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Did you pay too much in Social Security tax?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro If you work for an employer, Social Security tax is typically withheld from your wages. These taxes help fund federal programs for retirement, disability, and survivor benefits. The Social Security tax rate is 6.2% for employees. Each year, there’s a maximum wage base…
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How do I calculate my claim of right credit?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro What is the claim of right credit? When you’ve had taxable income in a prior year that you’re required to repay in the current year, you can either take an itemized tax deduction or claim a credit on your tax return to recoup the taxes paid previously on that income. This…
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How to claim the new OBBBA overtime deduction
Contributed by: CoryF, FreeTaxUSA Agent, Tax Pro You’ve heard about the new ”No Tax on Overtime” deduction from the One Big Beautiful Bill Act (OBBBA), and you have your 2025 W-2. Now you’re wondering what this deduction means for you and how to apply it to your tax return. This article will help you understand the…
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Can I claim an education credit?
Contributed by: Tess, FreeTaxUSA Agent Covering the cost of higher education can be challenging, but tax credits like the American Opportunity Tax Credit and the Lifetime Learning Credit may offer meaningful financial relief. Whether you're a student yourself or supporting a student dependent, the IRS provides valuable…
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Can I claim the Earned Income Tax Credit if I was incarcerated?
Contributed by AnthonyS FreeTaxUSA Agent Tax Pro 💡Disclaimer: FreeTaxUSA software DOES NOT currently support this filing situation. “I spent part of last year in a work-release program — can I still get the Earned Income Tax Credit?" This is a common question for those who were incarcerated or in transitional programs like…
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How to confirm the charity you want to contribute to is a qualified 501(c)(3) and eligible for a deduction
Contributed by: AnthonyS, FreeTaxUSA Agent, Tax Pro Have you ever donated to a charity only to later realize that it wasn't tax-deductible? I have, and it's frustrating -- especially if you’re counting on that deduction to lower your tax bill. This article will guide you through how to verify an organization’s tax-exempt…
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Can I contribute to both an SEP-IRA or 401(k) and a traditional IRA, and claim deductions for both?
Contributed by: AnthonyS, FreeTaxUSA Agent, Tax Pro If you’re self-employed or have access to a workplace retirement plan and you’re thinking about maxing out your retirement savings, you might wonder: Can I contribute to both a traditional IRA and an SEP-IRA or 401(k), and deduct both on my taxes? The short answer is yes…
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How does the EITC work? Why does the amount decrease?
Contributed by KiaraB, FreeTaxUSA Agent TaxPro As FreeTaxUSA support agents, we often get asked questions like, “Why am I not getting the EITC?” and “Why did the Earned Income Tax Credit go down when I had more income?” Here is a simple explanation so you can understand how the Earned Income Tax Credit (EITC or EIC) works.…
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How Do I Report a Backdoor Roth (2024 and later)?
Contributed by: RachelR, FreeTaxUSA Agent, Tax Pro There are two different types of Individual Retirement Accounts (IRAs) – Traditional and Roth. With a Traditional IRA, you'll usually qualify to get a tax deduction in the current year for any IRA contributions you make during the year. When you retire and begin using the…
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IRA recharacterization vs. conversion: key differences
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro Understanding the difference between an IRA recharacterization and an IRA conversion can be a bit tricky. While they might seem similar, it's important to know how they differ. The way these transactions are reported on your tax return can vary significantly and might impact…