We're a week away from Tax Day 2014. Some folks, however, are dreading the months, and possibly years, after the annual April deadline. That's when they will get to know the Internal Revenue Service better as it audits their returns. IRS Commissioner John Koskinen noted the always-present possibility of tax audits when he spoke last week at a National Press Club luncheon: "[T]axpayers need to be confident that the IRS will treat them fairly. It doesn't make any difference who they are, what organizations they belong to, or whom they voted for in the last election. None of that matters…

And so it has begun. The countdown to the annual tax filing deadline. There are lots of tax moves to make in April. But for most of us, the focus is on April 15. And it's not just the Internal Revenue Service forms you need to worry about. There are seven tax considerations that face this mid-month cutoff. April 15 is the last day to: File your 2013 personal income tax return or an extension (Form 4868) that will push the deadline to Oct. 15. Pay any tax, or a close estimate, that you owe. That six-month extension is for the…

If you've already filed your 2013 tax return, chances are you're getting a refund. Most taxpayers do, either serendipitously as my personal finance blogging colleague J. Money recently discovered or because they view over-withholding as a handy forced savings account. Through March 21, the Internal Revenue Service had issued more than 67 million tax refunds. The average amount for all refunds that week was $2,872. That's a little less than the $2,980 average refund amount that was directly deposited to taxpayer accounts during that same time period. Refunds and filing timing: It's also notably smaller than the $3,317 average refund sent…

It's spring and young couples' fancy lightly turn to thoughts of love. And if they're like the hubby and me, they're also thinking about baseball. That's right. Today is Opening Day! The 2014 Major League Baseball season technically started on Saturday, March 22, when the Los Angeles Dodgers and Arizona Diamondbacks faced off in Sydney, Australia. Yes, the first game of the season was outside the country. So was the second on March 23. The Dodgers took both games at Sydney Cricket Ground. Then we had the 2014 U.S. opening night on Sunday, March 30, at Petco Park, where the…

The Internal Revenue Service and state tax offices have for years accepted digital documentation when it comes to tax claims. Now a Philadelphia man's selfies are getting attention as yet another way to make a tax-saving point. Architect Andrew Jarvis calls Philadelphia home, but spends time in both his firm's New York City and Philly offices. After commuting between the two cities one too many times, he decided to rent an apartment in the Big Apple for those visits when meetings ran late. Then he learned of New York City's tax residency rules. If the New York State Department of…

2013 was not a good year for rich folks. That's when tax laws designed to get more money from the wealthy went into effect. And making matters even worse for those with bigger bank balances is that there's no universal tax definition of just how much money makes you rich! Today's Daily Tax Tip, courtesy my slide show at Bankrate.com, looks at five higher taxes on wealthy taxpayers. A couple of the new, higher taxes are part of Affordable Care Act, popularly (or unpopularly, depending on your political persuasion) known as Obamacare. The others are part of the American Taxpayer Relief…

This post was updated March 31, 2017. Original text can be found here. Claiming a home office can help reduce your sole proprietor tax bill. But do so typically entails a lot of record keeping. Some small business owners, however, might find that the simplified home office deduction works just find for them. A home office helper, courtesy lisadragon via Flicker CC. This option, which first appeared as a deduction choice for 2013 federal tax returns, is easier. But there's also a limit on how much it can help, meaning that the easier way to claim a home work space…

I know you're concentrating on your 2013 tax return right now, but you also might want to check your files for your 2010 Form 1040. If you didn't file a return three years ago and were due a refund back then, time is running out to get your money. And we're talking a lot of money. The Internal Revenue Service has almost $760 million in refunds that around 918,600 taxpayers didn't claim three years ago. So the IRS, as it does about this time every year, is reminding those nonfilers that the only way to get their 2010 refund money…

South by Southwest is over. The thousands of attendees are gone or heading home. Downtown Austin streets are reopened. Cranky local residents are looking for something else to complain about. Some Austinites, however, are quite happy. During the week and half that the Lone Star State's capital was host of SXSW, they rented their residences to visitors. Not only did many of my neighbors pocket a nice chunk of change, they don't owe any taxes on it as long as their total residential property rental for the year is 14 days or less. That's right. As I've blogged before, homeowners…

Tax professionals have been a hot topic this filing season. The bulk of the coverage has come from the federal court rulings that effectively ended the Internal Revenue Service's nascent attempt to regulate tax preparers. Now comes news from the IRS itself that more of us are doing our taxes on our own. At least that's what the tax data through March 7 shows. After five full weeks of tax filing, more than 27 million individual returns were e-filed by taxpayers who self-prepared their 1040s. That's an increase of almost 6 percent over this time last year. Fewer using tax…

We've all heard the pitch. This tax break will cut your tax bill. Sometimes, though, great-sounding tax breaks aren't always as advertised. There are requirements you must meet to claim them, such as charitable donations. Yes, gifts to your favorite charity can be deducted, but only if you itemize on Schedule A. If like most taxpayers you claim the standard deduction, your donations won't do you any tax good. That's just one of the tax breaks that require you to read the fine print before you claim them. The others are deductible job-search expenses, medical costs, business meals and entertainment…

Everyone knows Ben Franklin's oft-quoted remark about death and taxes. That pair showed up again in a recent poll from DealNews. In a head-to-head match-up of life's most frightening constants, almost a third (32 percent) of the survey's respondents said they feared doing their taxes more than death itself. Now I'm all for a healthy respect for and acceptance of things we can't change, but yikes people. It's only taxes! If you find your annual filing chore that horrifying, you'd best get a tax professional and soon! At least Ben will be happy that his observation still has some perverse…

And so it has happened again. Another month arrives and I am totally unprepared. Regular readers of the ol' blog know I (try to) start each month with some tax-saving, tax-planning thoughts. But March arrived on a Saturday that I spent with my mom. And Sunday, March 2, was Oscars day … and a Sunday, day of rest and all. That left Monday as the day to highlight some tax moves to make in March. By now you've figured out where this story is going. Today kind of slipped by me, too. But I realized it with just enough time…

The U.S. economy is getting better. Except in sectors where it isn't. About the only thing economists, politicians and consumers can agree on is that we have no good idea yet of the country's real economic direction. And that means lots of folks are still looking for work. Tax season can be an added hassle for the unemployed. But it also can provide some folks a shot at a job, at least for a little while. FlexJobs.com, the website that focuses on positions that offer worker flexibility, such as telecommuting, part-time, freelance or flextime posts, has come up with some…

This blog post was updated Feb. 13, 2017. Getting married means lots of changes for the newlywed couple, even at tax time. That's when new husbands and wives file their first post-wedding federal Form 1040, choosing a new-for-them filing status. Since the 2014 tax filing season, that decision has affected even more couples. That year marked the first time that same-sex married couples were able to file federal tax returns jointly or as married filing separately. And that means that even more couples now encounter the marriage tax penalty or tax bonus. Just Married Bride and Groom image courtesy photostock/FreeDigitalPhotos.net…

Updated Monday, Feb. 19, 2018 Presidents Day – OK, officially Washington's Birthday — is a federal holiday. Many state employees and private sector workers across the country also get a day off on this third Monday of February. You know what that means. Folks are hitting the stores looking for Presidents Day sales bargains. I hope your shopping spree is successful. And if you are a big shopper, be it special holiday sales ties to federal holidays or any day because "Bargains!", then remember to use the taxes on your purchases as a way to reduce your federal IRS bill. Sales…

After a late start, the Internal Revenue Service has managed to process more than 26.9 million tax returns and get refunds on their way to more than 19.4 million folks. Even better news is that the average refund for the first week of tax-filing season is $3,317. That's 4.6 percent larger than the 2013 early season average refund amount. That $3,317 also is good enough to earn this week's By the Numbers honors. Beginning rush to file: There obviously was pent-up tax refund demand, as the IRS reports that tax filings for between Jan. 31 and Feb. 7 outpaced returns submitted for the…

I now pronounce y'all husband and husband. Or wife and wife. The key word in those declarations is not the same-sex spouses. It's y'all. Yep, it looks like same-sex marriage is coming to the South, the region most resistant to this continuing cultural shift. Courts in Kentucky and Virginia this week handed down rulings declaring unconstitutional their states' prohibitions of gay and lesbian marriages or refusal to recognize such vows legally exchanged elsewhere. The decisions are great Valentine's Day gifts for couples looking to take the next legal step in their relationships. But actual vows won't be exchanged in either…

The 2014 tax season has been underway for 12 days (OK, only eight business days) and refunds are finally being processed. As happens every year, there are some problems with some returns, meaning some refunds are being delayed. That, of course, makes the owed taxpayers very unhappy. And it raises the perennial tax question as to whether refunds are good or bad. Here's a quick look at some pros and cons of having Uncle Sam hold onto your money for months and then getting it back in a lump sum when the Internal Revenue Service gets around to it. A…

You decided to get help from a tax professional this filing season. Let's make sure you followed all the steps. You evaluated your tax pro options. You thoroughly vetted the professional before you hired her. Now comes the really important part. Be a good — no, be the best — tax client. That's right. Just because you're turning over your taxes to someone else doesn't mean you get to check out and simply await your refund. Hiring a tax pro is just like any relationship. You get from it what you give to it. Today's Daily Tax Tip offers six…

Friday's jobs report was not good. The Labor Department's Feb. 7 numbers showed only 113,000 jobs were added in January. Was it the polar vortex effect or is the economy really heading backwards? There are many components to the reports, so economists and politicians will continue to debate the employment figures and their meanings. And Congress apparently will continue to debate whether to extend unemployment benefits. No additional jobless benefits yet: So far, the word from Capitol Hill has been sorry, out-of-work Americans, but you're still on your own. Federal Emergency Unemployment Compensation (EUC) for 1.3 million folks expired on…

If you didn't rush to file your federal tax return when the 2014 filing season finally opened on Jan. 31, chances are you itemize your deductions. True, some early season filers have more complicated tax returns involving Schedule A and lots of other forms. And these folks get tax refunds, too, which is a prime motivator for the first wave of 1040s sent to the Internal Revenue Service. But a lot of us itemizers — yes, I'm one and I do tend to file closer to the April 15 deadline — are still waiting on some of the tax documents…

I’m old enough to remember many momentous things, including the storming of America by the British. No, even though I’m a fan of Sleepy Hollow, I’m not that old. But I am plenty old enough to remember 50 years ago when the The Beatles arrived in the United States. I was too young to attend a Fab Four concert, but my parents, younger brother and I did watch John, Paul, George and Ringo perform on The Ed Sullivan Show. And my mom bought me Meet The Beatles! OK, so she listened to it as much as I did, which contributed…

How in the heck did February already arrive? And now we're four days into the shortest month? What the…?!? OK. Take a breath. And yes, I'm talking to myself as well as to any similarly flustered blog readers. There's still time left in this shortest month to take care of important tax tasks. So let's take a quick look at some tax moves to make in February's remaining 28 days. A lot of folks filed on Jan. 31 as soon as the Internal Revenue Service started accepting 2013 returns. But the rest of us are waiting, in part because we…

Singer, songwriter and political and social activist Pete Seeger died last week. He was 94. Seeger was as well known for his commitment to causes that at the time were unpopular as he was for his songs, and that’s saying a lot. After being blacklisted for being a “godless communist,” Seeger turned to the Bible (and gave co-writing credit to Ecclesiastes) to compose Turn, Turn, Turn, one of the most beautiful and timeless songs ever. It became a No. 1 hit for the Byrds in 1965. Other widely beloved Seeger songs include “If I Had Hammer” and “Where Have All…

This year you're turning over your taxes to a professional. You've evaluated the tax preparer options and have decided on which type to hire. Now you need to make sure the tax preparer is on the up and up. That's right. Some tax pros are unscrupulous. They take advantage of taxpayer eagerness to turn over this annual task. They also know they often can count on some filers' eagerness for a bigger refund. The result can be tax refund fraud and/or identity theft. Avoiding bad tax pros: Today's Daily Tax Tip is a collection of advice from the Internal Revenue…

Ready. Set. File your 2013 taxes! The Internal Revenue Service finally sent that starting signal today as the 2014 federal filing season officially began, 10 days later than scheduled thanks to the government shutdown last fall. Early filers already in: Have you already hit enter on your e-filed return? Or did you do so last week when you used Free File to complete your tax return and get it in the filing queue to be sent today? Maybe you're old school and plan to drop your paper 1040 in the mail today. Regardless of which way you sent or will…

You want to e-file your tax return this year so you've gone to a paid tax professional to get the job done. You'd better double check. Not all tax preparers are EROs. ERO stands for Electronic Return Originator. Basically, these folks that the Internal Revenue Service has accepted as electronic transmitters of a filer's tax return information to the agency. An ERO generally is the first point of contact for many taxpayers who electronically file their taxes. They typically advertise their services by displaying "Authorized IRS e-file Provider" signs in their tax office windows or icons on their websites. And…

Updated Feb. 21, 2018 Taxes are all about the numbers. But when it comes to Form W-2, the alphabet also is important. The main thing you look for on your annual tax statement from your employer is, of course, the amount you earned, listed in boxes 1, 3 and 5, and the various taxes withheld in boxes 2, 4, 6 and, if you live in a state or city that collects tax on wages, in boxes 17 and 19. Click W-2 image for full Internal Revenue Service form and explanations of all box entries. But there is much more on…

Your annual tax statements are trickling in, so now it's time to make sure you have all the other info you'll need to file your 1040 when the 2014 season opens on Jan. 31. Today's Daily Tax Tip offers a checklist of what to round up, regardless of whether you will do your taxes yourself or hand them over to a tax professional. Documents for all: Along with your W-2s, 1099s and other documents, the general tax information and documents that apply to most taxpayers include: Social Security numbers for yourself, spouse and all dependents. Last year's federal return, including…

I spent most of this morning at my personal computer downloading statements necessary to file our annual tax return. Most of what I was getting today was tax information from our investment accounts. I set up online access to every account, investing and basic bills, that I could when we moved back to Texas in 2005 so I wouldn't have to worry about things being forwarded by the U.S. Postal Service. It generally works out well. But now and then I do miss getting the statements in the curbside mailbox. Online access means I have to take responsibility to get…

The full 2014 tax filing season officially opens in 10 days. Are you ready? If this is the year that you finally hand off your tax hassles to a professional, you'd better start your search. Good tax preparers are quickly booked. And you need to make sure you hire the tax pro who's best for your filing circumstances. Sorting through tax pro options: Finding the right tax help is a lot like the whole tax system. It's not a simple process. In fact, today's Daily Tax Tip offers multiple pieces of tax preparer advice: 5 tips to picking the perfect…

This post was reviewed/updated Monday, April 9, 2017 Are you filing a federal tax return for the first time? Welcome to the world inhabited by more than 150 million other Americans. It can be scary. But it doesn't have to be if you follow these six steps a novice taxpayer can take to successfully make it through their first filing season. 1. Get organized: This is something you'll need for all the future tax filing years you have before you. You'll be glad you established a good organizational habit from the get-go. 2. Talk with your parents: If you are a…

Welcome to the official start of the 2014 tax filing season, part one. Although some software companies and tax professionals have been completing 2013 tax returns for the last couple of weeks, the official e-filing of these 1040s won't happen until Jan. 31. That's the day the Internal Revenue Service will start processing all tax returns. One part of IRS filing operations, however, did officially open its electronic doors today, Friday, Jan. 17. Free File is now up and running. The Free File program has been handling returns since 2003. Since then, the partnership between the IRS and tax preparation…

You'd think we'd be used to a late filing season by now. It's happened several times, including last year. But if you're getting a refund, it's hard to be patient. You want your tax cash back from the Internal Revenue Service ASAP. I understand your frustration (in theory; we usually owe Uncle Sam just a bit). But chill out for just a while longer. Some refund patience could save you money and possibly prevent even more tax hassle. Early refund options have costs: I'm talking about the tendency for some folks to seek other avenues for their tax refund money.…

If you're a Californian, forget about your current federal tax return for a minute. You need to check on your 2012 state tax return. Were you due a refund last year from the Golden State's tax collector? Did you get it? Nearly 48,000 Californians didn't. The state is holding around $16 million in snail mailed refund checks that were returned as undeliverable. The returned refund checks range from $1 to $54,000. However, Most of the returned tax refunds (nearly 45,000) are for $1,000 or less. But just about any amount sure could come in handy for those Christmas credit card…

The U.S. tax system is based on the pay-as-you-earn concept. Every worker who gets a paycheck knows this by the amount of income and payroll taxes withheld each payday. If you get money from other sources where withholding isn't in effect, Uncle Sam expects you to take care of your due taxes in a timely fashion, too. The mechanism for this is estimated tax payments. Estimated taxes are paid via four extra payments filed with the Internal Revenue Service using Form 1040-ES.  Click image to access the PDF version of Form 1040-ES, including all vouchers and instructions. They are due…

This morning I logged on to EFTPS, pronounced eff-tips and officially known as the Electronic Federal Tax Payment System, to set up my final 2013 tax year estimated payment due next week. Despite a few glitches now and then, I've been a pretty satisfied user of the Treasury Department's electronic tax payment service. I make our annual Internal Revenue Service bill payments (and yes, we usually owe) via EFTPS, saving us any credit card fees for paying with plastic. And the best part is that with EFTPS you can schedule recurring payments, such as estimated taxes, well in advance to…

Personal exemptions are one way for taxpayers to reduce their adjusted gross income to a lower taxable income amount. Remember, the less money that the Internal Revenue Service can tax, the smaller your eventual tax bill. Personal tax exemptions also are today's Daily Tax Tip. Each of the three individual returns allows each filer to claim a personal exemption for him- or herself, as well as one for a spouse and eligible dependents. Don't be confused by the lack of specific mention of exemptions on the 1040EZ. It's there, but the exemption amount is included in the form's combined standard…

Fifty years ago today, President Lyndon B. Johnson delivered his war on poverty speech. It was LBJ's first State of the Union Address on Jan. 8, 1964, just seven weeks after he moved to the Oval Office following John F. Kennedy's assassination. "This administration today, here and now, declares unconditional war on poverty in America," the new president announced to the joint session of Congress and all of America in his Texas drawl. And for LBJ, the war was personal. Johnson's specific war on poverty section begins at 12:48 and runs to 22:39. (Hang on through the test screen; the…

Regardless of whether you file a 1040EZ or a long 1040 with a dozen schedules attached, some planning before you start filling out the forms can keep the process from being an ordeal. It also can make sure you get all the tax breaks to which you're entitled so you don't overpay Uncle Sam. So while we're waiting for the Internal Revenue Service to open its 2014 tax filing season doors, check out today's Daily Tax Tip: 7 ways to get organized for the tax year. This includes things such as rounding up (or applying for) all the Social Security…

Lorraine Yaleni Begazo and her younger brother Brandon Ferdinando Begazo have no idea of the tax benefits they've provided their parents. The twins just want their next meal and clean diapers. That's to be expected, they're just a few days old. But because they were born in two different years, the New Year's Eve/New Year's Day babies give their mom and dad an immediate tax benefit when the folks file their 2013 tax return. Then they get double the benefits with their 2014 filing next year. New mom Yaleni Santos Tohalino (pictured with her babies) delivered Lorraine, who weighed in…

The part of West Texas where I grew up definitely had winter weather, but not much snow. We'd get a dusting now and then. And one Christmas when I was in high school we spotted some flakes falling. So I always romanticized the snow. And no song does a better job of creating a perfect vision of the coldest season than Winter Wonderland. OK, it's not technically a Christmas song. But I'm guessing that Winter Wonderland gets its most air play in December. And it's on just about every Christmas carol collection every recorded. So the song is today's featured…

Timing is everything, especially when it comes to taxes. That was made clear yesterday when we finally got official word about the start of the 2014 filing season at the same time that questions were raised by a government oversight office about the Internal Revenue Service's ability to deal with taxpayer filing problems. We have a start date! Let's start with the relatively good news. For us taxpayers, the timing of the filing of our 2013 returns will be later than usual. But it won't be as late as it might have been. The IRS announced Dec. 18 that the 2014…

The convergence of taxes and technology continues to run into trouble. The latest issue is personal information of around 6,000 Louisiana taxpayers and another 7,000 or so in Connecticut. Those estimated 13,000 individuals in the two states received their state income tax refunds via prepaid debit cards issued by the United States' biggest bank, JPMorgan Chase. The card data, including taxpayer names, addresses, birth dates and Social Security numbers, could now be in the hands of hackers. That security breach involving tax refunds is more than enough to make 13,000 this week's By the Numbers figure. More than tax refunds:…

Taxes are all about numbers and today the Internal Revenue Service announced that it has reached an impressive one when it comes to electronic filing. More than 122 million returns were e-filed during 2013. E-filing was one of the few areas where the IRS recorded an increase over the previous year. In 2013, more than 45.2 million returns were sent to the IRS by taxpayers who prepared and e-filed their own 1040s on home computers. That's up from 43.2 million a year earlier, a 4.6 percent increase. 2013 FEDERAL TAX FILING SEASON STATISTICSCumulative statistics comparing 11/23/12 and 11/22/13  Individual  Income…

If you're hitting the road to a new destination this Thanksgiving holiday, you've probably been looking at a road map. Take a tax break from those red and blue highways and check out the even more colorful Tax Foundation's map of possible tax bracket creep across the United States. Bracket creep is as icky as it sounds. It flares up, notes the Washington, D.C.-based group, when tax brackets aren't indexed for inflation. Without that adjustment, as a taxpayer's earnings increase, that added money will be taxed at higher rates. You could contract this terrible tax affliction if you live in…

Missouri is one of 34 states that prohibit same-sex couples from getting married. But lesbian and gay couples who married in a jurisdiction that does recognize their unions (15 states plus the District of Columbia) and now live in Missouri will file their 2013 state tax returns as married taxpayers. Missouri's tax sanctioning of same-same marriages is thanks to an executive order issued last week by Gov. Jay Nixon. The Internal Revenue Service and U.S. Treasury announced in late August that same-sex married couples now must file a joint Form 1040 or two returns as married filing separately regardless of the…

Today, Nov. 12, 2013, is a big day for all sorts of gamblers. For traditional gamblers, it's MegaMillions drawing day. The jackpot is $132 million (a $71 million lump sum payout option). It's also lottery day for many state games of chance. And let's not forget folks who are in Nevada, Atlantic City or casinos across the country. They are sure to include today's numerical representation of 11-12-13 in their bets. Gamblers tend to be superstitious and anything, and I mean anything, that might help produce a win is embraced. "Dates are significant to a lot of players," Danielle Frizzi-Babb,…

Super Typhoon Haiyan (also known as Yolanda) slammed into the Philippines this morning. It is too soon to know the full extent of the damage, but given the strength of the storm — it was a Category 5 as it neared the island nation — things are likely to be dire. Typhoon Haiyan/Yolanda makes landfall early today in the Philippines. Click image for storm, damage updates. One report is that at least 33 people have died in the storm, which meteorologists say is possibly the strongest storm of its kind in history. Reuters reports that 12 million people, more than…

Today is Halloween, when kids and adults alike overindulge in candy, enjoy dressing up (more than usual) and generally celebrate being scared. But there's nothing like getting a letter from the Internal Revenue Service, on Oct. 31 or any other day of the year, to really strike terror in even tax-abiding hearts. I speak from personal experience. The IRS conducted a correspondence audit on one of my returns. Another year, I got a refund check that was much larger than I expected. I must admit that the extra money was scarier. The check — pre-direct deposit days — showed up…

As you get older, you end up at the doctor's office a lot more. Most of the time it's for routine things, such as a cold you just can't shake like you did when you were younger. Other times, though, it's for more complex and costly treatments. I've been discovering this inevitable truth over the last few years. Today, in fact, I spent the morning at an out-patient surgery center where my ophthalmologist removed a cataract. My doctor says I'm supposed to be resting my eyes this afternoon, both the just operated on right one as well as the now…

Did you, like me, think that the Internal Revenue Service's decision to push back the start of the 2014 tax filing season was because of this October's federal government shutdown? Well, says the chairman of the Ways and Means Committee, we were wrong. Next filing season's delay until Jan. 28 or later can be blamed on Obamacare. Rep. Dave Camp (R-Mich.), the head of the House tax-writing committee, says it appears that the IRS is putting a higher priority on implementing Obamacare, the nickname given the Affordable Care Act (ACA) health reform law, than tending to its core mission of…

I hate it when I'm right. Cue hubby laughter. OK, I don't. But I do hate that my fear of a delayed 2014 tax filing season is coming true. The Internal Revenue Service announced this afternoon that it won't meet its original Jan. 21, 2014, filing season start date. The IRS now expects to start accepting and processing 2013 individual tax returns no earlier than Jan. 28, 2014. If the tax agency can't make up as much work as it hopes, next year's filing season even could be pushed back to Feb. 4. A final official, though still likely delayed, season…

Benjamin Franklin's famously noted that there are only two sure things: death and taxes. I'd like to add a third: Congressional Groundhog Day. Yes, our Representatives and Senators, at least this current crop, seem to like doing the same thing in the same way over and over and over. I am talking, of course, about lawmakers' penchant for walking to the brink of financial and tax disaster and peering over the edge. Sorry history of fiscal brinksmanship: We had it with the debt ceiling fight during the summer of 2011. That led to the 2012-2013 fiscal cliff, which we briefly…

That's right. The Internal Revenue Service is, for the most part, shut down. But you, tax filing procrastinators, must finish up your 2012 tax return today. The countdown clock below (reflecting the Central time zone since that's where I am!) will help those among the 12 million who got a filing extension and plan to use every last moment to make the midnight deadline. Or, as the time ticks by, it will terrify and/or annoy you. But, hey, I didn't set the deadline. I'm just nagging reminding you! Time is not on your side: Yes, I did stop the countdown…

The federal government is mostly shut down, including lots of Internal Revenue Service functions, but if you put off filing your tax return until Tuesday, Oct. 15, you still have to meet that deadline. But that's not the only tax move that some folks must make by Oct. 15. Here are four tax deadlines — making 4 this week's By the Numbers honoree — that arrive this coming Tuesday. 1. Filing extensionOK, we've already mentioned this one and since around 10 million folks filed for an extension and many of them are going down to the wire, let's start with…

The drop-dead due date for procrastinating tax filers is less than a week away. You have noticed the countdown clock over there in the right column, right? Yes, that's right, the Internal Revenue Service is working with a skeleton crew, but it expects folks who got until Oct. 15 to finish filling out their tax returns to do just that by next Tuesday. If you are an uber-procrastinator, you're pooh-poohing this post. You'll get to your 1040 on Monday, you say, or maybe Tuesday morning. Good luck with that. If you push off your tax filing too long, you'll be…

Are you still working on your extended 2012 tax return that's due Oct. 15? Good. Remember, just because much of the federal government, including the Internal Revenue Service, is shut down, tax laws are still in effect. That means the IRS expects all taxpayers who haven't yet finished their tax filing taxes this year to do so by the upcoming extension due date. But don't get in too big of a hurry. You might miss some often overlooked tax breaks. Some of these tax breaks are for itemizers only. Others can be claimed by any filer. Some are credits that…

With each passing minute, we get closer to the first government shutdown in 17 years. That raises the question of what's next in the tax world if that happens. The Internal Revenue Services has a plan. Its 61-page shutdown contingency document details the agency's preparation for and implementation of a shutdown of its services and offices, as well as reactivation of tax functions. The key thing for the millions who got an extension until Oct. 15 to file their 2012 tax returns to note is that the IRS expects you to meet that deadline. Even if most of the federal…

A federal appeals panel did not appear impressed by the "dead horse" argument the Internal Revenue Service rode into court with in defense of the agency's effort to regulate paid tax preparers. During oral arguments Sept. 24 before the U.S. Court of Appeals for the D.C. Circuit, the judges repeatedly questioned the IRS' attorney, Gilbert Rothenberg, about whether Congress had empowered the agency to issue regulations imposing mandatory testing and continuing education requirements on return preparers. Three independent tax professionals don't think the IRS has the oversight authority. With the assistance of the libertarian Institute for Justice, they filed suit…

The Internal Revenue Service is having its day in court, telling a federal judge today why the tax agency should be able to test and otherwise regulate paid tax return preparers. It's the next phase in the feds' fight  against three independent tax preparers who earlier this year won a key ruling that invalidated IRS plans to impose mandatory testing and continuing education requirements on Registered Tax Return Preparers, or RTRPs. A decision by the U.S. Court of Appeals for the D.C. Circuit, which today is hearing oral arguments for and against the IRS plan, isn't expected for months. The…

"You now have a Swiss bank account if anybody asks. Crédit Nationale Du Génève code name 'PADDY.' Lavish awkward gesture; all of 15 Swiss Francs in it. But if you ever want to impress anybody, they can find out you have a Swiss account. But Swiss law prohibits the bank from revealing the balance. Thus are all men made equal." Jimmy Dell, a character in the 1997 movie "The Spanish Prisoner," offered that description of the secrecy afforded an owner of a Swiss bank account. Jimmy's words are no longer true. Opening up accounts: Thanks to the Foreign Account Tax…

If you can pull yourself away from that DVR of Pirates of the Caribbean: The Curse of the Black Pearl — Hey, don't be embarrassed; I watch it as often as I can myself. — it's time on this International Talk Like a Pirate Day to discuss some swashbuckling taxes. Yes, taxes and pirates have many connections. Pirates as tax collection catalyst: Let's start with some early U.S. tax history. Before we broke away from Great Britain, we had relied on that country's vaunted naval force to help protect colonial ships from Barbary Coast pirates. During the Revolution, Benjamin Franklin…

That adage that the more things change the more they stay the same certainly applies to taxes. It seems that every time lawmakers at any level try to make taxpayer lives easier, some unexpected, unintended consequences pop up. This week gay and lesbian married couples are finding that out, although to be fair, most are not that surprised. Key day for same-sex filers: Monday, Sept. 16, marked the day that same-sex married couples began filing their federal tax returns the same way as heterosexual married couples. Many had received filing extensions this tax season in anticipation of the change, which…

Remember the infamous 47 percent of people who didn't pay taxes? Sure you do. Those were the folks cited in a 2009 estimate by the Tax Policy Center (TPC) who inadvertently sabotaged Republican presidential candidate Mitt Romney's quest for the White House when he was caught on video tape characterizing them as government dependent takers instead of economic growth makers. That group is now 4 percent smaller, according to the latest analysis by TPC, a joint venture of the Urban Institute and Brookings Institution. The 43 percent of Americans whom TPC analysts project won't owe federal income taxes in 2013 also is this…

The hubby and I have been filing joint federal returns for 31 years. Yes, I was a child bride; that's my story and I'm sticking to it. Now that the Internal Revenue Service is accepting 1040s from same-sex married couples nationwide, I thought it a good time to review the process of filing federal taxes as married taxpayers. This also is something that all newlyweds, regardless of gender, need to know. And it's not a bad refresher for those of us who've been filling in joint 1040s for a very long time. So take your spouse's hand and let's look…

Welcome to my tax world, same-sex married couples. Treasury and the Internal Revenue Service today announced that you can file a joint tax return regardless of where you live. If you were legally married in one state, that's good enough for the federal government when it comes to your tax returns. Even if you move to a state that does not recognize same-sex marriages, the IRS will still take your joint 1040. The decision applies to affected couples who got extensions of their 2012 returns (due Oct. 15), those who married in 2013 and will file their first taxes as…

Sen. Ben Cardin says it's time for the Internal Revenue Service to finally decide how federal tax laws will apply to same-sex married couples following the Supreme Court's ruling on the Defense of Marriage Act (DOMA). And, says the Maryland Democrat, the IRS should follow the ground rules it already set to recognize all legally performed same-sex marriages regardless of whether the couples subsequently move to a state that does not recognize their marriages. "American taxpayers need clarity and they need it quickly," said Cardin in releasing the letter he has sent to Treasury and the IRS. "The midyear decision…

Happy National Failures Day! Yeah, I have no idea how official this is or who came up with this lame loser unconventional commemoration. But I've seen a couple of comments about it on social media and, as the saying (or television commercial) goes, if it's on the Internet it has to be true. Bonjour! Plus, Fail Blog and its Facebook page are two of my favorite ways to waste time get insight into the myriad ways people do, or don't, accomplish life's tasks. So I'm celebrating Nation Failures Day, inspired by Thomas Edison's wise words: "I haven't failed. I've found…

As obsessive-compulsive television detective Adrian Monk learned, public bathroom attendants are a dwindling breed. A German cleaning company owner, however, apparently found the job lucrative enough. The so-called toilet queen is now facing 12 counts of tax evasion on undeclared bathroom tips. Lucrative loos' change: German officials allege that the unnamed 53-year-old woman dodged tax payments on more than €40,000 (more than $53,000 U.S.) in tips reportedly gathered by her team of 60 toilet attendants. The money, in various coin denominations and reportedly weighing more than a ton, was piled in the garage of the woman's Bonn, North Rhine-Westphalia, home, according…

Minnesota is not one of the 18 states with back-to-school sales tax holidays this year. But shoppers there still might be able to turn what they paid for school supplies into tax savings. The North Star State offers two tax breaks for school-related expenses for kindergarten through 12th grade students who attend public, private or home schools. The K-12 education subtraction works much like the federal adjustments to income, also known as above-the-line deductions. It reduces the amount of income upon which a Minnesota taxpayer must calculate state tax due. The less income, generally the smaller the tax bill. The…

The Motor City is getting a lot of attention today. Unfortunately, it's because Detroit has filed for bankruptcy. Detroit, Mich., viewed from Windsor, Ontario, Canada, across the Detroit River; photo by Andrea_44 via Flickr The process is different for a municipality that files bankruptcy than when a company or an individual goes broke. But the bottom line is that all entities have determined that this last-ditch effort is the only way to get their finances back in any kind of workable shape. Taxes obviously are a part of the equation. In Detroit's case, the falling individual and corporate population has…

Everyone makes tax mistakes, even the Internal Revenue Service. That was again made clear earlier this month when the IRS sent some taxpayers and tax professionals notices that included an interest calculation error. The math mistakes were on CP 2000 notices mailed out the first two weeks of July and which dealt with proposed taxes due on unreported income. The IRS says the interest amount calculated on that new unpaid income amount was too low. Sorry recent CP 2000 recipients. I wish I could tell you, to borrow a Monopoly board game phrase, that the IRS error was in your…

With the arrival of July last week, I posted half a dozen tax moves for you to consider. This week I look at 10 more midyear tax moves over at Bankrate. Yes, summertime is tax time, that's why this and my earlier list earn this week's Weekly Tax Tip honors. Here are today's top 10 tax moves to make now: File your 2012 return.  Adjust withholding.* Evaluate estimated taxes. Hold on to camp receipts. Get organized. Give to charity.* Contribute to your retirement plan(s).* Plan for the 3.8 percent investment tax. Make home energy improvements.* Hire a tax pro. Yes,…

If your kids are too old for day camp, then maybe they a job to fill their class-free summer hours is a good idea. Not only will it teach your teen responsibility and help develop a healthy work ethic, it will provide them with some pocket money. And it also could provide some valuable tax lessons. The traditional teen summer job tax connection is this week's Weekly Tax Tip. Generally, the Internal Revenue Service wants its share of all earners income, regardless of age. That generally leads to the young worker's the first hard tax realization: Just who the heck is…

How many of you are still working this afternoon, the day before the July 4th holiday? And how many of you will be back in the office on Friday, July 5? All of the Internal Revenue Service's employees will be taking Friday off, but not because they want to. Friday, July 5, is the tax agency's third furlough day of the year, meaning IRS personnel won't be paid for the sequester-forced time off. As was the case on May 24 and June 14, the first two furlough days, all IRS operations again will be closed. What is and isn't available:…

The Supreme Court on June 26 declared the Defense of Marriage Act, or DOMA, dead. That same day, Attorney General Eric Holder said that President Obama had directed the Justice Department to work with other agencies to expeditiously implement the decision making federal benefits available to same-sex married couples. And expedite they did. On Friday, two days after the DOMA decision and the same day that same-sex marriages resumed in California thanks to the high court's removal of the Proposition 8 roadblock, the Office of Personnel Management (OPM) announced that same-sex spouses are eligible for a wide range of federal…

Can you hear the cheering? It's still going on and it's coming from gay and lesbian couples, their families and friends and same-sex marriage supporters across the country who are thrilled that the U.S. Supreme Court today ruled the Defense of Marriage Act unconstitutional. This federal law, enacted in 1996, defined for federal purposes a marriage as between one man and one woman. Yeah, right. DOMA was enacted because the ship on expanding marriage had already set sail. Gay and lesbian couples currently can get married in Connecticut, Iowa, Maine, Maryland, Massachusetts, New Hampshire, New York, Vermont, Washington and the…

UPDATE, March 7, 2018: No, it's not hot yet, even here in Texas. But parents across the country already are making summer camp plans for their kids since some of the programs fill up quickly. And the child and dependent care tax credit, which survived the Tax Cuts and Jobs Act enacted on Jan. 1, 2018, can help cover some of those costs as long as the camp is of the day-only variety. This oldie-but-goody (and reviewed and refreshed) tax tip has the scoop. If the hot weather hasn't already tipped you off, all the kids roaming the streets make…

UPDATED June 13, 2017: The table showing where to snail mail your estimated tax payment voucher has been updated. Some links also have been changed. Has your summer gotten off to a good start? Great! But if you must make estimated tax payments, you need to take a break from your fun in the sun and send in your second Form 1040-ES for tax year 2013. It's usually due on June 15. But since that's a Saturday this year, you get a couple more days to make the payment. Your second estimated tax payment for 2013 is due Monday, June…

Sometime this month, the U.S. Supreme Court will decide two gay marriage cases, California's Proposition 8 legalizing same-sex marriages in that state and the federal Defense of Marriage Act, or DOMA, which defines marriage for federal purposes as being the exchange of vows between one man and one woman. One of the 138 same-sex newlywed couples who were greeted by a cheering crowd after their weddings at City Hall in Seattle on Dec. 9, 2012, the first day that same-sex couples could marry in the state of Washington. Photo by Michael Holden via photopin cc The justices' opinions will affect…

Happy 79th Birthday, Donald Duck! On June 9, 1934, Walt Disney released The Wise Little Hen, in which we were introduced to a duck named Donald. Before long, the easily exasperated duck with the distinctive delivery style was a cartoon star on his own. And within a decade, Donald Duck was making animated films not just for Walt, but also for Sam. Uncle Sam, that is. A ducky tax proponent: During the height of World War II, Disney worked with the War Activities Committee of the Motion Picture Industry to produce an animated short encouraging folks to pay their income…

This just in from the IRS’ Worst Day-Week-Month-Year Ever Department: A group of tax professionals has officially lent its support to the legal effort to stop the Internal Revenue Service from testing and requiring continuing education of certain tax preparers. In January, a federal judge halted, at least for the time being, the IRS’ Registered Tax Return Preparer (RTRP) program. The idea, formulated during the tenure of former IRS Commissioner Douglas Shulman, was to set up a system that would help ensure that more tax returns are correctly completed. The RTRP rules do not apply to Enrolled Agents (EAs), attorneys…

UPDATE, Dec. 22, 2017: Under the Tax Cuts and Jobs Act that became law in late 2017, you can no longer claim casualty and theft losses as itemized deductions unless your losses are the result of a federally declared disaster. This claim limitation is in effect through 2025. If you do meet the major disaster designation, you still will claim them using Form 4684 and then transferring the relevant data to Form 1040's Schedule A. is in Shawnee and Moore residents are not thinking about taxes today. They're still trying to salvage what they can from the deadly tornadoes that…

The Internal Revenue Service was able to push off sequestration effects until the main tax-filing season ended, but time has run out. IRS offices will shut down tomorrow, May 24, in the first of five furlough days scheduled for this summer and early fall. Closed sign by voteprime via photopin cc So if you're trying to finish up some tax work before you head out for the long Memorial Day weekend, you'd better get to it today. And judging by the pace of Capitol Hill budget talks, you probably should mark the four other scheduled IRS furlough dates — June…

I believe New Jersey Gov. Chris Christie when he says he decided to undergo weight-loss surgery because he wants to be healthier so he will be around for his family longer. President Barack Obama and New Jersey Gov. Chris Christie talk with local residents in Brigantine, N.J., on Oct. 31, 2012, about damages caused by Hurricane Sandy. (Official White House Photo by Pete Souza) I haven't gone as far as gastric band surgery — despite what I see in my mirrors, I'm not overweight enough to qualify for the procedure — but I've made a concerted effort to exercise more…

Happy Cinco de Mayo!* The fifth of May commemorates the Mexican army's 1862 victory over France at the Battle of Puebla during the Franco-Mexican War. It's a relatively minor holiday in Mexico, but north of the border Americans use the day to celebrate Mexican culture and heritage. OK, we really just look for any excuse to drink margaritas and over indulge in Tex-Mex meals. The over-eating portion of the program is standard operation procedure in our house. But now Cinco de Mayo has special meaning for the hubby and me. We're both native Texans, but we were Texpatriates for way…

You'd think judging by the size of the check I had to write the U.S. Treasury this year, my tax audit risk would be zero. But, according to my tax software, there's still a tiny bit of a chance that the Internal Revenue Service might have some questions about my 2012 filing. The likely reason is that I'm an independent contractor. So one of the attachments to my Form 1040 is Schedule C. In many cases, at least some of the income that is entered on the Profit or Loss From Business form isn't verified by a corresponding third-party document…

Happy May Day. For many, this is a day to celebrate workers. Of course, a variation of the holiday's name is also a distress call. And a lot of folks probably put out mayday calls during filing season. Although we're well past the April 15 tax deadline, some of you might still need some help. So here are a few tips and other May Tax Moves to make in the next few weeks. First, for my fellow procrastinators, get to work on your 2012 tax return. Yes, you were wise to take some extra time to complete your tax return…

We made it through prime tax-filing season with the Internal Revenue Service's proposal to regulate tax professionals in legal limbo. This time next year, the issue could be settled, either judicially or, if some in Congress have their way, through new law. Senators are exploring tax reform options that would give the IRS clear statutory authority to regulate tax preparers. On the House side, the Taxpayer Protection and Preparer Fraud Prevention Act of 2013 would do the same. Tax pro regulation recap: The IRS began rolling out its taxpayer registration and oversight program in 2010. To date, according to American…

One of the biggest frustrations this tax filing season was the processing delay of around 600,000 returns because of improperly completed education tax credit claims on Form 8863. Although the Internal Revenue Service didn't provide any details on where the returns in question came from, many of the problematic forms were prepared by H&R Block. The Kansas City-based tax preparer didn't get specific either, but it acknowledged the error in its blog. Bill Cobb, the company's CEO and president, soon thereafter issued an online apology to customers. Now the tax preparation giant is saying it's sorry with cash. OK, with plastic. Close enough.…

Everyone makes mistakes now and then. (Don't tell the hubby that I admitted that!) When it comes to mistakes on tax returns, the Internal Revenue Service gives us a second chance, up to a point. As this week's Weekly Tax Tip notes, sending in a corrected tax return via Form 1040X is not that difficult. The IRS wants to know what you originally reported, what your corrected numbers are and why you are making the changes. You can add or subtract personal exemptions if on your original 1040 there was some confusion as to whether you properly claimed a dependent. You also…

If you plan to work on taxes this summer, be it business filings or estimated taxes or finishing up your 2012 tax return for which you got an extension, mark these days on your calendar: May 24 June 14 July 5 July 22 Aug. 30 The Internal Revenue Service will be shut down those days, and possibly two more days in August or September. That's the word that went out in an email Friday from IRS Acting Commissioner Steve Miller to his employees. These are the five-for-sure days that IRS personnel will be furloughed as the agency deals with its…

Had enough of your own taxes this year? Then check out President Obama's and Vice President Biden's 2012 returns. Click return image to see full Obama 2012 tax filing (opens in PDF). Obama 2012 taxes: The president's and first lady's joint return reporting adjusted gross income (AGI) of $608,611. The Obamas paid $112,214 in total tax. That comes to an effective tax rate of 18.4 percent. In reaching their final tax bill, the Obamas whittled down their AGI via $258,385 in itemized deductions.  Those Schedule A claims included $63,305 in other taxes paid, $45,046 in home mortgage interest (their Chicago…

Tax Day is one of the most stressful times of the year. But it also might just give our brains a boost. Researchers at the University of California, Berkeley say that acute short-lived stress primes the brain for improved performance. The findings of the seven-member team working at the university's Helen Wills Neuroscience Institute were published April 16 in the open access online journal eLife. "You always think about stress as a really bad thing, but it's not," according to Daniela Kaufer, associate professor of integrative biology at UC Berkeley. "Some amounts of stress are good to push you just…

How are you feeling today? Relieved? Tired? Freaked that you owed Uncle Sam so much money? Thrilled that your final tax computations showed you're getting a refund? Those are all emotions that folks who finished their returns yesterday, April 15, are feeling. But the millions of us who got an extension are still in a state of tax limbo. We at least got Form 4868 to the Internal Revenue Service electronically, or at least on its way in paper form via the U.S. Postal Service. Now we get to start counting down to our new Oct. 15 tax filing deadline.…

The Pulitzer Prize winners for 2013 were announced today and I must mention Steve Sack, who took this year's top honors for editorial cartooning. No, it's not because I regularly read the Minneapolis Star Tribune, where Sack has been using his art to put a spin on events since 1981. And it's not because Sack also was a Pulitzer finalist for cartooning in 2004. It's not even because, as the Pulitizer jury put in selecting Sack, he produces a "diverse collection of cartoons, using an original style and clever ideas to drive home his unmistakable point of view." It's because…

Time is up. April 15, despite all your wishing and hoping, has arrived. You've put off filing for 3½ months, but any more procrastination could cost you. So don't just sit there. File something today. And that, my friends, is today's Daily Tax Tip. It's the final one for the high 2013 tax-filing season. But don't despair. On Wednesday, the Weekly Tax Tip series begins. Now back to the here and how. Form choices, 1040 or 4868: Ideally, the material you file today will be your Form 1040. But the reality is that millions of us procrastinators end up procrastinating…

Fellow tax-filing procrastinators, take a look at the photo below for proof that I'm sharing your tax pain today as we stare down the April 15 filing deadline together. Strewn (OK, sort of neatly stacked) across the floor there is all my 2012 tax background material, receipts and other documentation so I can plug my numbers into my tax preparation software. I like to pencil the tax data in on paper forms first, just to make sure I have everything I need. I also find it easier to compare the return I'm working on with last year's printed copy when…