I tested TurboTax, H&R Block, FreeTaxUSA, and OLT on doing a Form 1116 for the foreign tax credit. Four software packages gave three different answers.
Holding international stock funds in a taxable account gives you foreign tax credit, but claiming it on IRS Form 1116 has become too much hassle.
If you’re self-employed on ACA health insurance, TurboTax and H&R Block software may give wrong numbers for the subsidy. Use this calculator instead.
If you’re self-employed and you buy health insurance from the ACA exchange, here’s how to use H&R Block software to calculate the subsidy and tax deduction.
You need a Form 1116 when your total foreign taxes paid is over $300/$600. Here’s a walkthrough for how to do it in TurboTax and H&R Block software.
If you’re self-employed and you buy health insurance from the ACA exchange, here’s how to use TurboTax to calculate the subsidy and tax deduction.
The Federal Poverty Levels (FPL) is used to determine the premium subsidy tax credit under the Affordable Care Act. You must know where the cutoffs are.
Don’t jump through hoops to opt out of the 2021 Advance Child Tax Credit. You may miss out on tax benefits if you do. Do nothing and accept the money.
President Biden’s COVID stimulus package American Rescue Plan turns the ACA premium subsidy cliff to a slope in 2021 & 2022. The cliff will return in 2023.
If you get health insurance from ACA, the government sets the percentages of income you are expected to contribute toward a benchmark policy.
If your income is higher than estimated, you need to pay back some of the ACA health insurance subsidy. The repayment cap may help in some cases.
California offers premium assistance for ACA health insurance to some residents who don’t qualify for the federal subsidy.