My very, very bad! Today, Sept. 15,  is the due date for the third estimated tax voucher (sometimes called quarterly payment), known as Form 1040ES. The reminder is in the left column there under September Tax Moves, but I like to give y’all a separate blog post notice, too. My excuse for forgetting: I set up my payment last week via the IRS’ Electronic Federal Tax Payment System, or EFTPS, so I  totally forgot about today’s deadline. It’s too late now to use EFTPS, but if you plan to mail your third estimated tax payment, you’ve got time. Your 1040-ES…

OK. I really tried to post a serious item today, but I’m having trouble getting some images to upload. I’m thinking (hoping) it’s an issue with my blogging platform, since the same thing happens (or rather doesn’t happen) on both my laptop and PC, each of which uses a different photo program. So, after a couple of hours of fighting this losing battle — and not yet eating anything while I obsessed worked to solve the problem! — I’ve decided screw it. It’s the middle of a long holiday weekend. I’m hungry. Football is about to start. I’m going for…

Every time it gets close to tax payment time, I promise I'm going to remind folks that if they want to pay electronically, they need to set up an account with the IRS in advance. It's that time again! In less that two weeks, Sept. 15 to be exact, estimated tax payment #3 for the 2010 tax year is due. As I've done for the last few years, I will sign on to my Electronic Federal Tax Payment System (EFTPS) account and enter the amount I want transferred from my checking account to the IRS. I find this very handy.…

Don't panic if you're still waiting for North Carolina tax officials to send you the refund indicated on the 2009 return you filed this year. The state should get you that money shortly.But if in years past you just happened to overpay your taxes and didn't realize the mistake, it looks like the Tar Heel State might hold onto that extra money. The Raleigh News & Observer says a change in how the state's Revenue Department decides a tax overpayment has been discovered is to blame. Previously, a computer would flag returns on which filers had mistakenly paid too much.…

Last week I joined the chorus of folks cheering the IRS' decision to no longer provide lenders with a debt indicator for taxpayers. The assumption is that discontinuation of what is essentially a government provided credit check mechanism will likely reduce the number of refund anticipation loans (RALs). But you know what they say about assume. I still don't like RALs. Too many of the providers of these short-term loans prey on desperate people who end up in worse financial shape because of associated fees and the fact that they just can't pay back the loans, tax refund notwithstanding. Several…

Next tax filing season, the IRS is going to make it more difficult for lenders to issue loans based on expected taxpayer refunds. Beginning in 2011, the the federal tax agency will no longer provide tax preparers and associated financial institutions with the "debt indicator." This information from the IRS indicates whether a taxpayer will get an expected refund in full or whether some or all of the federal tax money will be used to pay government debts, such as student loans or child support. Thus, a debt indicator is essentially a credit check mechanism, allowing lenders to determine whether…

I know it's not everybody's ideal place to work, but at least the IRS is hiring. And, hey, the agency got better marks than Facebook on a recent customer satisfaction survey! Uncle Sam hires new tax office employees throughout the year for various positions. Right now the IRS says it has open slots for revenue agents, revenue officers, criminal investigation special agents, financial analysts and economists. If you're interested, check out the IRS Careers website. The video below has info on being a Criminal Investigation (CI) Division special agent. I can tell you that at IRS Forums, the CI exhibit…

The tax clock is ticking, but well-prepared taxpayers won't take a licking from the IRS if they follow our fourth entry into the inaugural Midyear Tax Moves feature. (Thanks to Timex and John Cameron Swayze for the inspirational turn of phrase and the memories!) Today's timely tax tip comes from Robert D Flach, the Internet's  Wandering Tax Pro, who reminds us that Uncle Sam wants estimated tax payments when we expect to owe more than $1,000 when we file our 1040s. The second 1040ES voucher of 2010 was due just last week, but it's never too late to assess your…

Thank goodness for the tax moves calendar there in the left column, as well as the big pink Post-It note in my desk datebook, both of which are reminding me that next Tuesday, June 15, is once again estimated tax payment time. This upcoming 1040ES payment will be number two for the 2010 tax year. Yes, it's only been two months since April 15 when you made that first estimated payment for the year. But the IRS now wants the money you got in April and May that wasn't subject to withholding. Actually, Uncle Sam would like this payment to…

"There's one time in the year if you make $15-$20,000, $30,000 a year and if you have kids that you're rich. That's tax time." That wealth analysis comes from journalist Gary Rivlin. And, notes the author of a new book about the big business of payday lenders, it's the tax code that makes these folks relatively rich for a short time, as well as makes them prime targets for operations pushing refund anticipation loans. These loans, usually referred to by the acronym RAL, take advantage of expected — or hoped for — refund money that taxpayers might get from the…

When it was pointed out earlier this year that, according to 2008 IRS data, a record 52 million filers (or 47 percent of the 143 million who filed a tax return for that year) had no tax liability, much anti-tax hand wringing and Capitol Hill haranguing began.The unfairness of it all! The tax system must be changed! Find those not carrying their tax weight and make them pay up!We don't have names, but the Tax Foundation knows generally where they live. Southern states have the highest percentages of nonpayers. As the map indicates, nine of the 10 states with the…

Here's a piece of news that was totally expected. The April 30 expiration of the first-time homebuyer credit prompted more people to buy houses last month. And in connection with those purchases, we get another statistical bump that's also unsurprising. The IRS is auditing more tax returns that contain those homebuyer tax credit claims.Good news for Realtors: First, the good news for the economy, or at least the housing sector of it. The National Association of Realtors announced today that existing-home sales rose again in April. In addition to the tax credit lure, NAR cited improving consumer confidence and favorable affordability conditions.As long as buyers…

Barack and Michelle Obama's first tax return as the First Family was too generous to the IRS. That's the assessment of Dorothy A. Brown, law professor at Emory Law in Atlanta. Brown notes in an article for Tax Analysts:The first couple earned more than $5 million and paid 32 percent in federal income taxes. When compared with their peers, they paid too much. According to the most recent IRS statistics, most households with adjusted gross incomes of at least $5 million paid only 23 percent in federal income taxes. Were the Obamas trying to single-handedly reduce the deficit by paying…

Welcome to the fifth day of the fifth month, or as we Tex-Mex loving, margarita-mad Lone Star Staters know it, just another reason to hoist a few Cinco de Mayo. It’s definitely an unofficial holiday here in Texas. And, yes, it’s a pretty big celebration elsewhere. The California Avocado Commission says that around 84 million pounds of avocados are expected to be consumed in connection with the holiday this year. Sales of other food associated with Cinco de Mayo have spiked, too. And don’t even get me started on margaritas! Really, don’t get me started. I have work to do!…

Sorry, people. It doesn't matter that other people used tax software and ended up filing incorrect returns, even if one of them is the Secretary of the United States Treasury. It's still your, other taxpayers' and Treasury Secretary Timothy Geithner's ultimate responsibility to properly calculate and file your taxes. When you don't, regardless of who you are and which tax filing method you used, the IRS is well within its rights to demand that you pay your accurate tax bill and any associated penalties that errors might have caused. The TurboTax excuse: You remember the Geithner case. During his Senate confirmation…

The answer to that question, especially soon after most of us have completed our annual tax filing task, is a definite yes. The practicalities of tax reform, however, always seem to fall prey to Congressional tinkering that makes for good political bullet points but inevitably adds the tax code's complexity. Still, hope springs eternal, both from taxpayer and Capitol Hill perspectives. The latest official Washington effort comes from two Senators who've proposed the Bipartisan Tax Fairness and Simplification Act of 2010. Introduced back in February, the bill (S. 3018) is the brainchild of Senate Finance Committee member Ron Wyden (D-Ore.)…

Did you spend the weekend sorting through the tax material you used last week to file your 1040? Me neither. But it's time to do just that. Getting your post-filing records in order is just as important as having them handy when you fill out your return. The main reason is that you might need them to persuade an auditor that all your claims are legitimate. That's my tax filing paperwork there to the left. As I mentioned in an earlier post, I do a down and dirty paper return before transferring the data to my PC tax software. In…

The tax man waits for no one (except Form 4868 filers). That means that even U.S. leaders had to deal last week with the April 15 filing deadline. The Obamas and Bidens, though, were up to the task. Both the prez, veep and their wives (or more accurately, their accountants and/or tax attorneys) got the First and Second families' returns in on time. Actually, they filed a bit early. And, thanks to Tax Analysts' Tax History Project, we now get a chance to inspect the official presidential and vice-presidential tax paperwork. I'll let you explore the Obama and Biden filings at…

How in the heck did I miss this tax form? It certainly would have helped in my personal filing, since it's designed for me and my fellow "marginally employed" freelancers. I might just have to amend my tax return and take advantage of Schedule BFaS, which was created by graphic designer Sam Potts for the New York Times and which you can see in its entirety here. Do check it out. The "deductions," such as for Twitter, the rent you pay a friend so can live in his or her closet and for the cost of indispensable pajamas you wear…

This year's anti-tax rant winner is Fox News' John Stossel. But it's not just taxing jurisdictions that make Stossel's list. He also has no love for his accountant. The complexities of the tax system, Stossel said last week during an appearance on colleague Bill O'Reilly's show, forces him to pay "several thousand dollars" to Bob, his accountant. If he didn't pay for tax accounting help, Stossel figures that he could be spending that cash on 200 steak dinners, 100 massages, a motorcycle, a cruise.Stossel has a point about the complexities of the tax code. No one anywhere on the political…

NOTE: This tax tip was updated July 4, 2017. I know. You're tired of taxes. Tax Day was yesterday and you don't want to think about the topic again for at least a few days weeks months. But since you did just complete your annual tax task, now is the perfect time to look at what worked and what didn't turn out so well when it came to filing your return. A perennial complaint is that all the effort you put into collecting receipts was for naught. When you added up all your expenses, they came in just short of…

Fellow Austinite @philwest has an April 15 Twitter admission:Every year, I roll my eyes at the taxpayers outside the post office coverage. This year, I very likely will be one of those people in line. Hey, Phil, no worries. It happens to the most plugged-in of us now and then. If you, too, are relying today on the Postal Service to get your tax return to the IRS, check out Last minute tips for snail-mail filers. Related posts: 15 filing tips for April 15 Time to get more tax time? Final tax weekend tips Tax help for the final filing…

With Tax Day and, for some, tax payment time upon us, there's added coverage of ways to pay your tax bill (including today's Daily Tax Tip). One method, which really is more a marketing gimmick than realistic option for most taxpayers, is using your American Express account reward points to pay the IRS. Bob Moon of Marketplace talked with me as part of his Morning Report spot on this topic. You can listen to Pay tax with reward points? Bad idea and/or read the story transcript.Related posts: Paying taxes with reward points Some credit card fees are now deductible Bunch…

We always can make room o the ol’ blog for some April 15 fun, especially when it incorporates solid tax advice. I’m talking about the I Pay My Taxes rap video from the Financial Freedom Boyz. Before you crank it up, note that there are some adult lyrics. And thanks to J. Money at Budgets Are Sexy for being our Tax Day DJ.

Welcome to this wonderful April 15th! Too much? Sorry. How about I make up for the tax enthusiasm with links to 15 posts that could help you finish up today's federal and, in most places, state filing tasks.1. Final tax weekend tips (they still apply on April 15) 2. Time to get more tax time? 3. Daily Tax Tips 4. Are you ready to file your taxes? 5. 7 new tax laws that could save you money 6. Don't overlook these tax breaks 7. New forms this filing season8. Schedule L, a new form for nonitemizers9. Tax breaks without itemizing10. Continuing…

After a tax year ends, there's only one tax break available to most taxpayers for that prior year: a contribution to an IRA. While Roth IRAs have now surpassed the original traditional retirement accounts, regular old IRAs still appeal to many filers. The reasons are twofold. First, as already noted, the contributions can be made to the accounts between Jan. 1 and April 15 and count toward the previous tax year. That's also the rule for Roth IRAs, too. And as for traditional IRA money put into the plan, for some taxpayers the contribution amount is tax deductible for that…

I totally understand where you're coming from. You don't want to surrender. You can do it! You will do it! Or maybe not. I'm talking, of course, about finishing up your tax return. The IRS is expecting around 60 million tax returns to come in this week. But it's also expecting another 10 million filing extension requests. If you're in a panic right now, with just 2½ days until the filing deadline, it might be better to not file. One form instead of the other: Now don't go getting excited or appalled depending on your point of view. I'm talking…

Here's a tax season newsflash that's no longer news to anyone: Many Filers Confused by Stimulus Tax Credit. I've heard this complaint all filing season from readers and tax professionals (and my own family!). Sadly, the cliche that no good deed goes unpunished is never more evident than when Congress creates a new tax law and the IRS implements it.  The Making Work Pay credit was designed to give single workers a credit of up to $400 ($800 for married couples filing jointly). So that people could get use of the money sooner, payroll withholding tables were adjusted to reduce…

I'm still slogging through my own taxes — April Resolution: Put all my 2010 info on a spreadsheet that keeps a running total of income, expenses, mileage, etc.! — but I wanted to take a break and remind y'all of some other looming tax deadlines. As a self-employed person, I pay estimated taxes. If you make these four extra tax payments a year, don't forget that the first 1040-ES of 2010 is also due April 15. If you didn't file a return in 2006 and think you might be due a refund from that tax year, this Thursday also is the…

It's almost tax time, and that means it's also time for David Letterman's annual tax-related Top Ten list. Each year, Dave has real accountants deliver the quips. My favorite from this year's Top Ten Thoughts That Go Through Every Accountant's Mind On April 15th is number 5: "Get through today and then a 364-day weekend." Related posts: Letterman's Top Ten Budget Surprises Halloween candy's tax lessons Stick it to the tax man A new form for the tax undead Want to tell your friends about this blog post? Click the Tweet This or Digg This buttons below or use the…

How's the party going? Wait, aren't you celebrating? You should be. Today is Tax Freedom Day. OK, so it's not an official U.S. holiday. And it's slightly less festive than last year. As a nation, we had to work a day longer in 2010 than we did in 2009 to reach the point that the Tax Foundation calculates as the day we've earned enough money to pay this year's tax obligations at the federal, state and local levels. Basically, Tax Freedom Day answers the question, "What price is the nation paying for government?" Using the latest government data on income…

Spring is here, meaning a young taxpayer's fancy turns to thoughts of finishing that freakin' 1040. Yes, this is your final weekend before your 1040 is due. So what better way to spend it than finishing your return? Don't answer that. It was rhetorical and I have a pretty good idea of what you'd say (do you kiss your mother with that mouth!?). But it's a task that must be taken care of by next Thursday, either by filing your 2009 return or getting an extension. So here are few tips that might help you salvage at least some of…

A glitch with TurboTax netted a federal retiree a federal refund than was $600 more than he should have received. Whoa up there tax-refund seeking cowboys! The error is limited to a very small subset of taxpayers. More importantly, the IRS and the company's parent, Intuit, are working on correcting the issue. State officials, too, have been brought into the loop. According to the New York Times, the error affects federal retirees who received 1099-R forms and who have health insurance premiums paid by their pension administrators. The same expenses can be inadvertently deducted twice, producing a tax-due miscalculation. The…

April 15 is bearing down. If you haven't filed yet, be sure to check out our Daily Tax Tip. A new one is posted each weekday there to your right. You'll also find a link to the previous tips in case you missed a few or just want a refresher. Just under the tips, you'll find our state tax links. And drop down just a smidge further for the link to Bankrate's Tax Guide, where you'll find some more of my tax advice. Also take a look to the left side of the page. The April Tax Moves calendar lives…

Since you and your kids have probably found all the Easter eggs by now, here's a hidden tax break that might have escaped your attention. Payments you make to help pay down the public debt could be deductible. No, I mean extra payments, not your basic tax bill. And note the "could" qualification, which we'll get to in just a second. But first the scoop, straight from the IRS, page 18 of the 2009 version of Publication 17, Your Federal Income Tax For Individuals:   That last paragraph explains the "could" requirement. This money is considered a deductible charitble gift.…

If filing, or trying to file, your taxes has driven you to the brink, them maybe you need to consult a therapist. No, not a psychologist or psychiatrist. A tax professional. "Financial professionals, after all, are among a small group of confidants — like physicians or priests — with whom we share very private information and who accompany us during moments of reckoning," notes Rob Baedeker in Tears and taxes: Meet my therapist, the accountant. Baedeker spoke with enrolled agents, CPAs and tax lawyers and discovered they encounter common patterns during tax time. When it comes to couples, for example,…

That headline is not what Uncle Sam wants to see today. The New York Times reports that this year the Social Security system will pay out more in benefits than it receives in payroll taxes. That wasn't supposed to happen, per government estimators, until 2016. Stephen C. Goss, chief actuary of the Social Security Administration, tells the paper that the economy is a big reason for the earlier-than-expected arrival of this crucial tipping point. Social Security payments have risen more than expected during the downturn because people lost jobs applied for benefits sooner than they had planned. While that was…

Willard Scott would love New Mexico. The state allows an added exemption for taxpayers who are 100 or older.  That's right. Age does have its tax advantages in the Land of Enchantment. The earnings of  a person 100 years old or more is exempt from the state's income tax. You must have celebrated that momentous birthday by the end of the tax year for which you claim the exemption.  And you'll need to fill out Form PIT-ADJ to make sure the department of Taxation and Revenue knows you're in the tax clear. You also must be a self-sufficient centenarian. If…

You know that old saying, you've got to spend money to make money? That might be true in some cases. But when it comes to taxes, don't fall for spending money just to save on taxes. Year after tax year, one of the most common refrains from both so-called experts and taxpayers is "there's a deduction for that." I admit it. I write about deductions here on the ol' blog all the time. But when it comes to these tax breaks, every filer needs to answer a key question: What exactly is that deduction worth? If you can't come up with…

Aaron Zeff had no idea he was a tax delinquent until two IRS agents showed up last week at his Sacramento car wash. The amount the IRS says Zeff didn’t pay back in 2006: 4 cents. So the IRS sent two people to collect four pennies? Actually, the bill was a bit bigger. Over the last four years the unpaid tax debt had grown to $202.35 thanks to interest and penalty fees. Zeff thought he had paid all taxes due from his business, Harv’s Car Wash. And he has no idea how that 4 cents the IRS says he didn’t…

On St. Patrick's Day, we all claim a bit of the Emerald Isle. But it takes more than the legendary luck of the Irish to prevent a tax audit. True, the IRS has most recently been focusing its examinations on higher income taxpayers. And more business, both large and small, also are getting once overs, especially when it comes to how they classify workers. So most of us don't have to worry that much about getting that dreaded letter from an auditor. Unless, of course, we do something that attracts an IRS examiner's eye. One way the IRS decides whether…

The hubby and I itemize our tax deductions. We are in the tax-filing minority.   Most taxpayers claim the standard deduction. The good news for these folks is that there are several possible tax write-offs right on Form 1040 and a few on the 1040A, too. Plus, over the last few years, standard deduction filers have been able to add some extra amounts directly to their standard claim. 2009 standard deductions: First, a quick review. To see whether you should itemize or take the standard deduction, you need to know what the standard figures are. Here are the 2009 numbers: $5,700…

That was IRS Commissioner Shulman's assessment in January, when as part of a wide-ranging interview on C-SPAN he revealed that he hires someone to file his returns. The admission came during a discussion of the IRS' oversight of tax preparers. In response to the question (at 10:27 of the overall half-hour program) as to whether he filed his own 1040s, Shulman said: "I use a preparer. I've used one for years. I find it convenient and I find the tax code complex so I use a preparer." So why am I now pulling up an excerpt from a three-month old…

As millions of us are staring down April 15, the big question we have is how do we pay Uncle Sam as little as possible? Some folks have that answer totally figured out. One-third of individuals who last filing season submitted a 2008 return paid no tax whatsoever, according to the Tax Foundation. That's right. Almost 52 million people got back every dollar that was withheld from their paychecks in 2008. Some even made money via refunds, says the Washington, D.C., tax research group, turning Tax Day into a payday. Valid refunds, higher incomes: Now before you go any more…

Attention tax preparers. Does the complaint below sound familiar? Attention tax clients: Is @taxmegan talking about you? Now I'm sure — OK, pretty sure — that Megan is kidding about inflicting physical pain on her less-than-ideal client. But then tax hurt can come in many forms, as Megan, an Enrolled Agent, notes in a conversation with CPA Joe (@joebwan) few minutes later: What not to do: Failure to provide all necessary information to your tax preparer is a major complaint from those who make their livings doing taxes and tax planning for others. Being very late in finally getting your…

We're just about six weeks away from April 15 and millions of us haven't even started looking at our 1040s. Yes, me too! Or neither. Whatever.When we finally do get around to doing our taxes, the goal obviously is to owe as little as possible. Too often, though, we overlook some tax breaks that could save us some pennies … or more!I just did a piece for Bankrate on 10 overlooked tax breaks. Rather than reinvent the tax wheel here — hey! It's Saturday and the weather is finally nice in Austin! — I'll just give you the list and…

That's not a typo in the headline.  While most of us are working on (or thinking of working on) our 2009 taxes, some folks might want to make sure they filed their 2006 returns. It turns out that nearly 1.4 million individuals didn't get around to sending 2006 tax paperwork to the IRS by April 15, 2007. By neglecting to file, they've left a combined $1.3 billion in the U.S. Treasury. And if they don't rectify that oversight by this coming April 15, they'll never get their hands on their rightful tax money.  Yep, refunds left unclaimed for three years…

The struggling economy apparently is affecting tax filing. And I'm not just talking about individuals having trouble paying what they owe Uncle Sam or their state tax collectors. The actual business of filing seems to be sensitive to these tough fiscal circumstances, with it looking like hard times help one tax-related sector, but hurt another. Last week, a market analyst with Oppenheimer told his clients that in this soft economy, worried consumers have looked for ways to trim costs, including  preparing their taxes themselves instead of paying a fee to have someone do it for them. The evidence of such…

Where to start with California taxes? The state has given us such things as Proposition 13 that limits property tax increases and set off similar revolutions nationwide, state IOUs in lieu of tax refunds and, of course, the Governator who defeated an erroneous federal tax lien.  Yeah, it's easy to poke fun at the Golden State and its taxes. But the Franchise Tax Board folks also have what some say is the filing format of the future: Ready Return. This free service was developed to make filing individual income tax returns easier. Tax officials use information the state already has…

Are you finally sorting through those W-2s, 1099s and all sorts of other tax documents you received?   Now comes the fun part — entering all that information on your tax return. Most of us us use tax software or turn all that stuff over to a tax professional to complete the job. Still, I thought it might be helpful for a quick refresher of some new forms that might affect your return this year. Schedule L: If you claim the standard deduction, and most filers do, this document could help you increase the amount you can claim.The new Schedule…

Love and taxes. Yes, they do go together. First, all you married folks. Congratulations on sticking with those vows. I know you didn't invite Uncle Sam to your wedding, but he was there in spirit. When it comes to taxes, your marital status for a tax year is determined by your relationship status on Dec. 31 of that year. If you were married 364 days but the divorce was final on the last day of the year, then when you file that year's tax return you are single. Conversely, if you didn't get married until Dec. 31, then those 364…

Welcome to prime tax-filing time. Tax forms (W-2s, 1099s and the like) have arrived and folks are ready to get their 1040s into the IRS so they can get their refunds. If you're among the 40 percent of taxpayers working on your return this month, here are some tax law changes that could help you maximize your refund. Or at least reduce any amount you might owe Uncle Sam. 1. Home is where the tax heart isThe big break this filing season is the first-time and move-up homebuyer credits. The tax break underwent three revisions in less than two years,…

By now I'm sure you've heard about the recent Tax Court ruling that gender reassignment surgery costs are deductible medical expenses. You didn't? Then check out TaxProf's item on the ruling. He also includes lots of related links if you want to read even more. While that was case covered serious medical, social and tax matters, every year we get lots of taxpayers who simply try to get one (or more) obviously questionable deductions past the IRS. My Bankrate.com colleague Jay MacDonald has just compiled his latest look at some of this year's Wackiest tax deductions. Texas tax twists: I must say I…

As you fill out your tax return this filing season, you might find yourself wondering just where is that money you forwarded to Uncle Sam via payroll withholding going? If you end up owing even more once your Form 1040 calculations are complete, the question is even more pressing.  Well, USA Today has developed an interactive tax tracking tool. The screen shot below gives you an idea of what the graphic will indicate. Essentially, it lets you enter your salary and see how tax rates and spending priorities have changed over time, from 1940 through 2010. For example, for the…

You've been working for a month now. You've gotten a paycheck or two (or more). Now it's time to evaluate how much of your money is going to the IRS each payday. If you are an employee, most of your tax payments are made throughout the year via payroll withholding. A lot of people overpay, which means they get a big refund when they file their tax returns. While it might be nice to get a big check from the IRS every spring, your goal should be to pay Uncle Sam as close to your actual final tax bill as…

This happens every time there's a new form. Taxpayers and tax preparers make an innocent mistake and the tax return gets sent to the IRS' Error Resolution System, or ERS.  ERS is a computer program used to correct errors and inconsistencies detected by the IRS computer system during processing of tax return information. It's automatic when there are such things as omissions of data the IRS needs to substantiate an item on a return. In the most simple application, the program is looking to make sure that taxpayer info is entered where it should be on a form, either by…

This weekend we got a lot of tax statements. I guess that means it's time for me to at least think about filing our 1040 and see if I can attain what has been an elusive goal: getting it done well before April 15. I'm hopeful, but realistic. Life gets in the way. I make the most of my income during tax season, which means I don't have a lot of time to spend on reporting those earnings to Uncle Sam. And Congress sure doesn't help. Folks on Capitol Hill can't leave well enough, or too often when we're talking…

Last year, the world's largest discount store partnered with United Way and the nonprofit One Economy Corporation to offer free filing services. For the 2010 filing season, Walmart, through its Foundation, is back in the temporary tax help business, bringing in 2010 a new partner, the National Disability Institute. Regardless of what you think about the Arkansas-based company, it's hard to scoff at tax time help, especially for folks who can't afford to pay a professional to decipher the tax code for them. Like last year's program, the filing assistance is available in a variety of ways. United Way Worldwide…

Did you e-file your tax return on Jan. 15 when the IRS began accepting electronic submissions? Then you should have your refund money soon.  That is why you were among the first wave of filers, isn't it?The IRS has issued its annual chart showing when filers can expect to get their tax money. If you e-filed between Jan. 15 and Jan. 21 and directed the IRS to direct deposit your refund, then the agency says it should be en route to your bank account on Jan. 29.  If you opted to get a paper check, that will be mailed Feb. 5.  Of…

Yeah, right. Like that's going to happen any time soon.  But that's how some folks think our tax system should work. They contend that it would save us taxpayers time and the IRS money if the tax agency just took the info it already gets about what we make and filled out our returns for us. In the New York Times piece Why Can't the I.R.S. Help Fill in the Blanks?, Randall Stross says:"In the digital age, filing income tax returns should be a snap. The important data from employers and financial institutions have already been sent to the government's…

I've blogged about the new tax forms Schedule L (add-ons to the standard deduction) and Schedule M (to officially claim the Making Work Pay credit). I've even gone totally tax geeky and bemoaned the breakup of the long-time pair Schedules A and B. But even though many of us feel like we're in a horror movie during tax-filing season, Form Z-MBIE is a new one to me! tax lawyer Thanks to @taxdoctoralerts for the gory heads-up.Related posts: Breaking up Schedules A and B Schedule L, a new form for nonitemizers Schedule M, yet another new form Filling out your pet's…

If you're filing your taxes in January, it's probably because you're going to get a refund. But for folks who will be facing an IRS bill and likely filing and paying later, one credit card company is already touting its new tax payment option: reward points. American Express customers who have Membership Rewards accounts can use those points to pay federal, state and local taxes. The company says the arrangement is a first for the credit card industry. To make the option available, AmEx has partnered with Pay1040 and Official Payments Corp., the two firms that the IRS and most…

If you expect to get a refund, then your initial answer to my query about your readiness to file your taxes will be an immediate and emphatic "Duh!" But my question is really about the filing process itself. Even if you use tax software and e-file, whether via your own computer or via Free File, you need to do some pre-filing preparation The same is also true if you take your tax material to a professional for filing. So here are some things to think about before you sit down at your PC or Mac or head out to your…

Why does this sneak up on me every January? It's right over there in the ol' blog's tax calendar to your left. Still, boom! I almost forget about it year after year.I'm talking, of course, about the previous year's final estimated tax payment. Yep, it's 1040-ES time again. Voucher number four needs to be on its way to the IRS by Friday. I just logged on to the IRS' Electronic Federal Tax Payment System, or EFTPS, site to have my final 2009 estimated payment shifted over to the Treasury electronically at week's end. If you want to mail your payment,…

Remember Treasury Secretary Tim Geithner's confirmation hearing troubles when it was revealed that he didn't pay self-employment tax on some of his earnings? That tax screw-up helped him make my decade in taxes list (#5). Remember, too, when Geithner told the Senate Finance Committee that he screwed up while using TurboTax? We all know it's a poor craftsman who blames his tools, and Geithner did tell the confirmation panel that any mistakes he made were his own.But apparently TurboTax doesn't want any more guilt by association, at least in cases like the Treasury Secretary's. The popular tax program has tweaked…

If the IRS has its way, the days are numbered for those temporary card table set-ups in dingy storefronts that proclaim, via slap-dash hand-lettered signs, they can get you the "Biggest Tax Refunds in Town!" The IRS is hoping that its new tax preparer regulations, announced today, will put an end to these often-shady tax "professionals." Now I know some tax-season-only folks are on the up-and-up. They pay attention to the tax laws, follow the rules and make sure their clients do, too. But the annual return filing period also is prime breeding ground for scuzzballs who use and abuse…

Finished your holiday shopping yet? That's OK. Some of the best gifts and the most fun searching for them comes from the last-minute excitement.But you shouldn't handle your finances that way. To help you get your money management, if not your money itself, in better order, we wrap up our 2009 Year-end Money Moves series with a look at details. Taking care of these fiscal housekeeping tasks now and updating them at least annually will help you stay on top of your money. And knowing what you have will help you maximize it.Get organizedThis year I converted most of my…

Practice makes perfect, for singers as well as taxpayers. That's why today's 12 Tax Tips of Christmas recommendation is for you do a mock tax return. I know. The thought of filling out a bunch of tax forms just for practice makes you want to run away screaming. But better to do that now — both the form completion and the screaming — than in April when it really counts.You can get an idea of what your 2009 tax will be by inputting as much info as you can. Use your latest paycheck stub for income and withholding data. Check…

Are you a waiter? If that's your regular job, you already know that today is a tax day. No, you're not paying anything; just reporting income so you can pay taxes on it later. When you make at least $20 in tips the previous month, then today, like every 10th of the month that falls on a weekday, you're supposed to report that total tip amount to your employer. Many folks may be new to the job, though, having signed up for a part-time gig to make some extra cash during the holidays. So I want to make sure they…

One more quick hit on the topic of excess Making Work Pay credit payments.I wrote a piece for Bankrate.com on some steps you can take now if you fear you might be one of the folks who will have to pay back the credit next filing season.Related posts: Making Work Pay tax problems … again Making Work Pay payroll considerations Want to tell your friends about this blog post? Click the Tweet This or Digg This links below or use the Share This icon to spread the word via e-mail, Facebook and other popular applications. Thanks!

H&H Bagels, bakers of what Zagat once called iconic bagels, now has a new, and unwelcome, claim to fame (or infamy). New York City alleges that the bagel company's owner, Helmer Toro, is a tax cheat. Manhattan District Attorney Robert Morgenthau has charged Toro with pocketing more than $369,000 in income and other taxes that were withheld from employees' paychecks. Toro also allegedly set up shell companies to game the unemployment insurance tax system out of another $33,000. Toro pled not guilty to the charges and was released from custody. If convicted, he could face up to 15 years in…

The year is winding down. You're trying to gather of all your receipts. (Yeah, I know, next year you'll institute that record-keeping system). But some paperwork is missing. What can you do? You might want to check out a 79-year-old rule regarding the estimation of tax deductions. In 1930, a federal court ruled that a famous actor, playwright and producer could deduct entertainment expenses based on estimated expenses, rather than having to produce detailed records of each expenditure. The holding in this case became known as the Cohan Rule. Yep, Cohan as in George M. As in the man most…

My earlier warnings about problems that the Making Work Pay tax credit will cause some folks are now official. The Treasury Inspector General for Tax Administration (TIGTA) has issued a formal report on the matter that I blogged about back in March. The credit seemed like such a good idea. Under the stimulus package enacted in February, the credit will provide individuals up to $400 and couples up to $800. To get it, all people have to do was continue to collect their paycheck. The IRS rejiggered the withholding tables so that workers would simply have a bit less in payroll…

It's no secret that celebrities get into tax trouble as often, if not more so, that we regular folks. And it's definitely true that when famous folk run afoul of the IRS or state revenue offices, the unpaid tax amounts are pretty impressive. So it make sense that the famous and, after their tax troubles, formerly rich also take advantage of a remedy available to everyone: installment payment plans. That's the case for a couple of celebrities in recent days. Tax lien trouble, dahling: The Hungarian bombshell of the 1950s and 1960s, Zsa Zsa Gabor, is dealing with a tax…

It does if your name is on one of the 107,831 refund checks that bounced back to the agency as undeliverable mail. While the number of checks is tiny compared to the millions who file returns and get refunds, the amount that's in a holding pattern is huge. The checks collecting dust instead of interest in their proper owners' bank accounts total $123.5 million. The average undeliverable refund check amount this year, says the IRS, is $1,148. That's $158 more than the average returned refund the agency got back last year.Of course, that's an average amount. If you're one of…

It's official. The low inflation rate might help you save a few dollars at the grocery store (although I haven't really seen much difference in my weekly register totals over the last few months), but it's not going to make much differences when it comes to your 2010 taxes. As I mentioned in my post about the possible $250 rebate for seniors, there's been concern that the negative inflation rate could cause some tax figures, especially in connection with retirement contributions, to be cut. That didn't happen. The IRS made it official yesterday (coincidentally, or not, on the day that…

If you got an extension to file your 2008 tax return and haven't done so yet, today is your deadline. Details on this must-do tax task, as well as on other important due-date duties, can be found in Oct. 15 tax deadlines looming.You have until midnight tonight to e-file. Or if you prefer paper, get your material to the post office so that it gets today's postmark. If you are using snail mail, I suggest you send your return certified so that you have a receipt noting the date.And do't forget about your state tax obligations! If you also got…

Yeah, you read that headline right. It's deadlines, plural.And yeah, I meant to post this reminder a bit sooner. But, hey! All y'all procrastinators know that you wouldn't have paid attention even a week ago! So quit trying to make me feel guilty!But enough with the finger pointing. Tax time's a-wasting, so here goes with three tasks to complete by Oct. 15.1. Final filing time: The first tax deadline coming up this Thursday is the one to get your Form 1040 (or other version that fits your filing needs) en route, electronically — the Free File program is still available…

The IRS has more than 50,000 content pages at www.IRS.gov but it's not stopping there."We're looking at building a new portfolio of electronic products," Tom Davis, acting chief of staff for Electronic Tax Administration, told tax professionals at the IRS Nationwide Tax Forum in Dallas last month. The ultimate, although admittedly improbable, goal is to drive all service to the IRS Web site. The agency has made major strides in this area. But it knows it's now at a crossroads, especially when it comes to the activity that affects every taxpayer: filing tax returns.When it comes to filing, 51 percent…

Yes, millions of folks still haven't filed their 2008 returns (that final deadline is Oct. 15; more on that soon), but the IRS also is getting ready for the 2010 e-filing season. The agency has released the updated version of Publication 1436, Test Package for Electronic Filing of Individual Income Tax Returns for Tax Year 2009. The Service requires all software developers and electronic forms transmitters to perform the tests in the package before they will be accepted into the upcoming e-filing program. As you can imagine, the process involves lots of acronyms, but basically the IRS wants to make sure that, prior to live…

All the recent focus on ACORN and its now-severed ties with the IRS also has produced more interest in the VITA, or the Volunteer Income Tax Assistance program.Apparently, some folks think that the few bad apples caught on the hidden ACORN videotapes represent the way the overall VITA services are provided. They don't.My tax-blogging colleague taxgirl offers a fine argument for continuing the VITA program. As she notes, this IRS-supported program does a lot of good. Through VITA, low- to moderate-income (generally, $49,000 and less) individuals who need help filing their returns can get it at no cost. Let's be…

Just a quick reminder. Today, Sept. 15, is the deadline for your third 2009 estimated tax payment.   If you're mailing your 1040-ES voucher, make sure you get to the post office in time for it to be postmarked with today's date. And if you're still trying to figure out just how much to send int, check out: Estimated Taxes Guide from CashMoneyLife, Self-Employment Tax And IRS Estimated Tax Payment from Moolanomy, and  Paying Estimated Taxes for a Side Job from William's Tax Planning Blog. I've also discussed this issue many times over the years, most recently back in January in Figuring your estimated tax…

A week from today, on Tuesday, Sept. 15, another estimated tax payment is due. If you mail your third 2009 tax year 1040-ES voucher, it has to be postmarked by 9/15. On Monday, a couple of contributors to the 57th Tax Carnival talked about estimated tax issues: CashMoneyLife's Estimated Taxes Guide and Moolanomy's Self-Employment Tax And IRS Estimated Tax Payment. I've also discussed this issue many times over the years, most recently back in January in Figuring your estimated tax amount. E-pay is the way: I always mean to mention electronically paying your estimated tax amount earlier so folks who…

For as long as I can remember (and no, I'm not going into specifics on that amount of time), Schedules A and B were inseparable. Back before software, when you ordered the document from the IRS, the two schedules arrived on one page. Heck, even with today's new technology, the downloaded document from the IRS still combines the two. The URL still acknowledges they're together with the "f1040sab" designation. The front (above) of the 8½ x 11 sheet displays Schedule A, where an itemizing taxpayer elaborates on all eligible expenses before transferring the final amount to Form 1040. Flip the page…

The tax alphabet is sure filling up. Earlier this month, I blogged about the new Schedule L that some taxpayers will have to file with their 2009 returns next year.Let me now introduce you to Schedule M. As the Schedule M snippet above indicates, it's related to the Making Work Pay credit that was part of the American Recovery and Reinvestment Act. Under that bill, popularly known as the February 2009 stimulus package, working taxpayers could get up to a $400 benefit. In addition, the stimulus package provided a special $250 payout to many retirees.Now comes the fun part. When…

Most taxpayers claim the standard deduction. One of the great things about using this amount, which is based on your filing status, is that you don't have to hassle with extra paperwork. That's about to change. Thanks to new laws that allow add-ons to the standard deduction amount, millions of taxpayers now will have to substantiate their deductible supplements. Starting with 2009 returns, the IRS is requiring these standard deduction claimants to fill out a new piece of paperwork, Schedule L, and send it along with Form 1040 or 1040A.  As the schedule notes (or "cautions") in the line just…

Minimum wage tax breaks information has been updated in this post published on July 6, 2021. If you make the minimum wage, you should get a raise today. Under the final phase-in of wage increases that started in 2007, the federal minimum wage for covered, nonexempt employees today goes up 70 cents per hour to a rate of $7.25 per hour. The increase got my friend Dara Quackenbush reminiscing on Twitter yesterday:   Although it hasn't been that long ago since Dara graduated from college, her observation illustrates that things haven't necessary gotten better over the years. It's particularly tough…

I must admit that I've never seen the television show starring Jon and Kate and their brood. I'm not a fan of reality, or quasi-reality as is usually the case, shows. And being childless, I don't have anything in common, thank goodness, with a family coping with eight kids.I've also been happily married (and I think the hubby has been, too) for many more years than Jon and Kate. But there's no way anyone can escape the news of the Gosselin's crumbling marriage. So it seems as good a time as any to offer some tax tips, eight to be…

If you file estimated taxes, your second 1040-ES voucher is due today, or at least must be postmarked June 15 if you send it via U.S. Postal Service snail mail. If you don't have a voucher package from the IRS, you can download it. And my estimated filing reminder from last week has some tips for 1040-ES filers, as well as a table showing the mailing addresses for the vouchers by state.

As threatened promised last month, I'm here to remind you that if you pay estimated taxes, your second 1040-ES filing for the 2009 tax year is due Monday, June 15.Last year I recreated here on the ol' blog the table of mailing addresses found in the 1040-ES package. To save you from opening the IRS PDF document (those things tend to really slow down my computer), below is the 2009 version.Yes, the IRS is still reshuffling workloads and sending some forms to new locations this year. So if you're mailing your voucher, use the appropriate address below, not the one…

I know you love your kiddos, but admit it. You also love when they are in school and you don't have to worry about what they're up to while you're at work.Here in Austin, classes wrapped up a little over a week ago. And some of my neighbors are already going a little crazy coming up with ways to keep their youngsters appropriately occupied. May I suggest day camp. There are a couple of things to recommend this option. First, it's a good choice for younger kids, and their parents, who might not be comfortable with Jimmy or Janie spending…

What do your hairdresser (or barber for you manly men who refuse to visit unisex hair salons) and your tax preparer have in common? In most places, absolutely nothing. And that includes a license to operate. Juana, who cuts both my and the hubby's hair, has her State of Texas certification document posted on her station's mirror. Every time I sit in her chair so she can clip a few inches, I can see that the Lone State State has deemed her qualified. But when I pay someone to help me sort through my federal tax return, neither Texas nor…

It's less than a month until the second estimated tax payment deadline. If you want to make that payment electronically via the IRS' Electronic Federal Tax Payment System, or EFTPS, then you need to sign up now.  I've been using EFTPS for the last few years to make, when necessary, regular annual 1040 tax-due payments. But it's really come in handy for my 1040ES estimated tax obligations. Once you're set up, you can schedule all four estimated payments — if, like mine, they are all the same amount — in just one session. Then you're done with them for the…

As April was winding down, the number of e-filers was going up.More than 90 million tax returns were filed electronically through April 24, according to the IRS. As has been the trend over the last few years, more individuals in 2009 opted to electronically file their returns on their own. In fact, that segment of filers hit a record this year. For the first time, says the tax agency, more than 30 million individual income tax returns were filed from home computers. That's a 19 percent jump over last year.As the math indicates, that means around 60 million taxpayers turned…

Attention delinquent Massachusetts taxpayers. You have just a few more hours to take advantage of your state's tax amnesty period. Since March 1, the Bay State has been giving its residents who haven't paid their state tax bills a chance to come clean and suffer minimal consequences That tax pass ends, however, at close of business today, April 30. This year's Massachusetts tax amnesty applies to individuals with 1) existing personal income tax liabilities, 2) existing personal use tax liabilities, or 3) existing cigarette excise liabilities (pertaining to purchases for individual consumption). Eligible taxpayers need to get a "Tax Amnesty…

One of the "what if" tax situations that I blogged about yesterday is what if you're having trouble paying your tax bill.You do have options. Popular ones include installment agreements or even negotiating a lower tax bill with the IRS.Those payment possibilities and more are included in a handy table compiled by Peter C. Pappas, a Florida-based tax attorney and certified public accountant.In addition to the usual remedies, Pappas also offers a quick look at such things as lien subordination and levy releases. And if push comes to shove, there's the always-popular "sue the IRS."Remember, too, that this year the…

Just over a week ago, most folks were frantically trying to get some paperwork to the IRS. Some of you, though, decided to heck with it. That's not really a good idea when it comes to taxes. Although as I noted in this Associated Press story, you might have a bit of wiggle room when it comes to the April 15 midnight deadline, that leeway isn't available the longer you go without filing. No, you can't ask for an extension now. The IRS will automatically deny any such request filed after midnight on April 15. But don't freak out. William Perez, the tax pro…

The federal filing deadline is over for most of us. Some state income tax filers, however, have a few more days before those returns are due.I apologize for not reminding folks yesterday to also take care of their state income tax returns. But living here in Texas, where we don't have a personal income tax, it always slips my mind. And even before we got back home to the Lone Star State, the hubby and I spent a few years in Florida, another state without an income tax. So we're out of state filing practice.However, most Americans have to send…

If you've put off filing your tax return until today, you might live in San Francisco. Or Houston, New York, Chicago or San Diego. Those were the five U.S. cities with the most residents who last year put off their annual tax chores. Or at least who put off e-filing their returns using TurboTax.For the last eight years, the tax preparation software company has tallied the number of last-minute returns it gets through its online filing option.Last April, the Golden Gate City had the most procrastinators. That's four slots higher than it ranked the previous year.Here's the Top 10 list,…

Tired of messing with your taxes? Maybe this patriotic appeal from Donald Duck will make you feel a bit better about filling out all those forms and writing a check to Uncle Sam. In the video below, Donald helps promote the message that it's not just our duty, but our privilege to help our government by paying our taxes promptly. Of course, when Walt Disney produced this animated short for Uncle Sam, it was 1942 and the government needed more money to fight World War II. So the catch phrase "Paying Your Taxes to Beat the Axis" was born. And…