Qualified charitable distributions (QCD):  Up to $100,000 of qualified charitable distributions (QCD) reported on Form 1099-R can be excluded from income. Generally, a qualified charitable distribution is an otherwise taxable distribution from an IRA (other than an ongoing SEP or SIMPLE IRA) owned by an individual who is age 70½ or over…

Benefits paid under the Railroad Retirement Act fall into two categories. These categories are treated differently for income tax purposes. When reporting Railroad Retirement Benefits in the program, a dual entry is required.   Reporting Railroad Retirement Benefits in the tax program: From the Main Menu of the Tax Return (Form 1040)…

Entering a Form W-2 from the Main Menu of the Tax Return (Form 1040) select: ‘New’ or double-click the entry you wish to ‘Edit’ or the ‘Insert’ key on your keyboard. If this is a Married Filling Joint return, select whether the Form W-2 was issued to the Taxpayer or Spouse.  The Form W-2 entry screen is…

Gambling income includes, but is not limited to, lottery, raffle winnings, horse races and casinos.  It includes cash winnings and also the fair market value of prizes such as cars and trips.  If winnings are paid in installments, include in income the amount received in the tax year including interest. …

Certain retirement payments or distributions a taxpayer receives from a retirement plan or IRA can be “rolled over” by depositing the payment into another retirement plan or IRA within 60 days of the date of distribution. By rolling over the retirement plan distribution, the taxpayer generally does not pay tax on any portion of the…

Form 1098-MA is used to report: Payments made by either HUD under the Emergency Homeowners’ Loan Program (EHLP) or a State HFA under the Housing Finance Agency Innovation Fund for the Hardest Hit Housing Markets (HFA Hardest Hit Fund) or the EHLP (State HFA/HUD mortgage assistance payments); and Payments made by…

Form 1099-Q is an IRS form for an individual that receives distributions from a Qualified Education Program.  This form is used to fill out both the federal and state tax returns.  Gross distributions from a qualified tuition program (529 plan) or from a Coverdell Education Savings Account reported in box 1…

Form 1099-Misc is used to report any miscellaneous income to a taxpayer that would not be included on a Form W-2.  This income can be for services, rents, royalties, prizes, etc.  Generally, any amounts in box 3 of the Form 1099-Misc can be reported as Other Income on Form 1040. Any amounts…

What Is Cancellation of Debt? “If you borrow money from a commercial lender and the lender later cancels or forgives the debt, you may have to include the canceled amount in income for tax purposes, depending on the circumstances.  When you borrowed the money you were not required to include…

Education tax credits help offset the expenses of higher learning by reducing the tax an individual would owe the IRS and may increase their refund if they have no tax liability.  There are several different types of education credits.  Keep in mind, none of these credits are available if the…