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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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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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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 Did you choose to have the funds electronically withdrawn?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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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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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…