Bankruptcy

Menu Path: Income > Uncommon Income > Canceled Debt (1099-C or 1099-A)

If you received a Form 1099-C for cancellation of debt income, you can enter that amount on the Canceled Debt screen. If the cancellation of debt income was part of your bankruptcy, then none of it will end up being taxable income. Canceled debt is only income if you are not insolvent or bankrupt.

Do local transportation costs include expenses by public transportation everyday, or does it refer to car expenses?

It can be both. It is any out of pocket expenses other than commuting expenses you paid for your job. Commuting expenses are NOT deductible.

I drive 130 miles round trip to work. Can I deduct gasoline expenses?

We're sorry, commuting miles aren't deductible no matter how long the distance.

Where can I enter capital losses from the capital loss carryover worksheet?

You will enter your capital loss carryover on the Capital Loss Carryovers screen. Go to Income on the menu bar, Common Income on the drop-down menu, and click Capital Loss Carryovers.

Where do I enter Form 1099-C, Cancellation of Debt?

To enter 1099-C or 1099-A information, go to Income on the menu bar, Uncommon Income on the drop-down menu, and choose the Canceled Debt option.

Where do I enter child support that I paid?

Child support is not deductible on your tax return. You can deduct alimony paid on your return, but not child support.

Where do I enter long-term and short-term capital gains distributions?

Capital gain distributions are reported on Form 1099-DIV. Go to Income on the menu bar, Common Income on the drop-down menu, and click on Dividend Income (1099-DIV).

If you haven't received a 1099-DIV from your mutual fund, you need to get one from them so you know how much to report.

Where do I enter my child's W-2 (W2)?

I'm sorry, our website does not support the federal form needed to report a child's income on your own tax return.

You can prepare a separate return for your child to report his/her income, but if you need to report his/her income on your return, you won't be able to use our website.

Where do I enter my child's Social Security income?

You don't report your child's Social Security income on your tax return. Your child would report it on their own tax return if they even need to file a tax return. Most children do NOT need to file a tax return even if they receive Social Security benefits. Usually, the only exceptions are if they are working and have a W-2 (W2) or if they have more than $1,000 in interest or dividend income.

Where do I enter state tax withheld on my capital gains?

We don't currently gather state tax withheld from a stock sale, so you won't be able to file your return with us.

Where do I enter my mortgage interest (Form 1098)?

To enter Mortgage Interest as reported on Form 1098, go to Deductions / Credits on the menu bar and select Itemized Deductions, and then Mortgage Interest (Form 1098).

Where do I enter my expenses for the National Guard Deduction?

You need to enter them in the Itemized Deduction section under the Unreimbursed Job Expenses screen and select "Yes" to the question at the bottom of the Unreimbursed Job Expenses screen that asks if part or all of the expenses entered on the screen relate to unreimbursed travel expenses for National Guard or reserve members.

The national guard expenses will be deducted even if you do not itemize your deductions.

Where do I enter the information from Form 1099-B ?

Capital Gains are reported on Form 1099-B. Go to Income on the menu bar, Common Income on the drop-down menu, and click on Stocks or Investments Sold (1099-B). This will generate Schedule D to print out with your tax return.

Where do I enter my retirement income, Form 1099R ?

You should receive a Form 1099R reporting your retirement income. You will enter that information on the Add / Edit / Delete 1099-R Forms screen.

You can get there from the Income menu, then following Common Income then selecting Retirement Income (Form 1099-R).

Where do I enter Form 1098-T for tuition paid?

Go to the College Tuition Expenses screen and choose Yes. You will then go to the Add/Delete/Students screen where you can enter the tuition paid amount shown on your Form 1098-T for each student.

If using the menu, go to Deductions / Credits on the menu bar and click on College Tuition (Form 1098-T).

Where do I enter my unemployment compensation?

Enter your unemployment compensation income on the Unemployment Compensation Income screen in the Common Income section of the application.

Where do I enter my 1099-DIV ?

To enter distributions as reported on Form 1099-DIV, go to Income on the menu bar, Common Income on the drop-down menu, and select the Dividend Income (1099-DIV) option.

Where do I enter my student loan interest (Form 1098-E)?

To enter student loan interest as reported on Form 1098-E go to Deductions / Credits on the menu bar and select Student Loan Interest.

Where do I enter my Form 1099G ?

If your Form 1099G is reporting unemployment compensation, then you will enter your unemployment compensation income on the Unemployment Compensation Income screen in the Common Income section.

If your Form 1099G is reporting a taxable state/local refund, then you will enter that on the Taxable State Refund screen in the Common Income section.

Where do I enter tip income, Form 4137?

If you have unreported tip income shown in Box 8 of your W-2 (W2) as allocated tips or you have any other tip income that is not reported as wages in Box 1 of your W-2 (W2), go to the Employer Unreported Tips screen. Using the menu, go the Income section and then the Uncommon Income tab and click on the Unreported Tips link. Unreported tips entered will end up on Form 4137 and will be included on Line 7 wages income on your tax return.

If the only tip income you have is already included in your W-2 (W2) Box 1 wages, then you do not need to enter your tips on Form 4137 and there is nothing to enter on your tax return.

Where do I enter my social security income, Form SSA-1099 ?

To enter Social Security Benefits as reported on form SSA-1099, go to Income on the menu bar, Common Income on the drop-down menu, and click on Social Security Income (SSA-1099).

Where do I enter my self-employment income?

Business income or other types of self-employment income such as consulting income needs to be entered on Schedule C. Go to Income on the menu bar, Business Income on the drop-down menu, and click on the Business Income (Schedule C) link.

Where do I enter a Form 1099-S?

Form 1099-S is for real estate transactions. It depends on the type of transaction where it is reported on your tax return.

If it is for the sale of your main home, you usually do not need to report anything on your tax return. Go to the Home Sale screen in the Uncommon Income section of the menu to view all the criteria for when a sale of your home needs to go on your tax return. Usually, if your gain on the sale is less than $250,000 ($500,000 if married), you owned the home two years or more, and you have never used your home as a rental property or home office, then there is nothing to report on your tax return for the sale of your primary residence.

If the 1099-S is for a vacation home, investment property, or land, you enter the sales amount shown on the 1099-S on the Stocks or Investments Sold screen in the Common Income section of the menu.

If the 1099-S is for the sale of a rental home, enter your rental property information on the Rental Income screen in the Business Income section of the menu. Then select "Yes" to the question on the Rental Income Information screen that asks if you disposed of your entire interest in the property.

Deluxe Edition

Includes All Free Features PLUS:

Audit Assist

Protect your taxes with Audit Assist!

Over 1.7 million taxpayers were audited last year... let us help. Our tax professionals will assist you if you are audited by the IRS. Get the peace of mind that comes from knowing you are covered.

Included with DELUXE...
Find out More!

Free Edition

FREE Federal, FREE e-file:

Our online application is designed to be simple and fast. Most returns can be completed within 30 minutes. No software to download. Use any computer that has an internet connection.

© 2002-2014 FreeTaxUSA, a TaxHawk, Inc. owned and operated website - Terms of Use