Published answers

Ask TaxWaypoint

Oct 1, 2026

Can I Fund a Roth IRA With Only Social Security or Pension Income?

A Roth IRA contribution requires qualifying compensation, although a spouse’s compensation may qualify you when you file jointly.

federalretirementinvestingroth-ira
Research Desk
Oct 1, 2026

Deducting Mortgage Refinance Points: IRS Ratable-Deduction, Home-Improvement, and Payoff Rules (Pub. 936, Topic 504)

As reflected in current IRS Pub. 936 (2025 examples) and Topic 504, refinance points generally must be deducted ratably over the loan term, but points allocable to a substantial improvement of your principal residence may be deductible in the year paid, and any remaining spread points are deductible when the mortgage ends (except in a same-lender refinance).

federalhome-mortgageitemized-deductionsrefinancereal-estate
Research Desk
Oct 1, 2026

Does Illinois Tax IRA Withdrawals, Pensions, or Social Security Benefits? (Current 2026 Guidance)

Illinois does not tax the federally taxed portion of IRA withdrawals, qualified pensions, government retirement, or Social Security benefits, but certain non-qualified income and special averaging methods are excluded from the subtraction.

illinoisstateretirementirasocial-securitypensionself-employed
Research Desk
Oct 1, 2026

Pennsylvania Allows State Income Tax Deduction for Contributions to Any Qualified 529 Plan, Including Out-of-State Plans

Pennsylvania residents may deduct contributions to any IRC Section 529 qualified tuition program, regardless of the state sponsoring the plan, up to the annual federal gift tax exclusion per beneficiary per taxpayer.

federalstateplanseducation-savingspennsylvania-taxindividualsfamilies
Research Desk
Oct 1, 2026

2025 New Jersey Retirement Income Exclusion: Can You Claim It If Your Total Income Exceeds $150,000?

For tax year 2025, New Jersey's Pension Exclusion and Other Retirement Income Exclusion are unavailable if total income exceeds $150,000, but the Special Exclusion (for those who cannot receive Social Security or Railroad Retirement benefits) has no income limit.

stateretirement
Research Desk
Oct 1, 2026

Can I Make an HSA Contribution After December 31 for the Previous Year?

Yes, eligible prior-year HSA contributions can be made by the unextended federal filing deadline; the ordinary 2025 deadline was April 15, 2026.

federalhsaself-employed
Research Desk
Sep. 28, 2026

Can I deduct a home office if I am a W-2 employee working remotely in 2026?

Generally no. Remote work by itself does not create a federal home-office deduction for a regular employee.

FederalDeductionsPersonal
Olivia Grant
Sep. 28, 2026

I started freelancing late in the year. Are the earlier estimated-tax due dates automatically treated as missed payments?

Not automatically. The annualized income method can match required installments to when uneven income was actually received.

FederalSelf-EmployedEstimated Tax
Olivia Grant
Sep. 28, 2026

I made a prior-year nondeductible IRA contribution this year and converted it this year. Which return reports each step?

The contribution and conversion can belong to different returns, with basis carrying from the first Form 8606 to the next.

FederalRetirementIRA
Susan Miller
Sep. 28, 2026

Can an IRA purchase affect a loss I claimed after selling the same stock in a taxable account?

Yes. An IRA or Roth IRA purchase can disallow the loss, and the disallowed amount does not increase the IRA’s basis.

FederalInvestingWash Sale
Daniel Brooks
Sep. 28, 2026

Does “no tax on overtime” mean all of my overtime pay is deductible?

No. The federal deduction generally covers the qualified overtime premium, not the full overtime wage.

FederalDeductionsWages
Maya Patel
Sep. 28, 2026

Can I claim the new $6,000 senior deduction if I am not receiving Social Security?

Yes. Eligibility is based on age and the other tax rules, not on receiving Social Security benefits.

FederalRetirementDeductions
Susan Miller
Sep. 27, 2026

I made $1,800 freelancing and didn’t get a 1099. Do I still report it?

Yes. The 1099 filing threshold is a payer-reporting rule, not a tax exemption.

Federal1099Self-Employed
Olivia Grant
Sep. 27, 2026

I sold stock late in the year. Do I automatically need an estimated-tax payment?

No. First check withholding, the safe-harbor rules and when the gain occurred.

FederalInvestingEstimated Tax
Olivia Grant
Sep. 27, 2026

Can I deduct interest on a used-car loan under the new federal rule?

Generally no. The vehicle’s original use must begin with the taxpayer.

FederalCar Loan
Maya Patel