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…

There's one more day in 2018, but it's too late to adjust your withholding for this almost over tax year. Following enactment of the Tax Cuts and Jobs Act (TCJA), a lot of folks earlier this year should have tweaked the amount of federal taxes they have taken out of their paychecks. Those TCJA changes, which went into full effect for 2018, could mean some — OK, a lot; one estimate says 30 million — taxpayers could face an unexpected tax bill when they file their returns in 2019. If you discover in a few months that you're one of those…

We're now into the third shutdown of federal offices this year. The other two were brief closures back in January and February. Will this latest federal government shutdown, which began at midnight today (Saturday, Dec. 22) be similarly short-lived? Maybe, but closure #3 of 2018 already is the longest of the year, with the January shutdown lasting three days and the one in early February technically shutting federal doors for just a few hours. Nothing is expected to happen until after Christmas. Some are predicting the impasse will continue into the new year. And Donald J. Trump has vowed that the…

Welcome to Part 9 of the ol' blog's 2019 series on tax inflation adjustments. Today we look at tax penalties.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. IRS agents don't throw flags like football referees, but the tax agency keeps a close eye out for violation of tax rules and laws and its agents are just as quick to…

This post was updated Saturday, Dec. 22, as the federal government was partially closed when Donald J. Trump rejected any funding measure that doesn't have $5 billion for a U.S.-Mexico border wall. Photo by Alan Cleaver via Flickr CC We're now into the third government shutdown of 2018. Even though only some federal offices are affected, the Internal Revenue Service is among them. And if the closure is a long one, it could shake the Internal Revenue Service's initial confidence that the coming tax season won't be affected. A couple of weeks ago when it looked like Congress and the…

George Herbert Walker Bush, the 41st president of the United States, lying in state at the U.S. Capitol on Monday, Dec. 3. (Screenshot from C-SPAN video.) President George H.W. Bush, who passed away Nov. 30 at age 94 at his Houston home, will be honored today, Wednesday, Dec. 5, at a state funeral at Washington National Cathedral. The current President and First Lady, along with four others commanders-in-chief — the late 43rd president's son George W. Bush, Barack Obama, Bill Clinton and Jimmy Carter, along with their wives — are among the dignitaries from around the world who will be…

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…

Like helping people? You can extend your volunteer penchant beyond the holidays and into the coming tax season by becoming a volunteer with an Internal Revenue Service-approved free tax help site. Don't worry. You'll get, like the folks pictured here, the tax training needed to help others fulfill their tax tasks. (Screenshot from IRS video) The holidays are here. Yeah, I'm not ready either, but … In this season of giving, many folks donate to charities. This year, much of the focus in on helping nonprofits that assist folks who've suffered through natural disasters, notably the deadly wildfires still burning…

"The Persistence of Memory" by Salvador Dalí (Oil on canvas, 1931) © Salvador Dalí, Gala-Salvador Dalí Foundation/Artists Rights Society (ARS), New York. Photograph taken in 2004. (Image  from About.com, fair use, via Wikipedia) It's that time of year again, literally. At 2 a.m. today (Sunday, Nov. 4, 2018), most of us said goodbye to Daylight Saving Time and hello to the return of Standard Time.  OK, maybe most of us weren't up in the wee hours to actually say goodbye and hello to our clocks. But we're dealing now with the timepiece trickery. A lot of us (me!) will suffer…

As Donald J. Trump has been making the campaign rounds in advance of the midterm elections, he's made some interesting — OK, wrong — comments about taxes. And in trying to cover for explain those remarks, some folks are compounding the misinformation. The latest example underscores a misconception about how retirement account withdrawals are taxes. Trump's tax cut talk: Trump has been touting a pre-Nov. 6 tax cut of 10 percent for the middle class. While nothing is impossible in this crazy world, that's not likely since Congress is not scheduled to return to Capitol Hill until Nov. 12. Many…

This photo via Donald J. Trump's Twitter account shows, it says, him signing on Oct. 15, 2015, his 2014 federal return. It's still the only glimpse of Trump's federal tax returns that he's ever provided, either before or after moving into the White House. It's official. Donald and Melania Trump were among the millions of taxpayers who got tax-filing extensions and finally this week filed their 2017 return. It's also official that we won't be seeing the Trumps' 2017 taxes. No Trump taxes: Trump, as he made clear during his presidential campaign, won't release his taxes while they're under audit. …

Texas, according to veteran Lone Star State meteorologists, is the land of perennial drought, broken by the occasional devastating flood. Such flooding occurred today, opening up the possibility that parts of the Texas Hill Country could be deemed major disaster areas. If that happens, affected property owners can claim their losses on their tax returns. Mansfield dam image Excessive rainfall has produced devastating flooding in Central Texas, forcing area officials to open floodgates at local dams. The amount of water flowing into area rivers and lakes is so heavy that even Mansfield Dam in Austin, the structure that holds back…

Did you get an extension back in April to wait until Oct. 15 to file your 2017 tax return? Guess what? That's Monday. Like this coming Monday. Like three days from now! Sorry. That means no weekend fun for you. You need to spend your weekend, or at least part of it, working on your 2017 Form 1040. I feel for all y'all ultimate procrastinators. I've been there, but not this year, thank goodness. The hubby and I still got an extension, joining more than 14 million other taxpayers who sidestepped the April 18 deadline, but we filed our return…

Things certainly have changed over the years when it comes to tax filing, especially from the technology perspective. But upgrading all today's IRS computer systems could mean a delayed 2019 tax filing season. (Photo via Wikimedia Commons)  As 2018 winds down, we're all looking at tax moves we need to make. (Need some ideas? Check out the suggested October tax tasks to tackle.)  In addition to us individual and business filers, "we" also includes the Internal Revenue Service. And the tax agency could have some added trouble this year, thanks to all the changes made late last year by the…

Each year, the Internal Revenue Service assesses estimated tax penalties against millions of taxpayers. This added money typically is due the IRS when a taxpayer pays too little total tax during the year. The last time the IRS released complete estimated tax penalty data was three years ago. The federal tax agency said back then that the average estimated tax penalty, which is based on the interest rate charged by the IRS on unpaid tax, was about $130. Back in September 2015, the IRS said it was seeing more taxpayers run into the estimated tax penalty. The number jumped about 40…

A few election years ago, Republicans were aghast at the level of takers compared to makers. In case you've forgotten, they were complaining that an increasing number of folks, the so-called takers, were escaping their rightful tax payments and getting government help at the expense of the makers, higher earners who tend to put more tax money into the economy. That's still happening. Now, however, in a wonderful bit of political irony, it's the GOP that's responsible for more U.S. households avoiding tax bills next filing season. Big tax cuts for millions: The latest analysis by the Tax Policy Center…

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 courthouse where a federal jury on Aug. 21 found Paul Manafort guilty of eight charges, including five tax evasion counts. Could he also face state charges? (Photo via Google Earth) It’s the day after bombshell revelations in two federal courtrooms and the political and tax world is still abuzz. Almost simultaneously on Tuesday, Aug. 21, afternoon, two of Donald J. Trump’s former presidential campaign officials faced serious legal judgments in two separate courtrooms. In New York City, Trump’s former personal lawyer pleaded guilty to eight federal felony counts of tax and bank fraud, as well as campaign finance law…

A Lyft ride sharing vehicle in Atlanta. (Photo by Daniel X. O'Neil via Flickr Creative Commons) Most U.S. workers meet their annual tax responsibilities via paycheck withholding. Here you give your boss the information needed to calculate just how much income tax should come out of each paycheck so that you're Goldilocks at tax-filing time, not owing the U.S. Treasury too much or too little. The sharing economy has thrown a wrench into this system. Lots of folks with traditional 9-to-5 jobs are hustling on the side to earn extra cash. Others have committed full-time to gig economy work. Job…

After years of being lambasted for efforts to regulate tax preparers, the Internal Revenue Service is on a roll in its efforts to oversee certain tax professionals. A recently introduced bipartisan Senate bill would give the IRS the authority that many argue it doesn’t have to set standards for tax professionals who aren’t subject to other professional guidelines. This is not the first time such legislation has been introduced. But those previous bills never went anywhere. However, the tide now seems to be shifting a bit in the tax agency’s favor. Influential tax professional groups are among this latest legislative…

Money courtesy Pictures of Money via Flickr Most of us can't afford extravagant wardrobes. And we own, at most, one house. But for many of us, there's one thing that most of us share with lavish-living Paul J. Manafort. We, like the former lobbyist and political consultant, are not fans of paying taxes, especially really big Internal Revenue Service bills. Rick Gates, Manafort's former right-hand man, today told jurors hearing the tax evasion and bank fraud charges against his former boss that Manafort disliked paying a lot of taxes. But, I hope, that we aren't following Manafort's alleged method to…

Summer is winding down, but someone needs to tell the thermometers. Across much of country, it feels like the mercury is about to burst and everyone is doing everything they can to stay cool. Sorry, I can't help you beat the heat. But I do have eight tax moves you can make in this eighth month of 2018 — which, with all those 8s, makes that this week's By the Numbers figure — that might be able to help lower the heat you're feeling when it comes to taxes. 1. Adjust your withholding.I know. I nag remind y'all of this…

We're on the downside of 2018 and that has some folks in the tax world, and on Capitol Hill, concerned. They're worried that unless folks act soon, they're going to get an unwelcome surprise next federal tax filing season. When they fill out their new Form 1040s, they'll discover they owe. The reason is the new Tax Cuts and Jobs Act (TCJA). OK, technically it's because a lot of folks haven't adjusted their payroll withholding to account for the new lower income tax rates and other changes, like no more exemptions and revised of eliminated itemized expenses. It's not for…

Freelancing means more flexibility, such as where to work and the option to wear more comfortable attire. It also means you have some new tax responsibilities.

As expected, states whose residents will take a major federal tax hit under the new $10,000 limit on deductions of state and local tax (SALT) payments have headed to court. Connecticut, Maryland, New York and New Jersey on Tuesday (July 17) afternoon filed a lawsuit in federal court in New York seeking to invalidate the Tax Cuts and Jobs Act's (TCJA) changes to a long-standing federal tax deduction. In this latest semi-reform of the tax code, Congress essentially gutted the value of this itemized tax deduction for, in most cases, the millions in state income and local real property payments…

The role of Supreme Court nominee Brett Kavanaugh in preventing the Internal Revenue Service from aggressively regulating tax preparers has prompted some questions about such oversight. Currently, the IRS uses a voluntary tax professional oversight system, but is expected to continue to push for Congressional authority to implement more stringent tax preparer regulations. Those who agree with the IRS (like the agency’s National Taxpayer Advocate) argue that regulating tax pros is necessary in order to protect taxpaying clients. It also, they contend, would lead to more accurate tax returns and ensure a fairer and more efficient tax system Opponents of such regulation,…

Couples by Michael Lehet/Flickr CC The hubby and I basically have a pretty equal, albeit traditional gender swapped, marriage. He's more persnickety when it comes to cleaning. So he does much of those household duties, including bathrooms and whole-house vacuuming. I hate that noise, so he vacuums when I'm out; that's one of the reasons I love him! We split kitchen duties, with the person who doesn't cook dinner doing the cleanup. We collaborate on investments, deciding how much and where our money goes. As for the day-to-day expenses, I take care of making sure the bills are paid on…

UPDATE, Jan. 28, 2019: The Internal Revenue Service has approved the final version of the 2018 tax year Form 1040. You can read more about the new form and its six schedules in New filing season + new tax law = new Form 1040, schedules. Has anyone really been as happy as this couple when filing their taxes? The IRS hopes the new, shorter Form 1040 will put smiles on more taxpayers' faces. Did you spend your weekend looking at the new Form 1040, which the Treasury Department and Internal Revenue Service officially unveiled on June 29? I didn't think so. That's…

U.S. Treasury Secretary Steven Mnuchin promised that this week we'd see the new, shorter and closer-to-a-postcard Form 1040. Well, the week's almost over and we're still waiting.  However, I'm sure Mnuchin will keep his word and sometime today officially debut the new tax return. My faith is not so much in the Administration's top money man, as it is on the fact that I'll be out of my office and offline most of the day due to some personal business I can't reschedule. I'm good at tax timing like that. At least the proposed changes already have leaked. First came…

The new postcard-sized Form 1040 isn't nearly as pretty as the vintage Austin, Texas, postcard, reproduced as a mural in the Lone Star State's capital city. The tax postcard also isn't nearly as simple as its smaller size — or the Republicans who've long promised it — would have taxpayers believe. Image courtesy Roadhouse Relics Facebook/Instagram The good news about the new postcard-sized Form 1040 is that it is, as promised, smaller. The bad news is that in condensing the form, the Internal Revenue Service removed many popular above-the-line deductions that survived the actual new tax law itself. That's the word…

The world — OK, U.S. tax world — is anxiously anticipating the shrinkage (yeah, I'm now replaying that Seinfeld episode in my head, too; sorry) of Form 1040. The Treasury Secretary last week promised that by the time the 2019 tax filing season rolls around, the longest tax return, which is filed by 68 percent of taxpayers, will be substantially smaller. The goal is the long-promised size of a postcard. But another Internal Revenue Service form that affects even more folks already has been revised. The IRS earlier this month released a draft version of Form W-4 for the 2019 tax…

Since its appearance in 2003, around 50 million taxpayers have used Free File. As the name indicates, this partnership of the Internal Revenue Service and tax software manufacturers known as the Free File Alliance gives most taxpayers the opportunity to do their taxes on their computers and then e-file them at no cost. But, notes Pro Publica in an article co-published with Quartz, the number of Free Filing taxpayers comes to just around 3 percent of eligible households. That, according to the article by Tik Root, means that folks have spent around $1 billion on tax prep and filing fees…

Speaker Paul Ryan touts postcard tax return possibilities after House passage of tax reform legislation last November. (Screen shot from Speaker.gov YouTube video) Every year the Internal Revenue Service makes tweaks to tax returns. Often it's simply updating annual inflation adjusted amounts. Other times it's adding or subtracting a line due to law changes. But for 2018's filing material, there will be large-scale form alterations thanks to the major changes made by the Tax Cuts and Jobs Act (TCJA). Among the new law's modifications for the 2018 tax year will be the actual size of the oldest of the tax…

Kilauea lava flow from U.S. Geological Survey via Giphy.com Hawaiians got some relatively good news this week in connection with the continuing lava flow from Mount Kilauea. The volcano is continuing to spew potentially deadly gases and pour flaming lava across a growing southeastern section of the 50th state's Big Island. The eruption, which started May 3, also is still producing explosions and earthquakes. Now, however, the catastrophe has been declared a major disaster by the White House. That is good tax news for affected residents, which is everyone on the state's largest island, also named Hawaii, as is the…

Fathers Day Happy Fathers Day GIF from Fathersday GIFs Happiest of days to all the dads out there. And thank you Sonora Dodd. Dodd was raised by her father after her mother's death during childbirth. While listening to a sermon at church on Mother's Day, Dodd thought about all her father had done for her and her siblings and decided fathers should have a day, too. Because Dodd's father was born in June, she encouraged churches in Spokane, Washington, where she was living, to honor fathers that month. The first Father's Day was celebrated in Spokane in on June 19,…

It's a cliché because it's true. All politics is local. That applies to taxes, too. Whether you love or hate a tax law depends on how much it helps or hurts you personally. That's why this weekend's Saturday Shout Out goes to the Tax Foundation's interactive map that lets you see average 2018 tax cuts in your congressional district. If you want to go beyond your locality, you can check out the dollar differences on average make to taxpayers across the country. As you can see on the Washington, D.C.-based tax policy nonprofit's map reproduced below, you simply enter your…

Yes, as soon as I heard about the New York Attorney General filing a lawsuit against Donald J. Trump's charitable foundation, I checked the Internal Revenue Service exempt organization online search tool. There it, or they, were. When I entered Trump Foundation into the Tax Exempt Organization Search, or TEOS because everything in Washington, D.C. has an acronym, it turned up six results. The top two were what I was looking for: Trump Foundation EIN: 13-3054537 | New York, NY, United States Donald J Trump Foundation Inc. EIN: 13-3404773 | Woodbury, NY, United States Both organizations are listed in IRS Publication 78, the document that details which groups…

The only folks cheering the Federal Reserve's expected decision to hike its benchmark federal funds rate by a quarter-percentage point — to a range between 1.75 percent and 2 percent — are those with savings that earn interest. But relatively speaking, there aren't that many of us. Plus, we all know that banks and other financial institutions are going to be slow to increase the interest they pay us for holding our money and when they do, the hikes will be small. Meanwhile, if you are trying to get a mortgage, don't panic but move that process along as quickly as…

June's a busy month for me. Lots of family birthdays. Father's Day. Graduations. Taxes. Yep. Taxes. In June. Specifically, June 15. The midpoint of the first month of summer is a major tax deadline. Estimated taxes: The biggie for a lot of taxpayers (including me) is the second installment of 2018's estimated taxes that's due by June 15. You have several ways to make this payment — six, actually, according to the current Weekly Tax Tip. I'll let you check out the details in that other post at your leisure, but here are some of the more popular options: Credit…

Photo by Sandra Seitamaa on Unsplash …School’s out. Summer is here, at least unofficially judging by the temperatures. And thousands of Americans are planning vacations. There also are a sizable number of homeowners hoping to make some extra bucks off all those seasonal travelers. Home rental popularity: Alternative accommodation, as the segment is known in the industry, appeals to those looking to immerse themselves in a new place culturally. Other opt for such lodging for the privacy (no paper-thin hotel walls), convenience (cooking meals instead of always eating out; use of the owner’s Wi-Fi or streaming services) or amenities (a…

The Republican's new tax law is expected to be the focus of the coming midterm elections. GOP candidates are telling taxpayers that they — or most of them, anyway — will owe the U.S. Treasury less in 2018 thanks to the Tax Cuts and Jobs Act (TCJA). Democrats running for office, however, argue that any individual tax cuts under the new law are relatively small and, unless their colleagues across the aisle can change things in the next few months, are temporary. That ending date is Dec. 31, 2025. So who's telling the truth? It depends — wait for it…

Millions of folks filed for an extension last April, getting six more months to finish their 2017 Form 1040. They also paid their expected tax bill, or as much as they could, then so as to avoid late- or nonpayment penalties. Some taxpayers, however, always blow off this annual tax duty entirely. They don't finish he Internal Revenue Service forms. They don't send them and the money to Uncle Sam at all. They might have good reasons for the tax oversight. Or they might just be ignoring their civic tax duties. Regardless, the oversight is gonna hurt. But it doesn't…

Tax law changes mean that some previously deductible miles can no longer be claimed. (Traffic photo by Jo via Flickr) Back in March, the Internal Revenue Service announced revised inflation changes for many tax provisions that were affected by the recently-enacted Tax Cuts and Jobs Act (TCJA). One area that didn't change, however, was the list of 2018 standard mileage amounts used to calculate the driving-related tax breaks associated with medical, business, charity and moving costs. For the 2018 tax year, those cents-per-mile amounts are shown in the table below, along with the 2017 figures for folks who might be able…

Lots of my neighbors are looking to sell, even though for us non-military homeowners there is no longer a tax break for moving. However, many homeowners still will pocket tax-free sales cash that should help cover at least some of the relocation expenses.

If you filed a return on April 17 (or the 18th thanks to the Internal Revenue Service’s Tax Day systems glitch), but didn’t pay your full tax bill, Uncle Sam is coming for you. OK, not in person (yet). So you can still answer when someone rings your doorbell. But the IRS says in the coming weeks it will be sending out billing notices to 2017 tax return filers who still owe money. These tax bills actually will be in the form of IRS notices, specially notices CP14 and CP501, which are frequently mailed in the months of June and July.…

Prince Harry and Meghan Markle exit St. George's Chapel as husband and wife. (Photo: Kensington Royal Instagram) I'm not a fashionista, but I was impressed with Meghan Markle's wedding dress. The simple, elegant Givenchy gown was perfect. So what happens to the hand-stitched dress that reportedly cost around £100,000 (almost $135,000 U.S.)? Will it be sent to a museum? Sealed, boxed and stuck at the top of a closet for use by a next-generation bride? Lent to a friend for her coming wedding? There's another option, maybe not for the new Duchess of Sussex, but for us commoners. Donate your…

You're parents! Congratulations! Now that you've welcomed your new baby with a special name, be sure to get him or her a Social Security card before you leave the hospital. It will help in completing many of life's tasks, including filing taxes. Click image to watch the Social Security Administration's top baby names of 2017 video at YouTube. How did your folks come up with your name? Were you named after a relative? A place? A friend? A favorite movie star? By a random dart that landed on a sheet of potential handles? My grandmother named me. Well, she at least…

Click image to watch the Mos Eisley cantina scene, in which these musicians provide the catchy background tune, from the 1977 Star Wars movie that launched the sci-fi film franchise. Merry May 4th. Yes, this is another goofy, made-up holiday, but one that's dear to sci-fi fans (and punsters), particularly those devoted to Star Wars. The film franchise's iconic "May the force be with you" greeting is celebrated each year on the similar sounding "May the Fourth be with you." As a long-time sci-fi fan and a college student who waited in a long line to see the 1977 debut…

May 4. That's the day the Ways and Means Oversight Subcommittee wants the Internal Revenue Service to explain exactly what happened on this year's Tax Day. If you were a last-minute filer, especially one trying to pay your 2017 tax bill, you remember the hassle on April 17 when the IRS experienced a spectacularly ill-timed systems crash. That day, one of the busiest of the year for the IRS, one of the agency's core systems in West Virginia failed. Unfortunately for the IRS and millions of tax-owing filers, it was the system that powered the IRS' Direct Pay and Payment…

@bublywater via Giphy.com If you missed this year's doubly extended tax filing deadline simply because you procrastinated, or actually over-procrastinated, then you're out of luck. If you owe tax for the 2017 tax year, interest and penalties already are piling up. If this is you — no judging here, just some advice — at least get a belated extension request into the Internal Revenue Service ASAP, along with the money you owe, to stop that costly process from getting worse. The first Weekly Tax Tip of 2018 offers some guidance on moves to make if your missed the Tax Day deadline. Other…

The Internal Revenue Service had issues with some of its online systems on Tuesday, April 17, the day that was supposed to be the filing deadline for our 2017 tax returns. Those problems notwithstanding, e-fling and electronically paying any tax that’s due today, Wednesday, April 18 — yes, today, the new filing deadline provided by the IRS to make up for its online inconveniences yesterday — is still the best move for many filers. The agency for years has been encouraging, and in some cases forcing, electronic filing and paying of taxes. The reasons are that it’s easier (definitely for…

Take this broken computer and multiply by millions. That was what it felt like April 17 for many taxpayers who were trying to use IRS.gov online services to finish up their tax tasks on deadline day. (Photo by Brian Herzog via Flickr) Tax Day 2018 has been awful for a lot of folks, including those at the Internal Revenue Service. That's why the IRS is going to take another run at it on April 18. Late Tuesday, April 17, afternoon, the tax agency announced that it's going to give everyone an additional day to file and pay their taxes following…

April 17 is Tax Day 2018. That means, of course, that tax returns for last year are due. But other tax tasks also share the annual April deadline. A big one for millions of taxpayers is the filing of the year's first estimated tax payment. Estimated tax payments are made by folks who have income that isn't subject to withholding. This typically is money made from full-time self-employment, side hustles, investment income and/or prize or gambling winnings (which is often like investing, but I digress). An earlier post has the scoop on these four extra tax payments. For today's purposes,…

Source: CafePress tax jigsaw puzzle Still trying to put the pieces of your Form 1040 (or 1040A or even 1040EZ) together? Time's running out. Tax Day is almost here. Since the tax filing deadline is April 17 this year, here are 17 tax tips. Not only do they earn this week's By the Numbers honor, some could help you put together a return to send to Uncle Sam on time and at the least possible tax cost to you. 1. File on time. Yes, this first tip is obvious, but a lot of people let the filing date slip by even in years, like…

"If anyone from the, uh, from the IRS is watching, I…forgot to file my, my, my 1040 return. Um, I meant to do it today, but…." That tax oversight admission was made on April 11, 1970, by National Aeronautics and Space Administration (NASA) astronaut and Apollo 13 command module pilot John "Jack" Swigert. Bill Paxton as Fred Haise, Tom Hanks as Jim Lovell and Kevin Bacon as Jack Swigert in a pivotal scene from the 1995 Universal Pictures film "Apollo 13." (Image courtesy IMBD.com) By now, everyone knows, either because they're fans of NASA (like me!) or the popular Ron…

Tax Day is less than a week away. But finishing up your 2017 Form 1040 is not the only tax task facing millions of Americans. Here are 10 tax matters that must be taken care of by April 17. 1. File your 2017 tax year federal tax return. Yeah, I started with the easy (so to speak), obvious one. But it is the reason for the tax season. If you don't get your return into or on the way if snail mailing by Tax Day, the late-filing penalty is 5 percent of the additional taxes owed amount for every month…

Federal, and most state, tax returns are due in less than a week. Don't panic! You still have time to finish your return (or get an extension). But don't be in such a rush that you make a costly mistake. Yes, errors on 1040s still happen, even though most of use tax preparation software that catches errors on our annual returns. Here are a dozen common tax mistakes that millions of taxpayers make every year. Some are directly from the Internal Revenue Service. Others are based on my and other filers' experiences. 1. Missing or inaccurate Social Security numbers: This nine-digit…

Most taxpayers have never itemized their deductions. And the new tax law that took effect this year will ensure that even fewer filers fill out a Schedule A. By nearly doubling the standard deduction amounts, the Tax Cuts and Jobs Act (TCJA) will prompt more folks to use them instead of messing with the record keeping and extra paperwork itemized deductions require. Plus, as I'm sure you've heard by now, starting with the 2018 tax year and running through, for now, 2025, other TCJA changes will make itemizing even less valuable. The amount of state and local taxes, including your…

Most U.S. taxpayers get refunds. But the time it takes to get that over-withheld money seems to get longer every filing season, at least according to the emails I've received and comments on my refund-related blog posts. Part of the reason is the annual mandated hold until mid-February of refunds associated with returns that included Earned Income Tax Credit (EITC) or Additional Child Tax Credit claims. Realistically, that money doesn't show up in many affected filers' hands until the end of February. Then earlier this year, Congress decided to renew some tax breaks after the filing season had already been underway…

Tax Day 2018 is almost here. This mid-April deadline, which falls on April 17 this year due to the Emancipation Day federal holiday in Washington, D.C., means that millions of us are in the midst of finishing up our federal tax returns. Many filers also are doing double tax duty right now. That's because they live in a state that taxes some portion of income. And most of those income tax collecting states follow the IRS filing calendar. That means those states' deadlines this year also are April 17. No, some or all state taxable income: Here in Texas, the hubby and…

Welcome April, the Internal Revenue Service favorite month. It's when millions of us file our returns and, despite the billions of dollars in refunds that are sent (eventually), many filers also settle up with Uncle Sam. Those folks who owe tend to be the ones who enter April with tax tasks still to complete. If you're one of the procrastinators, here are some things your absolutely must do by Tuesday, April 17, again because the Emancipation Day federal holiday is celebrated in the IRS headquarters' home of Washington, D.C. That's two more days than usual, but not enough if you've…

Kids all across the country, including those in my neighborhood, spent Saturday hunting for brightly colored eggs. Or, if they're in the Washington, D.C. area, perhaps they're getting ready to participate in tomorrow's (Monday, April 2) 140th annual White House Easter Egg Roll, like the youngsters in the photo above did last year. Their parents, however, are more likely this weekend to be hunting for tax breaks as the April 17 filing deadline nears. Every tax season, lots of taxpayers overlook some deductions, credits or other tax moves that can reduce their eventual Internal Revenue Service bill. Here are some that…

The larger standard deduction under the Tax Cuts and Jobs Act (TCJA) that took effect this year has gotten a lot of attention. One of the big pluses, cite fans of the new nearly doubled standard deduction amounts, is that more people will claim them instead of itemizing tax deductible expenses. But regardless of whether you itemize now, plan to under the new tax law or never ever messed with a Schedule A and don't plan to start, there still are some tax deductions you can claim. They are what are popularly known as above-the-line deductions found directly on 1040…

Rep. Lynn Jenkins (R-Kansas) and fellow Ways and Means member Rep. John Lewis (D-Georgia) have offered a bill to revamp the IRS. Remember the kinder, gentler Internal Revenue Service? That was the goal of the IRS Restructuring and Reform Act of 1998, which sought to ease up on the tax agency's aggressive collection actions back then. Now two Ways and Means Committee members are looking to remake the IRS into a modern, more efficient agency that provides taxpayers a better experience. I'm pretty sure that modernizing and refining processes for better efficiency can eventually be accomplished. As for the improved taxpayer experience goal?…

Internal Revenue Service filing data complete through March 16 shows that it has issued almost $183 million in tax refunds to around 62 million taxpayers. Many of those folks now getting refunds planned on the tax-back money. They used paycheck over-withholding as a forced savings account. These are the types of taxpayers the IRS is hoping to reach as part of Paycheck Checkup Week, which kicked off on Monday, March 26. Over the next few days, the IRS is making a special effort to get people to take another look at their payroll withholding. Such reexamination is especially important now…

When we pay a tax pro for help, we trust that person. Sometimes we shouldn’t.  Most of use tax professionals to help get through tax season. Thankfully, most paid tax preparers are honest. They want to help their clients meet their tax responsibilities by legally paying the least amount of tax possible under the Internal Revenue Code. But most is not all. Some tax preparers run fly-by-night operations where they simply look to make a quick buck off of honest individuals seeking tax assistance. These pros, and I use the description advisedly, often get paid based on a percentage of taxpayers’ refunds, which they inflate by advising…

I am so, so sorry my dear friends in the MidAtlantic and Northeastern United States. I know you're looking at possibly more snow with the fourth nor'easter in three weeks forecast to hit your areas in a few days. Here in Central Texas and other parts of the country, however, spring has officially arrived! My Texas neighbors and I are enjoying the seasonal wildflowers. Thank you, Lady Bird Johnson! (Photo by Kay Bell) It's also the traditional time for cleaning up and clearing out your house. Some of those old and/or unused items can be tossed. Others, however, are in…

Energy-efficient skylights installed in 2017 could provide homeowners some savings thanks to a recently renewed tax credit. Congress slipped some expired tax breaks into the Bipartisan Budget Act of 2018 enacted back in February. That was good news for taxpayers who can claim these tax breaks, but it set off a mad scramble within the Internal Revenue Service. Playing processing catch-up: Uncle Sam's tax agency had to dig out and update the appropriate forms and then re-set its processing systems to handle them. And all this had to be done while the 2018 tax-filing season was already underway. The IRS…

A view of Connemara, along Ireland's west coast, by Fred Bigio via Flickr CC. St. Patrick's Day is almost here, but it's not the lush Kelly green landscapes of the Emerald Isle we taxpayers are thinking about right now. We want to know ways to save some greenbacks on our taxes. Inspired by the man brave enough, at least in myth, to face down snakes and the March 17th day we honor him, here are 17 ways to round up some tax savings from the almost as scary U.S. tax code. 1. Non-cash charitable gifts: If you gave household goods…

Like the never-ending string of decimals it commemorates, Pi Day continues.On this year's official March 14, 2019, celebration of this mathematical marvel, I'm repostinga previous π Day item, with its still applicable tax advice on rounding tax form entries. Doing taxes is all about the numbers. The forms require our Social Security number and that of our spouse and dependent children. Similar identification digits also are key on tax forms from, for example, our employers and other entities that contribute to our taxable income. And, of course, we have to put in all those figures about our earnings and subtract…

Winter will just not let go this year. The Northeast has been pummeled by three northeasters in 11 days. The consecutive blizzards make everything difficult, including doing taxes. That's why the Internal Revenue Service is giving businesses affected by the storms some extra time. Business returns are due Thursday, March 15. If, however, those filers cannot get their tax year 2017 taxes done by then, the IRS says they can request an automatic extension by filing Form 7004, on or before Tuesday, March 20. Form 7004,  available on IRS.gov, provides a six-month extension to complete the Forms 1065 and 1065-B…

Photo by GotCredit via Flickr CC It's hard for most of us to believe, but every year some folks who are due federal tax refunds do not file returns with the Internal Revenue Service. If they ignore those filings for more than three years, then Uncle Sam gets to keep the money permanently. Right now, though, the U.S. Treasury is just holding the unclaimed tax refunds — a total of $1.1 billion. That's how much cash the estimated 1 million taxpayers who didn't file a tax year 2014 Form 1040 back in 2015 could be kissing goodbye. They have until…

Are you still waiting to file your taxes because you want additional guidance from the Internal Revenue Service about the 2018 property taxes you prepaid last year? You are not alone. A group of Democratic lawmakers, some of who met with the acting head of the IRS last month on this topic, are continuing to press the agency for a final rule about this deduction that was reduced under the newly enacted Tax Cuts and Jobs Act. The latest demand for deduction clarification came earlier this week when some Democrats on the House Ways and Means Committee sent Acting IRS…

As soon as Congress began debating tax law changes in late 2017, there's been much controversy and confusion about just how much individual taxpayers would benefit. For months, it's basically been a guessing game. Now, however, we each can get a more precise idea of our tax liability under the Tax Cuts and Jobs Act (TCJA) that took effect on Jan. 1. The Internal Revenue Service has updated its online withholding calculator. The new calculator version, along with a revised Form W-4, should help taxpayers determine their proper 2018 payroll withholding amounts. In with the new, out with the old…

Image courtesy SimpsonsWorld via Giphy.com The Tuesday after Presidents Day generally is the busiest day of the year for calls to the Internal Revenue Service's toll-free help line. That also means that callers find themselves on hold. Such waiting, compounded by being forced to listen to tunes that would never ever make your Spotify playlist, is common throughout the filing season. That then leads to taxpayer frustration, which often prompts filers to try different avenues to get answers to their questions. Don't, however, just randomly call any IRS phone number seeking tax help, cautions the IRS. And definitely don't call help lines that…

If you've been wondering when you can take advantage on your 2017 tax return of a recently renewed tax extender, your wait could be over. The IRS announced today, Feb. 22, that it's now ready to process returns claiming three recently renewed tax breaks Surprise extenders: Congress threw the tax world for a loop earlier this month when it tacked some expired tax break onto its budget bill. The tax laws, popularly known as extenders because they are temporary and must be periodically renewed or extended, included a variety of tax breaks for businesses and individuals. Immediately following the Congressional…

Most taxpayers now are focusing on completing their annual tax returns. But if we have to deal with the Internal Revenue Service to finish that Form 1040, or if the agency subsequently has some questions about it, Uncle Sam’s tax collector wants us to know we have some inalienable tax rights. The 10 components of Taxpayer Bill of Rights (TBOR) are this week’s By the Numbers figure. Here they are: 1. The Right to Be Informed: Taxpayers have the right to know what they need to do to comply with the tax laws. They are entitled to clear explanations of…

Updated Feb. 14, 2019 Princess Bride impatience via Giphy.com Mid-February is finally here, the time when the Internal Revenue Service can finally issue refunds to taxpayers who had claimed the Additional Child Tax Credit (ACTC) and/or the Earned Income Tax Credit (EITC). Does that mean these refunds will show up today? No, that's a refund myth, even if you filed your Form 1040 on Jan. 28, the first day that the IRS began processing 2018 tax year returns. Neither is your refund likely to be directly deposited into your bank account, loaded onto a debit card or as a paper check stuffed in…

Beavis (sans Butt-head) offers callers, uh, help? (Image via Giphy.com) Looking for tax filing help from the Internal Revenue Service? Prepare beforehand. Tax identity theft concerns mean you'll have to prove to the IRS that you are you if you call the agency's tax hotline. And if you want face-to-face help at your local Taxpayer Assistance Center (TAC), you'll have to make an appointment. Telephone tax ID issues: I know. You're already unhappy with the IRS phone hotline. The IRS knows, too. Every filing season answering taxpayers' questions telephonically is on the agency's to-improve list. Last year, it even opened its phone lines on…

I hope she said yes! (Photo by Matt via Flickr) Valentine's Day has become one of the most popular days of the year to propose. If you're anticipating popping or answering the big question at an intimate romantic dinner tonight, taxes likely won't be on your mind. But perhaps they should be. Love and money: I'm a big fan of marriage. I've been in a mostly happy one with the hubby for a looong time. (Yes, I was a child bride!) But even back then, I was a tax geek. That's why our choice of wedding date — the year…

Since Congress decided to slip some expired tax breaks into the budget bill enacted earlier today and make them retroactive to the 2017 tax year, some folks will be amending the 1040 forms they've already filed. Ignore that smirking sound loud enough to make it onto the internet. It's the perpetually procrastinating hubby being all smug about how sometimes it does pay to put things off for a while. However, if, unlike the hubby, you don't defer tasks and were an early tax filer who now can claim, for example, the tuition and fees above-the-line tax deduction, you're probably already working on…

Dealing with taxes is tough enough, but when folks get the wrong information, things can go really bad really fast. That happens every filing season. Someone's uncle who works down the hall from a tax attorney says this. A neighbor's accountant brother says that. And, of course, there's the internet, probably the greatest single source of, to borrow a phrase, fake tax news. The 2018 filing season is in full swing; it officially opened on Jan. 29, with Free File taking submissions since Jan. 12. Most of the folks who've already filed did so because they're expecting refunds. With those…

Updated Nov. 19, 2018, to include 2019 capital gains tax changes due to inflation adjustments. I don't like roller coasters. Big Thunder Mountain Railroad, not Space Mountain, is my Disney World speed. Plus, as an investor, I get enough virtual and financial whiplash from following my portfolio. This week especially. From watching CNBC the last two days I've learned: The Dow is having its worst month in almost eight years. The market's fall of 1,179 points on Monday, Feb. 5, was the Dow's biggest drop ever. The 4.6 percent fall to close at just over 24,300 yesterday was, on a percentage…

Thirty days hath September, April, June, and November. All the rest have 31, Except for February, Which has 28 to put to use doing your taxes. OK, I took some liberties with the traditional poem. But it is true that despite its reduced days, February still provides plenty of time to make some key tax moves. Here, since it is a short month, are three. Collect your tax statements: Most of the tax statements that you need to fill out your Form 1040 should be arriving by early this month. They were supposed to be to you or at least…

Every tax season, the April filing deadline gets the most attention. But today, Jan. 31, also is a big tax day. It's when most statements with information you need to complete your Form 1040 (or 1040A or 1040EZ) are supposed to be delivered. Technically, the Internal Revenue Service gives these information statements the same leeway it offers filers on Tax Day. Earnings and other tax-related statements due today are considered on time as long as they're on the way, either electronically (if you agree to that delivery method) or via snail mail by Jan. 31. So if you don't have…

The 2018 tax filing season officially starts today. Many folks have already filed, by using Free File (which opened on Jan. 12), going with software on their own or turning over their tax material to paid preparers. The Internal Revenue Service will now process all those 1040s that were completed earlier this month and were on hold. If you, however, haven't gotten around to filling out your taxes yet, here's a checklist of what you'll need to accurately and easily complete your return. You might not need some of the stuff noted in this latest checklist. Feel free to skip…

Grandparents who are raising their grandchildren might benefit by claiming the Earned Income Tax Credit (EITC). The IRS has additional information for these taxpayers and other special groups and situations where the EITC could help. Friday, Jan. 26, was EITC Awareness Day, the 12th annual event during with the Internal Revenue Service makes a special effort to get the word out about this tax break that millions of filers ignore each year. Actually, the tax agency made special efforts, plural, yesterday. There were more than 250 total outreach events and activities around the country to promote the Earned Income Tax…

Every tax filing season, millions overlook the Earned Income Tax Credit (EITC), a tax break that could save them thousands of dollars. Nationwide, the Internal Revenue Service says that every tax season around 20 percent of filers who could claim this credit don't. That's an amazing statistic in a tax culture that's obsessed with getting refunds. Why EITC is ignored: So why are so many filers leaving all those tax dollars in the U.S. Treasury's account? There are three main reasons. First, some people think they make too much money to claim the EITC. True, this tax credit was created…

Updated Friday, Feb. 22, 2019 Free tax-preparation and filing help, like that shown here at a Rutherford County, Tennessee, VITA office, is available at thousands of sites across the country. You need help with your taxes but you can't afford a professional. A couple of community-based, Internal Revenue Service endorsed and, best of all, free tax filing help options may just be the answer. If you earn around $56,000 or less, have a disability, are elderly or speak limited English, you may qualify for free tax help from IRS-certified volunteers at Volunteer Income Tax Assistance (VITA) and Tax Counseling for…

One week from today, on Monday, Jan. 29, the Internal Revenue Service will begin accepting 2017 tax year returns. Some folks have already filed, including for free via Free File, which actually opened on Jan. 12. Others, however, will be, shall we say, more deliberative, pushing off filing until closer to April's Tax Day or later thanks to an extension. While you need to take as much time as you need to complete your Form 1040 accurately and fully, it can be beneficial to file earlier rather than later in the tax season. Here are six reasons why early tax filing…

Photo by Alan Cleaver via Flickr CC The federal government might shut down at midnight on Friday, Jan. 19. What will that mean to your taxes? The Internal Revenue Service has opened its Free File online tax preparation and e-filing program. Since the IRS simply acts as the portal to the dozen private tax software manufacturers who actually handle the returns, things there should operate as usual. That means that the taxpayers' returns now being filed through Free File will still be queued up, awaiting processing when the 2018 tax filing season officially starts on Monday, Jan. 29. But what…

Anger over the new Tax Cuts and Jobs Act's limits on federal tax deductions for state and local taxes (SALT) has spilled over into 2018, with lawmakers from high-tax states still looking for ways to undo this provision. Some have petitioned the Internal Revenue Service for revised, more filer-friendly property tax guidance. Other have introduced legislation to fully restore the now-limited SALT itemized write-offs. You thought the battle over paying 2018 local property taxes so that they could be claimed on 2017 tax returns ended on Jan. 1. You were wrong. Asking IRS to reconsider: Sen. Chuck Schumer, Senate minority leader,…

The Rev. Gilbert Caldwell (left) was part of the civil rights movement led by the Rev. Dr. Martin Luther King, Jr. (center). Click the screenshot above to watch the full CBS Sunday Morning feature on how a group of fifth-graders helped correct a 60-year-old act of discrimination against Caldwell and his wife. As a young man, the Rev. Gilbert Caldwell marched with Dr. Rev. Martin Luther King, Jr., whose life we honor and celebrate on this federal holiday. Racial discrimination was among the many wrongs King, Caldwell and other civil rights activists back then were working to right. It's a…

Free File, the no-cost online tax return preparation and e-filing option, is now open for business. Although there's been no official announcement by the IRS and its Free File Alliance tax software partners, a click on the Free File page at IRS.gov invites eligible taxpayers to, "Click the Start Free File Now button to file your FREE federal return." UPDATE: The IRS has now made Free File official! You can read the announcement, but I'd appreciate it if you'd keep reading here. Those who can click the Free File button this year are taxpayers with adjusted gross income (AGI) of…

New withholding tables are just phase one of a three-part implementation of the new tax laws' effects on workers' paychecks. Some folks will see more money each payday, but one thing won't change, says Treasury. Adjustments due to the Tax Cuts and Jobs Act changes won't stop people from overwithholding to intentionally get a big tax refund check. If you regularly get a tax refund, the new tax law and associated payroll withholding won't change that. That's the word today from the U.S. Treasury and Internal Revenue Service as the agencies released new payroll withholding tables to take the tax…

Image courtesy 401kCalculator.org via Flickr Ah, January! A new year, new challenges, new opportunities and old tax tasks. The Internal Revenue Service doesn't give us much time to settle into a new tax year. In fact, it's right there, barely two weeks in, reminding many of us that we have a major tax obligation from the prior tax year to take care of or else. I'm talking, of course, about estimated taxes. These four extra tax payments are made by folks who get income that doesn't have income taxes withheld. If you don't pay, or don't pay on time, you'll…

Welcome 2018 tax year. We know you are going to be crazy, but we are ready for whatever you plan to throw at us. And it will be a lot. In addition to starting out with the usual filing season tasks that focus on getting our 2017 tax returns to the Internal Revenue Service, there also are the Tax Cuts and Jobs Act changes to the tax code that will affect our 2018 tax bills. The Daily Tax Tip feature is here to help you accomplish both your 2017 filing and planning for 2018, regardless of whether you're confident enough to work on…

The Internal Revenue Service will start accepting tax year 2017 returns on Monday, Jan. 29. Other key dates to note this 2018 filing season include the start of Free File (Jan. 12), the earliest some tax-credit-related refunds can be issued (Feb. 15+/-) and Tax Day (April 17). Ready, set, file … on the 29th: Get out your brand new 2018 calendar and mark Jan. 29. That's the day the Internal Revenue Service will start accepting 2017 tax year returns. That's about a week later than the annual filing season started last year, meaning the agency will be under added pressure…

Welcome 2018! Yes, I know we're well into day four of this brand spanking New Year. But we all get a pass on the first day to recover from our New Year Eve parties. And days two and three were consumed by looking back at what was accomplished tax-wise in 2017, looking ahead at what we can expect from taxes in 2018, chatting with fellow tax folk (OK, maybe that was just me) and dealing with scary winter weather. Bundle up, all my friends along the East Coast! Now, though, it's time to get down to tax business. Time for…

Tax professionals are feeling all “Mean Girls” Gretchen Wieners right now. Thanks to the new tax law, their services are in high demand.