Tax Credits and Tax Deductions | TurboTax® Support

Deductions & credits

Favorite Tax Deductions & Credits for Families!

Everyone knows there are tax benefits to having children and dependents and some are pretty amazing! If you’ve ever had questions about the popular Child Tax Credit (CTC) or Earned Income Credit (EIC), this is the place to be! TurboTax does the think... read more

Tax Deductions Worth Looking Into!

It seems the most popular question at tax time is “Can I deduct this…?”. Of course you don’t want to pay more taxes than you need to; and you want to get all the tax deductions and credits you’re entitled to take. The resources below have helped many... read more

Can I amend my 2016 tax return to take the Foreign Earned Income Exclusion instead of the Foreign Tax Credit?

I lived abroad for 7 years and filed for the foreign earned income exclusion every year. In 2016 tax year however, I filed the Foreign Tax Credit instead. For 2017 tax year, I have discovered that I would benefit more from taking the foreign earned i... read more

What happened to the step in which TurboTax offers to reduce taxes by depositing to a Traditional IRA?

I am an expatriate living abroad. As such, my annual tax filing has changed to:Take either FEIE or FTC. Use the automatic 2-month extension (In the country where I live and work, I only get the required forms after April 15).TurboTax has been very he... read more

Sending money to parents back home

When sending money to my parents abroad via Western Union, should I label it as a GIFT or family support/living expenses as purpose of transfer? I'm unsure because I'm contributing to building their house, and the amounts are larger than usual. Also,... read more

Cash gift to kids in my family

As peras mentioned in https://www.irs.gov/businesses/small-businesses-self-employed/freque[product key removed]ions-on-gift-taxes, you do not have to report to IRS if your cash gift is below the $17K amount for the year 2023. If I have been gifting f... read more

What is the correct procedure to write off a Ponzi-Scheme investment lost in our personal income tax?

My husband is a victim of the Ponzi-Scheme investment. He invested 500K in 2022 which created a huge tax burden on Federal and MA state income taxes. He could not get a penny out of his investment account to pay for the huge amount of tax a few weeks... read more

Nonqualified Use concerning sale of home

I purchased my home May 2012 and lived in it until November 2016. At that time I rented it until I sold it in 2023. Since it was my primary residence initially, can I take the Section 121 exception?

Gift Tax Considerations for a $220k Lump Sum Mortgage Payment Gift from a Friend

My friend plans to pay $220,000 directly to my mortgage company as a gift, but I'll still have mortgage payments to make. Would I need to pay gift tax on this amount?

Can you deduct expenses of prescriptions imported from another country (by mail) if drug is FDA-approved, and have valid doctor's prescription for your personal use?

FDA personal importation guidelines only state that it's "illegal in most circumstances" because the drugs are "not approved by the FDA". No guidance found on medication ordered internationally rather than domestically from a country that controls th... read more

Can I claim the EV credit for my LLC using Turbo Tax Home & Business?

I'm filing my taxes using Turbo Tax Home and Business. I'm filing jointly and my AGI is higher than the IRS limit for the EV credit. However I purchased this vehicle for my LLC and I'd like to claim this credit for my business. I can't seem to find a... read more

Furniture purchased for rented space

The two members/partners of an LLC purchased about $2500 in furniture used in rented space for their salon services. Does the furniture (chairs, sofa, countertops) need to be entered on Form 1065 as a fixed asset or as an expense. If an expense, I am... read more

Form 1065 Schedule B - Type of Entity

Hi folks, there are two partners operating a business and it is organized in the state of Tennessee as a "Multiple Member-Managed Limited Liability Company". I am not sure whether to select "Domestic limited liability company" or "Domestic limited li... read more