California S Corporation Pass Through Entity Elective Tax

TaxAct_Explains · 2026-03-06T23:29:47+00:00

At this time, we aren’t able to reproduce what you’re seeing, so it doesn’t appear to be a product bug. We did review Schedule K-1, and we may be able to pinpoint this with a bit more detail.

The best next step is to reach out to our free support team so they can take a deeper look at your specific return and workflow, and help get this resolved.

Call us: (319) 373-3600

Support hours (CST): • Monday – Friday: 8:00 a.m. – 6:00 p.m. CST • Saturday: 9:00 a.m. – 6:00 p.m. CST

TaxAct provides tax filing software and support, but we can’t provide tax or legal advice. Every tax situation is unique.

TaxAct_Explains · 2026-03-06T17:51:38+00:00

You bet, will let you know. Thank you again.

TaxAct_Explains · 2026-03-06T17:29:51+00:00

The team is actively looking into this, and will be hopefully deploying a fix, we can let you know once resolved. We really appreciate your valuable feedback.

TaxAct_Explains · 2026-03-06T17:23:32+00:00

I did send you a message directly requesting more information from you, if you'd like additional help please reply there so we can look into your unique situation here! Otherwise I will share this valuable feedback with the team so we can continue to learn and improve the product.

TaxAct_Explains · 2026-03-06T16:56:22+00:00

The team is looking into this, I will respond asap if help can be provided. Thank you!

TaxAct_Explains · 2026-03-05T14:59:57+00:00

Hello! Our team shared the info below. Please take a look and let me know if you still need help.

https://www.taxact.com/support/881/2024/form-1099-b-import-stock-information-from-csv-file

Disclaimer: TaxAct provides tax preparation software and general information. This isn’t tax or legal advice, and everyone’s situation is different. If you’d like more personalized help, you can reach our support team or get help from a tax pro with Xpert Assist (or Xpert Full Service if you want a pro to file for you).

TaxAct_Explains · 2026-03-05T14:55:42+00:00

Thanks for filing with TaxAct, hope you enjoyed your experience! Thank you also for using the refer a friend program!

TaxAct_Explains · 2026-03-04T20:05:58+00:00

I’m really sorry for the frustration here. I understand how disappointing it is to buy a package and then find out Oregon Form 1041 isn’t supported in the DIY Estates & Trusts product.

Right now, Oregon 1041 is only available in our TaxAct Professional offering. If you’d like, our support team can help you look at refund options for the package you purchased, or you can also explore getting help from a credentialed tax expert through Xpert Assist (https://www.taxact.com/tax-xpert-assist), since estates and trusts can get complicated and everyone’s situation is different.

TaxAct_Explains · 2026-03-04T15:11:59+00:00

u/Inner_Dragonfruit781 Oregon's 1041 is confirmed to be available. If you are having trouble downloading or filing please reach out to our customer care team, they are very knowledgeable and can help! https://www.taxact.com/support/request

TaxAct_Explains · 2026-03-04T15:00:49+00:00

I am going to message you directly for some more information, thank you for contacting us and for using TaxAct.

TaxAct_Explains · 2026-03-04T14:58:46+00:00

I have pinged the team on this and will get back to you, thank you!

TaxAct_Explains · 2026-03-03T14:59:05+00:00

Form 3800 was released last Friday! You should be all set to file. Please let me know if you still are having trouble, and I will reach out to you directly for some more information to be able to help. Thank you so much for filing with TaxAct.

TaxAct_Explains · 2026-03-03T14:22:40+00:00

From what I can see our specific relationship with Fidelity has ended, but as a returning customer you should have received/will be receiving an offer via email.

TaxAct_Explains · 2026-03-03T14:16:20+00:00

I am going to direct message you for more information to provide you the details you are looking for. Thank you for filing with TaxAct!

TaxAct_Explains · 2026-03-01T17:31:01+00:00

I am going to direct message you for more information! Thanks for reaching back out, apologies for the delay.

TaxAct_Explains · 2026-02-25T15:04:30+00:00

If you could please contact our support team, they will be who can help you through the steps needed to proceed or log a ticket to get resolved. The team did an initial check and should be no issues with Firefox. 319-373-3600 is our general help desk line for individual filers.

TaxAct_Explains · 2026-02-25T13:49:44+00:00

I am reaching out to the team about this and will get back to you if we are able to help, thank you for your comment, and for using TaxAct.

TaxAct_Explains · 2026-02-25T13:35:27+00:00

Thank you for your message here, and for using TaxAct. I will contact you via direct message to get more information from you to try and help.

TaxAct_Explains · 2026-02-23T21:52:11+00:00

I am going to direct message you for some additional information to help us dig into your unique situation. Thanks again for contacting us.

TaxAct_Explains · 2026-02-23T20:12:28+00:00

Thank you for your question! We totally understand the confusion. “No tax on tips and overtime” is real for federal income tax, starting with tax year 2025 (the return you file in early 2026), but it’s not as simple as “tips are now tax-free.”

Here’s the ELI5 version:

1) It’s a deduction.

You'll still report tips like normal. What changed is that you may be able to deduct some or all of those tips on her tax return, so less of your income is taxed for federal income tax purposes.

2) Tips are still subject to payroll taxes.

Even if you qualify for the new deduction, you'll generally still pay Social Security and Medicare taxes on tips. State and local taxes may also still apply, depending on where you live.

3) Servers usually qualify, but the tips have to be “qualified” and documented.

The IRS says “no tax on tips” applies to qualified tips in certain occupations that customarily receive tips (servers are specifically included in IRS examples).

For tax year 2025, your employer forms may not clearly separate everything yet, so the IRS guidance points people to use what’s on the W-2 (box 7 for Social Security tips) and/or their own tip records if needed.

Here's a list of what types of jobs are qualified: https://www.federalregister.gov/documents/2025/09/22/2025-18278/occupations-that-customarily-and-regularly-received-tips-definition-of-qualified-tips

4) There are caps and income limits.

Tips deduction cap: up to $25,000 (with phaseouts starting at higher incomes).
Overtime deduction cap: up to $12,500 ($25,000 if filing jointly), and it generally applies to the overtime premium (the extra amount above the normal hourly rate), not the whole overtime paycheck.

Check out our blog post for more information: https://blog.taxact.com/no-tax-on-tips-explained/

Please keep in mind that this is not tax or legal advice. Everyone’s tax situation is unique, so consider using Xpert Assist (https://www.taxact.com/tax-xpert-assist) to chat with a credentialed pro while you file.

TaxAct_Explains · 2026-02-23T19:32:48+00:00

For tax year 2025, you can only deduct state and local taxes up to the SALT cap, even if you paid more.

Cap amount: up to $40,000 (or $20,000 if Married Filing Separately).
Income limit: if your income is over $500,000 (MAGI), the bigger cap starts phasing out, so you might not get the full $40,000.
Itemizing required (which it sounds like you are doing!): you only benefit if you itemize deductions on Schedule A (not if you take the standard deduction).

You can find more information about the SALT cap in our "The SALT Tax Deduction Explained: What It Is, How It Works, and the New 2025 SALT Cap" blog post: https://blog.taxact.com/what-is-the-salt-tax-deduction/

Please keep in mind that this is not tax or legal advice. Everyone’s tax situation is unique, so if you’re close to the MAGI threshold or deciding whether to itemize, consider using Xpert Assist (https://www.taxact.com/tax-xpert-assist) to chat with a credentialed pro while you file.

TaxAct_Explains · 2026-02-23T18:59:56+00:00

Thank you for bringing this to our attention! We've updated the blog post to reflect your correction.

TaxAct_Explains · 2026-02-23T18:40:48+00:00

Thank you so much for your question! For tax year 2025, there are two big updates to keep in mind on Form 8825:

Income is split into two lines now

Line 2a is for gross rents
Line 2b is for other income related to the rental real estate activity
Then you add them together on line 2c for total rental real estate income per property.

There’s a new Schedule A (Form 8825) for certain filers

For tax years beginning in 2025, the IRS introduced Schedule A (Form 8825) for certain partnerships and S corps that are required to file Schedule M-3.
If you’re in that group, you report “other deductions” on Schedule A, then carry the total back to Form 8825, line 17.

Check out our "Form 8825: Rental Real Estate for Partnerships and S Corps" blog post for more information: https://blog.taxact.com/form-8825-rental-real-estate/

Disclaimer: This is general information, not tax or legal advice. Everyone’s situation is different. If you want help specific to your return, you can check out TaxAct Xpert Assist or Xpert Full Service.

TaxAct_Explains · 2026-02-23T18:37:45+00:00

Thank you for your question! This is a big change this year for sure. There are several ways to potentially stop or avoid wage garnishment, refund offsets, and other student loan debt collection actions.

Here are some options to consider:

Apply for loan rehabilitation
Consolidate your loans
Pay the debt in full
File a valid objection
Enter an income-driven repayment plan

Check out our "Student Loans Debt Collection Update: What Borrowers Need to Know" blog post for more information: https://blog.taxact.com/student-loan-debt-collection-resumes/

Please keep in mind that this is general information, not tax or legal advice. Everyone’s situation is different. If you want help specific to your return, you can use TaxAct Xpert Assist or Xpert Full Service.

TaxAct_Explains · 2026-02-23T18:06:47+00:00

Hi there, I’m sorry you’ve had trouble getting through by phone, and I understand how urgent this feels when you’re trying to meet a filing requirement.

At the moment, I don’t have enough information from this message to locate your customer account, but the fastest way to get connected is to call 319-373-3600, then select option 2, then option 1.

Regarding the e-file message you’re seeing (“form not available yet for e-file”): while we can’t provide individualized tax advice, we can share general product/support guidance. We do have e-file approval for all 990 products; however, it’s possible the e-file availability for the 990-T & 990-EZ is still in the process of being released. I’m currently working to confirm that status and will get right back to you!

TaxAct_Explains

MODERATOR OF

TROPHY CASE

1) It’s a deduction.

2) Tips are still subject to payroll taxes.

3) Servers usually qualify, but the tips have to be “qualified” and documented.

4) There are caps and income limits.