Among those who need to pay particular attention to this coronavirus money deadline are some college students, families who get government benefits and homeless individuals. If you didn't get a COVID-19 economic relief payment or didn't get all to which you were entitled, you can still apply for the financial help this year. But act soon. Really soon. The deadline to let the Internal Revenue Service know you're due some of the relief money is 3 p.m. this coming Saturday, Nov. 21. Note not only the date but also the time. That's 3 p.m. Eastern Standard Time, not your local time if…

Of course 2020 has multiple Fridays that fall on the 13th of the month. The year's first was on March 13, right when as a nation we were realizing that COVID-19 would define everything about this year, and beyond. Back then, I offered 13 good luck tax breaks. Today, Friday, November 13, 2020, arrives as we're dealing with a resurgence of the coronavirus. So it seem appropriate to revisit that first list of 13 tax opportunities that could ease some of your tax fears on this traditional day of superstitions, while we're in the midst of a pandemic and beyond.…

Welcome to Part 7 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates.That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates.Today's post looks at next year's changes to Alternative Minimum Tax (AMT) calculations, as well as Social Security and nanny tax changes. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022.For comparison purposes, you'll also find 2020 amounts that apply to this year's taxes, due April…

Reviewed and updated Friday, Nov. 10, 2023 Photo by Wyatt via Pexels.com When the clock struck 11 a.m. on Nov. 11, 1918, it marked the armistice between World War I's Allied forces and Germany, ending the fighting on the Western Front. The commemoration to honor the 4.7 million Americans who served — and the 116,500 who died — in what then was called the Great War originally was celebrated as Armistice Day. That name and the annual ceremonies continued in the United States until 1954. That year the Nov. 11 commemoration was to Veterans Day and its scope widened to…

Students at all levels are facing COVID-19 classroom challenges. Older students (and their parents) also are facing college costs, which can be covered in part with financial aid. (Photo by Julia M Cameron via Pexels.com) 2020 has been challenging year for all students and their parents. Moms and Dads with K-12 kiddos have been doing double (or more) duty as teachers where schools have shifted to full or hybrid remote classes as a coronavirus pandemic precaution. It's not much easier when the youngsters are older. Many young adults who've been away at college or were looking forward to going are…

Welcome to Part 6 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates.That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates.In today's post, we look at how the annual changes help investors, high-earners and, eventually, estate heirs. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022.For comparison purposes, you'll also find 2020 amounts that apply to this year's taxes, due April 15, 2021. Leonardo DiCaprio not…

Welcome to Part 5 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates.That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates.In today's post, we look at changes to some popular tax-related medical matters. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022.For comparison purposes, you'll also find 2020 amounts that apply to this year's taxes, due April 15, 2021. Medical issues have taken on new urgency in…

Welcome to Part 4 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates.That first item also has a directory, at the end of the post, of all of next year's tax-related inflation updates.In In today's post, at changes to tax credit, deduction and income exclusion amounts. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022.For comparison purposes, you'll also find 2020 amounts that apply to this year's taxes, due April 15, 2021. Deductions are one way to reduce…

Whether you'll be on the road this holiday season or staying home, you still need to map out some year-end tax moves. (Photo by Mohan Reddy Atalu via Pexels.com) It's November, a month most of us welcome because of its cooler temperatures and annual holiday festivities. However, there's even more to think about in November 2020. The presidential election is just a few days away. Then there's the coronavirus pandemic, which means Thanksgiving plans for most of us are modified if not scrapped. If you find you're staying home this year as a health precaution, don't despair. Remember that it's…

Welcome to Part 2 of the ol' blog's series on 2021 tax inflation adjustments. We started with a look at next year's income tax brackets and rates.That item also has a directory, at the end of the post, of all of next year's tax-related inflation updates.Today we look at standard and itemized deductions, certain limitations on some Schedule A claimsand the sort-of still around personal exemption amount. Note: The 2021 figures in this post apply to that tax year's returns to be filed in 2022.For comparison purposes, you'll also find 2020 amounts that apply to this year's taxes, due April 15,…

For millions of U.S. workers, this month is the beginning of their benefits open enrollment period. This is your annual chance to switch, adjust or cancel usually tax-free company perks for you and your family. The biggest employer-provided benefit is medical insurance. Health coverage has taken on new importance during the coronavirus pandemic. But companies offer many more options that help make their workers' lives a bit easier and less costly. And many benefits experts expect COVID-19 considerations during this open season to alter the usual trend of workers simply letting existing coverages roll into the new year, which is…

National Small Business Week 2020, like much everything else this year due to the coronavirus pandemic, is going mostly virtual. Small businesses always face a lot of challenges. This year, with the coronavirus pandemic posing myriad new operational and financial problems, things are even more difficult. During the Small Business Administration’s (SBA’s) celebration of this year’s National Small Business Week, which runs through Sept. 26, the Internal Revenue Service has been highlighting some tax breaks for these companies. Key among those breaks are credits that can help smaller employers. Tax credits are particularly welcome because they provide dollar-for-dollar tax savings.…

Couple waiting to get married at San Francisco City Hall. (Photo by Brian Kusler via Flickr) One good thing has come of my self-imposed pandemic lock down. Seeking a distraction from the news channels I usually watch, I'm finally getting more of my money's worth from our cable account. I've been exploring the many channels the hubby and I typically tend to click right past. For the last week or so, I've tuned in to WEtv because of its run of CSI: Miami episodes. No judging, please! Actually, the TV is more like a talking lamp (really!). The dramatic intonations…

Are your spouse's debts are costing you? The IRS has a bit of good news for some husbands and wives. They'll be getting back the coronavirus payment portion they were shorted due to their spouses' unpaid child support. (Photo by Gustavo Fring) Congress and the White House may be struggling to reach a deal on additional COVID-19 economic relief payments, but the Internal Revenue Service has stepped up to get some of the original stimulus money to few more folks. The agency says that next month it will send catch-up Economic Impact Payments (EIPs) to about 50,000 individuals. These are…

Rapper Cardi B quizzes Democratic presidential candidate Joe Biden on taxes (and more) in Elle magazine video chat. The 2020 Democratic Convention kicks off today, but former Vice President Joe Biden, who later this week will be formally nominated by his party to take on Donald J. Trump, got a media head start. Biden's recorded video chat with music superstar Cardi B was posted this morning. No, the nearly 17-minute video wasn't put out by the Joe Biden/Kamala Harris campaign. The conversation was sponsored by Elle, where Cardi's visage graces the fashion/lifestyle magazine's September cover. And no, Cardi's not coming…

If you get $500 from Uncle Sam in the next week or so, don't freak out. It's real if you used one of the Internal Revenue Service's online coronavirus registration tools and didn't originally get all the relief you were due. The tax agency is sending the money to those who previously were denied the $500 per child economic impact payment (EIP) amount created by the Coronavirus Aid, Relief and Economic Security (CARES) Act. The problem with the shorted amount wasn't with these individuals' or their minor children's' eligibility. It was due to a glitch in the IRS system set…

Hello August! These annual hot and, here in Central Texas, sticky days of late summer usually are a transitional time. Families take one last summer vacation. Parents and kiddos (but mostly parents) get ready for the return of school. Not so in 2020. The coronavirus pandemic continues to keep much of our lives on hold, like those final holiday trips and school openings. Taxes, though, are more persistent. Yes, COVID-19 did delay Tax Day until last month. But as far as the rest of the tax realm is concerned, there still are some matters that must be considered. That means…

Classic television's Cleaver family, circa 1960. (Photo via Wikipedia Commons) Senate leaders and U.S. Treasury Secretary Steve Mnuchin promise they'll release next week the Republican response to the Democratic House's already approved next round of COVID-19 relief payments. Until then, we're still speculating on what will be in the counter proposal. It's a safe bet, however, that it will contain a second round of direct payments. The first payments, created by the Coronavirus Aid, Relief and Economic Security (CARES) Act that became law in late March. What's not clear, though, is who would qualify for this additional stimulus money. Halfway…

Reviewed and updated June 21, 2021, with special attention on new Advance Child Tax Credit payments There are an estimated 72 million fathers in the United States, according to the U.S. Census Bureau's latest complete data, which is for 2014. Last year, say the country's official statisticians, around 24 million of these men were in married relationships where they and their spouses were raising children younger than age 18. Another 2 million men in 2019 were single fathers. On Father's Day 2020, these men doing the critical child care job alone earn this week's By the Numbers honors. (Check out…

It's official. School is out for the summer. And some day camps could soon offer families a break from coronavirus close quarters and a tax break.    For millions of families across the United States, the official end of the school year doesn't really mean much. The kids already have been home for weeks instead of in classrooms because of COVID-19 closures. But things may be about to change. Some day camps are starting to open, albeit tentatively and with lots of new rules and limitations. For some, the option to send the kiddos to another supervised situation is a…

Updated Friday May 15, 2020, 7 p.m. CDT Many found the first $1,200 (at most) of coronavirus relief payments to be too little and a tad too late. This latest round of relief, which calls for additional payments of up to $6,000 for some families, isn't likely to advance beyond the House in its current form, but at least it's a start toward more federal financial help.  House Speaker Nancy Pelosi opens debate on the latest COVID-19 relief bill. (Live House video feed screenshot) Today's good COVID-19 relief news is that the House is expected to vote on (and pass)…

The child care workplace benefit, as well as medical ones, are enhanced under two just-issued Internal Revenue Service notices. If your job doesn't offer child care benefits, you might be able to get other tax help in taking care of your youngsters via a tax credit. This mom is representative of many parents, who are starting to feel the pressure of weeks of quarantining with and homeschooling their children during COVID-19 stay-home orders. Earlier this year as the coronavirus was surreptitiously infecting Americans, lots of parents were going about their usual business, which included making summer plans for their children.…

And what you might be able to do about it. But not until next year. The hubby and I recently got our COVID-19 economic impact payment, despite my grumblings last month about not being able to get into the Get My Payment online tracking tool. We knew that due to some financial moves we've made in recent years in preparation for retirement, we wouldn't get the full possible payment. In case it's slipped your mind, that's $1,200 per individual, twice that for married couples who file a joint return. If you have qualifying dependent children younger than age 17, you…

Photo by Mrs. Flinger via FlickrCC It's Mother's Day 2020. This holiday, first celebrated regionally in 1908 before going nationwide six years later, usually means that children spend the day with their moms. Such closeness, however, has been happening every day for weeks for many families. Moms and dads and children and sometimes extended family members have hunkered down together at home 24/7 as a COVID-19 precaution. But it is mom's special day, so I hope that all y'all came up with some change of pace this second Sunday in May to celebrate all that mothers do and all the…

FreeStocks.org via Pexels The Internal Revenue Service is continuing to send out COVID-19 economic relief payments, but some folks have to act fast to ensure that they aren't shorted. Recipients of Supplemental Security Income and Department of Veterans Affairs benefits who also are caring for dependent children need to let the IRS know about those kids. If the youngsters are age 16 or younger, they could mean an added $500 each in coronavirus relief. But if these child-rearing SSI and VA recipients don't let the IRS know about their families by Tuesday, May 5, those won't get the added $500…

The coronavirus pandemic has added a whole other layer of worry for parents. The COVID-19 relief payment of $500 for each qualifying child won't erase those worries, but the money could help ease some financial concerns. (Photo by Julia M. Cameron via Pexels) Parents know that kids are costly. That fiscal fact is especially notable when mom and dad have been laid off during the coronavirus crisis. That's why the Internal Revenue Service is making what it's dubbed the Plus $500 Push. It's an effort to ensure that everyone who's eligible for a COVID-19 economic relief payment gets all the…

When your job doesn't pay much, the Earned Income Tax Credit (EITC) can be a big help. This tax break for lower- and middle-income workers has been a part of the tax code since 1975's Tax Reduction Act. It was a logical extension of the 1960s-era War on Poverty, creating a way for lower-paid workers to offset the Social Security taxes that take a relatively bigger bite out of their smaller paychecks. Since it's a tax credit, the EITC provides a dollar-for-dollar offset of any tax owed. And since it's a refundable tax credit, eligible recipients can get any EITC…

Photo by Vera Arsic via Pexels The biggest problem for most of us in coronavirus lockdown with our families, whether ordered by state or local officials or self-imposed, is figuring out how to not get on each other's last nerve. For some, however, the forced togetherness is deadly serious. Possibly just deadly. Domestic violence since COVID-19 appeared has spiked as victims find themselves forced to stay home with abusers, according to those who work to protect people, still primarily women, from abusive partners and spouses. It's happening globally, across the United States and here in Texas. "During a time of…

This new legislation could be part of the now-developing Phase 4 coronavirus relief measure expected to be considered in late April. Unlike this pre-coronavirus campus study group, current college kids are utilizing e-learning options to provide them appropriate social distancing and other COVID-19 protections. Young adults fell through the cracks in the Coronavirus Aid, Relief and Economic Security (CARES) Act. That new law created the COVID-19 relief payments that the Internal Revenue Service says it will begin processing this week. It will send checks of up to $1,200 to single taxpayers, $2,400 to married couple who file a joint return,…

A first job is a major life event with obvious major tax implications. Other momentous changes throughout our lives involve taxes, too. As COVID-19 continues to spread across the United States, the White House has decided to follow state and local officials in urging continued social (aka physical) distancing. For millions of us, this new April 30 stay home recommendation means more time cooped up with loved ones. Or not-so-loved ones. My favorite non-medical virus-related debate right now is whether all the coronavirus forced togetherness ultimately will end with a baby boom (coronials, anyone?) or a marriage bust. While the…

We're a third of the way to coronavirus relief checks. Last night (March 25), the Senate approved the massive measure, which includes in its 880 pages payments of $1,200 per person and $500 per dependent child. (More on this in a minute.) The bill, known as the Coronavirus Aid, Relief and Economic Security (CARES) Act, now goes to the House for approval. There may be some procedural stumbling blocks, but it's expected to pass there, probably by voice vote to avoid the congregating caused by a roll call on the chamber's floor. That probably will happen Friday. Then it heads…

Friday the 13th scares a lot of folks, but there are some tax breaks that are almost as cuddly as this ebony kitten. It's another Friday the 13th, but the last thing we need in March 2020 is more stuff to worry about. So what's better help take our minds off the very scary COVID-19 pandemic and all its ramifications — like no sports to divert our attention! — than taxes? Yes, taxes. Really. There's no word yet as to whether the April 15 filing deadline and any due tax payments will be extended. But there still are a lot…

UPDATE, March 24, 2020: As the coronavirus spread across the United States, the Internal Revenue Service and many associated tax programs have been adversely impacted. Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites were among those affected, with most closing earlier this tax season. If COVID-19 conditions improve in some clinic areas before the new July 15 tax filing and payment deadline, some VITA and TCE operations may reopen. Meanwhile, some are offering phone help. Check with your local clinic (details on how to do that in the post below). Volunteer tax preparers help Florida…

Ah, March. The days get longer. The weather gets warmer. And we've got about six weeks before our tax returns are due. I know it feels like these 31 days of March is plenty of time to take care of all the tax tasks still on your to-do list this filing season. But it's easy to get distracted by the charms of early spring. To keep you at least partially on tax track, here are six March tax moves you can make. Most are easy, so you can soon be back to less taxing activities. 1. Contribute to your 2019…

The Setting Up Every Community for Retirement Enhancement Act, or SECURE Act as it's popularly known, was attached to the omnibus spending legislation enacted in late 2019. Taxpayers, lawmakers and investment advisers generally supported most of the measure's changes to how we stash and ultimately access our retirement funds. One SECURE provision, however, is causing some concerns, especially among those who have accumulated large IRA holdings and who had planned to leave the bulk of that money to heirs. They and, more importantly, their heirs no longer have access to what used to be known as a stretch IRA. Ending…

First comes love.Then comes marriage.Then come two filing as oneWhen it comes to their taxes. OK, "marriage" and "taxes" in my opening verse don't rhyme, which is why I'm a journalist, not a poet. But since I focus on taxes and today is, so romantics tell me, the most important day of the year for couples, I thought I'd give the marrying of taxes and wedded bliss a try. Here are five love and tax considerations. 1. Marriage date mattersSure you marry for love. But you might want to consider when you formally tie the knot. It could affect your…

Updated Saturday, Feb. 12, 2022 Thanks to a 2018 Supreme Court ruling, many other states have joined Nevada in accepting bets on sporting events. But casino operations like this one in Las Vegas still get plenty of action on days like Super Bowl Sunday. Happy Tuesday to everyone who skipped work yesterday. I hope you’ve fully recovered from your Super Bowl hangover. I also hope that at least some of your prop bets on the NFL championship game also paid off. So does the Internal Revenue Service. All your Super Bowl winnings, as well as any other gambling proceeds are…

What would you do with an extra $2,504? That's the average amount received by taxpayers who claimed the Earned Income Tax Credit (EITC) in 2019. Overall, the Internal Revenue Service says that across the country last year, 25 million taxpayers received more than $61 billion from this tax break for lower-and middle-income workers. Every tax year, however, folks who qualify for the Earned Income Tax Credit don't claim it. Many don't know about the tax break. Others don't realize that changes in their marital, parental or financial status means they now qualify. That's why for more than a decade, the…

The birth of the Rev. Dr. Martin Luther King, Jr. has been officially celebrated as a federal holiday on the third Monday of January for more than three decades. For 25 of those years, it's also been a Day of Service, during which we're all challenged to transform the King Holiday into a day of citizen action volunteer service in honor of the slain civil rights leader. There are various ways to honor Dr. King on his holiday. One recommended by the Corporation for National and Community Service is to volunteer on #MLKDay and beyond as a tutor or mentor…

Photo by Kristina Paukshtite from Pexels A staple feature each New Year's Day is the fixation on babies born just after the clocked clicked past midnight. For the families, it's usually a joyous event, with their new bundles of joy being showered with first baby themed gifts from local merchants. Tax professionals, even those with families, however tend to see such celebrations as a tad misplaced. Or, as Jerry Gaddis, an Enrolled Agent in Florida, describes it, "bad tax planning." Am I the only one who sees this and thinks "bad tax planning"? #EnrolledAgent — Jerry Gaddis. EA, MBA (@TropicalTax)…

Lots of folks will be heading home for the holidays in the next few days. For many, it will the first time they've seen family in a while. Enjoy! These get-togethers also are a great opportunity for adult children of aging parents to make sure, tactfully and discreetly, that Mom and Dad are still doing well and are able to continue living on their own. If you find that you do need to make some changes when it comes to care for older relatives, do your due diligence. Not only could your decisions affect their physical and mental well-being, but…

December is, for the most part, a festive month. The holidays and all that accompanies them, from songs to movies to the joy of youngsters and young at heart, bring out the best in most of us. But things aren't quite so bright and jolly for everyone. Despite an economic recovery that's lifted people out of poverty in most areas of the country, poverty increased in at least one county in every state between 2016 and 2018. The poverty rate — defined as the percentage of people in households earning less than the current $25,750 threshold for a family of…

Congress just came up with more tax breaks to wind down 2019 than the number of ornaments we have on our upstairs' mini Christmas tree! (Photo by Kay Bell) Congress finally decorated its Christmas tree early this morning. The ornaments were myriad tax breaks. Or, in some cases, elimination of taxes. With Dec. 25 bearing down and special interest groups sending more requests to Capitol Hill than kiddos' letters to Santa, the House and Senate negotiators finally agreed on, among other things, what to do about those expired tax provisions popularly known as extenders. They OK'ed a handful of them…

If you moved this year and rely on the U.S. Postal Service for your interactions with the Internal Revenue Service, make sure that agency (among others) is on your list of those who are informed of your new address. I've always been a fan a snail mail. I know. OK, boomer. And December is my favorite month for good old U.S. Postal Service deliveries. I like thumbing through the colorful holiday catalogs, even if I do order online when I find a gift that would be perfect for a friend, family member or myself. I also love the annul batch…

The Tax Cuts and Jobs Act (TCJA) is the first major tax reform enacted since 1986. And while it cuts tax rates for most, one of its provisions has caused some military heroes' families to face higher tax bills. That's about to change. The fiscal year 2020 National Defense Authorization Act (NDAA), approved today by the House, repeals what is known as the widow's tax. The Senate is expected to soon OK the bill. Once that happens, the new NDAA should in turn should resolve the kiddie tax issues that the TCJA caused for children of service members who died…

These carolers, dressed in Dickensian attire, are no doubt singing traditional Christmas tunes, not my reworked and tax-themed "O Tannenbaum." (Photo by Chris Waits via Flickr CC) O Tax Year-End (O Tax Year Moves) O Tax Year-End, O Tax Year-End,How are thy days so nearing!O Tax Year Moves, O Tax Year Moves,How are thy days so wearing! Not only in the wintertime,But even in young spring is thy prime.O Tax Year-End, O Tax Year Moves,How are thy days so nearing!   Yes, that's my attempt at tax lyrics to the tune "O Tannenbaum," known here in the United States as "O…

Happy Thanksgiving. This annual gathering of family and friends is supposed to be a happy time of reconnecting. Nowadays, though, that takes some work. So to help you enjoy this Turkey Day instead of dread it or worse, here are some tips. Some are even tax-related. Acknowledge your differences: Clashes between family members have been going on since humans appeared on this planet. Unfortunately, over-sized expectations during holidays tend to make them worse. Old arguments — be they political, emotional or otherwise — often resurface. Recognize this and be ready. You aren't going to change your relatives or the issues…

Welcome to Part 6 of the ol' blog's 2020 series on tax inflation adjustments. We started on Nov. 6 with a look at next year's income tax brackets and rates. Today we look at how the annual changeshelp investors their families and eventual heirs. Note: The 2020 figures in this post apply to 2020 returns to be filed in 2021.For comparison purposes, you'll also find 2019 amounts to be used in filing 2019 returns due April 15, 2020. OK, maybe the rich don't literally burn money. But as the saying goes, the very wealthy really are different from the rest of…

Welcome to Part 5 of the ol' blog's 2020 series on tax inflation adjustments. We started on Nov. 6 with a look at next year's income tax brackets and rates. Today we look at changes to some popular tax-related medical matters. Note: The 2020 figures in this post apply to 2020 returns to be filed in 2021.For comparison purposes, you'll also find 2019 amounts to be used in filing 2019 returns due April 15, 2020. Yeah, you've seen this photo before. It's from about this time last year, the last time I had a medical maneuver that required I put on…

Welcome to Part 4 of the ol' blog's 2020 series on tax inflation adjustments. We started on Nov. 6 with a look at next year's income tax brackets and rates. Today we look at changes to tax credit, deduction and income exclusion amounts. Note: The 2020 figures in this post apply to 2020 returns to be filed in 2021.For comparison purposes, you'll also find 2019 amounts to be used in filing 2019 returns due April 15, 2020. The hubby has a chant he breaks into every year when I start working on our annual tax return: "Deduct! Deduct! Deduct!" It's sort…

Welcome to Part 2 of the ol' blog's 2020 series on tax inflation adjustments. We started on Nov. 6 with a look at next year's income tax brackets and rates. Today we look at standard and itemized deductions, certain limitations on some Schedule A claimsand the sort-of still around personal exemption amount. Note: The 2020 figures in this post apply to 2020 returns to be filed in 2021.For comparison purposes, you'll also find 2019 amounts to be used in filing 2019 returns due April 15, 2020. Historically, around 70 percent of filers have claimed the standard deduction on their tax returns…

November is the place for perfectly roasted Thanksgiving bird, not the many tax turkeys that can gobble up your money. These monthly tax moves are a great garnish as you finalize your 2019 tax year menu. Turkey attack from South Park via GIPHY It's November. You know what that means. Year-end tax move time. Oh yeah, and holiday plans. I hear ya. It's that crazy hectic part of the year, whether you're the host/hostess with the most/mostest or planning to travel to your Thanksgiving festivities. But you also need to add taxes to the mix. Now. Before you get all…

Relationships, even in the best of circumstances, are hard. When one partner is abusive, then things get untenable. October is Domestic Violence Awareness Month. During this month, the National Coalition Against Domestic Violence (NCADV) and similar groups are highlighting the victims and survivors, their children and families, their friends and family and their communities that are impacted by domestic violence. More importantly, these organizations are providing assistance and counseling to those in abusive relationships and looking for ways to leave them. Financial as well as physical abuse: While most of us immediately think of physical harm when we hear of…

The wealth-tax proposal advocated by Sen. Elizabeth Warren includes a hefty marriage penalty, according to one leading economist's analysis. (Photo courtesy Warren's Facebook page) It's another weekend, so that means it's time for another look at wealth tax proposals. Yeah, I know it seems like I'm in a bit of a rut, having posted about proposals from Democratic presidential hopefuls in recent weekends (on Aug. 18, Sept. 14 and a Monday, Sept. 16). But the suggested ways to get more money from the rich are still getting attention. Wealth tax roadblocks: Personally, I don't think any of these sweeping measures…

It's Friday the 13th and a full moon will rise late tonight. Werewolves and Friday the 13th. Scared yet? Take a breath. Depending on where you live, and how superstitious you are, tonight might not be so bad. The Farmers' Almanac says folks in the Pacific, Central and Mountain time zones will get to gaze on the full moon before midnight this Friday, Sept. 13. However, if you live in the Eastern time zone, the moon won't be full until 12:33 a.m. on the less spooky Saturday, Sept. 14. Micro Harvest moon: Plus, it won't be a very big full…

You've secured your house. You've got your go-bag ready if you have to evacuate. You've taken all the other steps to get ready for an impending natural disaster. Or have you? Don't forget about your pets. During recent floods in the Midwest, Reuters reported that hundreds of pets were lost or imperiled by floodwaters. After Hurricane Katrina in 2005, an estimated 15,000 animals had to be rescued, according to CNN. "It's a tragedy we've seen too many times: pets stuck in shelters, or worse, because their owners had no place to take them, or homeowners who feel trapped in a…

A new tax credit for dependents offers a break for extended family members and even non-relatives. My mom is a fiercely independent octogenarian, but she still depends on me. Like today, when I'm taking her to have some dental surgery. She is not, however, a tax dependent. That means the hubby and I can't claim her on our tax returns in order to get the $500 Credit for Other Dependents. This tax break, newly-created by the Tax Cuts and Jobs Act (TJCA), also has been dubbed the Family Tax Credit or Non-Child Tax Credit. It's an add-on to the Child…

August is here, but few of us have put out the welcome mat. The eighth month of the year tends to be one of the hottest of the year. Most of the summer's fun events have come and gone. And school is about to start. OK, that last point is a positive for many parents who are running out of patience with the kids being underfoot all the time. Those moms, dads and all other shoppers in 13 states at least will get some state sales tax holidays to make this muggy month a bit more tolerable. Those tax-free events…

North Carolina offers many gorgeous vistas, but the tax view for some trusts wasn't nearly so nice until a recent Supreme Court ruling. Now they can claim refunds of overpayments. (Blue Ridge Mountains viewed from Blue Ridge Parkway's Deep Gap overlook in western North Carolina; photo by Ken Thomas via Wikipedia Commons) You've got to appreciate the audacity of Tar Heel State tax officials. North Carolina decided it was due tax on a trust because a beneficiary was a state resident. That recipient of trust proceeds, Kimberley Rice Kaestner, was North Carolina's only connection to the trust. The person who…

The Earned Income Tax Credit (EITC) was created more than 40 years ago as a way to give lower-earning workers a tax break. But from the get-go, the EITC has been problematic. Now, just weeks before the National Taxpayer Advocate retires, her office has offered Congress some suggestions on how to improve the tax credit, as well as how it can be more effectively administered. Some tax credit history: The way we got to today's EITC is almost as complicated and intricate as the tax break itself. When created in 1975, the EITC was supposed to be a temporary tax…

This cool balloon was part of my neighbors' celebration back in 2017 of their son's graduation. Some Texas gusts, however, helped it take a post-graduation trip to our driveway. After snapping this photo (and Instagram video), I helped the light-headed graduate home. Attention class, here's you latest assignment. Wait. Didn't the school year just finish? Yes, for younger students. But those looking for financial help as they head off to college need to do some homework now. Students, or their parents, who are seeking financial assistance to meet higher education costs need to file a Free Application for Federal Student…

When it comes to expired tax laws, Congress is in much the same situation as the builders of this unfinished bridge. The basics are there, but there's still work to be done. (Photo by Paul Mannix via Flickr CC) UPDATE, June 21, 2019: After almost more than 11 hours of discussion, the House Ways and Means Committee on Thursday,  June 20, passed along a 25-to-17 party-line vote a measure to extend through 2020 a variety of tax breaks that expired in 2017 and 2018 or will expire at the end of this year, some of which are highlighted in this…

Helping with homework is just one of Dad's many jobs. Fathers' roles have changed a lot over the years. When I was a kid — yes, to many that was back in the olden days — my dad's main job was to have a job. All the day-to-day parenting duties fell to mom. Nowadays, though, fathers who live with their children are taking a more active role in caring for them and helping out around the house, according to Pew Research Center. Home-based fathers: Among the 8 facts about American dads discussed in Pew's Fact Tank feature is that more…

June is one of the most popular months to get married. Why? Some point to the weather. Peak spring thunderstorm season has passed. Temperature wise, it's warm, but not hot (unless you're in Texas, but that's another post). Ditto with humidity, meaning that June is one of the better months for an outdoor wedding. Then there's matrimonial history. The early Romans gave us Juno, the goddess protector of women in all aspects of life, but especially in marriage and childbearing. So a wedding in the month named for Juno was, and still is for many, considered most auspicious, notes the…

Gold Star families aren't the only ones facing unexpectedly higher taxes under kiddie tax changes in the Tax Cuts and Jobs Act (TCJA). Some students who receive college scholarships or grants now face bigger tax bills, too, under the tax reform law that took full effect in 2018. Previously, scholarships or grants for nontuition expenses like room and board were taxed at the same marginal rate that the students' parents paid. That meant lower- and middle-income students generally paid lower tax rates on the educational financial assistance. But the TCJA now applies the higher trust and estates tax rate, which…

Memorial Day, our annual remembrance of the men and women who died while serving in the U.S. Armed Forces, is just a week away. Many members of Congress will be back home on May 27 taking part in Memorial Day ceremonies honoring military personnel for their ultimate sacrifice. But before then, Senators and Representatives are focusing how to correct a provision in the Tax Cuts and Jobs Act (TCJA) that has caused some military heroes' families to face higher tax bills. TCJA advocates, who hurried the Republican-written tax reform through Congress in late 2017, say the revisions to the so-called…

Mom's obviously enjoying the Mother's Day gifts from her children. (Photo by Loren Kerns via Flickr CC) Anna Jarvis organized the first Mother's Day observances in Grafton, West Virginia, and Philadelphia, Pennsylvania, on May 10, 1908. As the annual celebration became popular around the country, Jarvis became the driving force behind a special day to honor moms and asked members of Congress to make it official nationwide. She succeeded in 1914. That year, Congress designated the second Sunday in May as the official celebration of Mother's Day. President Woodrow Wilson's proclamation declaring May 9, 1914, the first national Mother's Day.…

Mothers are the personification of "it's the thought that counts" when it comes to presents. Any mom would enjoy Mother's Day breakfast in bed on these plates made by her youngsters. (Photo courtesy Mrs. Goff's Pre-K Tales) Bought your mom a Mother's Day gift yet? If so, or even if you're still decided what to give her tomorrow, chances are you'll go the traditional route. "This year, besides the traditional cards, flowers, and clothing, spa services have come into their own as they are seen as more personalized and customizable gifts to pamper Mom," noted Robert Passikoff, president of Brand…

New parents Harry and Meghan don't have to worry about the expense of their new bundle of joy. But for us non-royals, raising children is costly. We former colonists here across the pond can get some help covering those costs thanks to several U.S. tax breaks. An obviously elated Prince Harry announces the birth of his and wife Meghan's son. (Screen shot from the Sussex Royal Instagram) It's a boy! Watchers of the Royal Family in the United Kingdom, here across the pond and yes, worldwide, are celebrating today's announcement that the Duke and Duchess of Sussex are now parents…

When your children are babies, it’s easy knowing that they are your tax dependents. But actually, there are several tax rules that determine whether you can claim your kids on your tax return. 

This post was updated June 21, 2019, to reflect proposed Child and Dependent Care tax credit changes. Spring has just arrived, but parents already are thinking about summer. Specifically, they're wondering who's going to take care of their kids once school is out for a few months. Now don't get me, or my friends, family and neighbors who have children wrong. We don't view schools and their teachers as babysitters. But classes do keep youngsters occupied for a big chunk of the day for most of the year. Then May and June roll around and for the next three or…

Photo by Kumar's Edit via Flickr I've been married a long time. To the same guy. Marriage is not always easy and we don't even have a boss stirring up trouble between us. But we've made it through the tough times. And now as we patch things up when we do have our differences, we joke that we're staying together because it would be a bigger hassle to divorce. Sometimes, though, couples can't work through their troubles and decide to officially end their marriages. When that happens, among all the other issues, there are tax matters to consider. Here are…

This post was reviewed and updated Friday, Sept. 4, 2020. The original post can be found here. College and its ever-increasing costs certainly have gotten a lot of attention. During the last two Democratic presidential primaries, candidates have proposed ways that Uncle Sam can provide additional educational assistance to students and their families. As the 2020 school year gets off to a somewhat sputtering start during the COVID-19 pandemic, the costs of dealing with the medical and health care emergency are further complicating things. School changes and costs: Remote classes mean families are having to purchase or upgrade electronic devices…

R. Kelly performing in in Atlantic City, New Jersey, as part of his 2006 "Mr. Show Biz Presents: The Light it Up Tour. (Photo by Nicholas Ballasy via Wikipedia Commons) Singer-songwriter R. Kelly is (once again) facing serious criminal charges, but a more common complaint is what has landed him in jail. The 52-year-old R&B singer was arrested March 6 after a court hearing that he failed to pay more than $161,000 in back child support. (Update: Kelly was released from jail on March 9 after making the overdue support payments.) Incarceration for failure to meet court-ordered family payments happens…

My mother and my furry little brother Willie having a conversation. While walking Willie last October, my mom fell and broke her leg, a common occurrence among older dog owners. That accident has prompted ongoing discussions (OK, fights) on possible more hands-on care options for my octogenarian mother. (Photo by Kay Bell) I'm a cat person. Fight me. Or don't. Like cats, I'm not really concerned about your pet opinion. For almost a decade, though, I've been dealing with a dog. Not mine. My mom's. She has a dog, Willie, and he's the most spoiled animal I have ever known.…

NASCAR's 2019 season started today with the auto racing series' biggest event, the Daytona 500. Congratulations to Denny Hamlin and Joe Gibbs Racing for taking the checkered flag in the Great American Race. Things aren't so clear-cut, though for the expired tax break for motorsports speedway improvements and more than two dozen other assorted tax benefits. These tax breaks expired in 2017 and are not on track for reinstatement. Yet. In fact, they're looking as messy as today's closing laps pile-up. Extenders indecision: These assorted tax breaks are known collectively as the extenders. They get that name because they are…

Victorian Valentine courtesy School of Art, Kimball Jenkins Estate It's fitting that Valentine's Day — it's this Thursday in case the most romantic day of the year is sneaking up on you — comes during tax filing season. While most of us marry for love, finances and the related taxes are a big part of our coupled relationships. Here's a look at five love and taxes considerations. 1.  Marriage date matters.Your wedding day is important to the Internal Revenue Service. No, the tax collector doesn't want to send you an anniversary card. But when you said "I do" matters when…

National EITC Awareness Day was Jan. 25. Did you miss it? Probably. It's not a federal holiday, but rather the day each year when the Internal Revenue Service celebrates the tax benefits the Earned Income Tax Credit, the full name of the aforementioned acronym. It's also a time that the IRS tries to get the word out about the EITC. This year, though, the IRS' message about this tax break for lower-income workers got drowned out. EITC Day 2019 fell on the day that the longest government shutdown in U.S. history came to an end. So most attention, tax and…

Jeff and MacKenzie Bezos are getting a divorce. I know, it's hard to feel too bad for folks who are so wealthy. They tend to come through difficult circumstances quite well. But the joint announcement today (on Twitter, of course) from the world's richest man and his soon-to-be ex-wife got me thinking about, of course, taxes. By making the decision to end their marriage in 2019, Bezos is losing a tax break while Mrs. Bezos is getting one. As I said, I'm sure neither Mr. or Mrs. Bezos won't suffer too much. Both he and his wife will have lots…

Hello 2019! I'm not sure we're ready for you, particularly when it comes to the major tax code changes under the Tax Cuts and Jobs Act (TCJA). We'll deal with the real-life effects of the new tax laws for the first time when we file our 2018 returns. When that will be is still up in the air and depends on a resolution to the partial government shutdown. But even though Capitol Hill and many of Uncle Sam's offices remain in limbo, we taxpayers need to start now taking an up close and personal look at what the TCJA will…

While millions of folks worldwide were greeting 2019's arrival, many were awaiting a more personal welcome for the planet's newest residents. The United Nations Children’s Fund (UNICEF) estimates that more than 395,000 children will be born today, Jan. 1, 2019. There's always much to-do over babies who arrive right after midnight on New Year's Day. Much-needed tax breaks for parents: But for tax purposes, as long as a child is born or adopted any time during a tax year, be it on the first day or Dec. 31, the youngster could mean tax benefits for the new parents. Those tax…

Change is the only constant, as the old saying goes, and that’s as true on the last day of the year as it is on the first.

Change is the only constant, as the old saying goes, and that's as true on the last day of the year as it is on the first. Those changes also could mean changes to your taxes, as some life-altering situations on Dec. 31 affect your taxes for the preceding 364 days. Take, for example, tying the knot. If you get married today, congratulations. Have a spectacular combined wedding reception and New Year's Eve party. Also get ready after the confetti and toasts to deal with some filing changes to your 2018 taxes. Your new Dec. 31 husband or wife status…

Contributing to a 529 plan is one tax move you need to work into your hectic year-end holiday schedule since most states require you do so by Dec. 31 in order to claim associated state tax benefits on your next tax return.  We're almost halfway through December. Are you feeling the holiday crunch? Sorry, but I'm here to add to it. As I've already nagged suggested back in November and earlier this month, you need to take care of some year-end tax tasks, too. One of those tax moves — contributing to a youngster's 529 plan — is worth another…

It's turkey time! Thanksgiving spread photo courtesy Zeetz Jones via Flickr CC. Happy Turkey Day! I hope you and yours are having a wonderful Thanksgiving Day. It's subdued at our house this year, just the hubby and me. My mom is spending the day with some extended family. Plus, due to some dining issues created by recent oral surgery, our menu — OK, my menu — is limited to mashed potatoes and gravy. That means the hubby gets to pig out for the both of us. But I'm thankful that I can still enjoy the super creamy pumpkin pie that…

Welcome to Part 6 of the ol' blog's 2019 series on tax inflation adjustments. Today we look at changes to estate, gift, capital gains and kiddie tax provisions.You can find links to all 2019 inflation postsin the series' first item: income tax brackets and rates. Note: The 2019 figures apply to 2019 returns that are due in April 2020.For comparison purposes, you'll also find 2018 amounts to be used in filing this year's 2018 tax return due April 15, 2019. The rich, per the apparently apocryphal F. Scott Fitzgerald characterization, really are different from the rest of us. And certain parts of the Internal…

Welcome to Part 4 of the ol' blog's 2019 series on tax inflation adjustments. We started on Nov. 15 with a look at next year's income tax brackets and rates. Today we look at changes to credit and deduction amounts. Note: The 2019 figures apply to 2019 returns to be filed in 2020.For comparison purposes, you'll also find 2018 amounts to be used in filing 2018 returns due April 15, 2019. Taxpayers depend each year on tax deductions and tax credits to cut their annual tax bills. The biggies are, of course, the use of standard or itemized deductions discussed in Part 2…

Welcome to Part 2 of the ol' blog's 2019 series on tax inflation adjustments. We started on Nov. 15 with a look at next year's income tax brackets and rates. Today we look at standard and itemized deductions, personal exemptions and limitations on these tax situations that apply to some taxpayers. Note: The 2019 figures apply to 2019 returns to be filed in 2020.For comparison purposes, you'll also find 2018 amounts to be used in filing 2018 returns due April 15, 2019. Internal Revenue Service data show that year after year, around 70 percent of filers claim the standard deduction on their tax…

The Trump children gathered for this undated family photo. They are, from left, Robert Trump, Elizabeth Trump Grau, Fred Trump Jr., Donald Trump and Maryanne Trump Barry. A piece of information filed years ago during Barry's judicial confirmation hearing led to a New York Times' exposé on the family's wealth and tax tactics. (Donald J. Trump presidential campaign photo) Talk about an awkward Thanksgiving. It seems that Donald J. Trump's oldest sister is how The New York Times got the inside info on the Trump family fortune and taxes. You know of the story even if you haven't yet read…

My octogenarian mother does an amazing job of taking care of herself and her little dog, aka my furry younger brother. My mother and her pup come to our place, like the Thanksgiving visit pictured here, but usually it's me taking time from work to head her way. (Photo by Kay Bell) But since she no longer drives and hates to impose on friends and neighbors, I make regular trips to her place to help her run errands, take her to doctor appointments and just visit. It's not too much of a hassle because she lives relatively close and it's…

UPDATE , Oct. 1, 2018: The House has signed off on its three Tax Reform 2.0 bills to extend the individual provisions of 2017's Tax Cuts and Jobs Act. The Senate, however, is not so keen on the measures. Additional Senate tax action this year looks doubtful as the Upper Chamber focuses on other year-end priorities. The Tax Cuts and Jobs Act expanded the use of 529 education savings plans to cover elementary and secondary school costs. One of the House's Tax Reform 2.0 bills would also make 529 money available to pay some home-schooling expenses. (Photo by Chris Yarzab…

House Ways and Means Chairman Rep. Kevin Brady (R-Texas) was among GOP leaders who celebrated the six-month anniversary of the party's tax reform bill back in June. Now he and other Republicans want to expand that bill by the end of September. We're still waiting for clarification of many of the new tax laws in the Tax Cuts and Jobs Act (TCJA). In fact, some say we need clarification of clarifications; have you tried to decipher the new 199A business deduction even with the Internal Revenue Service guidance? But such lingering TCJA questions are not stopping Republican leaders from trying…

This time of year, my social media streams are full of photos of my friends' children as they head back to class. And it's not just the youngest students being celebrated. Yes, I'm old enough to have peers with kids in college. While all these students' parents are proud of their progeny's new educational milestone, there's also a bittersweet tinge to all those Facebook postings of surprisingly grown up kids. And, of course, there's the realization that this next phase of their youngsters' lives is going to cost them. In some cases, the costs will be a whoooooole lot. Ever…

Trees in September will see their first fall color. (Photo by Jonathan Bloy courtesy Bloy.net) Hello, September. It's nice to have you back. You are a month that offers mostly-welcome transitions. There are beginnings, as students start a new school year. Parents nationwide say "thank you!" There are endings, as summer gives way to fall's cooler temps and foliage changes. Those of us tired of heat waves want to know what took you so long!?! There are expectations, as the end of the year and its many holidays approach. It's never too early to start planning for these. My Christmas…

The Tax Cuts and Jobs Act (TCJA) did away with exemptions, a particularly concerning change for large families. Exemptions were a specific dollar amount, adjusted annually for inflation, that taxpayers could claim for themselves, their spouses if filing jointly and dependents. The exemptions total helped reduce the amount of filers' income subject to tax. TCJA supporters, however, say not to worry. They say the new law's lower income tax rates, wider income brackets, larger and more refundable child tax credit and $500 tax credit for other dependents will make up for the eliminated exemptions. Dependents guidance: The Internal Revenue Service…

One, in addition to being the loneliest number, also soon could cost some Chinese taxpayers when it comes to their family size. Three years ago, China abandoned its policy, which had been in place since 1979, of fining people for having more than one child. Now Chinese leaders want to encourage people to have more kids. The reason for wanting more babies is that China's previously restrictive family planning policy has produced a growing aging society and a shrinking young population. That's not healthy for any economy.  To remedy that situation, China is exploring a variety of proposals, including a…

School's starting, meaning parents and students need to study up on how the new tax laws do and don't affect the many tax-favored ways to pay for classes. We're all still learning about the Tax Cuts and Jobs Act (TCJA) that was passed late last year and took effect, for the most part, at the beginning of 2018. One area where we all need some tax lessons, especially with the start of the first school year under the new tax law's provisions, is how it affects educational tax breaks. It does make some key changes to some of the tax…

Classes, from Kindergarten to high school to college, are or about to be in session across much of the United States. That means parents can breathe a sigh of relief now that schools and teachers will once again add structure to their children's lives. But the beginning of the school year also prompts a new parental concern: their youngsters' privacy. No age limit for ID theft: Identity thieves don't set age limits on the people whose lives they try to steal. When a young person's identity is stolen, it sometimes takes longer to discover since most kids aren't involved in…

Sunsets like this one at Zuma Beach in Malibu, California, make many Golden State coastal properties prime rental investments. But Golden State limits on property taxes on inherited homes cost cities and other jurisdictions billions of dollars. (Photo by Alex Beattie via Flickr CC) Californians love Proposition 13, the grandfather of tax-limiting ballot initiatives. Since its passage in 1978, it has kept a tight cap on property tax increases. But an expansion of the original Prop 13, enacted eight years later, and its unforeseen consequences have cost Golden State school districts, cities and counties of billions of dollars in revenue,…

This family, with four generations shown here, likely will feel the effects of the new tax law. (Photo by Azoreg via Wikimedia Commons) Things get complicated when you have kids. Those complications are, well, even more complicated when it comes to tax filing. The Tax Cuts and Jobs Act (TCJA) made a variety of changes, in effect at least for tax years 2018 through 2025, that will affect millions of parents. Here's a quick look at key tax changes for dependents. Exemptions are eliminated: Under prior law, personal and dependent exemptions were excellent. These tax breaks helped filers reduce income,…