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What do the Box 12 codes on a W-2 mean?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro If you work for an employer, whether you earn a salary or are paid hourly, your income will generally be reported on Form W-2. This form has basic information used to report your income and taxes withheld on both your federal and state tax returns. There is other…
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Which filing status should I use?
Contributed by: TriciaD, FreeTaxUSA Agent Choosing the right filing status can be overwhelming. Knowing the pros and cons of each and evaluating your personal circumstances like marriage, divorce, or relocation can help you decide. Every tax situation is unique and selecting the correct filing status can potentially save…
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What is the underpayment penalty, and how do I avoid it?
Contributed by: ChristopherT, FreeTaxUSA Agent, Tax Pro One of the worst feelings when tax day arrives, is discovering you not only owe tax but also a penalty for underpayment of taxes. When you’re charged an underpayment penalty, you’ll owe additional money on top of the tax you already need to pay. Below we’ll cover the…
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Why should I file my tax return by the April deadline?
Contributed by: TriciaD, FreeTaxUSA Agent At the beginning of each year, you may find yourself turning your thoughts to tax season. The looming deadline of April 15 may seem comfortably distant, a future concern to worry about later. The temptation to procrastinate can be a slippery slope, filled with stress and possible…
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How to report foreign inheritance on my US tax return?
Contributed by KeriC, FreeTaxUSA Agent, Tax Pro If you receive a foreign inheritance, you may have to report it to the IRS, even though the inheritance itself is typically not subject to income tax. However, there are specific forms and reporting requirements based on the value of the inheritance and its nature. Here's how…
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Why should I purchase Audit Defense?
Contributed by KristineS, FreeTaxUSA Agent, Tax Pro The IRS is the most powerful collections agency in the world. Are you prepared to face them alone? With the power to question, challenge or change what’s reported on your return, the IRS can send a letter requesting you provide an explanation or additional supporting…
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Does FreeTaxUSA offer refund advance loans?
Contributed by: WrenD, FreeTaxUSA Agent, Tax Pro When it comes to accessing your tax refund quickly, many taxpayers wonder, "Does FreeTaxUSA offer refund advance loans?" The answer is no, FreeTaxUSA does not offer refund advance loans, also called a refund anticipation loan or RAL. However, we do offer an alternative that…
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How to file a tax return for a deceased spouse with a locked social security number
Contributed by: TriciaD, FreeTaxUSA Agent Losing a spouse or loved one is a difficult and emotional experience which can bring financial challenges. One of these challenges is how to file a tax return for the year of death, especially if the Social Security number (SSN) of the deceased spouse gets locked by the IRS. Here…
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Do I need to file a return if my only income is Social Security?
Contributed by KeriC, FreeTaxUSA Agent, Tax Pro Generally, if your only income is your Social Security benefits, you don’t need to file a tax return. Reportable Social Security benefits include yours or your spouse’s monthly retirement, survivor, and disability benefits. Social Security benefits including Supplemental…
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Do I need to file a tax return if I am a dependent who has income?
Contributed by: KeriC, FreeTaxUSA Agent, Tax Pro If someone else is claiming you as dependent it can be tricky to know how to handle your tax situation. Do you include your income on their return or file your own return? Do you have to report your income at all? In this situation, there are a few different income criteria…