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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.…
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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…
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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…
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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…
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Are my car loan interest payments deductible?
Contributed by: KristineS, FreeTaxUSA Agent, Tax Pro With the signing of the One Big Beautiful Bill Act into law, you may be wondering if your car loan interest is now deductible, or you may have heard there’s no tax to pay on car loan interest. In this article we’ll cover all you need to know to see if you qualify for the…
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How do scholarships and grants affect your ability to claim an education credit?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro Paying for higher education can be expensive, so any financial assistance is helpful. Scholarships and grants are invaluable resources that can reduce the cost of tuition and other educational expenses. Additionally, education credits, such as the American Opportunity Tax…
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My house burned down. May I deduct the disaster loss on my taxes?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro A disaster loss is when something unexpected happens and you lose a personal item like a car, home, shed, barn, or other things with value. For example, you have a barn on your property that burns down when a severe storm comes through your area and the barn is struck by…
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What is the difference between a refundable and nonrefundable tax credit?
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro To save energy costs, you did some upgrades to your house this year by upgrading your air conditioner, windows, and doors. When you filed your return, you applied for an energy-efficient home improvement credit. However, you didn't see a significant refund and wondered…
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Why can’t I get all the child tax credit in my refund?
Contributed by: PhillipB, FreeTaxUSA Agent, Tax Pro You may remember during the pandemic getting a massive $3,000 to $3,600 per child refundable child tax credit that was paid throughout the year – that was nice, wasn’t it? However, now you may be wondering why you never see anywhere near the $2,000 per child tax credit in…
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What if my mortgage was refinanced or sold to another lender, and I have two 1098 forms for the same mortgage?
Contributed by: Henry, FreeTaxUSA Agent, Tax Pro The FreeTaxUSA software is limiting your mortgage interest deduction because the two 1098 forms you’ve entered show combined balances over $750,000. This doesn’t seem right! How can you claim the maximum deduction? Don’t worry; we’re here to help. Let’s start by looking at…