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Topic: TaxAct registration  (Read 780 times)

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Re: TaxAct registration
« Reply #15 on: January 09, 2022, 01:58:04 PM »
'Prizes and awards' from the 'Miscellaneous - Amounts Received' section and it won't add to my gross income for 1116, although it does show correctly on the 1040. If I enter the same amount in to the 'Other Income' field and then delete the original line (''Prizes and awards') the gross is correctly reflected for 1116 and 1040. The system does say that 1116 is not yet complete, so this is likely my issue.

Was the "prize or award" correctly taxed by HMRC?

If no, it would not be included on 1116, line 1a or line 3d.

If yes, it should be included on 1116 and your workaround using "other income" from Schedule 1, line 8z, ( if line 8h doesn't work) should suffice.


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Re: TaxAct registration
« Reply #16 on: January 09, 2022, 02:37:07 PM »
It’s tax free (by HMRC - Premium Bond Wins) I include all passive income so as to use previous tax credits.


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Re: TaxAct registration
« Reply #17 on: January 09, 2022, 07:30:15 PM »
The system isn't ready to go, so some of your issues may stem from that. I'm trying to add:

'Prizes and awards' from the 'Miscellaneous - Amounts Received' section and it won't add to my gross income for 1116, although it does show correctly on the 1040. If I enter the same amount in to the 'Other Income' field and then delete the original line (''Prizes and awards') the gross is correctly reflected for 1116 and 1040. The system does say that 1116 is not yet complete, so this is likely my issue.

I'd expect that other 'bugs' maybe faced for a week or two until updates are made.

Thanks for this - I do have to remind myself that I am usually over-eager to get my forms done (the IRS exchange rate only came out on Friday!). Makes sense that there is more updating to do.

Hopefully they will get it properly working. For example, I am pretty certain that they shouldn't be applying the qualified business deduction given one of the qualifying factors is the work has not taken place overseas, which is clearly not true for my joint filing...


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Re: TaxAct registration
« Reply #18 on: January 09, 2022, 07:42:38 PM »
Thanks for this - I do have to remind myself that I am usually over-eager to get my forms done (the IRS exchange rate only came out on Friday!). Makes sense that there is more updating to do.

Hopefully they will get it properly working. For example, I am pretty certain that they shouldn't be applying the qualified business deduction given one of the qualifying factors is the work has not taken place overseas, which is clearly not true for my joint filing...

You can sign up to TaxAct alerts - you'll then not have to check back manually to see if the live version is ready. Although this doesn't apply to me, although maybe you. I did see in the 'Interest Income - Investment Expenses and Foreign Taxes'  to leave box 6 blank. I was experimenting with this option and it gave all manner of weird results. Again not ready for prime time.
I too like to get this whole process done and dusted. Fourtently FBAR can be filed - so simple if you keep to the year after year PDF format.


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Re: TaxAct registration
« Reply #19 on: January 11, 2022, 03:37:45 PM »
In terms of Premium Bond winnings (aren't we the lucky ones!) i simply enter it and treat it as interest income and enter it on a 1099-INT form - no tax withheld and payee as NS&I  - seems to have worked for me in the past and has the same tax effect -  much the same way as if I had an ISA with interest (which I don't!).

In terms of the work around on telephone numbers - I enter my UK number without the leading 0 - needless to say I neevr get a text or a call - but TaxAct replicate whatever code they send in an email - and that seems to work.

Working with US tax software is a bit of a pain and requires workarounds to get it set up, but once you're in, it seems to work a breeze, except for my longstanding grip about not be able to handle GILTI forms which requires filing in paper form.


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Re: TaxAct registration
« Reply #20 on: January 11, 2022, 04:19:49 PM »
In terms of Premium Bond winnings (aren't we the lucky ones!) i simply enter it and treat it as interest income and enter it on a 1099-INT form - no tax withheld and payee as NS&I  - seems to have worked for me in the past and has the same tax effect -  much the same way as if I had an ISA with interest (which I don't!).

Thanks for that. I had thought about  treating any Premium Bond wins as normal interest. Then I thought, 'well it's really a prize and not interest income'. Obviously it all works out the same and the easiest option.

I do have a savings account also with NS&I, so would I combine both amounts, (Premium Bond wins and interest income) as one payer on Schedule B?

Although it's only 'a few quid', (no champagne!), this year theres is a line for prizes, (schedule 1 line 8h) whereas past years it had to be free formatted on the miscellaneous income line, supporting details for schedule 1.

I'd be interested to learn how others have handled Premium Bond wins too.


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Re: TaxAct registration
« Reply #21 on: January 11, 2022, 04:39:14 PM »
Thanks for that. I had thought about  treating any Premium Bond wins as normal interest. Then I thought, 'well it's really a prize and not interest income'. Obviously it all works out the same and the easiest option.

I do have a savings account also with NS&I, so would I combine both amounts, (Premium Bond wins and interest income) as one payer on Schedule B?

Although it's only 'a few quid', (no champagne!), this year theres is a line for prizes, (schedule 1 line 8h) whereas past years it had to be free formatted on the miscellaneous income line, supporting details for schedule 1.

I'd be interested to learn how others have handled Premium Bond wins too.

I also enter Premium Bond winnings on Schedule B as if I'd had a 1099-INT.  Since my wife also holds PBs I have them listed on 2 lines. I put "Various accounts" in parentheses after NS&I as we also have other income bonds with NS&I. We also have multiple savings accounts with another bank so those also go on a single line on the schedule B with "Various accounts" in parentheses.
« Last Edit: January 11, 2022, 04:45:01 PM by durhamlad »
Dual USC/UKC living in the UK since May 2016


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Re: TaxAct registration
« Reply #22 on: January 11, 2022, 04:42:23 PM »
I think this treatment is the most reasonable and rational - there's clearly no attempt at evasion as the income is being declared in the first place - the tax outcome is exactly the same - just waiting for Mr. Million to coming knocking at the front door on the first of the month! - that I am sure will present a whole new set of challenges  ;D


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Re: TaxAct registration
« Reply #23 on: January 11, 2022, 04:46:37 PM »
- just waiting for Mr. Million to coming knocking at the front door on the first of the month! - that I am sure will present a whole new set of challenges  ;D

My wife and I believe that is a risk and hassle we are prepared to face....

I did win a £500 prize one year.
Dual USC/UKC living in the UK since May 2016


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Re: TaxAct registration
« Reply #24 on: January 11, 2022, 04:52:38 PM »
My wife and I believe that is a risk and hassle we are prepared to face....

I did win a £500 prize one year.

...and Agent Million calls twice a month now - A nice problem to have!

Adding on Schedule B sounds a good option. It's going to remove the need to complete 8938 part 3, section 13d though.



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Re: TaxAct registration
« Reply #25 on: January 11, 2022, 07:55:39 PM »

Adding on Schedule B sounds a good option. It's going to remove the need to complete 8938 part 3, section 13d though.

I don’t know about that as we don’t hit the limits to need to file 8938.
Dual USC/UKC living in the UK since May 2016


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