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When do I need to file Form 2210 for an underpayment penalty?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro Do you owe more than $1,000 on your tax return? Did you receive a letter from the IRS stating you owe a penalty for underpayment of estimated taxes? If so, Form 2210 may help you. What is an underpayment penalty? A common misconception is if you pay all your tax owed by April…
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How to report an excess Roth IRA withdrawal without a Form 1099-R
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro If you withdrew an excess Roth IRA contribution and its earnings after the tax year ended but before your tax filing deadline (including extensions), the earnings need to be reported as income on the tax return for the year the contribution applies to—even though the excess…
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Should I use AI to prepare my taxes?
Contributed by: WrenD, FreeTaxUSA Agent, Tax Pro Tax season brings a sense of dread for many people. Tax-time stress can make quick answers feel especially tempting, and lately, many of those quick answers come from chatbots powered by artificial intelligence (AI). Tools like ChatGPT, Claude, and Grok are fast, confident,…
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Do I need to report giving or receiving a gift on my tax return?
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro People often ask whether money or property given or received as a gift needs to be reported on a tax return. Most of the time, a gift doesn’t count as taxable income for the person who receives it. This means the receiver usually doesn’t report the gift on their tax return…
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How do I calculate modified adjusted gross income?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro Some taxpayers may recognize adjusted gross income, or AGI, from their tax return. AGI is generally your total income after certain adjustments are made. So, what is modified adjusted gross income (MAGI)? MAGI helps determine whether you qualify for certain tax benefits,…
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What do I do with Form 1095-B, Form 1095-C, or Form 5498-SA?
Contributed by: KelliP, FreeTaxUSA Agent, Tax Pro When you receive a tax form, it’s important to know whether it needs to be included on your tax return. Some forms must be reported, while others are for informational purposes only. Forms 1095-B, 1095-C, and 5498-SA are informational forms that document health insurance…
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Understanding tax return rejections due to missing Form 1095-A
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro Filing your federal income tax return can be stressful, especially if your return has been rejected. One reason for rejection is Form 1095-A (Health Insurance Marketplace Statement) wasn’t included with a tax return. This article explains why the IRS requires Form 1095-A,…
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Can I import documents into FreeTaxUSA to prepare a tax return?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro Tax software has simplified preparing federal and state tax returns. No longer do we need to get paper forms from the post office or library, sharpen our pencils, and pull out the old ten key calculator. In just the last 5 years, technological improvements, like importing…
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What do I need to know about filing a tax return as a college student?
Contributed by: CorinaE, FreeTaxUSA Agent There’s a lot to keep up with as a college student and a mountain of important deadlines, whether they’re for applications, assignments, or exams. It’s easy to feel overwhelmed by these deadlines, but one due date you don’t want to miss is the tax filing deadline. Even if you’re…
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What do the Box 14 codes on a W-2 mean?
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro For many employees, the annual arrival of W-2 forms signals the start of tax season. While most people focus on wages, federal income tax withheld, and social security details, Box 14 often stands out as a source of confusion. What do the codes in Box 14 mean, and how do…