-
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…
-
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…
-
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…
-
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…
-
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…
-
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 Did you choose to have the funds electronically withdrawn?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…
-
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:…
-
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…
-
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…
-
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…