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SALT cap: What changed for 2026?
Contributed by: AnthonyS, FreeTaxUSA Agent, Tax Pro Will the higher SALT deduction cap lower your 2026 tax bill? For taxpayers in high-tax states, the answer may be yes—but the benefit is not as straightforward as the $40,000 headline suggests. Income limits, phaseouts, and scheduled changes may determine how much of the…
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What do I do if I overcontribute to my traditional IRA?
Contributed by: AnthonyS, FreeTaxUSA Agent, Tax Pro It's tax time, and you discover you contributed too much to your traditional IRA. While this might seem intimidating at first, it's usually a simple issue to fix if you catch it before the tax filing deadline. What is an excess contribution? An excess contribution occurs…
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What is an HSA pass-through contribution?
Contributed by: JanaA, FreeTaxUSA Agent, Tax Pro Health savings accounts (HSAs) are one of the most valuable ways to save for qualified medical expenses. If you're enrolled in an HSA-eligible high-deductible health plan (HDHP), you may also have access to a helpful feature called a pass-through contribution. While the term…
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How do I claim the adoption credit?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro Adoption can be an exciting and meaningful way to grow your family, but it can also come with significant expenses. The adoption credit may help offset some of these costs by giving eligible taxpayers a dollar-for-dollar credit for qualified adoption expenses. For 2026, you…
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What is the HSA last-month rule?
Contributed by: Joshua C, FreeTaxUSA Agent, Tax Pro A Health Savings Account (HSA) can be a valuable asset. It can help you pay certain medical expenses with tax advantages. If you have an employer who contributes to your HSA through payroll deductions, and/or if you contribute your own money, those contributions may…
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Is converting my traditional IRA to a Roth IRA taxable?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro Are you interested in converting your traditional IRA to a Roth IRA to take advantage of its tax benefits? If so, there are tax implications to consider. Why convert your traditional IRA to a Roth IRA? If any of the following apply, you may consider converting your funds from…
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How do I report the withdrawal of excess Roth IRA contributions on my tax return?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro Did you contribute too much to your Roth IRA? One way to correct the mistake is to withdraw the excess contribution and any earnings it generated. If you make the withdrawal properly and on time, the IRS generally treats the excess as if it was never contributed, helping you…
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Excess Roth IRA contribution withdrawn after the correction window
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro The correction window is the period of time when you can remove an excess Roth IRA contribution and treat it as though the contribution was never made. This window closes on your tax filing deadline, including extensions. If you remove the excess after that deadline, the…
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Excess Roth IRA contribution withdrawn before the tax year ended
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro If you discover an excess Roth IRA contribution for a given year before the end of that tax year, the tax reporting is straightforward. Consider James’s situation: In February 2025, he makes a Roth IRA contribution for 2025. He later realizes he contributed too much and…
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Excess Roth IRA contribution withdrawn the following tax year
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro An excess Roth IRA contribution often isn’t discovered until you prepare your tax return the following year. When that happens, you generally have until the due date of the return, including extensions, to withdraw the excess and avoid the penalty. Although you might not…