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How is FMLA income reported?
Contributed by: AnthonyS, FreeTaxUSA Agent, Tax Pro Are you wondering how to report the income you received while taking time off under the Family and Medical Leave Act (FMLA). The way this income is reported depends on where it comes from and how it’s paid. Example Alex took parental leave after having a baby. Some of the…
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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 the sale of my home if it was also used as a rental?
Contributed by: JanaA, FreeTaxUSA Agent, Tax Pro Selling your home can be a significant financial event, and in many cases, homeowners may qualify to exclude a portion of the gain from their taxable income. The IRS provides a home sale exclusion if certain ownership and use tests are met. Under IRS Publication 523, you may…
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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 will 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…
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How to report the sale of a collectible
Contributed by: MatthewD, FreeTaxUSA Agent, Tax Pro You inherited a set of antique silver flatware from your grandmother. You never use it and recently learned the price of silver has gone up, so you can sell it now for a good price. However, you wonder whether you need to report this on a tax return since it’s the sale of…