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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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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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What if my 1099-K amount is wrong?
Contributed by: Daniel_L, FreeTaxUSA Agent Form 1099-K Form 1099-K reports electronic payments received for goods or services through credit cards, debit cards, or any other third-party payment network like Square, Venmo, or PayPal. The 1099-K “filer” or issuer records these transactions. When the threshold is met by…
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When do I need to hire a tax professional?
Contributed by: KristineS, FreeTaxUSA Agent, Tax Pro FreeTaxUSA helps millions of customers across the nation prepare and successfully file their tax returns every year. Our software is simple to use and designed to guide our users from start to finish to maximize their refund or pay the least amount of tax due. Whether…
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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…
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Do I need to file a tax return?
Contributed by: KeriC, FreeTaxUSA Agent, TaxPro Most individuals who have income will need to file a federal tax return. However, there are some circumstances where a tax return isn’t required. Here are the top factors used when determining if you need to file a federal tax return: Age considerations. Your age at the end…
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Do I need to file FinCen Form 114 with the US Department of Treasury, Form 8938 with the IRS, or both?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro FinCen Form 114 You may be required to file a FinCen Form 114 (also known as an FBAR) if the following conditions apply: You have a financial interest in or signature authority over foreign financial accounts that exceed certain thresholds. The total sum of all your…
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What to do if you receive a CP12 notice from the IRS
Contributed by TriciaD, FreeTaxUSA Agent It’s easy to get nervous when you receive a notice from the IRS, but there’s no need to be alarmed. Understanding the steps you should take and the options available can help you navigate this situation with ease. Why did I receive a CP12 notice? A CP12 notice means the IRS fixed an…
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Can I do my taxes by myself?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro Filing a federal and state tax return is easier today than it ever has been. Not too long ago, preparing your own returns meant going to the library, the post office or another public building and picking up paper forms and instructions. Today, online tax preparation has…