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How to ensure password safety
Contributed by: GregC, FreeTaxUSA Security Manager Password Safety FreeTaxUSA works hard to keep your tax and personal data safe. In addition to relying on our multiple levels of security, there are some things you can do to help keep your data safe. Passwords are the keys to your FreeTaxUSA and other online accounts. They…
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How are clergy wages reported to the IRS and taxed on your return?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro The income, Social Security, and Medicare tax situation for members of the clergy is very different from the tax situation of average employees. Members of the clergy have the following major differences: Clergy wages are exempt from Social Security and Medicare tax…
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What are passkeys and are they better than passwords?
Contributed by: GregC, FreeTaxUSA Security Manager Imagine if you didn’t have to remember or keep track of passwords for all of your accounts! Many online sites are starting to offer a “passwordless” way to securely login to your online accounts called passkeys. Passkeys can be an easier and more secure way to login online…
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What is an employee stock ownership plan (ESOP)?
Contributed by KeriC, FreeTaxUSA Agent, Tax Pro An Employee Stock Ownership Plan, or ESOP, allows employees to own stock in the company without having to purchase shares. The company contributes its stock (or money to buy stock) into an ESOP trust, which holds the shares for employees. This is done over time, allowing…
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Self-employment tax: What is it?
Contributed by: Tricia D, FreeTaxUSA Agent Being self-employed can lead to a significant tax, as there is no employer to withhold taxes from your earnings. However, paying self-employment tax is important as it keeps you compliant with the IRS and supports your future benefits such as retirement income, disability…
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Why you should use a password manager
Contributed by: GregC, FreeTaxUSA Security Manager What is a password manager? A password manager is a software application that helps you create, store, and manage your passwords for various online accounts. It can generate strong and unique passwords for each site you use and save them in an encrypted vault that only you…
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What to do if I never filled out Form 8606 for past nondeductible IRA contributions
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro and KristineS, FreeTaxUSA Agent, Tax Pro After-tax (nondeductible) contributions to your traditional IRAs are tracked and reported on Form 8606. These contributions give you basis in your IRAs. Keeping accurate records of your basis is important because when you take…
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What is phishing, and what do I need to know about it?
Contributed by: GregC, FreeTaxUSA Security Manager Phishing Phishing is a type of cyberattack that tries to trick you into giving away your personal information, such as passwords, bank account numbers, credit card details, social security numbers, and other information. Phishing attackers usually send you an email, a text…
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Cost segregation for residential rental properties
Contributed by: CoryF, FreeTaxUSA Agent, Tax Pro CAUTION: Executing the cost segregation tax strategy is complex and requires professional guidance to do it correctly. Please consult with (and consider using) a cost segregation study expert before trying to execute this tax strategy. You just bought a rental property to…
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What is the pro rata rule and why do I need to know it?
Contributed by: CoryF, FreeTaxUSA Agent, Tax Pro Wait a second, I have taxable income on my conversion to a Roth IRA. I thought if I put in enough nondeductible IRA contributions there would be no taxable income, but I am still seeing taxable income on my Roth IRA conversion. What is happening here? Congratulations, you…