-
How is the child tax credit affected in the One Big Beautiful Bill Act?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro The One Big Beautiful Bill Act (OBBBA) passed this year and will introduce several tax law changes, affecting 2025 tax returns. One of these changes is the child tax credit (CTC). Many taxpayers with dependents find a lot of relief with the child tax credit on their tax…
-
What constitutes cash vs noncash charitable contributions
Contributed by: KelliP, FreeTaxUSA Agent, Tax Pro Sometimes understanding the difference between a cash and noncash charitable contribution can be confusing. This article provides clarification. What is a charitable contribution? A charitable contribution is a donation. It’s donating gifts of money, tangible property, and…
-
What should I know about the residential clean energy credit before I buy my solar panels?
Contributed by: JanaA, FreeTaxUSA Agent, Tax Pro What is the energy credit? The residential clean energy credit is a tax credit that allows you to deduct a percentage of the cost of installing qualifying solar energy systems. This credit is applied to your federal tax liability to reduce your tax amount due. Credit amount…
-
Can I get a deduction or credit on my tax return for college, private school or homeschool expenses?
Contributed by: AndyS, FreeTaxUSA Agent, Tax Pro Expenses for schooling can add up, especially when it’s not public K-12 schooling, which is subsidized by county taxes. When it comes to filing your tax return, it would be nice to be able to get a deduction or credit for some of those out-of-pocket expenses. But is it…
-
What are 401(k) limits for highly compensated employees (HCE)?
Contributed by: TriciaD, FreeTaxUSA Agent, Tax Pro A 401(k) plan allows employees to save part of their wages for retirement with benefits like tax-deferred growth and employer matching contributions. Annual contributions to a 401(k) plan are limited. Highly compensated employees (HCEs) are subject to certain rules…
-
Qualifying for and claiming a clean vehicle (CV) credit – what do I need?
Contributed by: JoshuaC, FreeTaxUSA Agent, Tax Pro Please note that with the passage of the One Big Beautiful Bill Act of 2025, the clean vehicle credit is ended, meaning qualifying and EV purchases must be made before September 30, 2025. This article is to explain how the credit works if you are preparing a prior year tax…
-
What is the new deduction for senior citizens, and how will it impact taxable social security benefits?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro With the recent signing into law of the One Big Beautiful Bill Act (OBBBA), millions of older Americans got a significant tax break through a new deduction available from 2025 to 2028. You may be wondering how the deduction works and if it affects social security benefits.…
-
Do I qualify for the new deduction for overtime pay?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro The new tax law was signed on the 4th of July 2025. It includes a provision that allows people who are paid overtime to take a deduction of up to $12,500 of their overtime pay. The deduction is set to be available from 2025 until 2028. While the IRS still has guidance…
-
What are deductible medical expenses?
Contributed by: KelliP, FreeTaxUSA Agent, Tax Pro You might feel that you pay a significant amount out of pocket for medical expenses. Did you know you may be able to claim these expenses on your tax return? They can be reported as an itemized deduction on Schedule A. However, this will depend on your situation, as there…
-
Why is my mortgage interest deduction limited?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro The IRS allows homeowners to claim a mortgage interest deduction for mortgage interest and points paid on a loan secured by your home, whether it’s your main home or a second home. However, to prevent disproportionately benefiting higher-income homeowners, the IRS has set…