’ll break down…
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How do I report rideshare income and expenses?
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro Imagine finishing a busy week of driving for Uber or Lyft and wondering how all those fares and tips translate into your tax return. If filing taxes as a rideshare driver seems overwhelming, you’re not alone—this guide will give you step-by-step instructions for reporting…
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How to file late taxes
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro and AndyS, FreeTaxUSA Agent, Tax Pro Did you have a significant life event that prevented you from filing your tax return on time? Or were you missing important documentation? Maybe you simply procrastinated and forgot to file. Whatever the reason, if you missed the filing…
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What Is the Family and Medical Leave Act (FMLA) and how does it work?
Contributed by: AnthonyS, FreeTaxUSA Agent, Tax Pro Understanding FMLA The Family and Medical Leave Act (FMLA) is a federal law enacted in 1993 that allows eligible employees to take unpaid, job-protected leave for specific family and medical reasons. During FMLA leave, your health insurance coverage continues under the…
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I was sent Form 8949 to report stock sales. How do I enter it as a Form 1099-B in FreeTaxUSA?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro Typically, you’ll receive Form 1099-B or a stock summary to report your stock sales on your tax return. Some companies fill out Form 8949 for you instead. This can be confusing when preparing your tax return, since the FreeTaxUSA software prompts you to enter the information…
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I filed an extension, now what?
Contributed by: KelliP, FreeTaxUSA Agent, Tax Pro Congratulations, you have successfully filed an extension! Now what? Pay any amount due with the extension, if you haven’t already. Did you choose to have the funds electronically withdrawn? If so, you don’t need to pay again. If not, then you can go to the IRS website and…
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What constitutes cash vs noncash charitable contributions
Contributed by: KelliP, FreeTaxUSA Agent, Tax Pro Sometimes understanding the difference between a cash and noncash charitable contribution can be confusing. This article provides clarification. What is a charitable contribution? A charitable contribution is a donation. It’s donating gifts of money, tangible property, and…
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How to report an employment lawsuit settlement payment
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro Work can be hard enough on its own. Dealing with an employment dispute adds emotional strain. If you’re at the point where the process is over and a settlement has been paid, you may have to pay taxes on that payment. Your attorney may have explained this, but perhaps not…
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How do I report a worthless stock or investment on my tax return?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro When a stock or security becomes worthless, you have a capital loss, not a bad debt. A bad debt is created when you lend money or sell something on credit and don’t have an expectation to be paid back. When a security is worthless, here are some things to keep in mind:…
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What is an NOL (net operating loss) and how do I report it on my tax return?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro Have you ever had a bad year when your business lost a lot of money? Or perhaps you’ve lost your home or property in a disaster and insurance didn’t cover the damage. If these losses exceed your other income, you may be able to claim a net operating loss and use the loss to…
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What should I know about the residential clean energy credit before I buy my solar panels?
Contributed by: JanaA, FreeTaxUSA Agent, Tax Pro What is the energy credit? The residential clean energy credit is a tax credit that allows you to deduct a percentage of the cost of installing qualifying solar energy systems. This credit is applied to your federal tax liability to reduce your tax amount due. Credit amount…
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Can I get a deduction or credit on my tax return for college, private school or homeschool expenses?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro Expenses for schooling can add up, especially when it’s not public K-12 schooling, which is subsidized by county taxes. When it comes to filing your tax return, it would be nice to be able to get a deduction or credit for some of those out-of-pocket expenses. But is it…
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How do I enter my 1099-K for business income?
Contributed by: Daniel_L, FreeTaxUSA Agent In this article, we’ll discuss the following topics: Basic Form 1099-K information Help to identify business income Use of Schedule C to report business income Directions for entering 1099-K business income; and Tip and extended example Form 1099-K Form 1099-K reports electronic…
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What do I need to know about railroad retirement benefits?
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro If you or a family member receive retirement benefits from the Railroad Retirement Board, you’ll get special tax forms at filing time. Forms to be aware of are: Form RRB-1099-R Form RRB-1099 Form RRB-1042S (for some international recipients) Understanding these forms is…
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What are 401(k) limits for highly compensated employees (HCE)?
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro A 401(k) plan allows employees to save part of their wages for retirement with benefits like tax-deferred growth and employer matching contributions. Annual contributions to a 401(k) plan are limited. Highly compensated employees (HCEs) are subject to certain rules…
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Qualifying for and claiming a clean vehicle (CV) credit – what do I need?
Contributed by: JoshuaC, FreeTaxUSA Agent, Tax Pro Please note that with the passage of the One Big Beautiful Bill Act of 2025, the clean vehicle credit is ended, meaning qualifying and EV purchases must be made before September 30, 2025. This article is to explain how the credit works if you are preparing a prior year tax…
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What is Form 1099-DA, and how will it affect my tax return?
Contributed by: BarbaraL, FreeTaxUSA Agent, Tax Pro What is IRS Form 1099-DA (Digital Asset Proceeds)? Did you get a brand-new form this year titled Form 1099-DA and wonder what it even means or what you’re supposed to do with it? Starting in calendar year 2026, you might receive a 1099-DA if you sold, traded, or got rid…
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What is the new deduction for senior citizens, and how will it impact taxable social security benefits?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro With the recent signing into law of the One Big Beautiful Bill Act (OBBBA), millions of older Americans got a significant tax break through a new deduction available from 2025 to 2028. You may be wondering how the deduction works and if it affects social security benefits.…
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What are the top 10 changes introduced by the One Big Beautiful Bill Act (OBBBA)?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law. This new law extended and replaced the Tax Cuts and Jobs Act (TCJA), which was set to expire at the end of 2025. The OBBBA takes effect from 2025 through 2028. You may be wondering what…
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Do I qualify for the new deduction for overtime pay?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro The new tax law was signed on the 4th of July 2025. It includes a provision that allows people who are paid overtime to take a deduction of up to $12,500 of their overtime pay. The deduction is set to be available from 2025 until 2028. While the IRS still has guidance…
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What are deductible medical expenses?
Contributed by: KelliP, FreeTaxUSA Agent, Tax Pro You might feel that you pay a significant amount out of pocket for medical expenses. Did you know you may be able to claim these expenses on your tax return? They can be reported as an itemized deduction on Schedule A. However, this will depend on your situation, as there…
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What counts as deductible travel expenses?
Contributed by: KelliP, FreeTaxUSA Agent, Tax Pro Knowing what travel expenses are deductible can be confusing such as meals, transportation, and lodging. As a self-employed individual, generally most, if not all, travel expenses can be deducted. Business travel expenses are reported on Schedule C. There are certain…
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What do I need to report from my 1099-K?
Contributed by: Daniel_L, FreeTaxUSA Agent Form 1099-K Form 1099-K reports electronic payments you received for goods or services through credit cards, debit cards, or any other third-party payment network like Venmo or PayPal. Your 1099-K filer or issuer records these transactions. When the threshold is met by dollar…
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Reporting Name, Image and Likeness (NIL) income
Contributed by: KristineS, FreeTaxUSA Agent, Tax Pro Congratulations! Your sports prowess was just monetized into an NIL deal! Not only do you get to do cool things like endorse national brand labels, drive a sports car from a major car dealership, eat at up-scale restaurants or a local favorite hamburger joint, wear…
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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…