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What is the Rule of 55?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro You may have heard that if you take out your retirement money before you turn 59 ½, you must pay a 10% penalty. But did you know there's a special rule called the Rule of 55 (see Separation from service) that lets you get your retirement money a bit earlier without the 10%…
How do I report a loss from a cryptocurrency scam?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro Cryptocurrency is an exciting and relatively new investment platform. As with all investments, there are risks, including potential for scams and fraudulent activities and you may become the victim of a cryptocurrency scam. Generally, a financial loss can be a tax deduction,…
How do I report cryptocurrency losses from bankrupt exchanges or worthless coin?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro As the usage of cryptocurrency and other digital assets continues to grow, the IRS is continually issuing guidance on reporting transactions along with gains and losses from these transactions. Unfortunately, some cryptocurrencies or exchanges fail or go bankrupt leaving a…
How do I report rideshare income and expenses?
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro Imagine finishing a busy week of driving for Uber or Lyft and wondering how all those fares and tips translate into your tax return. If filing taxes as a rideshare driver seems overwhelming, you’re not alone—this guide will give you step-by-step instructions for reporting…
How to report an employment lawsuit settlement payment
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro Work can be hard enough on its own. Dealing with an employment dispute adds emotional strain. If you’re at the point where the process is over and a settlement has been paid, you may have to pay taxes on that payment. Your attorney may have explained this, but perhaps not…
What do I need to know about railroad retirement benefits?
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro If you or a family member receive retirement benefits from the Railroad Retirement Board, you’ll get special tax forms at filing time. Forms to be aware of are: Form RRB-1099-R Form RRB-1099 Form RRB-1042S (for some international recipients) Understanding these forms is…
What is Form 1099-DA, and how will it affect my tax return?
Contributed by: BarbaraL, FreeTaxUSA Agent, Tax Pro What is IRS Form 1099-DA (Digital Asset Proceeds)? Did you get a brand-new form this year titled Form 1099-DA and wonder what it even means or what you’re supposed to do with it? Starting in calendar year 2026, you might receive a 1099-DA if you sold, traded, or got rid…
Reporting Name, Image and Likeness (NIL) income
Contributed by: KristineS, FreeTaxUSA Agent, Tax Pro Congratulations! Your sports prowess was just monetized into an NIL deal! Not only do you get to do cool things like endorse national brand labels, drive a sports car from a major car dealership, eat at up-scale restaurants or a local favorite hamburger joint, wear…
When to report Paid Family Leave and Family Leave Insurance on your taxes
Contributed by: BarbaraL, FreeTaxUSA Agent, Tax Pro Taking time off for the delivery of a new baby or to care for a family member? You might get money from Paid Family Leave (PFL) or Family Leave Insurance (FLI). No surprise—this income can affect your taxes. Don’t worry! In this article, we’ll explain what PFL and FLI…
IHSS income: what is it and is it taxable?
Contributed by: BarbaraL, FreeTaxUSA Agent, Tax Pro If you're an IHSS (In-Home Supportive Services) provider, you might receive a W-2 for your caregiving work, even if that income isn’t taxable. Thanks to IRS Notice 2014-7 some caregivers are allowed to exclude (subtract) this income from their federal Adjusted Gross…