Quick Answer: If I File With Alimony Why Does The Free Turbo Tax Cost Me?

Is alimony taxable TurboTax?

If you are receiving alimony payments, you will need to declare them as income on your tax return (for agreements finalized before 2019). On the flip side, if you’re the one making the alimony payments, you may claim them as a tax deduction (for agreement finalized before 2019).

Why is TurboTax charging me when it’s supposed to be free?

Free Edition is for simple returns that file a 1040 with no additional schedules, and is free as long as you don’t select any add-ons or upgrades. Review your fees to find out why you’re being charged. Clear and start over to remove all fees and start from scratch.

Is alimony deductible in TurboTax 2019?

Alimony taxation Today, alimony or separate maintenance payments relating to any divorce or separation agreements dated January 1, 2019, or later are not tax- deductible by the person paying the alimony. The person receiving the alimony does not have to report the alimony payments as income.

How do I enter alimony on TurboTax?

Where do I enter Alimony paid?

  1. Sign into TurboTax Online.
  2. Click Taxes > Tax Timeline > Take me to my return.
  3. Click on the Federal Taxes tab > Deductions & Credits sub-tab.
  4. Click to show all tax breaks.
  5. Scroll down until you see Other Deductions and Credits and click Show More.
  6. Click Start next to Alimony.
You might be interested:  How Owuld Lump Sum Alimony Be Taxed?

Can you claim alimony on taxes?

If you paid amounts that are considered taxable alimony or separate maintenance, you may deduct from income the amount of alimony or separate maintenance you paid whether or not you itemize your deductions.

Are proceeds from a divorce settlement taxable?

Lump sum payments of property made in a divorce are typically taxable. Likewise, the payments were taxable income for the spouse who receives the payments. A recent change to the tax code did away with that, however. Now those payments are no longer deductible.

Why does TurboTax charge $40 twice?

The second $40 fee is for using your refund to pay for your TurboTax fees. This process is called refund processing. If you would like to pay your fees without refund processing to avoid the extra fee, please click this link for instructions to remove refund processing..

Why is TurboTax charging me $50 for state return?

Online Self-Employed is $90 for Federal and $40 for state. So it sounds like $50 is the upgrade difference for moving from Deluxe to Self-Employed edition.

Is TurboTax Safe 2020?

Is TurboTax reliable and safe? TurboTax keeps your information secure with data encryption. It also requires multi-factor authentication every time you log in to verify your identity.

Is alimony considered unearned income?

Unearned income is income from investments and other sources unrelated to employment. Examples of unearned income include interest from savings accounts, bond interest, alimony, and dividends from stock.

Will alimony be tax deductible in 2021?

If you tie alimony to child support, you can’t claim a tax deduction. Similarly, if you combine alimony with the amount you pay in marital property distribution, the full payment becomes non-deductible.

Leave a Reply

Your email address will not be published. Required fields are marked *