Every taxpayer knows that filing status makes a difference to your eventual tax bill. You have five choices on how you can file your taxes: single, married filing jointly, married filing separately, surviving spouse with dependent child and head of household. Each option offers certain filing advantages or limits, so selecting the correct one is key. While the choices might seem straightforward, sometimes it's easy to make a status misstep, especially when tax dependents are involved. You did notice that dependents, those folks who rely on you for support, are expressly mentioned in one status, right? That's the surviving spouse…

Last year, almost 99 million taxpayers, or almost 70 percent of folks who filed a tax return, did so electronically. Internal Revenue Service data through June 3, 2011, shows the actual number and percentage of e-filers this year is even larger. After just five months, the agency had received more than 106 million electronically submitted tax returns, accounting for almost 80 percent of the filings at that time. Since the IRS is accepting e-filed forms through Oct. 17, both from commercial e-file partners and its Free File program for eligible taxpayers, those final 2011 electronic taxpayer figures will be bigger. In fact, this filing season,…

It's called an income tax. That means the IRS get a piece of just about every type of money you get. For most filers, that means wage income. That's great for the Internal Revenue Service because it gets a copy of workers' W-2 forms. Tax agents can then easily compare the amount reported on the tax document to what's on the taxpayer's Form 1040 (or 1040A or 1040EZ0). The IRS also gets copies of the many other statements detailing taxpayer income. Sometimes, though, individuals get taxable money that isn't documented by third parties. This is frequently the case for self-employed…

Welcome all my fellow tax procrastinators! Back in the spring millions of us realized that we just weren't going to be able to get our tax acts together by the April 18 filing deadline (Friday the 15th was a holiday, pushing things back to the next Monday), so we asked the dear old IRS for some more time. The taxman gave it to us, six more months to be precise. Some of us only needed a week or two or a month at most to finish up our 1040s and associated schedules.  Showoffs! We die-hard, hardcore tax procrastinators, however, are…

I hear all the time from readers that members of Congress should have to personally deal with the same rules that they subject us to by their legislative actions. I totally agree. And while you can't really make people do their own taxes — more than three-quarters of filers use a tax professional — I'd love for all Representatives and Senators to fill out their own returns for just one tax season. They can use tax software; a lot of us do that, too. But I still want them, not an accountant or spouse or assistant, to plug in the…

Warren Buffett's revelation that he pays less in taxes than his secretary piqued everyone's curiosity as to exactly how big his last Internal Revenue Service bill was. The Wall Street Journal went beyond wondering and suggested that Buffett make his tax returns public. "The opportunity to educate the public would be even greater if Mr. Buffett would let everyone else in on his secrets of tax avoidance by releasing his tax returns," wrote the WSJ editorial board. OK, says Buffett, but on one condition. The Berkshire Hathaway executive will share his tax returns if the Rupert Murdoch, the head honcho…

If you postponed your filing earlier this year, the Oct. 17 due date is almost here. That means it's time to find all those tax documents you got months ago so you can enter the data into your 2010 Form 1040. All these tax statements you need to file your return are today's Weekly Tax Tip. Lots of docs: The number of tax documents could be quite large for some folks. They work for wages, so they get a W-2. They took a second job, they get a second W-2. They did a little on-the-side work, so there are some…

Tick, tick, tick. 2011 is rapidly winding down. We're now into the last quarter of the year. If earlier this year you got an extension to file your 2010 tax return, you've got just over two weeks to finish that job. The due date is Monday, Oct. 17, since the regular Oct. 15 deadline is on Saturday. But don't panic. Seventeen days are plenty of time to get your 2010 Form 1040 to the Internal Revenue Service. And once you've done that, you also have time to work on ways to cut your 2011 tax bill. First, for the filing…

I love it when real life taxes coincide with my tax scribblings. Take the latest Weekly Tax Tip. It dealt with innocent spouse issues. And what just happens to pop up on the tax radar a few days later? A U.S. Tax Court ruling granting a husband innocent spouse status because he didn't know the full extent of his wife's gambling winnings. Leonard Harbin filed a petition with the Tax Court seeking relief from joint and several liability for his and his now ex-wife's taxes. The Internal Revenue Service disagreed, saying that Harbin didn't qualify for innocent spouse relief because…

Most married taxpayers do a lot of things together, including filing taxes. That's usually a good idea, since more tax breaks are available to the couple filing a single 1040. But if one spouse takes some tax shortcuts, the other spouse ends up in just as much tax trouble. That's why sometimes it pays to file separately. In the cases where a spouse can't or doesn't take such tax preemptive measures, there's also the possibility of getting some relief from the Internal Revenue Service via its injured and innocent spouse programs. These opportunities to ease the unexpected tax costs caused…

All of us tax procrastinators have almost a month to get our 2010 tax returns to the Internal Revenue Service. If you, like me, are still finishing up your 1040 for last year, you can check out the countdown clock there in the left column so that you don't miss the ultimate deadline. And the 2011 tax filing season doesn't start for three and a half months. But that hasn't stopped folks from getting out their handy calculators and coming up with projections of inflation-adjusted tax amounts for 2012. Actually, it's not too early to start thinking about 2012 taxes.…

It's tax filing time again for those of us with income that isn't subject to withholding. The year's third estimated tax payment is due Sept. 15. You need to file a 1040-ES when you get income such as profits on asset sales or like me you're self-employed. The estimated tax packet, which includes vouchers to send in if you snail mail your payments, contains a worksheet to help you figure your appropriate estimated tax total. A lot of folks do a down-and-dirty estimate of their untaxed earnings. That's usually OK. As long as when you finally file your 1040 you're…

What the heck is up Mother Nature? I know we humans are an annoying bunch, but do you really have to keep whacking us? In less than 24 hours, strong earthquakes have rattled the East Coast and the Rocky Mountains region. The 5.3 temblor that shook Colorado Monday night was the strongest recorded there in more than a century. It also was felt by residents of Kansas and New Mexico. Then this afternoon, a 5.9 quake centered in Virginia prompted evacuation of buildings in the nation’s capital and shook folks from North Carolina to New Hampshire. It was the strongest…

Did Internal Revenue Service Commissioner Doug Shulman get an invitation to Kim Kardashian’s wedding? Or was the IRS release yesterday of tax tips for recently married couples just a coincidence? Yeah, I know, the IRS announcement probably doesn’t have a thing to do with this evening’s celebrity nuptials. But it certainly is timely, since taxes apply to Kim and her soon-to-be husband Kris Humphries, too.  So let’s look at the IRS’ wedding gift of tax-themed advice for Kim and Kris and all young and young-at-heart lovers tying the knot. 1. File name change paperworkAs soon as Humphries put the $2 million dollar engagement ring…

Today, Aug. 15 is not the deadline for filing your individual tax return if you got an extension earlier this year to send in your Form 1040 (or 1040A or 1040EZ). I tweeted this earlier today, but then got an email inquiry so here's the more than 140 character scoop. Getting an automatic extension to file — but not pay; you did send the IRS any tax you owed when you filed Form 4868, didn't you? — will give you until Oct. 15 to file your forms. Actually, this year Oct. 15 falls on a Saturday, so you get until…

Seventeen states are holding tax holidays this month. A post with details is in the works, but until I finish it, you can get a preview in the info about the recently-completed Mississippi tax-free event. For the rest of the year, however, shoppers in 45 states and the District of Columbia pay sales taxes on most products they purchase. Through the end of 2011, those extra pennies, or dollars if you're a big spender, could help reduce your federal income tax bill. As today's Weekly Tax Tip discusses, if you paid state and local sales taxes, you need to run the…

I admit it. The IRS Nationwide Tax Forum in Dallas this week kicked my booty. And I mean that in a good way. The Forum's three days were packed with great sessions on timely and interesting tax topics. Although the event is designed for tax professionals, a mere tax geek journalist also gets a great deal from the Forums. This is the fourth one I've attended and I promise it won't be the last. I was very impressed with the number of tax pros still hanging in there at the day's last session, or at least at the closing seminar…

Another full day of IRS Nationwide Tax Forum seminars and talking with tax folks from across the country. I even hooked up with some members of the Taxpayer Advocacy Panel, of which I was a member a few years ago. First, the business. Today's sessions covered Schedule C issues; inherited assets and step-up basis; Small business health care tax credit; foreign tax credit; IRS efforts to combat online fraud and identity theft; and amended returns. The amended returns program was the fullest. Perhaps it was the use of "X-rated" in the seminar's title. I'll make the same promise (threat?) regarding…

Did you get an extension to file your return? Or are you wondering what you can do this last half of the year to reduce your 2011 tax bill? Maybe you've finally decided that it's time to turn your taxes over to a pro. Now's the perfect time to find the find a tax preparer who can help you with whatever tax situation you're facing. That's why it's this week's Weekly Tax Tip. The crazy filing season is long gone. It's almost three months until the Oct. 17 extended tax filing deadline arrives. So most tax professionals have a bit…

Some people are taking America's federal debt personally. They've contributed money to help reduce it. There's a problem, though. The money that taxpayers give directly to help chip away at the federal debt doesn't specifically go to pay off what Uncle Sam owes. Instead, the contributions are deposited in the Treasury Department's general fund. That's basically the government's main checking account. Hmmm. It looks like the federal government needs to rewrite its public announcement about the debt donation program: I don't know about you, but that section from page 15 of IRS Publication 17 sure makes it seem like any…

Last month the New York Department of Taxation threatened to fine some Amish business owners who didn't follow the state's new electronic filing mandate. Since May 30, the Empire State has required businesses that collect sales taxes to send in the necessary returns and payments electronically. Each e-file failure carries a $50 penalty. The change has been hard for the state's Amish who eschew modern conveniences, such as telephones and computers. Heck, they aren't even on an electric grid. When the traditional and tax worlds collided last month, state officials promised to be "judicious" in levying any fines against Amish…

Ah, summertime. No worries. No hassles. No cares. Unless you're a teenager with a between-semesters job. A lot of young people look for work when school is out. They like having their own money and the bit of independence that it allows. But beware young workers. You likely will have some tax issues to take care of, too. Yep, Uncle Sam doesn't discriminate when it comes to getting a share of earnings. Regardless of your age, the IRS typically is looking to collect. And that's today's Weekly Tax Tips topic. Just how much or whether the tax man is due…

How serendipitous that New York's decision to sanction same-sax marriages came in June, the most popular month for weddings. OK, it takes 30 days for the law to go into effect, pushing the first exchanging of vows to July 24, but every couple needs time to plan their big day. And it's still is a nice gesture. Photo by Kathryn8/iStock Not to take any glow off the new-found relationship option, but like their heterosexual counterparts, New York's same-sex couples also will now be able to officially divorce. "One of the so-called benefits to marriage is actually divorce," Ruthann Robson, professor of…

June is the month when lots of couples are saying "I do." But when it comes to filing a joint return, many opt to say "I don't." True, opting to fill out your Form 1040 as married filing jointly is the preferred filing status for wedded couples. That's because in most cases, it produces the best tax results for husbands and wives. The IRS notes in its Publication 501 that "if you and your spouse decide to file a joint return, your tax may be lower than your combined tax for the other filing statuses. Also, your standard deduction (if…

The agency in charge of collecting the money needed to run the U.S. government and its programs has taken an early hit in the Congressional appropriations process. The House Appropriations Committee’s subcommittee on financial services and general government has signed off, by voice vote, on a $19.9 billion bill to pay for financial services and general government costs through Sept. 30, 2012. Specifically, the House panel’s budget calls for the IRS to get more than half of the total spending allocation. But the proposed $11.5 billion for the tax enforcement and collection crew is $606 million less than the IRS received in fiscal…

Today is the filing deadline for American taxpayers living abroad. However, some folks no longer have to worry about the IRS. They've become "taxpatriates;" that is, they have surrendered their citizenship to avoid paying U.S. taxes. For the first three months of this year, 499 individuals renounced their citizenship for tax purposes. Andrew Mitchel, a tax attorney who follows such things in his International Tax Blog, says that while 499 isn't the largest number of quarterly tax expatriates in recent history (that was 560 in the second quarter of 2010), the quarterly average continues to increase. Graph courtesy International Tax…

Most taxpayers wrapped up their 2010 tax duties in April. But today, June 15, is the filing deadline for payers of estimated taxes. The second payment for the 2011 tax year is due today. It's also the deadline for some taxpayers who automatically were granted two more months to finish filling out their tax returns: U.S. citizens or resident aliens who are living and working outside the country, as well as for members of the military who are posted abroad. These folks still had to pay any due tax back in April. But they didn't have to send in the…

Yes, it's that time again. Time for the Weekly Tax Tip and time for many of us to hand over more money to Uncle Sam. The U.S. tax system operates on a pay-as-you-earn system. So that means when you have income that isn't subject to withholding, it's your responsibility to get the appropriate tax amount to the IRS via estimated tax payments. The deadline for estimated tax payment #2 of the 2011 tax year is a week from today: Wednesday, June 15. This 1040-ES voucher (and the other three) can be opened as a PDF, allowing you to fill them…

Summer is here, but there's no vacation from taxes. Sure, you don't have to worry about 1040 specifics, unless you got an extension and still haven't filed your 2010 return (guilty!). Remember, we tax procrastinators still can rely on the Daily Tax Tips that I published through April 18 to help fill out our forms by Oct. 17. But we also need to be thinking about our 2011 taxes and what we can do now to make sure we pay as little as possible. You can find some tax-saving strategies here on the ol' blog. I don't mean just my daily…

It's been a month since most Americans filed their federal tax returns. So what happened to all the material they used to fill out their 1040s? If they had a record keeping system in place, they probably immediately shifted "2010 taxes to-do" documents to their "2011 taxes done" files. But just in case you aren't that obsessive and/or organized, there's still time to get your old tax paperwork in order and plenty of time to set up a system to make next filing season easier. Tax record-keeping tips is today's featured Weekly Tax Tip. That story has lots of good…

Divorce talk is in the news again with the separation of Maria Shriver and Arnold Schwarzenegger. California Governor Arnold Schwarzenegger is joined by his wife Maria Shriver while being sworn into office for a second term by Supreme Court Chief Justice Ronald George during his inauguration ceremony at the Memorial Auditorium in Sacramento, California in this January 5, 2007 file photo. The former California first lady has moved out after 25 years of marriage, reported Los Angeles Times. The couple confirmed their separation in a joint statement released on May 9, 2011 after questions were raised by The Times. REUTERS/Rich…

Tax Day 2011 is over. Did you get your return to the IRS by April 18? Most taxpayers did. But around 10 million of us filed for an extension. And, yes, I am one of those who now has until Oct. 17 to finish up our 1040 and associated schedules. For those of you who are the same procrastinating boat as I, remember that the Daily Tax Tips from January, February, March and April still apply to our pending 2010 returns. But since we’re now into the fifth month of 2011, it’s time to pay attention to ways to keep…

The Defense of Marriage Act, the 1996 law under which the federal government — including the IRS in processing tax returns — only recognizes as legal marriages those between a man and a woman, has produced a couple of splits of its own. King & Spalding, the law firm hired by Republicans to defend the federal government's ban on recognizing same-sex marriages, withdrew from the case Monday. That decision then prompted the lead counsel for the case, Paul D. Clement, to resign from the firm. Clement, who also served as solicitor general under President George W. Bush, said he will…

While doing some seemingly endless post-Tax Day clean-up, I realized I never posted info on the Executive Branch occupants' tax returns. So here's the deal. The Obamas were much poorer in 2010 than in 2009. Of course, poor is a relative term. Barack and Michelle O reported $1.7 million in adjusted gross income last year, down about 69 percent from the previous year's total of $5.5 million. 2010 also was the couple's lowest-earning year since 2006. So what was the IRS damage on 2010's smaller AGI? $453,770 in federal taxes. But with estimated tax payments and withholding, the First Couple…

I admit it. I didn't do much of anything yesterday. I was glad April 18 was over, even though I filed for an extension and will be working on our 1040 in the coming weeks. What about you? Did you get your return (or Form 4868 extension request) filed on Monday? No? So what now? Don't panic, but don't delay. Penalty charges are adding up: Penalties and interest are accumulating as I type and you read. The current IRS interest rate isn't so bad, but depending on how much you owe, the penalties could quickly add up. You can put…

Feeling left out because the whole tax world seems to have gone electronic? Don't. There are still some taxpayers who rely on old-school snail mail filing. Some folks refuse to e-file for a variety of reasons. They don't trust the system when it comes to protecting their personal tax and financial data. Others don't trust the software, preferring to pull out the calculator and tote the numbers themselves. A good number of folks who file real paper returns owe the IRS and don't want to pay the extra fees associated with most e-payment methods. Plus, although the IRS is generally…

With the tax filing (and paying) deadline just hours away, the IRS seems to be channeling, at least via its announcements, the annual Jerry Lewis fundraising telethon. Case in point, word from the Washington tax headquarters that taxpayers set a record this weekend for e-filed tax returns, topping 100 million for the first time. The record electronic filing was helped by a surge of e-filings over the weekend. By early this April 18 filing deadline morning, the IRS said it had received nearly 101 million electronically submitted returns this filing season. That's an 8.8 percent increase from last year. Even…

Some of us have a double date with Uncle Sam today. We pay estimated taxes and the due day for the tax year's first of four extra filings is the same day as the regular tax filing, tax payment deadline. For 2011, that means estimated tax payment for the first quarter of the year is due today, April 18. This 1040-ES voucher (and the other three) can be opened as a PDF, allowing you to fill them out and then save and print as needed to file.  I usually use EFTPS to electronically make these payments each April, June, September…

Most of America's 141 million tax return filers have submitted their 1040s to the IRS. The late filers, including yours truly, tend to be people who owe Uncle Sam. Many of us on April 18 will be sending the IRS an extension to file Form 4868. Remember, though, that an extension to file is just that; it only gives you more time to send in your tax forms. If you have a tax bill due, the IRS expects you to pay it or as much of it as you can by tomorrow. The Daily Tax Tip for Friday (#15 in…

Check out the newer version of this post, circa 2026, at Don’t forget about your state taxes.   Only a relatively few taxpayers don’t have to worry about state tax filings this time of year. There is no income tax collected on wages here in Texas, as well as in Alaska, Florida, Nevada, South Dakota, Washington and Wyoming. In the other 43 states and Washington, D.C., that collect taxes on income, either earned or unearned, from their residents, most follow the IRS filing schedule. As we all well know, the IRS deadline typically is April 15, which is why the…

Thanks to Emancipation Day falling on April 15 this year, the filing deadline for 2010 returns is bumped to Monday, April 18. And thanks to Congress agreeing to another continuing resolution to keep federal offices open through Sept. 30, all procrastinating taxpayers, whether they e-file or send in paper returns, don't have to worry about any interruption of IRS processing of tax returns. All we, and yes, I'm one of those who still hasn't finished filling in my forms, have to worry about is getting the job done correctly. And filing our first estimated tax payment of the 2011 tax…

Have you ever cheated on your taxes? If you're an unmarried man younger than 45, chances are you have at one time stiffed Uncle Sam. The latest DDB Life Style Study found that while only 15 percent of Americans admit that they are likely to cheat on their taxes, there are some traits specific to tax cheats. The biggest difference between tax cheats and those who meticulously fill out their 1040s is gender.   Sorry, guys, more of you are guilty. DDB pollsters found that 64 percent of tax cheats are men. They also are likely to be single and…

Around 70 percent of us e-file our federal tax returns. And since most states expect tax returns this time of year, too, most folks also e-file their state taxes. The IRS' Free File program makes it possible for taxpayers whose 2010 adjusted gross income was $58,000 or less (regardless of filing status) to file federal tax returns at no cost, but what about your state return? Some of the Free File providers do offer free state tax preparation and e-filing in conjunction with federal returns at the IRS.gov filing portal. But you probably should check directly with your state tax…

You might still be working on your 2010 tax return, but your earnings so far this year have been going to pay your 2011 tax bill. So put down your Form 1040 instruction book and take a minute to celebrate. Today is America's Tax Freedom Day. That means, according to the Tax Foundation, that U.S. taxpayers on average will have earned enough by today to pay off their 2011 federal, state and local taxes. The Washington, D.C.-based nonpartisan research and policy group has been tracking Tax Freedom Day for 40 years.  This year's Tax Freedom Day is three days later than…

Still haven't filed your 2010 taxes? Welcome to the club. The IRS says it expects almost 10 million taxpayers to request an extension to file their returns. But you don't have to be one of them. Check out my 7-day tax filing plan. It breaks down the whole process into easy steps you can take for the next week to get your return filed on time. Of course, if you prefer to procrastinate, that's OK with the IRS, too, as long as you file a Form 4868 and pay any tax you might owe by April 18. The choice is…

Nobody's perfect. That's very evident every tax filing season. The IRS keeps tracks of mistakes, by individual taxpayers and the tax professionals they hire to help them. The agency also tracks the errors based on the filing method, that is, electronically sent or mailed paper returns. Through April 1, the number one error showing up by individual filers of all three forms — 1040, 1040A and 1040EZ — regardless of whether they e-filed or did their returns on paper, was related to the Making Work Pay credit. Taxpayers got a message from the IRS that "Based on information provided on…

That headline doesn't refer to the millions of folks who get refunds each year, essentially providing Uncle Sam with a no-interest loan of their money, which, by the way, he thanks you for in this era of deficit spending. The statement is from Internal Revenue Service Commissioner Doug Shulman in response to a question, following his speech before the National Press Club this week, about delayed processing of returns that paid back this year all or some of the 2008 first-time homebuyer "credit." As everyone is painfully aware of by now, that real estate industry sop credit three years ago…

A possible federal government shutdown is coming at exactly the worst time for both procrastinating taxpayers and the Internal Revenue Service. The April 18 deadline to get your tax return or extension-to-file request (Form 4868) and, more importantly, any 2010 taxes you owe to the IRS is firm. A short-staffed IRS isn't going to delay the due date. That's the word directly from IRS Commissioner Doug Shulman. "We have been doing some contingency planning," acknowledged Shulman in the question-and-answer session following his address today to the National Press Club in Washington, D.C. "If there is a government shutdown, we won't have…

No, I'm not advocating that you spend money to save on your taxes. While that technically might be true in some cases, excessive shopping can cause many more financial problems. But all of us do shop some. And the sales taxes, both state and local, that we pay on our purchases, unless we live in one of the five states that don't collect sales taxes, could come in handy at federal tax-filing time. If you itemize, you can deduct the state sales taxes you paid duirng the tax year. Local sales taxes count, too. And if you bought a car…

April is finally here. In just 17 more days most taxpayers will have completed their 2010 tax-filing tasks. For those of you who filed earlier, go ahead and be smug. You're entitled. But don't forget about 2011 tax strategies that can help you keep this year's tax bill small. And for those of you still dreading April 18, I'm right there with you. I've yet to file our tax return, so I know exactly how you feel. In addition to lending my moral support, I've put together a list of tax moves you still can make in the next few…

I know you're frantically looking for ways to reduce your tax bill. But sometimes you just need to be reminded, don't deduct that! Related posts: Deductions for nonitemizers Overlooked tax deductions, credits Bunch your deductions When deducting work expenses, ask your boss for reimubursement first Tax breaks for minimum wage workers Three requirements to deduct job search costs Want to tell your friends about this blog post? Check out the buttons — Tweet This, Reblog, Like, Digg This and more — at the bottom of this post. Or you can use the Share This icon to spread the word via e-mail and online avenues.…

Living abroad offers a lot of exciting experiences. But you'll still share one thing with all of us you left here in the United States: tax filing. If you are a U.S. citizen or resident alien, the rules for filing income, estate and gift tax returns and paying estimated taxes are generally the same whether you are in the United States or living outside the country. Why? Because your worldwide income is subject to U.S. income tax, regardless of where you reside. This filing season, though, some U.S. taxpayers living in other countries might find their tax tasks easier and…

If you'll owe the IRS this filing season and would like to pay your tax bill electronically, consider EFTPS. The IRS and users of this electronic payment program pronounce the acronym "Eff-Tips." The official long name is Electronic Federal Tax Payment System. Whatever you call it, and I personally have had some less than polite names (also starting with "eff") for it in the past, if you plan to use EFTPS and haven't yet set up an account, you need to get to it soon. Yes, EFTPS is electronic. It's available by phone or online 24 hours a day, seven…

About a month ago, the IRS announced that millions of people didn't file a 2007 tax return. By neglecting this tax task, they left behind $1.1 billion in unclaimed tax refund money. Some taxpayers in every state are owed refunds they didn't claim three years ago. And the IRS still is trying to give this money back. The IRS estimates that half of these potential refunds are $640 or more. But if the negligent taxpayers don't send in a 2007 return by this year's April 18 filing deadline, their money becomes official U.S. Treasury property. Tax records critical before and…

Tax time evokes a lot of emotions. Anger. Frustration. Despair. Then there's fear. Being afraid of filing holds back a lot folks when it comes to accomplishing their annual required tax tasks. I'm no psychologist and I've never played one on TV. But I have been dealing with taxes professionally for almost 15 years. I've been doing my own returns for longer than that. So I know something about how scary taxes can be. And I have some suggestions in my Bankrate.com story on how you can overcome some common tax fears. The intimidating tax situations read like a horror…

Good news for filers who've been in tax refund limbo because of their repayment of the 2008 faux first-time homebuyer credit. The IRS says it has beefed up its staff to manually input the problematic returns that confused its computer system. Once those folks enter the 1040s into the system, any associated refunds should be issued by April 5. A few stragglers might not get out until the following week. But the IRS swears it's on track to get this glitch out of the way and the refund checks on their way to filers, many of whom have been waiting…

Today is Harry Houdini's birthday. If the master escape artist had been able to free himself from the restraints of mortality, he would have been 137 today. But even the few among us who are as slippery as Harry was still can't escape taxes. We can, however, do the next best thing — get free tax help. I know you're here at the ol' blog where you've availed yourself to the daily posts and the always fun and informative tax tips series. I really do appreciate your support. But I'm just one person who has a job and a hubby who,…

This has not been a good filing season for the Internal Revenue Service. First, Congress screwed around into December before passing tax laws that apply to 2010 returns. That forced the IRS to push back the start of the 2011 filing season for many taxpayers as it reprogrammed its computers. Then, thanks to a glitch in those computers, the IRS erroneously demanded payments of folks whose direct tax debits are in the works. Now there's a passel of first-time homebuyer credit claimants who are not happy about another IRS glitch that's placed their tax returns, and in some cases their…

We've all gotten those dunning letters that include the statement, "If you've already sent in your payment, thank you and disregard this statement." Even the IRS includes that line on its CP-14 notices, the forms it sends to taxpayers whom it believes haven't paid their tax bills in full. Recently, though, the tax agency sent the billing notice to around 200,000 taxpayers in error. And a formal piece of paper from Uncle Sam saying "hand over your taxes now" is a bit more disconcerting than than a crossed-in-the-mail second notice from a magazine subscription facility. "My bad" from the  IRS:…

In January, tax professionals were searching in about equal amounts for business and individual tax terms. That changed in February. Last month Intuit ProLine Tax Research revealed (thanks to AccountingWEB) that users of Intuit ProLine tax products were decidedly focused on business returns. "Eligible Small Business" was the most searched for tax topic by a huge margin in February. The dominance of that phrase is clear in the search cloud graphic. The larger the letters, the more searches for the topic. Next in the searched-for list is "student loan interest," but a couple of other business topics, "bonus depreciation" and…

Experts on both taxes and American history were quick to note that my By the Numbers post on states tax filing deadlines that diverge from the IRS due date neglected to discuss the locales that recognize Patriots' Day. This legal holiday in Maine and Massachusetts commemorates the first battles of the Revolutionary War at Lexington and Concord on April 19, 1775.  Image courtesy Boston University School of Education Patriots' Day was originally celebrated on the actual day that Americans fired their first musket shots for freedom, but the holiday eventually was moved to create a three-day weekend. It's now officially…

Did you file a return for the 2007 tax year? If not, then a portion of $1.3 billion in unclaimed refund money could belong to you. In what is an annual spring rite, the IRS announces how many people didn't file returns three years ago and how much in refund money they're missing out on. This year, nearly 1.1 million people didnt file a 2007 return, leaving Uncle Sam with a billion-plus extra dollars. On a more personal level, the IRS estimates that half of these potential refunds are $640 or more. That's a nice chunk of tax change. And…

As I mentioned earlier this week, tax filing season is like a big scavenger hunt for tax deductions. Most of the time, when people hear the word "deduction" they associate it with itemizing expenses on Schedule A. But there are more than a dozen so-called above-the-line deductions available directly on Form 1040. Four of them are found on Form 1040A. Technically, these are adjustments to income. You use them to whittle your gross income down to a smaller adjusted gross income level. Each step you take in reducing your overall income means your taxable income, and therefore your tax bill,…

I file our tax returns (that's my working method pictured below, and yes, the television remote is critical to the process), but the hubby contributes to the annual task. Every year as I slog through our 1040, he periodically stops by to look over my shoulder and chant "Deduct! Deduct! Deduct!" He has a point. Deductions help cut your overall income level to a smaller taxable income amount. And less taxable income typically means less tax owed. Even better than deductions are credits. This type of tax break lets you reduce your actual tax bill dollar for dollar. A few…

I've posted recently about the importance of selecting the type of tax pro that meets your financial and tax-filing needs. I've also talked about ways to check out your tax preparer, regardless of which type your choose, to make sure he or she is competent, ethical and will do the job you expect. But tax filing is a two-way street. Your tax professional depends on your help to file an accurate return and get your the most legitimate tax breaks. So don't be the tax client from hell. It is, after all, your taxes that are being filed, not your…

By now, every taxpayer knows that the IRS offers ways to check on tax refund status. There's the old-fashioned telephone. Just call 1-800-829-1954. For folks who spend most of their time online, IRS.gov offer its popular Where's My Refund? tracking tool. The latest tax money tracking option is the new IRS2Go smartphone app for your iPhone or Android device. But wait, there's more! The IRS has additional refund info that will help e-filers know just when they need to start worrying about delivery of their refunds. It's a nifty chart that details the expected processing time for electronically filed tax…

As planned, the IRS on Monday, Feb. 14, began accepting tax returns that had been delayed while the agency got its computer system up to speed with tax law changes enacted in December. Now, however, the IRS is asking for one more favor from e-filers. Slow down! The Council for Electronic Revenue Communication Advancement (CERCA), the association founded 15 years ago at IRS request to deal with the electronic filing of tax returns, says that although the IRS is now processing delayed returns — primarily ones that include Schedule A itemized deductions — there will be some continued delays in…

The recent purchase of The Huffington Post by AOL prompted renewed attention to online searching. While much of the world is looking for celebrity-focused material or directions or a movie review (two out of three of those are me!), accountants have much more specific inquiries during tax-filing season. Intuit, the maker of a variety of tax software, took a look last month via its ProLine Tax Research at the most-sought-after tax research terms that accountants were plugging into their computers. The results, compiled between Jan. 20 and Jan. 26, are displayed in the keyword cloud image below. The larger the…

Just when you think you've seen everything, something like this listing for an out of the ordinary tax filing service shows up: Yep, Steve certainly has the bases covered. If taxes are driving you to drink, then head on over to his Wilmington, Del., liquor store to quench your literal and tax thirsts. Once you fulfill your annual IRS filing duties, reward yourself by picking up a six pack or, depending on just what the final tax bill damage was, something a little stronger. Mary O'Keeffe, on whose blog Bed Buffaloes in Your Tax Code I ran across this cross-discipline marketing…

You've decided to hire someone to file your taxes this year. You've looked at your tax pro options and decided which kind of paid preparer fits your needs. Now the next step: Thoroughly vetting the tax professional. Remember, regardless of who fills out your 1040 and sends it on to the IRS, when you sign your tax return, you are legally responsible for everything on it. So it's crucial to hire a tax pro who's not only knowledgeable, but also ethical. Most tax preparers are honest and provide quality service. But as with any consumer transaction, it's up to you,…

I'm getting some e-mails from folks asking where on the 2010 Schedule L they should enter their property tax payments to increase their standard deduction amount. I hate to be the bearer of bad news, but the answer is nowhere. It's not an option for your 2010 taxes. The ability to increase the standard deduction amount by adding up to $500 in property taxes paid by single filers or up to $1,000 in real estate taxes paid by married couples filing jointly expired at the end of 2009. There had been some talk of continuing it, but that provision didn't…

You know what's coming up, right? No, not Valentine's Day. OK, Cupid's holiday is almost upon us. But Feb. 14 this year also is special for taxpayers who've been waiting for the IRS to process their returns. To mark the convergence of the most romantic day of the year and your taxes (yeah, it was weird typing that, but …), I've got something for you almost as good as a box of chocolates or roses: free tax preparation software. For the next three days, I'll be giving away access codes to online tax preparation for federal and state returns. We kick…

You didn't file your return in January because you knew you weren't getting a refund or you just didn't care. There was way too much going on in your life as 2011 got underway. Now, however, you've decided to look at all that tax material stacked up on your desk. And a quick glance made you realize that this year you want professional tax filing help. If you are in the market for a tax pro, you better get on the stick. Since more of us are using tax preparers, most of them fill up their calendars quickly. You also…

Everyone’s hoping that the housing market will at least begin to recover in 2011. And it looks like that might just happen. Sales of existing homes in December 2010 grew at their fastest pace since May 2010. Where home prices are still dropping, Housing Predictor says its data show the values are deflating at a slower rate for the second year in a row. And now there are indications that as many as 17 states, primarily in the Midwest and  Northern-most parts of the country, will see home prices rise in 2011, demonstrating, says Housing Predictor, that housing markets are recovering. Verifying your loan eligibility:…

H&R Block has been hitting the airwaves this filing season touting the ability of its offices to get taxpayers money back that they overpaid in earlier tax years. Dubbed the Second Look Review, the Kansas City, Mo.-based tax preparation giant says that its analyses of previously filed tax returns find mistakes in the majority of those old 1040s. Now I've watched these H&R Block ads, mainly because I'm fascinated by the poor woman who runs a small business and apparently overpaid the IRS by more than $5,000. Sure she points out the obvious, that numbers are not her thing. But…

Can you believe it? A month has already flown by and we're now into February 2011. Time sure flies when you're having tax fun! While February is the shortest month of the year, there still are plenty of tax moves you can make in the next 28 days. You say you don't want to think about taxes now. Valentine's Day is fast approaching and you're focusing on what to get the love of your life. That's so sweet! Then there's the long President's Day weekend, where you must decide if you're going to be lazy or check out the bargains…

I ordered a bedskirt online a couple of weeks ago. Or I tried to. The company's website order process screwed up and didn't provide me with a confirmation page. So I called the customer service line and placed the order by phone. On Friday I got the bedskirt. On Saturday, I got another bedskirt. Apparently, even though the company's website didn't tell me it got my order just fine, it did. I'll be sending one bedskirt back tomorrow, after I make sure the company will pay the return shipping for its bad website order processing. Now you might be thinking…

If the weekend break from your usual 9-to-5 grind has you thinking about your eventual retirement, you need to be putting as much as you can into your IRA and workplace retirement account now. Contributing to a traditional IRA is one of the few tax breaks still available for the previous tax year. You can contribute up to $5,000 to a traditional IRA by April 18 (remember, we get three extra filing days this year) and have it count as a deduction, if you're eligible for the write off, on your 2010 tax return. If you're age 50 or older,…

I've become a big fan of handling my finances online. But there are two issues with which I continually wrestle. First is all those log-in IDs and passwords. I try to be secure and use different ones to stymie identity thieves. Most of the time, however, the roadblocks slow me, not some hacker, down! So I constantly have to refer to my sign-in cheat sheet. The other issue is remembering to check my accounts for statements. Yes, I do get e-mail notifications that my statement or bill is ready. But I get so much (too much) electronic communication that these…

Did you claim the first-time homebuyer tax credit? What year? It could make a difference as to whether you owe the IRS more on your 2010 return or get back some money from Uncle Sam. Those are just two tax law changes that could affect your filing this tax season. So before you finish filling out your form, check them out. Related posts: The new tax bill and your 2010 taxes Important 2011 tax season filing dates and deadlines IRS launches smartphone app Taxes? There are apps for that Free File is open for 2011 tax business E-file, Free File…

When we file our taxes, we want the bottom line: Just what do we owe? That amount depends upon into which tax bracket our taxable income falls. Thanks to the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 that became law on Dec. 17, 2010, the six federal income tax rates that apply to our 2010 taxes are in place for 2011 (and 2012, too). The tables below show which of the tax rates apply to what chunks of our money for the 2010 and 2011 tax years. The IRS will update the 2012 income tax bracket…

Once upon a time, the IRS let folks who filed 1040-EZ returns do so by telephone. Then came the Internet and TeleFile was axed. But, as the saying goes, if you live long enough, you'll see the old become new again. That happened last week when Intuit, maker of the popular tax preparation and e-filing software TurboTax, released SnapTax. The smartphone application, available for both iPhones and Androids, uses image-recognition technology to read salary and withholding information from a W-2. After you answer a few questions and review your return, you hit "file now" and are done. Filing your taxes…

If you itemize deductions and have been wondering when the Internal Revenue Service will get to your tax return, put a big red circle around Feb. 14 on your calendar. Yep, the tax man has a Valentine's Day gift for those folks whose returns are on processing hold because of December 2010 changes to tax laws. Those late-year tax law tweaks meant the IRS had to update its computer systems. Affected returns mostly claim itemized deductions on Schedule A, as well as income adjustments (often referred to as above-the-line deductions) found directly on Form 1040 or 1040A for higher education…

The IRS has a message for folks who prefer to file the old-fashioned way: "See ya!" OK, it's not filers of paper tax returns that the IRS is bidding goodbye. Those folks still can file that way if they insist. But this year the IRS is not going out of its way to help them do so. Specifically, the IRS is no longer mailing out paper tax packages to folks who want to fill out their 1040s by hand. The annual mailings used to contain the tax forms, schedules and instructions needed to complete them. Last year, the packet contained 44 pages.…

The long holiday weekend is over! Not that I want to nag or anything, but it's time to file your final estimated tax payment for 2010. Pay electronically if you have an account already set up (EFTPS is in the process of grabbing my money as I type) or via credit or debit card. Or, if you're old-school, just make sure the envelope containing your 1040-ES voucher and check is postmarked today. Whatever estimated tax filing method you use, just make sure you meet the deadlines. And in 2011, the first one of the year is on Tuesday, Jan. 18.…

The end of last week was so crazy, what with the Treasury tax refund debit cards and the beginning of the 2011 e-file and Free File season, that this annual tax deadline almost slipped right past me, both from blogging and personal tax perspectives! Estimated tax payments are due once again on Tuesday, Jan. 18. These payments are required when you get money that's not taxed via payroll withholding, such as self-employment income, investment earnings, prizes or even alimony. This is the fourth and final filing of a 1040-ES voucher for the 2010 tax year, covering untaxed earnings between Sept. 1…

It's electronic tax day! Today, Friday, Jan. 14, 2011, marks the beginning of the annual electronic tax return filing season. The IRS is now accepting e-filed returns. Of course, as I mentioned in my tax software contest post earlier today, some folks will have to wait until February to hit the "enter" button on their PCs and send their returns off to Uncle Sam. Still, most taxpayers will be able to electronically submit their 1040s much sooner. Today also marks the opening of the electronic door to the IRS' Free File program. I'll be posting more details on this public-private…

Following the passage (finally!) in December 2010 of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 that continued the current income tax rates (which just happens to be Today's Tax Tip) for the next two years and extended some popular tax breaks, the IRS announced that it would take a while for the agency to get ready for the filing season. Specifically, or actually not so specifically, the IRS said that the tax measure's late passage meant taxpayers who claim educators expenses and tuition expenses directly on their 1040 or 1040A would have to wait until…

Welcome to tax filing season 2011! I know all y'all are as excited about this time of year as I am. OK, so maybe not as excited. But if you're expecting a refund, you'll probably want to file your 2010 return as soon as possible. The ol' blog wants to help you get your refund quickly or reduce what you owe Uncle Sam. So we're once offering a tax tip a day to help send tax savings your way. Or to keep the IRS auditor at bay. Or whatever tax-related rhyme you can come up with yourself! The Daily Tax…

Mark your calendars, fellow taxpayers. 2011 is an interesting year when it come to filing dates. The most notable tax timing issue primarily affects folks who itemize using Schedule A. The IRS says these taxpayers, as well as those who claim some specific deductions — tuition and fees and educator expenses claimed directly on Form 1040 or 1040A — will have to wait until mid- to late February to file. Yes, this year the IRS is imitating a cable TV technician, giving us taxpayers a vague, open-ended time frame in which to cool our heels while we wail for service. But…

America's biggest tax preparation firm is out of the tax refund loan business, but it wasn't by choice. H&R Block will no longer offer refund anticipation loans, usually referred to as RALs. The move came after HSBC Holdings PLC, the bank Block used in connection with the controversial financial products, said it would stop underwriting the loans. Actually, HSBC was told to quit issuing RALs by its banking supervisory agency, the Office of the Comptroller of the Currency. While the immediate cessation of refund loans came as surprise, especially with the start of the 2011 tax filing season just days…

Something unheard of happened to me over the weekend. In going through my 2010 receipts, I discovered that a client had paid me twice for some work. That's a very nice surprise for a freelance writer. Like countless other small business people, we depend on prompt payment to cover our bills and buy the occasional Frappuccino. Naturally, my unexpected and financially positive turn of events got me thinking about taxes and the perennial question I get from other independent writers each year: If I get a check dated Dec. 31, but it doesn't arrive in my mailbox (yes, some clients…

Whatever you think of the just enacted tax bill, we at least finally have some resolution to the 2010 and 2011 tax laws. Now comes the fun part: Complying with them. I suspect the IRS will have its hands quite full in the coming months as taxpayers and tax professionals alike sort through all the retroactive and prospective law changes. And you know what that means: Confrontations, I mean, interactions with IRS employees. OK. I do mean confrontations. Even in the best of times, taxpayer experiences with the IRS often don't end well. Now, however, taxpayers can do more than…

Welcome to Don’t Mess With Taxes’ fourth annual Year-end Money Moves series. Each December, I look at things you can do in the closing days of the year to save you some money. Naturally, I always start off with everybody’s favorite topic, taxes! The rest of the week, tips will be posted on investment, retirement and charitable giving moves. And we’ll finish things up with a look some financial housekeeping details. Since life, financial or otherwise, never stays within nice little boundaries, you’ll note that many of the various strategies cross boundaries. Selling assets that have lost value, for example,…

If people dressed as Lady Gaga, Kim Kardashian, The Situation and various Twilight characters aren't scary enough for you this Halloween (and those get-ups are why adults should not be allowed to don costumes!), you can read the IRS watchdog report that reveals the agency let almost $111.4 million in stimulus-related tax payments go out to unqualified filers. "The passage of two significant tax laws impacted the 2010 Filing Season and presented additional challenges for the IRS," notes Michael Phillips, Deputy Inspector General for Audit for the Treasury Inspector General for Tax Administration, or TIGTA, in the Sept. 30 report. The IRS received more than…

In preparation for the upcoming 2011 filing season, I've been examining which stories and tax tips from this past tax season can simply be tweaked (primarily number/inflation changes) and which ones will need to be totally rewritten. Right now, the answer is "I don't know," since we're all waiting for Congress to return and deal with tax legislation — the expiring Bush tax cuts, stimulus tax breaks, tax extenders — in a lame-duck session. As I was discussing this with a colleague, she uttered words (OK, e-mailed them) that I'm sure have passed all our lips (or keyboards) at one…

Taxpayers face three key deadlines today. File that 1040: The first deadline is the most well-known. Oct. 15 is the last day for taxpayers who got a filing extension to submit their Form 1040s. If you continue to procrastinate and owe taxes, things could get expensive. IRA recharacterization: Next up is the deadline to recharacterize IRAs. This do-over opportuity could save some retirement account holders tax money. That's the case for folks who converted a traditional IRA to a Roth account, paid taxes on the converted funds and then watched the value of their IRA sink. If that happened to…

Did you send in your comments about the impending rule that will require beau coup new 1099 forms to be issued? Me neither. But at least we didn't get blasted by a U.S. Senator for not taking a stance. You remember this requirement, scheduled to begin in 2012. It was devised as a way to help pay for health care reform. Lawmakers think a lot of untaxed money is changing hands. By forcing such transactions to be documented on more 1099 forms, the new third-party reporting will add previously uncollected tax dollars to the Treasury. Or so the thinking goes.…

The Rev. Al Sharpton usually gets headlines for events that he stages. This time, though, the attention is not the kind that anyone wants. The IRS this week filed a $538,652 lien against Sharpton in connection with what Uncle Sam says are unpaid taxes assessed in 2009. Sharpton's lawyer, Michael Hardy, told the Detroit News' Tax Watchdog column that he and the political activist are confused by the IRS action. Hardy said the pastor was granted an extension to file his 2009 taxes by Oct. 15. "It's kind of odd. I totally don't understand why they would file a lien…

Welcome to the fourth quarter of 2010. Where in the heck has this year gone?! Although the year is quickly winding down, there still are 2009 tax tasks to complete (I'm talking to you filing procrastinators) and tax moves to make to help cut your 2010 tax bill. Find them in the monthly tax moves calendar over in the left column (scroll down a tad). With the October tax moves calendar completed, now all I have to do is figure out what tax-related Halloween costume I'll wear this year! Related posts: Weekly tax tips Daily tax tips Midyear Tax Moves…