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Backdoor Roth Plus a Recharacterization – Basic Scenario (2024 and later)
Contributed by: RachelR, FreeTaxUSA Agent, Tax Pro and Henry, FreeTaxUSA Agent, Tax Pro This article applies to 2024 and later years Here are the steps for entering a backdoor Roth including a recharacterization. First: Add the 1099-R for the Roth to traditional recharacterization When your recharacterization from…
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Backdoor Roth Plus a Recharacterization – Recharacterization Happens After December 31st (2024 and later)
Contributed by: RachelR, FreeTaxUSA Agent, Tax Pro and Henry, FreeTaxUSA Agent, Tax Pro This article applies to 2024 and later years Sometimes you don’t complete the recharacterization until the tax year is already over. Here’s an example: You made a Roth IRA contribution for 2024 during the 2024 tax year. You don’t…
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Reporting a Backdoor Roth – Conversion After December 31st (2024 and later)
Contributed by: RachelR, FreeTaxUSA Agent, Tax Pro and Henry, FreeTaxUSA Agent, Tax Pro This article applies to 2024 and later. The basic example assumed both the traditional IRA contribution and the Roth conversion step happened in the same year (for example, both events happened during 2024, for the 2024 tax year).…
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Reporting a Backdoor Roth – Basic Scenario (2024 and later)
Contributed by: RachelR, FreeTaxUSA Agent, Tax Pro and Henry, FreeTaxUSA Agent, Tax Pro This article applies to 2024 and later. The basic reporting of a backdoor Roth involves the following scenario: You contribute to a traditional IRA before the end of the tax year (December 31st). You either: Have too much income for the…
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IRS extends filing deadlines for 2024 disaster areas
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro The IRS has extended tax filing and payment deadlines for individuals affected by recent disasters. Below is a summary of the updated deadlines along with links to official IRS announcements for more detailed information: October 15, 2025: Taxpayers in Los Angeles County,…
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What kind of tax relief is available for people living in the Los Angeles County disaster area?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Going through disasters can be a harrowing experience. No one should have to deal with major property and personal losses while having to worry about filing a tax return and paying taxes. Fortunately, there are many tax relief provisions that are activated every time…
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Does my rental income qualify for the qualified business income (QBI) deduction?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Tax breaks are wonderful, but they often have strings and rules attached that need to be followed before you can take the deduction. The Tax Cut and Jobs Act of 2017 created the qualified business income deduction. This new tax break provided a deduction on 20% of…
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How do I enter a 1099-INT from my broker statement?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro The ease of investing using online accounts has grown. With an app for smart phones, or an online account on your computer, many more people are investing on their own in the stock market. The statement you get from your brokerage company will be a composite statement,…
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How do I enter a 1099-DIV from my broker statement?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro The ease of investing through online platforms has grown. With the availability of smartphone apps and online accounts, many more people are investing in the stock market on their own. If you are independently investing, the statement you get from your brokerage company…
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How do I enter a 1099-B from a consolidated broker statement?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro With the introduction of online brokerage accounts and apps for smart phones, more people are investing in the stock market on their own. The statement you get from your brokerage company will likely be a composite or consolidated statement and will have several 1099…