Get out your calendars! The IRS has some tax-related dates for us. The biggie is the start of the upcoming tax-filing season. That will happen on Jan. 23, 2017. That Monday, the Internal Revenue Service says it will start processing our 2016 tax year returns. Here are some details on that day, as well as three other important tax days/deadlines in 2017. Jan. 23, 2017: In announcing the official start of the 2017 tax filing season, the IRS acknowledged that eager filers expecting refunds are likely to get their 1040s filled out well before next Jan. 23. Many software companies…

Every presidential year, some of the folks whose candidate didn't make it to the White House swear they're moving to another country. Maybe some of them got a head start this year. U.S. passports have blue covers. Thousands of Americans, however, have become expatriates this year, giving up their U.S. documents, perhaps for a United Kingdom passport like the one shown above. The Internal Revenue Service reported 1,380 expatriations in the third quarter of 2016. That just missed the record of 1,426 Americans who decided to renounce their U.S. citizenship during the same period last year. That's a huge increase from…

We call it Veterans Day here in the United States. An Army veteran salutes the colors being carried in the Veterans Day parade in downtown Pittsburgh, Pennsylvania, on Nov. 11, 2011. (Photo courtesy U.S. Army via Flickr) That Nov. 11 is such an important date is evidenced by the fact that federal holiday has escaped conversion into a Monday that wraps up a long weekend that's usually more focused on consumer spending than actual commemoration. End of the Great War: Each November we mark what originally was the official, formal end of World War I at the 11th hour of the 11th…

Welcome to Part 7 of the ol’ blog’s series on 2017 inflation adjustments.You can find links to all 2017 inflation posts in the series’ first item: Income Tax Brackets and Rates. Today we look at changes to the Alternative Minimum Tax exemption amounts, as well as the previously announced increase in the Social Security wage base.Note: The 2017 figures apply to 2017 returns that are due in 2018. For comparison purposes, you’ll also find 2016 amounts to be usedin filing 2016 returns due next April. The AMT, or Alternative Minimum Tax, forces some taxpayers to do extra work to pay more taxes.…

It's official. We will not see Donald J. Trump's tax returns before we vote on Nov. 8. During an interview Oct. 30 on NBC's Meet the Press, Indiana Gov. Mike Pence, Trump's running mate, reiterated that Trump will not release his returns until after an audit is completed. This Twitter image of Donald J. Trump signing his 2014 return on Oct. 15, 2015, is probably the closest we'll get to seeing the Republican presidential candidate's tax filings. "All right, so not before the election?" host Chuck Todd asked. "Yeah," Pence replied. Breaking election tradition, again: If the Republican presidential nominee wins…

Welcome to Part 2 of the ol' blog's series on 2017 inflation adjustments, which kicked off yesterday with the tweaked 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 wealthier taxpayers. Note: The 2017 figures apply to 2017 returns that are due in 2018. For comparison purposes, you'll also find 2016 amounts to be used in filing 2016 returns due next April. Standard deduction amounts go up: Itemized deductions get a lot of attention. There are several of them and they require more attention by…

I spent almost two decades working in Washington, D.C. I also have covered taxes for most of my writing career. So I love acronyms. That's why I'm jazzed that the current presidential campaign has highlighted a tax-related nickname for some rich taxpayers. Here's a HINT. Got it yet? For normal folks who speak regular English, it's High Income, No Tax, aka HINT. GOP HINT: David Cay Johnston, Pulitzer Prize winning journalist and current thorn in Donald J. Trump's side, notes in a recent column for The Daily Beast that the Republican nominee is an extreme example of a HINT. Before…

It's almost here, the Oct. 17 tax extension filing deadline. Since the regular 15th due date is Saturday, procrastinating filers get a couple of extra days to do their tax jobs. Don't waste them.  UPDATE: Some filers in states where major natural disasters were declared also get time beyond 10/17. Details in  Oct. 17 is final filing deadline for most, but is extended further for folks in FL, LA, NC and WVA disaster areas IRS grants more tax relief for Hurricane Matthew filers in Florida, Georgia and North and South Carolina But also don't be in such a last-minute panic…

Many tax laws might be absurd, but overall, taxes are no laughing matter, especially when it comes to filers who use frivolous tax arguments. Some things crack up even Star Trek's usually stoic Data, but not frivolous tax arguments. The Internal Revenue Service defines frivolous tax arguments as misinterpretations or disregard of tax laws in order to evade paying taxes or claim refunds to which they aren't entitled. To date, the IRS has identified 50 frivolous tax arguments used by taxpayers. And those improper refunds have cost the U.S. Treasury — and responsible taxpayers — more than $27.2 million. Millions claimed…

"An American has no sense of privacy. He does not know what it means. There is no such thing in the country." That observation on the American penchant for (over)sharing was made by the Irish playwright George Bernard Shaw long before reality TV shows and social media. It's taken on new significance this election year as we have a major party candidate who, years before he launched his White House quest, was introduced to the electorate as star of his own television program. Donald Trump's former accountant, in an interview with CNN, refutes the Republican presidential candidate's claim of his…

Have you filed your 2015 tax return yet? Don't feel bad. You are definitely not alone. The Internal Revenue Service on Friday, Oct. 7, noted that fewer than a third of the 13 million taxpayers who requested an automatic six-month extension earlier this year have yet to file. This is what my den floor looked like today as I finished up our 2015 tax return with a week to spare before the Oct. 17 extension deadline. Our taxes are done! I am pleased to say that I am no longer part of that group. I finished up my 2015 Form…

No, we still haven’t seen Donald Trump’s federal tax returns. Donald Trump shared this photo on his Twitter account last October of him signing what he said was his 2015 federal tax return. However, it was old state returns that have given us a glimpse into the Republican presidential candidate’s tax bills. …The information about his $916 million business loss in 1995 comes from state tax returns filed with New York, New Jersey and Connecticut for that year and which were obtained by the New York Times. While that yuge loss could have, as the Times notes, served as a…

October is one of my favorite months, as it ushers in crisp, cooler temperatures. This time of year has two names, fall and autumn. October also is a key month for some important tax moves. And there are many names for taxes, too, although not all printable in the ol' blog. I know it's tempting to rant about taxes instead of thinking about or actually acting on the, especially this time of year. I, too, want to be outside enjoying the arrival of fall. But first I have to take care of a couple of tax tasks. Here are four…

There's an old tax myth that filing an amended tax return will get you audited. Not true. In fact, failing to correct an error you made on your original tax return is more likely to cause you more tax trouble. When the Internal Revenue Service discovers the mistake, and the agency likely eventually will, you'll owe the tax due and penalties and interest. And if you fail to claim a tax break on an amended return that you overlooked when you first filed, then you're the one cheating yourself out of tax savings. An effort worth making: I know, dealing with…

If you have an old federal tax debt, you might be getting a call from a private debt collection agency next year. Under provisions of the transportation bill enacted last year, the Internal Revenue Service is once again to turn over some delinquent tax accounts to private debt collectors. That process will begin in 2017. And today, the IRS announced the a private collection agencies, or PCAs, that it has selected to do the job. They are: CBE Group 1309 Technology Parkway Cedar Falls, Iowa 50613 Conserve 200 CrossKeys Office Park Fairport, New York 14450 Performant 333 North Canyons Parkway Livermore,…

If you follow celebrity news, you've already heard about the impending dissolution of the marriage of one of Hollywood's highest profile couples. Angelina Jolie is seeking a divorce from her husband of two years, Brad Pitt. Brangelina's divorce likely will be much more difficult than separating their Madame Tussaud wax representations. (Photo by Cliff via Flickr) I'll leave it to the internet and tabloids, both print on television versions, to hash out the exact sordid "irreconcilable differences" Jolie cited in her Sept. 19 filing in Los Angeles Superior Court. The couple, who share six children, was together for 12 years, but…

The Internal Revenue Service is pushing via its Future State plan a transition to digital tax systems. That's life in the modern world to which all of us, in doing our taxes and other transactions, are adjusting. Unless paperwork suddenly becomes this magical (don't hold your breath), electronic tax transactions will continue to advance. But the down side of moving more tasks online is that current paper-intensive operations — and the jobs for people who shuffle those actual documents — are becoming obsolete. That's the fate awaiting around 7,200 IRS workers. E-filing advances kill paper jobs: The IRS announced last week that because…

$10,162. That's how much of a federal tax refund that Republican vice presidential nominee Mike Pence and his wife Karen received on their 2015 tax return. Indiana Gov. Mike Pence, GOP vice presidential candidate, campaigning among Ohio State tailgaters during a stop earlier this month in the key Nov. 8 election state. (Photo via @mikepence Twitter account) Since the Pences' refund is almost four times the amount of the average tax refund of $2,732 (per Internal Revenue Service filing data through May 13), the $10,162 that the Pences are getting back from Uncle Sam also earns this week's By the Numbers…

How's your first sort of full week of September going? The "sort of" question qualification comes, of course, because this week is short, at least for many workers, because Monday was Labor Day. September Bliss via HD Wallpapers Does anyone else find it intriguing that many of us celebrate a holiday commemorating work by taking the day off from our jobs? Even I, a self-employed person, took advantage of Labor Day to be lazy. But now it's time to get back to the grind, even — especially — when it comes to taxes. Here are some things you might want to put on your…

This post was updated July 12, 2017. Need time to pay off a big tax bill? It's going to cost you more, thanks to Internal Revenue Service installment plan fee hikes — some substantial —  that took effect in 2017. The IRS on Aug. 19, 2016, announced the plans to add a couple of new installment plan options and increase existing payment arrangement fees. After a public comment period, the increases took effect Jan. 1, 2017. Some taxpayers could see an 87.5 percent price hike, which would produce a top fee of $225 instead of the previous maximum fee of $120. And while…

Hillary Clinton's 2015 tax bill was $3.6 million. We know this because today she released last year's tax return.  Donald Trump's tax bill last year was, who knows? What, me worry about letting voters see my tax returns? Nah. Well, some folks know. The Donald and his phalanx of tax attorneys and accounts know. So does the Internal Revenue Service since, as the Republican presidential candidate tells us every time the tax return question comes up, the agency is auditing him. But we, the voters who in November will choose the next White House occupant, haven't had a chance to look at…

Are you one of the around 10 million taxpayers who got an extension to file? I was. Are you one of this group who's yet to file a tax return? I am. What are we waiting for? We paid any tax we owed, or a close guesstimation of our tax bill, when we filed for the extra six months back in April. So we're not that worried about a big tax bill. And we fully intended to get to the tax task sooner rather than later. But we woke up today, took a look at the calendar (or our smartphone)…

Seth Meyers, host of NBC's Late Night show, has joined the chorus that is challenging Donald J. Trump to make public his personal tax returns. He did so last night (or, depending on your time zone, early this morning) by connecting Trump's tax secrecy to something that is dear to The Donald's heart: Money. "Trump, I think you're not releasing your taxes because you don't have any money," said Meyers, looking into the camera and speaking directly to the Republican presidential nominee, because we all know (wink, nudge) that he was up late watching. Click image to hear Seth Meyers' take on why…

If you have substantial funds in foreign bank accounts or investments, you may need to file a Form 114, Report of Foreign Bank and Financial Accounts. And you need to do so by next Wednesday, June 30. That's a firm deadline. No filing extension is allowed. Because of the no-give for this filing, the due date earns this week's By the Numbers honor. FBAR triggers: The filing is known as the FBAR, which is a sort-of scrambled acronym for the form's name. Although the Internal Revenue Service is intensely interested in tracking potentially taxable money wherever in the world it's held, the…

Hackers continue to assault the Internal Revenue Service's online options, forcing the agency to shut down yet another website tool. Another automated bot hacking attempt by identity thieves has forced the IRS to stop issuing e-file PINs. On Thursday, June 23, the IRS announced that taxpayers can no longer obtain an electronic filing personal identification number, or e-file PIN, at either IRS.gov or even via phone. And due to growing identity theft and tax refund fraud threats, the shutdown of the e-file ID option might be permanent. Who needs an e-file PIN? Some taxpayers use an e-file PIN to verify their identity when…

We're still waiting for Donald J. Trump's federal tax returns, but we have received some clarification on his New York condo's property tax bill. This isn't The Donald's Big Apple home, but another apartment for sale with similar views in New York City's Trump Tower. Trump's attorney asked the New York City tax collector to remove a tax break the presumptive Republican presidential nominee had received that typically is awarded only to taxpayers making less than $500,000. The city complied, thereby increasing Trump's tax bill on his Trump Tower condo by $1,046.41, according to The Wall Street Journal. The removed breaks were from the…

Early in my career of writing about taxes my shelves and desk and file cabinets and office floor were covered in tax-related magazines, books, brochures and Internal Revenue Service issued tax booklets and forms. Now it's my email box that's overflowing. The world, including the tax world, has gone more digital. Although, as that photo at left shows, I still have plenty of actual tax and finance books (including — shameless plug alert — my "Truth About Paying Fewer Taxes" and the "Future Millionaires' Guidebook" that some of my Bankrate colleagues and I wrote) in my office.  One group, however,…

When Crain's New York Business reported in March that self-proclaimed brilliant businessman Donald J. Trump got a tax break available only to folks making $500,000 or less, the ostensible billionaire's people said it was a mistake. If that's true, it's an error that's being repeated. Crain's June 6 online article says that Trump once again received a middle-class tax break on the property tax bill for his luxurious apartment in Trump Tower (pictured at left) on Fifth Avenue. The initial report that Trump, the presumptive Republican presidential nominee, was poor enough to get a special Big Apple property tax break seemed to indicate why he's…

June is jam-packed with special days. It kicks off with the official start of the Atlantic/Gulf of Mexico hurricane season, which seems a bit late since we've already seen two storms form this year. Then there's Flag Day, Father's Day and the arrival, here in the Northern Hemisphere, of summer. And I'm not even counting things like today's National Doughnut Day and all the June weddings that will be special calendar dates for those happy couples. And yes, there are some tax connections to all those days. They are duly noted over in the ol' blog's right column, just under…

Be still, my heart. Daveed Diggs talked about taxes! Diggs, one of the Tony-nominated stars of the Broadway smash “Hamilton,” was on The Tonight Show with Jimmy Fallon last night. He of course talked about his dual roles as America’s favorite fighting Frenchman Lafayette and Thomas Jefferson in Lin-Manuel Miranda’s $10 Founding Father musical. Pre-Broadway jobs: However, just before getting the “Hamilton” parts, the accomplished rapper was at home in Los Angeles and was between gigs. To make ends meet, Diggs delivered catering “in my tore-up Honda Civic … mostly fajitas … at minimum wage, no less.” When he got the…

Even with three extra days to complete taxes this year, some folks missed the April 18 (or 19) tax filing deadline. Did you just give up on tax filing this year? You need to get a return to the IRS ASAP or you'll pay the price. Maybe a personal emergency took precedence. Perhaps you meant to get the job done, but it took longer than you planned and exasperated, you just said, "Later!" Or you discovered you owe, but don't have the money and thought, "What's the point?" The point, regardless of why you didn't get your Form 1040 (or…

Here's a tax-related travel tip. Mail your return before you head out to your favorite festival. Some of the attendees of the Coachella Valley Music and Arts Festival's opening weekend, April 15-17, tried to fulfill their tax-filing duties. Unfortunately for them, the Coachella campground's post office is not a full-service facility. Instead, the small operation is more of an intermediary between festival-goers and the real local post office in Indio, California, proper. The temporary Coachella post office this year is housed in a life-sized version of a Lincoln Log cabin, according to The Orange County Register. It was put together, complete with the…

Finally! Tax Day 2016 has arrived for folks in Maine and Massachusetts. While procrastinators in the other 48 states and District of Columbia were working to finish their 1040s yesterday and get them on their way to the Internal Revenue Service, folks in Maine and Massachusetts had a literal and tax holiday. Monday, April 18, was Patriots’ Day in those two New England states. The annual state holiday commemorates the 1775 Revolutionary War battles at Lexington and Concord, Massachusetts. That celebration of the start of America's birth, as well as the running of the Boston Marathon and a day game…

Finally! Tax Day 2016 has arrived. Here are three things to do to make sure you and the Internal Revenue Service are happy today. Don't worry. You don't have to do all of them! 1. File your 1040 (or 1040A or 1040EZ)If you can finish your taxes — and do them correctly, not making mistakes or missing out on some tax breaks — then get your return on its way to the IRS. If you're e-filing, you can hit the send button by midnight your local time, although I don't recommend waiting that late in case you have technical problems.…

Tax returns are due tomorrow. Most of us have filed. But there are around 10 million procrastinating holdouts. Part of the reason we put off taxes is that it's a pain in, well, just about every body part. Sen. Elizabeth Warren (D-Massachusetts) wants to make the process easier, especially for folks with simple returns. She's introduced the Tax Filing Simplification Act of 2016, which would require the Internal Revenue Service provide these taxpayers with prefilled 1040 forms, based on their tax documents that also are copied to the IRS. The process would be even easier next year, when a provision…

This post was updated Tuesday, Feb. 21, 2017 Fake news. Alternative facts. We've all grown familiar with, and perhaps a big inured to, such phrases of late. Spinning language is something politicians have done for, well, forever. And it's not limited to just news. At tax time we hear a lot of things, especially on the internet, that we hope will help us make wise decisions when we file our taxes. But some of it is wrong. To fight this trend of alternative, fake tax facts, as well as brighten up your day a bit, I thought you might enjoy…

If you started off today freaking out because you haven't finished — or even started — your 2015 tax return, chill. The federal (and most state) tax-filing deadline this year is April 18. That means you have the whole weekend to work on taxes. Sorry. Taking tax steps: You can, of course, file for an extension. That will let you procrastinate until Oct. 17 (yes, that Oct. 15 deadline is later this year, too, since the 15th falls on a Saturday). But if you think you'll owe Uncle Sam, you'll need to at least do a down-and-dirty tax filing run…

Tax Day is almost here. If you're one of the millions still to file, I understand. No judging here. I'm part of the last-minute tax crew, too. The key as April 18 nears is not to panic. If you freak out while doing your taxes, you'll likely make a mistake (or two or …) that could be costly. Source: Reddit.com So that you don't end up writing a check like the one above, here are 10 common tax-filing mistakes to avoid. 1. Math miscalculations – This is the most common tax mistake every filing season. It includes addition, subtraction, percentage calculation and…

Most of us rely on digital services to get us through our days. The Internal Revenue Service has taken advantage of this addiction tendency, making it easier — and in some cases requiring — that our federal tax agency interactions be electronic. But some old-school filers persist. Even if they use computer software to complete their tax returns, they insist on printing out the forms and sending the dead-tree docs to the IRS. Such traditional taxpayers have two options. They can snail mail their documents, or they can send them via a private delivery service, or as the IRS calls…

Tax Day 2016 is a week away. That's seven days to take care of your annual tax duty. It also means you have seven days to complete some other tax-related tasks that have an April 18 deadline, too. Here are eight tax tasks to take care of in this final filing week. The Beatles' most famous tax-related song is Tax Man, but for this post, Eight Days a Week works, too. Click image to watch the YouTube video of the more-than-a-week-long song. 1. File your 2015 tax year federal tax return. If you miss this deadline by more than 60 days, this year…

Nearly 10 million households didn't have bank accounts in 2013, according to the latest survey of individuals' banking habits by the Federal Deposit Insurance Corporation (FDIC). That's a lot of folks for whom cash is king. That's also a lot of people for whom paying a federal tax bill is not that easy … until now. Taxpayers who want to pay their Internal Revenue Service bills in cash now can do so at some 7-Eleven stores. Tax cash: For fans of cash, the 7-Eleven cash tax payment option is available thanks to an arrangement between the Internal Revenue Service, Official Payments and…

NOTE: This post was updated Jan. 26, 2017. Obamacare, the popular name for the Affordable Care Act (ACA), was supposed to be a key factor in the 2016 presidential election. It still might be one came up in the general election once Democrats and Republicans have settled on their respective candidates. Now the Republican-controlled Congress and GOP President Donald Trump are working on repealing and replacing the prior president's signature health care law. So far, though, For the most part during last year's run for the White House, health care has received only cursory mention and, surprisingly, that's been was on the…

Uncle Sam's favorite month has arrived. By the middle of every April every year, the Internal Revenue Service has heard from most U.S. taxpayers. Sure, it's not friendly hellos. Millions of us are contacting him to get refunds. Some of us, though, are sending him a few more dollars Either way, Uncle Sam is thrilled. Not so thrilled are those of us who put off our annual tax task. A few more days: This year, we get a few extra days to fulfill our tax responsibilities. Since Emancipation Day, a federal holiday in Washington, D.C., falls on Friday, April 15,…

We're still waiting for Donald Trump, the front-runner for the Republican presidential nomination, to release any of his personal tax returns. It's not a campaign requirement, but it is a tradition that we, the voting public and media, have come to expect. Failure, or resistance, to do so tends to make us suspect that the White House wannabe is hiding something. The Donald's excuse, recently reinforced by a letter from a pair of is attorneys, is that his personal tax filings are under Internal Revenue Service audit. When that's done, says Trump, he'll make the 1040s public. But another candidate…

In case you haven't check the countdown clock over in the ol' blog's right column, the filing deadline for your 2015 tax return is just a month away. If you haven't done your taxes yet — and I admit I'm right there in that procrastinating group — this might be a good weekend to at least get started. And the Internal Revenue Service has a suggested resource to help with that task: Publication 17. Officially titled "Your Federal Income Tax," this 286-page booklet basically is, as its stylized Washington, D.C., skyline cover says, the IRS' tax guide for individuals as they fill…

Nope, that headline date is not wrong. If you didn't file a federal tax return three years ago for the 2012 tax year and were due a refund, you must file that old paperwork by this year's April filing due date to get your money. For most of us, that's April 18, but it's a day later in Maine and Massachusetts thanks to Patriots Day celebrations in those two New England States. If you don't, then Uncle Sam gets to keep your refund. And that could be a sizable amount. Almost $1 billion unclaimed refunds: The Internal Revenue Service Federal says…

Crain's New York Business may have shed some light on why Donald J. Trump doesn't want us to see his tax returns. The magazine reports that the billionaire real estate developer got a property tax break designed for New Yorkers making less than $500,000 a year. Michigan voters apparently weren't concerned about Trump's tax returns, giving him that state's GOP primary win on March 8. Numerous publications, as well as The Donald himself, say that the Republican presidential nominee front-runner is worth billions, although the exact dollar amounts vary. Trump makes it simple for us, noting that he's "really rich." But net…

And once again this election season, it comes back to Donald J. Trump. Ohio Gov. John Kasich released seven years' worth of partial tax returns on Saturday, March 5, following the previously set pattern of U.S. Sens. Ted Cruz of Texas and Marco Rubio of Florida. That leaves Trump as the only remaining candidate for the 2016 Republican presidential nomination who has not made public any of his tax filings. He promises he'll let us see his taxes … eventually.  This Twitter photo posted Oct. 15, 2015, is the only glimpse we've had of any of Donald Trump's tax filings. Actually, Trump is the…

As millions of us are still working on our current tax returns, the Internal Revenue Service and its in-house watchdog the National Taxpayer Advocate's office are debating the future of the agency and how that will affect us and our filings in coming years. The IRS is working on what it calls its Future State plan, an outline of agency activities in five years and beyond. One of the plan's central components is online taxpayer accounts. These accounts, says the IRS, will substantially reduce the number of telephone calls and visits it receives every year from filers. The IRS says its Future State…

Donald Trump's opponents for the Republican presidential nomination have to be jumping for joy (OK, my one and only Leap Day reference, I promise) today with the opening he's provided them by playing coy about his personal tax returns. During last week's GOP debate, Trump cited Internal Revenue Service audit of his tax returns as the reason he's not releasing his 1040s to the public. While that's probably the sound advice he's getting from his tax counsel, Trump's main competitors are taking full advantage of the curiosity in the billionaire's taxes. Marco Rubio and Ted Cruz are coming after Donald Trump about, among other…

If you make money, you generally have to file a tax return. And while some young taxpayers are able to avoid filling out a 1040, every filing season there are a lot of new filers in their 20s or younger fulfilling their tax duties for the first time. What do you mean this little guy owes taxes? The Internal Revenue Service's Statistics of Income for the 2013 tax year, the latest one for which there is complete data, reports that more than 25 million filers were younger than 26. These young taxpayers accounted for 17 percent of that year's filings. That's a lot…

Paying taxes isn't voluntary. That's why there's payroll withholding to take the money out of our wages before we get our checks. Don't pay your taxes or file late and you'll be hit with a tax penalty. But the Internal Revenue Service does rely on taxpayers to voluntarily file a return every year and if enough tax hasn't been withheld, pay any added amount that's due. The process is a bit different for self-employed folks. Here the IRS expects estimated tax payments (generally four a year via Form 1040-ES) in addition to an annual Form 1040. Good tax citizenship, however,…

I'm working on a tax story on my laptop, periodically referring to some background material on my PC screen (yes, I still have one of those dinosaurs). Nearby is my smartphone, which keeps flashing with news updates (c'mon, surely there's more happening than Donald Trump rants!). And I'm listening to some tunes (the Hamilton cast album rules!) via my tablet. Yes, I sometimes — OK, all the time — think I'm overly connected. But such electronic options can really come in handy at tax time for folks who want to use their handheld devices to deal with their 1040s. That's…

Donald J. Trump, the leader for the Republican presidential nomination, is happy to talk about how he pays the IRS as little as possible. He's even taken to Twitter, his favorite social media platform, to do a little tax trash talking with some then White House wannabe competitors. During that exchange on the Oct. 15, 2015, extended filing deadline date, he shared a photo of himself signing his 2014 return. But The Donald is not quite ready to actually let us see at least some of what was on all those tax forms. Media calling for DJT tax returns: The Wall Street…

Millennials are relishing their influence in the current presidential campaign, especially on the Democratic side where they're helping make the nomination race very close. But when it comes to taxes, this younger generation apparently is not nearly as confident. A recent survey by NerdWallet and Harris Poll found that millennials fear tax season more than other tax-paying age group. Fear of filing mistakes: The reason for the dread? Potential tax mistakes. Around 80 percent of the young adult taxpayers told pollsters that making an error on their 1040s was a major filing concern. That's understandable. Making a tax mistake can be…

One easy — and scary — way to know that we're at the peak of tax filing season is to look at the number of questionable emails, text messages and phone calls you're getting from folks seeking details about your taxes. Just this month, I've received two calls from the ubiquitous fake Internal Revenue Service agents threatening me with legal action. The first one, which was left as a message on my office answering machine, was obviously a poorly done mechanical scare tactic. The second call came a few days later, also from a bot, but better quality. I answered…

Everyone was reminded last week of Albert Einstein's brilliance. Almost exactly 100 years after the wild-haired physicist posited the existence of gravitational waves, scientists confirmed their existence. Tax folks, however, always acknowledged Einstein's genius. He did, after all, note that even he was baffled by the U.S. tax code. That's one of the biggest problems with taxes. They often make even the smartest among us feel like idiots. Tax software helps. The computer or online programs walk you through the filing process, tying your real-life experiences to the tax breaks that could save you some money. If you feel more comfortable…

Even before the Denver Broncos and Carolina Panthers players step onto the field at Levi’s Stadium in Santa Clara, California, we’ll already have one big winner. Screenshot from NFL Super Bowl 50 trailer on YouTube. The National Football League will pocket millions thanks to the Super Bowl host city’s agreement to hand over all its big game-related sales tax revenue to the league. Yep, the NFL, which made $12 billion over the 2014-15 season, demands that cities awarded the Super Bowl waive or reimburse sales tax on ticket sales and parking passes. What Super Bowl cities lose: That, of course, means that…

Technology is great. Until it isn't. That's what the Internal Revenue Service learned yesterday afternoon, when what the agency describes as a hardware failure led to the shutdown of several parts of its tax processing systems. The big blow was to the IRS modernized e-file system. Insert your own joke here about the IRS and modern. The good news was that it happened during the afternoon of Feb. 3, not on April 18. The better news is that some of the affected areas, like Where's My Refund?, now appear to be working. The best news is that while a number of…

Looking for a creative way to get your taxes done this year? Here's an idea from xkcd.com. "Yes, it took a lot of work to make the cards and pieces, but it's worth it. The players are way more thorough than the tax prep people ever were," says the cartoon creator. I'm a big fan of board games. But I'm not sure I agree with xkcd's creative way to take care of the annual filing duty. I know lots of very thorough tax preparers. I am, however, all for anything that helps folks get their returns done quickly, correctly and…

It's national Spouse's Day. Yes, apparently this is a real day, real in the sense that somebody came up with the idea and managed to get the word out there enough that it's generating some attention. I don't know how I've missed this holiday in previous years, being such a perfect wife to a great husband, but I discovered it today.  Thanks Twitter #SpousesDay. And given that this is the first year that all married couples, regardless of gender and in every state, will be filing joint tax returns, it seems like a perfect day to remind folks of their…

Everybody loves a bargain, even when it comes to paying someone to prepare our taxes. But, say consumer watchdogs, too often taxpayers don't have a good way to comparison shop for a tax pro and find the one that provide them the best service for the price. "The price of preparing a tax return is often only disclosed to a consumer after the return is completed," according to the report "Public Views on Paid Tax Preparation," released on Jan. 20 by the Consumer  Federation of America (CFA). The CFA says that mystery shopper tests have found tax prep fees that range…

The list of states warning taxpayers that they'll have to wait longer for their tax refunds is growing. But don't blame the state tax collectors. Anger should be directed at the increasing number of criminals who are stealing individuals' personal data and then using it to file fraudulent tax returns, at federal and state levels. Illinois, Louisiana and Utah revenue departments were the first to announce that new security protocols would mean more time to verify and process state returns. Now we've gotten similar messages from Minnesota, Montana, North Dakota and South Carolina tax officials. South Carolina: Let's start down south…

"Don't count on getting the refund by a certain date to make major purchases or pay other financial obligations. Even though the IRS issues most refunds in less than 21 days, it’s possible your tax return may require additional review and take longer." That's the advice from the Internal Revenue Service in its just updated Publication 2043. A few years ago, this document was known as the IRS e-file refund cycle chart. Basically, it told electronic filers when they could expect to get their refunds. Three weeks for refunds: However, as folks started getting antsy when their refund checks didn't show…

The Internal Revenue Service apparently is having a welcome and calm start to the 2016 tax filing season. A few hours after Uncle Sam’s tax collectors began accepting and processing returns on Jan. 19, the IRS issued a statement noting that it had “successfully opened its systems today in a smooth opening of the 2016 tax filing season. Through mid-day, the IRS had received several hundred thousand tax returns.” But some TaxAct customers weren’t among those whose returns were starting through the federal tax system. ID theft attempt to get tax info: Just a few days before the filing season and Free…

The 2016 federal tax filing season is now officially underway, at both federal and state levels. Do you have to pay state income taxes? If so, your filing season opens today, Jan. 19, too. The Internal Revenue Service actually opened the electronic door to its Free File option on Friday, Jan. 15. Any returns filed over the long holiday weekend using one of the 13 tax software programs available this year were held until today. But now, those 1040s are in the IRS system. And those of us who use tax software on our devices or who still file using paper forms can get…

When it comes to millennials’ personal finances, a recent study by the tax and consulting firm PricewaterhouseCoopers and the Global Financial Literacy Excellence Center at George Washington University found eight trends among this generation born between the early 1980s and the mid-1990. These young adults: 1.  Have inadequate financial knowledge,2.  Aren’t happy with their current financial situation,3.  Worry about student loans,4.  Have debt that crosses economic and educational lines,5.  Are financially fragile,6.  Are heavy users of alternative financial services,7.  Sacrifice retirement accounts, and8.  Don’t seek professional financial help. Before my millennial friends and readers start blasting, remember that I’m just…

Although the Internal Revenue Service won't start processing tax returns until Tuesday, Jan. 19, taxpayers eligible for Free File can start using that online option today. With Free File, the public-private partnership of the IRS and tax software manufacturers that began in 2003, taxpayers can prepare their returns online and e-file them, all at no cost. Income key factor: To use Free File this year, your adjusted gross income last tax year must have been $62,000 or less. That earnings limit is $2,000 more than last year. It also applies to all filing statuses. The IRS and Free File Alliance say…

I know all y’all are fixated on tonight’s $1.5 billion Powerball drawing and that lottery jackpot’s tax implications. But many of you — including me! — also must remember to meet the deadline for our final 2015 estimated tax payment. That’s coming up on Friday, Jan. 15. Today’s Daily Tax Tip has the skinny on paying estimated taxes. You also can read more about calculating these four extra tax payments here. Paying on untaxed income: Estimated tax payments are required when you get income, both earned (for example, self-employment as your main source of income or from side jobs to…

What's the biggest hassle, aside from complex tax laws, that you face in trying to do your taxes? The National Taxpayer Advocate believes it's the Internal Revenue Service's increasing efforts to make most taxpayer interaction interactive. National Taxpayer Advocate Nina Olson is required by law to include in her Annual Report to Congress a summary of at least 20 of the most serious problems that taxpayers face. Given how taxpayer troubles have increased over the years, be they from inappropriate or inept IRS actions or because the agency is understaffed and underfunded, it's no surprise that in her 2015 report,…

The 43 states that collect some type of income tax from their residents plan to follow the Internal Revenue Service schedule and start their 2016 tax-filing seasons on Jan. 19. But when it comes to refunds associated with 2015 filings, the federal and some state calendars diverge dramatically. The IRS, so far, is sticking with its hope prediction that it will issue more than 90 percent of refunds this year within at least 21 days after it receives the electronically filed returns. Illinois, Louisiana and Utah officials, however, are saying not so fast. They have alerted their taxpayers that in some…

So how's your first work day of 2016 going? I hate to add to the pile of stuff that you likely had to dig out of today, but I want to remind you that a new tax filing season will start in a few weeks. And with that day on the horizon, the ol' blog is kicking off its annual Daily Tax Tip feature. The Jan. 19 start of the 2016 filing season is this year's first daily tip. As in prior years (and as that old-timey pointing finger indicates), the Daily Tax Tip will be posted up there in…

It's the favorite time of the year for college football and tax fans. Their worlds converge. As I type, the Georgia Bulldogs are whupping up on the Penn State Nittany Lions. OK, so the Pennsylvania fans aren't having fun. But tax geeks who also are college football fans have noticed that the two teams are meeting in the TaxSlayer Bowl in Jacksonville, Florida. Older football fans will remember this as the Gator Bowl, but the tax software company has been the primary sponsor since the 2011 game. It was officially renamed the TaxSlayer Bowl when the Bowl and the company inked…

Hello 2016! Some of us (not me) got up early to welcome you. Others (me, as you can tell from the posting time on this item) are still easing into this brand new year. But one thing that most of us soon will be doing, regardless of our post-New Year's Eve celebration energy level, is making New Year's resolutions. Yeah, I know making resolutions is the annual, and usually temporary, victory of hope over experience. Most of our attempts to make ourselves and our lives better, at least within the strictures of quick and catchy Jan. 1 lists of goals,…

Hot damn! My tax crystal ball — yep, that's it there to the left — is working again! Today the Internal Revenue Service announced that the 2016 filing season will start on time. The IRS will begin accepting electronically filed individual returns on Tuesday, Jan. 19, 2016. It's on a Tuesday because Monday, Jan. 18, 2016, is Dr. Martin Luther King, Jr. Day, a federal holiday. There's even better news for folks who are eligible to use Free File. This IRS/private tax software industry partnership allows millions of taxpayers to prepare their returns online and e-file them at no cost.…

Take a look at the Form 1040 except pictured below. It soon will have that not-quite complete "draft" watermark removed. And you know what that means. The 2016 tax-filing season should start on time next January. Filing season on schedule: That's the hope and tentative word from Internal Revenue Service Commissioner John Koskinen. As the House was signing on the fiscal year 2016 budget bill and tax extenders package, Koskinen was addressing participating in question-and-answer session at the annual Institute on Current Issues in International Taxation in Washington, D.C. "The normal start of the filing season would be January 19,"…

Thanksgiving is next week. You know what that means. Tax filing-season is just around the corner. Before we all get lost in family gatherings and football and gift giving, the Internal Revenue Service wants to remind us that it's working on new ways to protect our tax data. It also wants us to know that we can help. Last week, the participants in what the IRS has named its Security Summit announced a new tax safety public awareness campaign: Taxes. Security. Together. "We all have a part to play in fighting identity theft," said Internal Revenue Service Commissioner John Koskinen…

The Internal Revenue Service's main job is collecting taxes. The agency has long made it clear that it doesn't care where the money comes from. It just wants its share. The IRS doesn't care about the source of your income (ill-gotten gains are still taxable) or your immigration status. The federal tax man just wants his share of your money. That's why the legend of Treasury investigators bringing down Al Capone, one of America's most infamous criminals, persists after all these years. But as Scarface's situation so clearly demonstrates, the IRS wasn't concerned about all the people he allegedly killed or ordered taken…

Note: This post was updated Sunday, Nov. 5, 2017 "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 taken from About.com, fair use, Wikipedia) It's baaaaack! At 2 a.m. today (Nov. 5, 2017) most of America switched from Daylight Saving Time back to Standard Time.  The good news is that today is an hour longer, unless you're having a really bad day that you want to end ASAP. The bad news is that darkness arrives sooner, just as the naturally shorter days…

I'm a big believer in lists. I can't grocery shop without my piece of paper detailing all the edibles the hubby and I need or want. Yes, I still buy things that don't make the list, but if I forget it, I always have to make another trip to pick up a critical comestible I forgot. Yes, that's my current grocery list on an Earned Income Tax Credit notepad I picked up at an IRS Nationwide Tax Forum. No judging, please, of our food choices. I also keep track of my story assignments via a computer spreadsheet, as well as an…

Marriage means doing things together, even things you hate, like visiting the in-laws, cleaning out the garage and filing taxes. You might be able to let those first two slide, but when it comes to taxes, no such luck. Most couples file a joint tax return. That single Form 1040 is a legal document and if you ignore filing it or mess it up, you'll face consequences worse than your spouse's wrath. Her forced smile makes me think she's not buying what he's saying as they work together on their joint tax return. The Internal Revenue Service considers both spouses…

When you electronically file your tax return next year, get ready to provide a stronger password and meet tougher validation procedures. That's just one of the ways the Internal Revenue Service and the tax industry is planning to protect taxpayer accounts from criminals. The IRS, state tax administrators and tax industry leaders joined forces in March in a self-named Security Summit to come up with ways to combat tax identity theft. The group today provided an update of their efforts. In addition, the Security Summit participants also identified additional tax security topics they plan to tackle in the coming months…

Donald Trump was among the millions of taxpayers who sent their 1040s to the Internal Revenue Service on Oct. 15. He even shared some photos of him signing his tax return on Twitter. Trump's implication, of course, is that the ginormous stack of apparent tax paperwork in his photos will be negated under his 'amazing' tax reform plan. Ran Paul's retort: One of the Republicans chasing Trump in the GOP presidential nomination race, however, didn't imply anything. Sen. Rand Paul of Kentucky used The Donald's tweet to tout his own flat tax simplification proposal.  The direct approach is nothing new…

Today, Oct. 16, is National Dictionary Day. It was created to honor Noah Webster, the publisher of the first dictionary in 1806. Oct. 16 was chosen because it was the day 257 years ago on which Webster was born. Dictionary Day is a day to learn new words with the help of a dictionary. I’m doing my part by updating — OK, creating in large part — a tax dictionary for the ol’ blog.  Photo by eFile989 via Flickr Creative Commons  Many years ago, I posted a mini-glossary of tax terms. Since that day, I’ve meant to put together a…

Happy Tax Day! No, I'm not six months late. Millions of ultimate procrastinators every year get an extension to file their tax paperwork. That absolutely final filing deadline is today. Oct. 15. I must confess I'm one of those who delayed filing back in April. I finished my taxes a couple of days ago. If you're part of my club, here are some tips on getting your return safely to the Internal Revenue Service. 3 tax delivery tips for electronic filers  Filing electronically is the easier option. You just have to fill out the forms, double check them and then…

I can't believe I'm about to type this, but Donald Trump is right. Here's the caveat. I'm talking about Trump's approach to paying taxes. The pompous billionaire says he pays as little as possible in taxes. Donald Trump, in an Aug. 2, 2015, telephone interview with CBS Face the Nation host John Dickerson, discusses his tax strategy.  "I fight like hell to pay as little as possible," Trump said in a CBS Face the Nation phone interview in August. "I am a businessman, and that's the way you are supposed to do it. And you put the money back in…

Business tax filers are catching up with individual taxpayers when it comes to electronically submitting returns. The Internal Revenue Service estimates that in 2015 around 77 percent of all corporate and partnership returns were filed electronically, based on filing data as of Sept. 20. That's 625,000 more such business filings than last year, or percentage-wise, a 9 percent increase. On the individual tax side, slightly more that 86 percent of U.S. taxpayers had e-filed their 1040s through Sept. 25. That's a 2.2 percent increase over the same period in 2014. And remember that we have a few more e-filing days…

October is here, finally bringing with it colorful leaves and cooler Fall weather. OK, not so much here in Central Texas, where temperatures insist on hovering in the mid-90s, around 10 degrees above normal. Photo of a colorful park in Mississauga, Ontario, Canada by Paul Bica courtesy Flickr Creative Commons. Much more certain than the weather during this first full month of Autumn is the key tax deadline of Oct. 15. That date is, of course, when procrastinators must finally send in their prior year’s tax return. It’s also the due date for other important, and tax-related, retirement moves. Here’s…

I am so jazzed for tonight. Tom Brady Deflators New England Patriots vs. Pittsburgh Steelers. Football is finally here! I know, college games started last weekend, but I'm not a big fan of any college sport. I always feel a little guilty yelling at ostensible student athletes. But I have no qualms unloading on the highly-paid pros. They're getting very good money to deal with my verbal admonishments, even though they can't hear them through my TV (yet). I've been getting ready for the kickoff of the NFL's golden Super Bowl season by stocking up on throat lozenges, reading a lot of…

I grew up in Texas. West Texas, to be specific, where independence is, in large part because of the vast distances between towns, not just a concept but a necessity. So it’s no surprise that labor unions essentially were nonentities in my early life. That said, I grew up appreciating the value of unions. My dad, an oil field worker his whole life, made sure my brother and I knew that labor unions are to be valued by all workers, regardless of whether they belong to one. Sally Field won her first Oscar for her portrayal of title character Norma Rae in…

"The 2015 filing season was akin to A Tale of Two Cities. For the majority of taxpayers who filed their returns and did not require IRS assistance, the filing season was generally successful. For the segment of taxpayers who required help from the IRS, the filing season was by far the worst in memory." That comment was National Taxpayer Advocate Nina E. Olson getting all literary in her 2015 mid-year report to Congress. If you prefer a celluloid take on Charles Dickens' classic novel about politics, class conflicts, sacrifice and, yes, love amid the French Revolution, click the screen shot above to…

More teenagers are working this summer. There aren't any jobs out there for young workers. Employers are struggling to find teens to work at traditional summer jobs. Google "teens and jobs" and you'll find all three of those reports on seasonal youth employment. So just what is the youth employment situation for the summer of 2015? Great, good or terrible depending on where you and your teenage live and the type of work you and your youngster are seeking. The ebb and flow of youth jobs: The Pew Research Center recently looked at what's happened over the years to the…

Jeb Bush really did have 33 years of tax returns on hand and he opened them up for public inspection yesterday. When the former Florida governor announced that as part of his campaign to be the 2016 Republican presidential nominee that he was going to go to the extreme on personal tax transparency, I immediately wondered why he selected that particular number of years.  I also wondered how come he had that many years of tax records on hand. I was not alone. CPA and Twitter pal Deanna Richardson also was intrigued by the massive amount of tax records. Most…

Gambling is big business. It's also big tax money.  But the Internal Revenue Service gets the short end of the gambling revenue stick. That's why the tax agency is considering changes to how it learns about gamblers' winnings. The IRS announced back in March that it might one day consider lowering the amount of winnings from bingo, keno, and slot machine play that would trigger the issuance of an official earnings statement. Row of slot machines at Las Vegas' McCarran International Airport courtesy Yamaguchi先生 and Wikimedia Commons. Aging tax reporting levels: The currently winning levels — $1,200 or more for…

Looking for something to do this weekend? The Internal Revenue Service has some suggestions. If you pay estimated taxes or are a civilian or military taxpayer living outside the United States, you should spend the coming Saturday and Sunday working on your taxes since they're due Monday, June 15. Yeah, I know. It's not really the start of summer celebration you were hoping for. But it's one that must be heeded or you'll find yourself owing Uncle Sam more. Here's the calendar scoop. Estimated taxesIf you get income that's not subject to payroll withholding, you need to make these four…

The Vatican takes scripture seriously, especially Mark 12:17. "Jesus said to them, 'Render to Caesar the things that are Caesar's, and to God the things that are God's.' And they marveled at him." It's not quite amazement, but it is definitely interesting to see the Holy See signing on to the Foreign Account Tax Compliance Act. Panoramic photo of St. Peter's Square, the basilica and obelisk, from Piazza Pio XII in Vatican City courtesy I, Dfmalan via Wikimedia CC. FATCA, FBAR facts: Known in tax-speak at FATCA, this federal law generally requires U.S. citizens and resident aliens to report any worldwide income,…

Taxpayers usually file amended returns to correct mistakes they made on their original tax paperwork. A New York City product liability attorney, however, sent the Empire State tax department fraudulent amended tax returns and now is looking at prison time. Jeff Galloway, formerly a partner at Hughes Hubbard & Reed, partner pleaded guilty on June 4 to one felony count of criminal tax fraud. No returns, followed by false amended forms: The New York County District Attorney's office says that between 2005 and 2010, Galloway failed to file state personal income tax returns and pay taxes owed on around $1 million. New York…

H&R Block sees about 13 million people a year in its retail offices across the country. But there is a physical limit for everything. So H&R Block is, once again, looking into virtual reality as a way to reach more taxpayers. H&R Block revealed its foray into virtual tax offices to CNBC's Jane Wells, who reported that a couple of weeks ago in a room in Los Angeles, "three women put on Oculus virtual reality headsets (and so did this reporter) in order to experience what the new office might look like." John, the virtual tax pro: The testers found themselves…

The good news for taxpayers is that the Internal Revenue Service recognizes our desire for more do-it-ourselves options and has been offering us more Web-based tax tools. The bad news for taxpayers is that the expansion of online services makes it more likely the IRS will be hit by hackers and other tax fraud criminals. That's the warning from IRS Commissioner John Koskinen and Treasury Inspector General for Tax Administration J. Russell George. IRS Commissioner John Koskinen testifying June 2 on agency security before the Senate Finance Committee; click image to watch, in a new screen, the hearing video. A second…

I once worked for a company that was waaaaaay into scheduling. I mean years and years ahead scheduling. It always cracked me up when I was asked to put such long-term appointments in my datebook. Sure, I’ll mark my calendar and be around then…maybe. Dates, however, are crucial to taxes. Miss one and, if you owe Uncle Sam, you’ll owe him even more. Tax Day 2016 is April 18: So it’s no surprise that the Internal Revenue Service is already announcing a tweak in connection with the 2016 tax filing deadline. At issue is a confluence of tax deadlines and…