Import 1099s from Fidelity Investment & Robinhood in Business or Personal tab?

[TheWisdom]

I have 1099s from Fidelity Investment & Robinhood (Investment Income), where to import them in TurboTax? Import them in business or personal income?

[HelenC12]

If you aren't in the business of trading stock (day trader), import them into your personal income. 

Here's where you enter or import your 1099-B in TurboTax:

1. Open (continue) your return, if you haven't already
2. Locate the search bar. Search for 1099-B, then select the Jump to link in the search results
3. Select Okay! on the screen Time to kick off your investments! OR Yes on the screen Did you sell any of these investments? then Continue
   • If you see Your investments and savings or Your investment sales summary, select Add investments or Add more sales
4. When you reach Let's import your tax info, choose how you want to enter your 1099-B:
   • To import your form, select your brokerage or financial institution from the list. Enter your sign-in credentials for your account, then select Get my form
   • If you want to enter your 1099-B manually, select Enter a different way, then select your investment type on the next screen
5. On the following screens, answer the questions about your 1099-B
6. When you reach the Review your sales screen, the form you just entered should be listed
   • If you need to add another 1099-B, select Add another sale. Otherwise, Continue

Related Information:

• Where is Form 8949?
• How do I enter a large number of stock transactions in TurboTax Online?
• Do I need to enter ESPP transactions?
• Do I need to fill out or mail in Form 8949?

[TheWisdom]

Thanks, expert!

The 2021 EITC is eligible for Married Filing Separate. Can we file MFS when we live at the same house address? In our case, we only have EITC, I think if we are able to do that, it's better than MFJointy for this year.

[MayaD]

No. You won't qualify for the EITC.

Per IRS:

You can claim the EIC if you are married, not filing a joint return, had a qualifying child who lived with you for more than half of 2021, and either of the following apply. 

• You lived apart from your spouse for the last 6 months of 2021, or
• You are legally separated according to your state law under a written separation agreement or a decree of separate maintenance and you didn't live in the same household as your spouse at the end of 2021.

Who Qualifies for the Earned Income Tax Credit (EITC)

[TheWisdom]

Thanks so much! Your information is really helpful!

We're 1099-NEC workers (independent contractors) with income around $20K (before deductions), with 0 children qualified, no dependent. Are there any other credits we can claim except EITC?

[AliciaP1]

You should be sure you have entered your information for the Recovery Rebate Credit as well.  Please follow these steps to enter the information:

1. Open your tax return in TurboTax Desktop.
2. Search for Recovery Rebate Credit using the magnifying glass near the top of the screen on the right.
3. Click the Jump to recovery rebate credit link.
4. Answer the question regarding the payment you received.

@TheWisdom

[TheWisdom]

Thanks!

How about deductions? Are there some deductions for 2021 I should know about for our tax returns?

[JamesG1]

Here are some changes for 2021.

Federal 1040 line 12b Charitable Cash Contributions under CARES Act is eligible for a $600 above-the-line deduction in 2021, up from $300 in 2020.  Information can be found here.

Child and Dependent Care Credit was expanded for 2021 only and qualifies for a maximum of $4,000 for one qualifying child or $8,000 for two or more qualifying children.  Information can be found here.

For tax year 2021, the Child Tax Credit increased from $2,000 per qualifying child to:

• $3,600 for children ages 5 and under at the end of 2021; and
• $3,000 for children ages 6 through 17 at the end of 2021.

See here.

[TheWisdom]

Thanks! I have $7000 investment income and want to deduct some investment expenses, Where can I deduct it?

[JohnB5677]

Investment fees, custodial fees, trust administration fees, and other expenses you paid for managing your investments that produce taxable income are miscellaneous itemized deductions and are no longer deductible.

However, investment interest may be deductible.  The deduction applies to interest on money borrowed to buy property that will produce investment income—interest, dividends, annuities, or royalties—or that you expect to appreciate in value, allowing you to sell it at a gain in the future.

Investment interest is an Itemized Deduction that requires that you exceed the Standard Deduction for it to be implemented.

[TheWisdom]

Thanks!

Fidelity investment sent me the Form 5498 IRA Contribution Information, what I have to do with it?

[JamesG1]

IRS Form 5498 reports your total annual contributions to an IRA account and identifies the type of retirement account you have, such as a traditional IRA, Roth IRA, SEP IRA or SIMPLE IRA. IRS Form 5498 will also report amounts that you roll over or transfer from other types of retirement accounts into this IRA. When you claim a deduction for your IRA contributions, you should reference the amounts on the IRS Form 5498.

IRS Form 5498 is for informational purposes only. You are not required to file it with your tax return. This form is not posted until May because you can contribute to an IRA for the previous year through mid-April. This means you will have finished your taxes before you receive this form.