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How do Health Savings Accounts and excess contributions impact taxes?
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro Health Saving Accounts (HSAs) are popular for managing healthcare costs with tax benefits. Taxpayers with high deductible health plans (HDHPs) can contribute pre-tax money to an HSA for qualified medical expenses. However, annual IRS contribution limits apply, and…
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Am I eligible for the Earned Income Tax Credit (EITC)?
Contributed by: WrenD, FreeTaxUSA Agent, Tax Pro If you're working and earning a low to moderate income, the Earned Income Tax Credit (EITC) could put money back in your pocket. It's a valuable tax credit designed to help working individuals and families, but the rules can be a little confusing. In this article, we’ll walk…
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What kinds of health insurance premiums can be deducted as itemized medical expenses?
Contributed by: BariS, FreeTaxUSA Agent, Tax Pro Many kinds of insurance premiums, if paid out of pocket, may qualify as a medical itemized deduction. We’ll look at different types of insurance premium payments so you can determine what your situation may be. Perhaps you’ll find an additional itemized medical deduction.…
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What is happening to the clean vehicle credits, and when will the changes take effect?
Contributed by: Joshua C., FreeTaxUSA Agent, Tax Pro The One Big Beautiful Bill Act (OBBBA), signed into law on July 4, 2025, has introduced sweeping changes to federal tax policy, including a dramatic shift in how clean vehicle credits are handled. Previously, under the Inflation Reduction Act, the clean vehicle credit…
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How does the One Big Beautiful Bill Act (OBBBA) impact energy efficient home improvement credits?
Contributed by: TriciaD, FreeTaxUSA agent, Tax Pro In 2025, President Trump enacted the One Big Beautiful Bill Act (OBBBA), introducing significant revisions to deductions related to energy-efficient home improvements. This legislation reduced or eliminated numerous tax credits and deductions previously provided under the…
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How will the OBBBA changes to charitable contributions affect my tax bill in the future?
Contributed by: JanaA, FreeTaxUSA Agent, Tax Pro In July 2025, President Trump signed the One Big Beautiful Bill Act (OBBBA), which includes significant changes to charitable contribution deductions, effective for tax years beginning after December 31, 2025. Here’s a look at the new changes and how they may affect your tax…
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What is IRA basis, and why is it important?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Most people contribute money to traditional IRAs to help save them money on their tax return with the IRA deduction. If the contribution is deducted from income, all the money is taxable when it is withdrawn. Deducted IRA contributions have zero basis because the…
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What are nondeductible IRA contributions?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro Anyone can make contributions to a traditional IRA if they have compensation. Most commonly, compensation includes income from working a W-2 job or from self-employment, either as a sole proprietor or through a pass-through entity. There are a few other rare forms of…
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What do I need to know about retirement contributions for my taxes?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro There are several options to save for retirement, each with its own tax advantages and rules. Understanding how retirement contributions affect your taxes is important for saving money on taxes now and planning for lower taxes in retirement. Here are some of the most…
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What if I overcontribute to my Roth IRA?
Contributed by: LynR, FreeTaxUSA Agent, Tax Pro A Roth IRA can be a great investment vehicle for retirement savings. However, it’s important to know the rules for how much and when you can contribute to a Roth. Mistakes can always be fixed, but there may be penalties if they’re not corrected by the tax deadline. Common…