Happy April 15! Well, for some folks, it's a happy day. They've filed their returns. Heck, a lot of you probably have already spent or banked your tax refund. But millions of taxpayers wake up every April 15 with some filing decisions to make. Here's a handy to-do list for you folks. File your 1040If you've done most of your 1040 work already, just get this over with today. If you're still looking for tips and tax breaks, check out these earlier posts: Last-minute filing tips … again, How I spent my tax season and Tax advice from TV talking…

The story isn't quite as exciting as the "how I spent my summer vacation" reports we used to give on the first day of school, but it might be of some use to folks still working on their returns.Much of my time was spent producing a Daily Tax Tip for Bankrate. If you're still looking a tax break or the answer to a filing issue that's got you stumped, you might find it in the collection of 70 tax tips. Tip #71 goes up tomorrow. I'll give y'all a preview: It's on payment options.You also can check out my blog…

Earlier this week, I posted an item with an almost identical headline, Some final filing tips and warnings.Today, just when folks are finding they need the information the most, I learn that some of the links in the piece are dead.Not that I'm trying to pass the buck, but many of them went to a Web site for which I write and which has just completed a major design overhaul. In that process, some links are now bad.I've found the new, live links and restored them in the earlier post. But so you don't have to even click through to…

A couple of days ago, I mentioned my fleeting feeling of wealth each tax season. That rich feeling comes from adding up the various amounts I collected the previous year from an interesting collection of clients. Invariably, there's a job or two I forgot about. I know I should do a better job of tracking my income, especially since it's a part of how the hubby and I pay our bills.Then there are the tax reasons for know how much I make.I'm not just talking about the big, file your 1040 on April 15 reason. Added tax work: Accurate and…

Whenever I do our tax return, I feel rich. Unfortunately, that feeling doesn't last.My "we're rich!" feeling quickly turns to "where did all our money go?" Then I remember the property tax payments, along with a little bit we socked away, despite the market's downturn, in investments.We took a couple of short, but very fun, vacations last year that ate up some of it. And, of course, the cost of just making it through each day 365 times a year took quite a bit, especially in the grocery buying department. Now we have to settle up our 2008 account with…

This last weekend before the tax filing deadline doesn't have to be your return's Lost Weekend..OK, maybe that 1945 Ray Milland classic film isn't the best metaphor. Then again, after dealing with taxes as the deadline bears down, you might want a drink or two. But I digressThe fact is there is still time to get your 1040 done and into the IRS by Wednesday. Just knuckle down and do it. That's my plan as soon as I get this posted.I've got everything sorted. My biggest challenge is going through all my self-employment expenses. I try to keep good track,…

Don't get too excited. Note that word "some" in the headline.But every little tax break helps at least a few folks. And I suspect that the IRS hopes this move will get more people to electronically file and pay their taxes.To that end, the agency has decided that credit or debit card convenience fees that we have to pony up just to pay our IRS bills electronically are deductible. If we itemize. And if the allowable fees help push our Schedule A miscellaneous deductions over the 2 percent threshold. But, hey, as I said, every little bit helps.Logical move: Plus,…

We're just a week away from the tax return deadline, but for some, it could be a double due date.Earlier this year, the IRS announced that it had $1.3 billion in unclaimed refunds from the 2005 tax year. Uncle Sam is happy to send that money to its rightful owners as long as they send in a return for that year.Here's the important part — not that $1.3 billion isn't important — but to get any 2005 refund to which you might be entitled, you've got to get that old Form 1040 to the IRS by this April 15.If you…

Just a quick reminder for all you folks still in the running for your office pool's college basketball championship jackpot: Gambling winnings are taxable income.Yes, even office pools.And yes, even illegal office pools.Illegal office pools? Yep. In Washington state at any rate Washington officials say that those ubiquitous betting pools based on NCAA bracket sheets are technically illegal. But don't expect Evergreen State lawmen to bust into your office and confiscate the pool money. The state's Gambling Commission has bigger fish to fry.Similarly, the IRS isn't going to come after every office worker — or telecommuter like the hubby, who…

Finally catching up this afternoon and wanted to pass along the definitive word on same-sex marriages and Iowa taxes. Joe Kristan writes the Tax Update Blog for Roth & Company, PC, based in Des Moines. Joe says that the Iowa Supreme Court ruling (blogged about here) will make little tax difference to most of the state's same-sex couples. "The Iowa tax system allows married couples to file 'separately on a combined return,' giving them each a run up the brackets," writes Joe. Get the rest of the filing details in Joe's post, Same-sex marriage in Iowa: The tax stakes.

Wow! Who would have predicted that Iowa would have a more liberal approach to same-sex couples than California? We are indeed living in interesting times. Just in case you didn't hear, the Iowa Supreme Court today issued a unanimous decision that the Iowa statute limiting civil marriage to a union between a man and a woman violates the equal protection clause of the state's constitution.The decision strikes the language from Iowa Code section 595.2 limiting civil marriage to a man and a woman. It further directs that the remaining statutory language be interpreted and applied in a manner allowing gay…

One of my favorite New York Times features is the technology Q&A column each Thursday. As someone who's trying to be my own IT specialist, I almost always find something useful in the answers provided to reader questions.The column also offers a weekly tip, and today's was especially enjoyable as it marks the convergence of tech geekiness and tax geekiness.Yes, today's tip is about e-filing your 1040.Sure, it's primarily a plug for the IRS site, its fillable forms option and Free File, but still, my tax geek heart leaps any time tax mentions show up in unexpected places.

I feel like one of those late-night cable TV pitchmen screaming, "But wait! There's more!"This morning I shipped off an autographed copy of my book, The Truth About Paying Fewer Taxes, to Byrne in Brooklyn. He was the lucky winner of the latest giveaway here on the ol' blog.But, as I said, there's more to come. Two more ways to win: Yes, filing procrastinators, sometimes good things do come to those who wait.I have an item to help you complete your taxes and another to assist you in organizing the paper that you used to file. First, to help you…

What are you worried about this tax filing season?If you're like the folks who participated in a recent CCH CompleteTax survey, you're concerned that you might be making costly mistakes or overlooking tax-saving breaks.Such worries could be well-founded. The poll of around 1,000 adults, commissioned by CCH and conducted by GfK Roper, also found that most people do not know which tax breaks offer the greatest benefits.Nearly two in three, or 66 percent, of taxpayers fear they may overlook tax breaks or make mistakes that could cost them in fines or penalties.When it comes to a federal income tax return,which…

Limiting Free File participation on the basis of income is fine.So says a U.S. District Court judge, who last week dismissed a class action lawsuit that was filed in 2007 against the Free File Alliance. That's the group of tax software vendors who provide free software and electronic filing to low-income taxpayers via a special IRS Web page. Also named in the lawsuit were Intuit (TurboTax's manufacturer), H&R Block Digital Tax Solutions (maker of TaxCut) and the Internal Revenue Service. Stacie Byers and Deborah Seltzer initiated the class action suit on the grounds that Free File was artificially restricted to…

I know it's just what you want to do, spend your Saturday with folks from the Internal Revenue Service.But this time, it might actually be to your advantage. The IRS will open more than 250 Taxpayer Assistance Centers on March 21 to help eligible taxpayers prepare their taxes or get other IRS help. The IRS is hoping this will make things easier for taxpayers, since the Centers are not normally open on weekends.In addition, community groups that partner with the IRS are planning to staff around 1,000 sites during that same time Saturday. Two of the more popular programs are the…

Happy Friday the 13th all you brave souls throwing superstitions to the wind!Since it's also about a month until our tax returns are due, I thought it a good time to take advantage of the date and turn its bad luck reputation on its head by offering a look at 13 ways to change your tax luck. You might be able to do just that if you can make use of these 13 often ignored tax breaks.1. Property tax standard deductionThis is new for the 2008 tax year, so technically it's not had the chance to be overlooked. But since…

It is every taxpayer's nightmare. Your refund never arrives.When that happens to a paper check, you can file Form 3911 the old-fashioned mailed-in way and the IRS will reissue your missing money.But when the transaction is totally electronic, you're essentially out of luck.Just ask Harry Rios of Des Moines, Iowa. His $2,969 tax refund check apparently was sent to someone else's bank account. (Hat tip to The Consumerist.)Rios told the Des Moines Register that a tax preparer with H & R Block copied his bank account number incorrectly on his tax forms. Now Rios is trapped in a tax Twilight…

That 2005 in the headline is not the number of taxpayers missing out on refunds. It's the tax year that they didn't file.And three tax seasons ago — remember that in 2006 most of us were sending in our 2005 tax forms — more than a million folks didn't bother to fill out a 1040. Their loss. Literally.The IRS says that these nonfilers are due a portion of $1.3 billion that's just been sitting in a Treasury account awaiting its rightful owners. But unless those folks send in their old returns soon, Uncle Sam will get to hang onto the…

Most U.S. Senators don't want to talk about taxes, at least not about their own.Politicians are quick to pounce on tax topics when they're on the campaign trail or debating stimulus bills, However, Politico.com found that such verbosity doesn't extend to personal filings. That's understandable. Taxes are a very private affair … unless you're running for president or appointed to a Cabinet position.But it also is useful to know that our leaders understand the practical implications of the tax laws they ultimately approve; that they actually know what they are asking each of their taxpaying constituents to do each filing…

That variation of the giant discounter's slogan might apply to its philanthropic arm. The Wal-Mart Foundation has awarded a $3.6 million grant to launch a free mobile tax filing program. The retailer-supporter tax tour is a partnership of United Way and the nonprofit One Economy Corporation. According to Wal-Mart's announcement, vans equipped with online filing technology and carrying IRS-certified tax professionals will set-up in Wal-Mart parking lots, as well as at the offices of One Economy’s community partners. Individuals earning less than $56,000 per year can visit the vans and file their taxes free of charge. The Mobile Tax Center…

That's the message from Maryland tax officials.Taking a cue from those great "Real Men of Genius" beer ads, the Old Line State tax office salutes Mr. Frustrated Taxpayer, who reduces his tax hassles by e-filing. Maryland's tax advice YouTube spot incorporates the background quips theme of the Bud Light radio ad originals. But despite the light-hearted presentation style, the Maryland video has a serious message. "Bringing humor to the otherwise stressful topic of doing taxes is one way we hope to grab people's attention," Maryland Comptroller Peter Franchot said in a release. The Maryland e-file video closes with Franchot appearing…

For many of us, this was the first week we could file our tax returns. The reason? We finally got all those tax statements we need to fill out our Form 1040 and associated schedules.You know the paper I'm talking about. Your W-2 from your employer is the biggie. Then there are all those various incarnations of Form 1099, bearing suffixes such as INT, DIV, G, R, B and MISC, just to name a few. If you're paying a mortgage, your lender will send you a 1098 (or an acceptable substitute) detailing the home loan interest and, if they're escrowed…

Washington, D.C., is still abuzz about the decision by two Obama Cabinet nominees to opt out of the process.Erstwhile Health and Human Services Secretary Tom Daschle decided that his effectiveness would have been compromised, and other Obama agenda items overshadowed, by his incomplete reporting of income on prior-year tax returns. I'm not so sure that's true. Despite public posturing, Capitol Hill can be a pretty friendly fraternity. Daschle spent a lot of time there, so most folks are familiar with what he could bring to the table as far as HHS issues, particularly health care. Personally, I think it's too…

There are lots of stories each tax season about how taxpayers can find a reputable, qualified tax preparer. Heck, I've done them myself, here on the ol' blog and elsewhere    . But there's a flip side to this coin. How do tax professionals find good clients? Unfortunately, as business people, many tax preparers, accountants, CPAs and tax attorneys too often don't have the luxury of vetting the folks who hire them. Oh, sure, there's an interview process, some give and take and expectations enunciated on both sides. But in many cases, the client — the person who is gong to…

Prospective Treasury Secretary Timothy Geithner was back on Capitol Hill today making his case for becoming the country's new top money man. And again, his self-employment tax troubles drew fire from some members of the Senate Finance Committee, which is conducting the confirmation hearing. Geithner has admitted to making more than $40,000 worth of mistakes on his tax returns filed in connection with his employment by the International Monetary Fund.Economy Watch, the Washington Post's blog following the economic crisis, reports there was a "20-question exchange that could best be described as restrained, but intense."Geithner reiterated what he made a mistake,…

Tax preparers are about to be seriously bogged down as filing season kicks into high gear. And in many cases, these folks also are going to be fighting the urge to tell off some of their clients. Why? Because too many folks head to their tax pro's office totally unprepared. Since it's unprofessional for you customer-dependent tax pros to light into these annoying clients, I want to give you the chance to do so from a safe distance. You can vent here!Drop me an e-mail (the link's about midway down the right column) or add a comment to this post…

Have you been champing at the bit to get your tax return into Uncle Sam electronically? Well today is your lucky day. This morning the IRS began accepting e-filed returns. This includes 1040s that you do on your computer using tax software, as well as online tax preparation and filing options offered by various companies. And if your adjusted gross income last year was $56,000 or less, you also now can use Free File. This is the partnership between the IRS and tax software companies to help folks complete their taxes and e-file them at no cost. Once at the…

By all accounts, Ruth and Bernard Madoff were inseparable. Married nearly 50 years, they worked in the same office and ended most days dining together, just the two of them, at a favorite New York City restaurant.But in December, when Madoff admitted that his multibillion-dollar hedge fund was an elaborate Ponzi scheme, Ruth reportedly was as shocked as the rest of the world.”One day, she was married to a stock-market genius, the next she was married to one of history’s great con men,” write David Segal and Alison Leigh Cowan in today’s New York Times.Could the long-time wife of a…

What is it about folks in high government places? So many of them just can't seem to keep their taxes in order.The latest instance is Timothy Geithner, President-elect Barack Obama's choice to run the Treasury Department. And the tax troubles have delayed Geithner's confirmation hearing until next week, meaning that when Obama finally gets into the Oval Office, he won't have his man at point to deal with the economic crisis. Geithner failed to pay $34,000 in taxes from 2001 to 2004. According to documentation released by the Senate Finance Committee, which is considering Geithner's nomination, his tax troubles came…

Yesterday's post on the impending estimated tax deadline prompted some readers to ask a follow-up question: Exactly how do you figure out what to pay the IRS via 1040-ES payment vouchers? Regardless of how straightforward or convoluted your earnings situation is, the process is essentially the same. First, you come up with a good estimate, which for many of us is a good guess, of what you expect your annual total income to be. Next, make a down-and-dirty calculation of the taxes owed on that expected income.  Then you figure what you'll be paying via withholding. Your withholding amounts can…

Thank goodness for the Tax Calendar there in the right-hand column of the ol' blog or this tax task might have caught me by surprise next week. The fourth quarter estimated tax payment of 2008 is due Jan. 15. Here's the 1040-ES package for 2008 in case you can't find your material or you received untaxed 2008 income for the first time last quarter. Like your regular 1040, if you're sending it snail mail and your filing is postmarked by Jan. 15, then it's considered, in IRS speak, "timely filed." And make sure you send it to the correct Internal…

Few of us spend our money wisely all the time. Uncle Sam is no exception. OK. So even those who rail against big government have to be happy about the possibilities for operational improvement that come with the creation of the new Performance Officer position. And Nancy Killefer, whom President-elect Obama named to this job, brings with her a skills set honed at the IRS.OK. I know what you're saying. Performance, efficiency and effective administration are not words that usually come to mind the minute you hear Internal Revenue Service.But as someone who's been watching the IRS for more than…

2009 is the tax season for you if you want to e-file for free. Not only are commercial tax software manufacturers making free filing part of their tax season packages, the IRS is expanding its Free File program. When that government-sanctioned electronic filing option kicks off its 2009 season on Friday, Jan. 16, it will have a new and interesting component: Free File fillable forms. Say that three times fast!The program is more than just an alliteration lover's dream. It's a way that anyone, not just Free File eligible taxpayers, can e-file at no cost. And it's an option that's…

Louis Braille was born 200 years ago today. The man whose name is known worldwide as the universal communications standard for blind persons was born on Jan, 4, 1809, with normal vision. But an accident at age 3 led to Braille's total blindness. By age 15, Braille had revised an earlier raised-dot design into the system that is used today.Tax considerations for blind filers: When it comes to taxes, visual impairment is taken into account. Blind individuals who are dependents of other taxpayers have a larger earnings threshold before they must file a return. Visually impaired taxpayers also are allowed…

Happy New Tax Year! The beginning of a new year is momentous in many ways, not the least of which is how it affects your taxes. For most of us, Jan. 1 means that the previous year's taxes are set. What we earned last year is what we'll owe tax on. And once the calendar page flipped to January, ways to cut that tax bill were dramatically reduced.But the actual date of Jan. 1, 2009, also plays a big role in the 2008 taxes of many filers. The IRS use of the first day of the year as a benchmark…

The hubby and I got back home last night from a three-day weekend trip to find our economic stimulus payment had arrived. The mail bonus capped off three great days in the the Dallas area where we took a break from work, ate good food, saw a cool King Tut exhibit and cheered the Cowboys to a win!Our IRS money's arrival is one advantage to filing in October instead of April: The rebate check arrived just in time for holiday shopping!But if you filed earlier than the hubby and I and still haven't received either your expected refund or your…

The man who helped popularize the “starve the beast” philosophy toward government has decided to try to work from within, at least temporarily. Essentially, adherents to this fiscal-political strategy say that by reducing the amount of money coming into the government, that is, by dramatically cutting taxes to effectively create budget deficits, the “beast” of federal government will be forced to shrink via program cuts. Of course, that leads to the battle over just which programs and services to put on this tax starvation diet. Most who support this approach tend to target federal social programs, such as Social Security,…

The New York governor's chief of staff has resigned, in large part because of tax troubles. Charles O'Byrne came under scrutiny after it was revealed that he didn't file tax returns for several years because of his clinical depression (blogged about here).O'Byrne's departure from Gov. David Paterson's office was mentioned Friday in the New York Time's City Room blog and later confirmed by in the paper.After failing to file state and federal tax returns between 2001 and 2005, O'Byrne eventually set up installment payment plans to meet his overdue tax obligations. He paid the last of his $300,000 tax debt…

$266 million. That's how much money the IRS is trying to get to the appropriate taxpayers.Most of that money is from rebate checks that the IRS is having trouble delivering. Yep, this rebate deal is causing all sorts of headaches for the tax agency. First, it didn't send out thousands of checks because the associated returns had mismatched Social Security numbers. This time, though, the tax man really did put the checks in the mail, but they came back because of bad addresses.This happens every year. Usually, people file returns and move, forgetting to let Uncle Sam also know of…

October, already a big month for the IRS, is even busier this year.Not only is the agency processing the millions of returns filed on the final Oct. 15 extension date, it also will be processing the economic stimulus payments for those taxpayers.And, oh yeah, it will be sending out some tax rebates that it previously said could not be delivered because of name and Social Security mismatches.A taxpayer by any other name: Although the tax ID number delay isn't a new policy, it took on extra significance this year as folks anxiously awaited their stimulus rebate checks.Among those who've been…

The chief of staff to New York's governor apparently didn't file state or federal returns for five years.Charles O'Byrne acknowledged that from 2001 to 2005 he didn't file. He worked for the state part of that time. He subsequently has paid more than $200,000 in back taxes, $151,000 to the IRS and $56,000 to the state treasury. Those amounts included penalties and interest.The reason for the tax oversight, O'Byrne said, was clinical depression."Certainly, I'm ashamed of the fact that this has occurred in my life," O'Byrne told the New York Post. "But I'm clinically aware of the fact that it…

The IRS says that back in April, about 10 million of us asked for more time to complete our tax forms. That grace period is about to expire. Just in case you’ve been so obsessed by the economy or politics, I wanted to make sure you knew that you had to complete your Form 1040 (or 1040A or 1040EZ) and get it on its way to the IRS by tomorrow, Wednesday, Oct. 15. I finally finished up ours yesterday and hubby is on his way to the Post Office right now. That’s right, we are mailing the paperwork. When we…

Remember the kinder, gentler IRS? That tax collector persona appeared following the agency’s 1998 reorganization that was mandated by Congress following public outrage over collection tactics. As the deficit has grown, and Congress can seem to make itself pay for projects, the IRS has been given more leeway to get tough again. Capitol Hill  has instructed the agency to find ways to close the tax gap, the billions of dollars the IRS says it is owed but that hasn’t been paid. To this end, private debt collectors have been hired. The IRS also has ramped up audits. But it looks…

Are you one of the 10 million taxpayers who didn’t send in a Form 1040 (or 1040A or 1040EZ) back in April? If you got an extension to file back in the spring, you’ve got a week — until Wednesday, Oct. 15 — to get your paperwork to the IRS. And if you’re a self-employed filing procrastinator, you have a week to add to your nest egg and reduce your final tax bill. Self-employed folks can still make tax-deductible contributions to Simplified Employee Pension, usually referred to as a SEP or SEP-IRA, or a Keogh plans. The deadline for these…

It’s official. More of us will be e-filing for free next year. Yes, that’s the same opening sentence as my last post about Intuit’s TurboTax. But this time, it’s referring to H&R Block’s TaxCut software. Denise Sposato, director of communications and communities at H&R Block, dropped the ol” blog a note to confirm my "guess" about TaxCut offering federal e-filing at no additional cost in its software for upcoming Tax Season is absolutely true. "We actually were first to lead and announce our plans yesterday to offer e-filing at no additional cost," wrote Sposato. For the 2009 filing season, Sposato…

It’s official. More of us will be e-filing for free next year. This afternoon, shortly after I blogged about such a possibility in this post, Intuit formally announced that it has eliminated the separate federal e-file charge in its TurboTax desktop products. Just to make it clear, I’m not saying my blog posting was the catalyst for Intuit’s announcement today. As I mentioned, it was well in the works. And I had meant to blog about it days ago, but I just got around to it this afternoon. My procrastinating, however, worked out well this time, don’t you think?!"Eliminating separate…

The 2007 tax filing season isn’t quite over (Oct. 15 is the ultimate deadline), but already some are thinking about filing — and doing so for free — next year. The Wall Street Journal says that the IRS has asked private, tax-software companies to find a way to let all taxpayers file for free. And one company apparently is planning on opening up the free-file doorway a bit wider in 2009. Desktop users of TurboTax, according to a report by WebCPA, should be able to use the tax preparation software and then electronically file for free, regardless of income. This…

UPDATE, Jan. 10, 2009: This data is for 2008 Form 2040-ES filings only. You can use the addresses below to send in your final 2008 payment (voucher #4) that is due Jan. 15, 2009. However, do not use them to mail 2009 estimated tax payments, the first of which is due April 15, 2009. Check your 2009 Form 1040-ES packet for current mailing addresses. 1040-ES filers, do you know where to send your estimated tax payment? Mary in Connecticut asked and her inquiry raises a good point about these extra tax filings. Your 1040-ES payments do not go to the…

I’ve argued before that time is an artificial construct, a vain attempt by humans to control the inevitable. Yeah, right. That’s the IRS response to my esoteric theory. Time is very real to the tax collector. Uncle Sam is a clock and calendar watcher, and two dates loom large for taxpayers. Estimated taxes due 9/15: Monday, Sept. 15 is deadline day for estimated tax payment voucher #3. This 1040-ES filing covers income that you earned in June, July and August, but from which no federal income taxes were withheld. This includes investment income you received during this period, either through…

I was delighted to see that Sanibel, the lovely island on Florida’s Gulf Coast that I was worried about in this earlier post, came through Tropical Storm Fay unscathed. Many other Sunshine State residents weren’t so lucky. Gerry Willis, personal finance writer for CNN, has some insurance tips for those storm-battered folks. You can watch a video version here. Elsewhere on CNN, a Willis article from about a year ago looks at the damages that a lot of homeowner polices don’t cover. That’s always good, although very distressing, to know. Flimjo also makes that same point in his post, Lessons…

In my post yesterday, one of the links went to another post about increased audits. That item included a table of average deduction amounts. Well, as tax fate would have it, last night as I as going through e-mail, one of my newsletters contained a version based on more recent figures. So below, courtesy of Kiplinger, are the average amounts for some of the more popular itemized deduction categories based on 2006 preliminary filing data. Average Deductions, 2006 Tax Returns AGI InterestExpense State &Local Taxes Charity Medical Expenses Total Itemized Deductions       Under $15,000 $8,761 $720 $1,373 $7,179 $14,569…

Yeah, you’re right. That wasn’t my original headline. I had planned to post these midyear tax planning moves about a month ago. But all y’all know how it goes. Life gets crazy. Time gets away from you. And as your to-do list keeps growing, your good intentions get pushed to the bottom of it. So we’re a month into the second half of 2008. So what. There’s still time to make some moves that can help you cut your tax bill when you file your return next year. Here are three things you can do right now. Adjust your withholdingDid…

By early July, the IRS had received more than 145 million tax returns. At that same point last year, 131 million folks had filed. That filing increase of almost 12 percent is no doubt almost totally attributable to the economic stimulus payments. The only way to get a rebate this year is to file a 2007 return. And the numbers will continue to climb as the Oct. 15 extended filing deadline nears. By the numbers: Unfortunately, the IRS wasn’t able to provide dollar amounts in connection with returns processed by the week ending July 5 (Excel format) due to "technical…

The bulk of the rebate checks have been delivered. Can’t you just feel the economic stimulation. (I hope that last sentence doesn’t cause any content filter problems.) And just as we taxpayers, if not necessarily the economy, recover from the sometimes confusing, often frustrating rebate process, some lawmakers are planning round two. CQ Politics reports that Majority Leader Steny Hoyer (D-Md.; pictured at left) is expecting the House to consider a second economic stimulus package by the time Congress adjourns in late September. Hoyer’s Republican colleagues and Dubya say it’s too soon to think about another attempt to jump start…

Did you get your new iPhone today? Are you already irritated by the accompanying hassles? You’re not alone. News outlets and blogs are full of complaints about everything from the purchasing process to activation issues. Details at Associated Press, CNET.com and, in my neck of the woods, the Austin American-Statesman. I slept in. I’m not much of a gadget gal. And I’m even less of a phone person. I didn’t get a cell phone until 2000. I’m now on just my second phone. And I’ve had the same service provider for eight years. Mainly, I just want to be able…

High tax season is over, which means that the rush for refund anticipation loans, or RALs as they are usually called, also has quieted down. But the effects of these short-term, high-interest loans linger. Opponents of the loans (their arguments are detailed in the fact sheets collected at this Center for Responsible Lending Web page) point to the fees and subsequent credit problems that often crop up in connection with RALs. That’s why lawmakers, as well as the IRS, are still trying to wipe them out, or at least make them much more difficult for companies to offer. The latest…

Not to put a damper on your upcoming weekend, but some of you might be spending time on tax chores this Saturday or Sunday. It’s you folks who pay estimated taxes. Your second installment for 2008 is due on Monday, June 16. At least we get an extra day this time since the usual 15th of the month deadline falls on Sunday. I’m sure y’all are all quite adept at sending in your payment, either electronically by EFTPS or mailing it in via voucher. But the upcoming deadline might have slipped past some folks, especially since earlier this year the…

Most of us are decompressing from the filing season that just wrapped up on April 15, but already there’s talk on Capitol Hill about changing the system. Charging that the IRS is imposing an additional tax on filers by outsourcing e-filing operations, U.S. Sen. Charles Schumer (D-N.Y.; pictured at left) introduced legislation on April 15 to eliminate e-filing fees. S. 2861 would amend the Internal Revenue Code to "prohibit the imposition of a separate fee for electronic filing of returns and statements for individuals." Violators would face a $50 penalty for each illegal e-filing fee. Currently, the only official way…

The final two presidential candidates have made their 2007 tax returns public. With the release of John McCain's 2007 Form 1040 and additional schedules, as well as Barack and Michelle Obama's filing for last tax year, the baring of candidate tax souls is, for the most part, complete. We still have to wait for the actual return from Hillary and Bill; they got an extension. But you can see the basic numbers for the Clintons, as well as the returns of Dubya and Laura Bush and Dick and Lynne Cheney in my previous post on Presidential (and wannabe) tax returns.…

Here in the Central Time Zone, as well as for fliers east of us, Tax Day has come and gone. But if you’re like me and asked for an extension (see my reason for postponing here), our new deadline is Oct. 15. To help us keep track, I’ve replaced the April 15 countdown clock with one monitoring the October deadline over there in the right column. Just so you know, we now have 182 days to fill out our 1040s. Of course, we don’t have to while away all of those extra days. As soon as we get our forms…

The tax countdown clock (there in the right-hand column) is going through its final clicks. How about you? What are you up to today?I’m spending this April 15: Pulling my hair out and furiously crunching numbers! Enjoying the day because I already filed. Filing for an extension. Spending the refund I already received. Missing the tax deadline with reckless abandon!   If you’re still working on your 1040, let me refer you to a couple of pieces I put together this tax season, both here on the ol’ blog and for other publications: Common tax-filing mistakes Overlooked tax breaks Payment…

If you plan to make a 2007 contribution to your IRA, whether traditional or Roth, make sure the money is in the account by Tuesday. Because the IRS accepts an April 15 postmark as evidence of timely filing, the question comes up every year as to whether the same rule applies to retirement account contributions. The answer is "no." Your IRA contribution can be deposited into — key word, deposited; not just en route to — your IRA as late as the April 15 filing deadline and count toward the previous tax year. Meeting this deadline is especially important If…

The U.S. tax filing deadline makes no exceptions, even (or perhaps, especially) for those who use the tax code as a campaign issue. So far this filing season, the folks already occupying 1600 Pennsylvania Avenue and the U.S. Naval Observatory grounds are the only ones that we know for sure have gotten their returns into the IRS. On Friday, the president and vice president released their 2007 tax filing information. Below are the very basics of the Bush and Cheney returns, along with data from the Democratic presidential candidates. Presidential & CandidateIndividual Tax Returns Taxpayer AGI Tax owed % of…

Did you file a return back in 2004? If not, you might want to put aside your 2007 taxes for a bit and get to work on the older 1040. You could end up with some added tax cash. Once again, reports the IRS, millions of taxpayers are in danger forever losing refunds simply because they didn’t file a return to get the money back. In some cases, individuals had taxes withheld from their paychecks or made tax payments on self-employment earnings, but they had too little income to require filing a tax return that year. But filing is the…

Today is a tax-season milestone. There’s just one week left until your 1040 is due. Yep, you’ve put off filing for 14 weeks. While you’ve been enjoying all this time tax-free, a major problem with delaying filing until the last minute is that when you do finally get around to filling out the paperwork, you might be in such a hurry that you make a costly mistake. To help you avoid that, here are 10 common tax errors to be on the lookout for: Entering the wrong account in connection with direct deposit of your refund. Claiming the wrong hybrid…

With just over a week to finish up our 2007 Form 1040s, all of us late-season filers are starting to get serious. Many are in good shape, despite the late date. They have all the data and documentation they need; it’s just a matter of entering the info and sending it to the IRS. Others are a little less organized, but still plan to make the April 15 deadline. Regardless of which group you belong to, make sure you don’t get in a hurry and miss out on a tax break or two. Here are 10 tax-saving moves that often…

Last week, I wrote about the most tax procrastinating cities in the United States. Texas and California are prime do-then-later states, an approach that’s generally not a wise one to take. Putting off filing means you likely will be a bit harried if you do try to finish your forms by April 15. And, as we’ve all found out at one time or another, haste does indeed  often make waste. If you delay too long, you might even end up prolonging your tax headaches by getting an extension to file. Sure, that gives you more time to fill out the…

I meant to blog about this a couple of days ago, but I just didn’t get around to it. Actually, it’s only fitting that I pushed the posting back, since it’s about putting off tax filing and I live in Austin, one of the cities on TurboTax’s 7th Annual Top 10 Tax Procrastinating Cities list. Intuit, maker of the popular tax software, determined the 2008 rankings by the number of tax returns electronically filed online via the TurboTax Online service from April 14 through April 17, 2007. Below is this year’s list, along with Intuit/TurboTax’s assessment of the procrastination order.…

Do you need help completing your tax return? Then mark Saturday, March 29, on your calendar. That day the IRS and several other community organizations will be out in force to help folks complete their 1040s. Even better, the help is free. But there is one caveat. The filing service is only for individuals who usually don’t have to file a return. That’s right. The outreach effort was created to help folks who will be filing out a tax return for the first time in years. The reason they haven’t recently submitted a 1040? They didn’t make enough to require…

The ingenuity of the American taxpayer is something to behold. I’m talking about the creative way that some married couples have devised to speed up receipt of their economic stimulus package payment, aka tax rebate. As blogged about last week, the IRS has announced the delivery schedule for the checks based on the last two digits of a taxpayer’s Social Security number. Some taxpayers who included direct deposit information on their 2007 returns will see the stimulus payments show up in those accounts as early as May 2. Mailed checks will take a bit longer, but the IRS says the…

Eight women who work in the Monongalia County, W.Va., sheriff’s department tax office are millionaires, thanks to their lucky numbers coming in Powerball Lottery. Since the $276.3 million winning ticket wasn’t confirmed by the start of business Monday, all eight showed up at work. Wanna bet how many won’t be back once the lottery check clears? Once their win is confirmed, they will receive a lump sum payout of $140 million before taxes. After Uncle Sam gets his cut, the women will have about $95.5 million, or roughly $12 million apiece. And Monongalia County might need another lawman, too. One…

The hubby and I will be getting our stimulus rebate check by May 9. Or maybe sometime after June 20. That calendar calculation is based on the IRS’ just-released rebate mailing schedule. The May date is if our 2007 return ends up showing a refund and we have it directly deposited. The June date is if we end up owing money. In that case, with no bank account information on our 1040, the IRS will mail our rebate check. OK, I hear you yelling, "Enough already! We don’t care when you will get your check. What about ours?!?" Here’s the…

Happy St. Patrick’s Day! To celebrate, here are 17 ways to save some green when it comes to your taxes. 1. Get organized. If you haven’t started getting your tax materials in order yet, do it now. You’ve got less than a month until your 1040 is due and you don’t want to have to take that Tuesday off just to get your taxes done. There are better ways to spend "sick" days! These checklists from Bankrate, TurboTax and H&R Block will help you get some filing control. 2. Pick your state tax deduction. Compare the state and local sales…

For the last few years, electronic tax filing has set records as more of us choose this method to get our returns to the IRS. It looks like the 2008 filing season will continue that trend. Through Feb. 22, more than 38 million returns have been e-filed. That’s a 5 percent increase over the same period last year. One of the biggest areas of growth, according to the IRS, is returns submitted electronically from home computers. More than 12.3 million returns were filed directly by taxpayers from home, an increase of almost 14 percent from the same time last year.…

Today in 1923, Robert Frost wrote what is arguably his most well-known poem, "Stopping by Woods on a Snowy Evening." Even if you don’t know the complete verse, you probably know its closing lines about miles to go and promises to keep. That’s how many of us are feeling right about now, with the April 15 deadline bearing down. We’ve still got a long way to go before we keep our tax-filing promises. Each of us too often has a tendency to look at a daunting task like taxes and push it aside … again. Don’t. I’m not saying you…

I shouldn’t have been in such a hurry to get my mom’s tax return done so she could get her rebate money. If I’d waited just a bit, I could have e-filed it for her for free. The IRS has announced a new Free File option for individuals who normally do not file a tax return, but who are doing so this year to claim their piece of the stimulus package rebate pie. This essentially is lower-income workers who don’t have to file a return because they make less than the filing trigger amount and folks who rely solely on…

The California Franchise Tax Board has announced that it won’t collect taxes on the federal economic stimulus payments. Golden State officials also want to reassure residents about their state filing responsibilities, or more specifically, their non-filing duties. If you don’t meet California state income tax filing requirements, then you don’t have to file that paperwork even if you’re filing a federal 1040 to qualify for the federal rebate. You can read the official California FTB announcement, with links to other useful state tax pages, here. Iowa, too: Similar good state tax news comes from the Hawkeye State. The Iowa Department…

Today is "Learn What Your Name Means Day." Honestly. I am not making this up. While I couldn’t find the official "Learn What Your Name Means Day" Web page, I did find a couple of sites (here and here) that noted today’s observance. And I heard about the commemoration from John Aielli on his KUT radio program Eklektikos, so I’m running with it. My name is a nickname for Katherine and all its many spellings. As I mentioned in an earlier post (Name calling), that sort of fits how my mother (and grandmother) came up with Kay. I like it.…

Yikes! Where did February go? Even with that extra day, it zoomed right along. In fact, I didn’t get around to updating the tax calendar there in the right column with March tax deadlines until just a few minutes ago. What this all means is time is rapidly running out to finish our 1040s. I specifically use "our" because I also have to get cracking on my (and the hubby’s) return. I urge you — and myself — not to wait until the last minute. If you run into trouble, you’ll end up having to file for an extension so…

I know a lot of parents are looking forward to getting some extra rebate cash based on little Jimmy or Janie. So I wanted to make sure everyone’s aware of the age limit here. Yes, it’s unfair that you can’t get the $300 per child bonus rebate for your older, but still dependent (in many ways) college kid. But c’est la taxes. To qualify for the extra rebate money, the child must meet the child tax credit requirements. The key factor for rebate purposes is the age limit: the child must be younger than 17. And he or she must…

I was a good daughter this week. OK, I like to think I’m a good daughter every week, except for maybe those few days after Christmas when everybody’s had just about enough family togetherness. But I made up for that bit of grumpiness this week when I helped my mom stake her claim to an economic stimulus rebate check. As I mentioned in an earlier post previewing the rebates (here), my mother usually doesn’t have to file a tax return since she’s one of a dwindling breed: retirees who rely almost entirely on Social Security benefits. But, as I also…

Here’s some news to warm the hearts of tax procrastinators: You can file your tax return too soon. I’m not talking about people who jumped the gun on the AMT-delayed forms, or those with forgiven mortgage debt who now are twiddling their thumbs until March 3 when they can e-file. I’m talking about those obsessive folks who routinely have their returns ready to go on Jan. 2. That’s not always wise. Sure, you want your refund money ASAP. But, according to a story in U.S. News & World Report, early filing can sometimes be costly. Take the case of investors.…

The craziness that is tax-filing season 2008 continues with yet another deadline. Mark March 3 on your calendar. That date will be important to some taxpayers able to take advantage of the Mortgage Forgiveness Debt Relief Act of 2007. That’s the new law that allows certain homeowners to exclude debt forgiven on their principal residence in cases of loan renegotiation or foreclosure. Details on the law can be found in this story (the #1 new tax statute of 2007), as well as in this previous blog entry, Tax relief for homeowners struggling to pay PI and PMI. The bottom line…

All this talk about the tax rebates coming this summer (blogged most recently here, here and here) is understandable. But to get that money, you first have to file your 2007 return. And if you’re going to get a refund based on that filing, that initial IRS check of the year is of paramount concern. The standard estimate is four to six weeks for a mailed, paper refund check. But if you have your money directly deposited, it cuts that by half or more. The IRS, in its continuing effort to turn us all into electronic taxpayers, entices us by…

Dubya signed the economic stimulus bill today, so the rebate/advance credit checks are now the law. Get to work on your return so your check will be in the first batch mailed! The IRS also announced (in FS-2008-15) how it’s going to issue the checks. A couple of important notes: Folks who don’t usually file a return because their only income is Social Security, certain Railroad Retirement or certain veterans’ benefits, or they don’t make enough earned income to file, must — repeat, MUST — file a 2007 return to get a rebate. The rebates will be direct deposited for…

Yes, Kristine, the new tax rebate law means extra work for you and all your tax preparer colleagues. That unwanted response is to Kristine’s comments on my earlier post on tax rebate winners and losers:"Hmmm… I just noticed that this rebate is based on your 2007 income. So does that mean if you file an extension, you won’t get the rebate check? This could be a much longer tax season than usual if I have to file everyone ON TIME. Geesh!" Sorry, Kristine. I know it’s not exactly the news you and all the other already swamped tax professionals wanted…

We’re right in the midst of one of the traditional twin peaks of filing season. Each early to mid-February, millions of taxpayers have all the statements they need to file and have done so or are about to. Today, in fact, is the day many filers have been waiting for because they use one of five AMT-related forms. As blogged about here, IRS computers weren’t able to handle that paperwork until now. The hubby and I had to wait because we will claim the tax credit for the new energy efficient A/C we bought last summer. But truth be told,…

If you end up owing the IRS this tax season, how will you pay? Many folks now charge their tax bills. Even though a service charge is involved when paying with plastic, they find the amount is more than offset by reward points or airline miles they earn. And as long as you pay your credit card bill in full each month or at least pay it off relatively quickly, the associated interest charges aren’t an issue. If a credit card is the appropriate payment method for you, the IRS has authorized two companies to process the charges: Link2Gov Corporation,…

If you live in Iowa, Kansas, Kentucky, Oklahoma, Pennsylvania, West Virginia or Wisconsin and plan to snail mail your federal tax return this year, your envelope will have a new address. Now most of us don’t pay any attention to the address on the envelope or label that comes with our tax package. But it matters to the IRS. Sure, your return will eventually be forwarded to the correct service center for handling, but a misdirected mailing will slow down the process a tad. And if you’re expecting a refund, you definitely don’t want that. Folks of a conspiratorial mindset…

Not only did the Giants upset the Patriots in Sunday’s Super Bowl, the New York football players and their betting fans upset the bookies, too. Nevada gambling regulators report that the state’s sports betting operations lost a record $2.6 million on Super Bowl XLII. Jay Kornegay, the executive director of the Las Vegas Hilton race and sports book, told the Associated Press that "the anticipated large wagers that we expected on the Patriots just never materialized." The sports book losses took several forms: Some bettors picked the Giants to win outright on the "money line," taking home payouts of up…

Officially, Tom Brady’s tender ankle was left of the Patriots’ injury report. But speculation is still rampant as to whether it will have any effect on the game. And you can bet that tacklers will probably be aiming a bit low. Hey, it’s a tough game. The NFL says it compiles its injury reports so that everyone, fans and teams alike, have all the information they need to, respectively, enjoy and play the game. Reality check. Who really cares about player injuries? Gamblers. And today is their big day. A star player’s inability to perform his best certainly would make…

Remember last April when some TurboTax customers had problems e-filing? Well, tax technological glitches pop up worldwide. Take the United Kingdom’s HM Revenue & Customs, that country’s equivalent to our IRS. WebCPA reports that British taxpayers who visited the Self Assessment Online section of the site last Thursday were greeted with messages such as "planned maintenance" or "not found." What made the annoying messages worse was that the Web malfunction occurred on Jan. 31, the last day for filing taxes in the U.K. Taxpayers who fail to pay their taxes in time by the deadline are typically fined 100 pounds;…

Actor Wesley Snipes was found not guilty of federal tax fraud and conspiracy charges this afternoon. He was, however, convicted of three misdemeanor counts of failing to file a tax return. As blogged about earlier here, Snipes lawyers argued that the star of the "Blade" films was himself a victim of bad tax advice in connection with the conspiracy and fraud charges. The jury agreed. While Snipes was acquitted on the most serious charges, his former advisers and co-defendants — Eddie Ray Kahn, founder of a tax protest group, and Douglas P. Rosile, an accountant who lost his licenses in…

Almost 3 million recipients of Social Security benefits are going to have to wait to see if they owe taxes this year. A tax statement the Social Security Administration (SSA) just sent them is wrong. The erroneous document that went out to 2.7 million retirement benefit recipients is the Social Security Benefit Statement, or Form SSA-1099. That document is needed by Social Security recipients to complete their income tax returns and determine whether their federal benefits are subject to federal tax. According to an SSA fact sheet on the error, the statements were mailed earlier this month to 53 million…

California will. Right now, the Golden State does not conform to the Mortgage Forgiveness Debt Relief Act of 2007 that was signed into law on Dec. 20, 2007. That means California homeowners who restructure their residential loans or lose their properties to foreclosure won’t see their state tax bills reduced in the same way as their federal ones. As y’all know by now, the new law allows taxpayers who meet certain qualifications to exclude this discharged debt from their federal taxable income. That can mean substantial tax-time savings for those already cash-strapped homeowners. This often is referred to as cancellation…

Obviously the main tax thing on all our minds until April 15 is getting our 2007 returns done. But as tax geeks and faithful readers of the ol’ blog (is that redundant?) know, we also need to think at least a bit about 2008 taxes early in the year, too. The best way to cut or at least keep your tax bill under control is through year-round planning. So to help out on 2008 taxes, here are some figures to keep in mind. First and foremost are the tax brackets. Because of inflation, the thresholds increase each year for each…

Dang! Even with the tax calendar in the right column of the blog as a reminder, this sneaks up on me every time! The fourth quarter payment of 2007’s estimated taxes is due Tuesday, Jan. 15. Like your regular 1040, if your filing is postmarked by that day, it’s considered, in IRS speak, "timely filed." Just be sure you use the envelope that came with the IRS packet. These payments go to offices different from the processing centers that handle regular 1040s. So if you’ve lost the envelope, check page 6 of the 1040-ES instructions for the correct mailing address.…

Although Congressional procrastination on the alternative minimum tax means filing delays for some taxpayers (blogged here), the IRS is sticking to its usual schedule for most of us who plan to e-file. Beginning today, we can electronically submit our 1040s to the IRS … if, of course, we don’t have to use one of the five forms the agency is still making sure meshes with its computer systems. The affected forms are: Form 8863, Education Credits    Form 5695, Residential Energy Credits  Schedule 2, used by Form 1040A filers to claim    Child and Dependent Care Expenses Form 8396, Mortgage…

Yikes! Not exactly what you want to hear at the beginning of tax filing season. But that's the word from the Government Accountability Office (GAO). In a report released yesterday, GAO investigators found that IRS records, including taxpayer data, are vulnerable to tampering or disclosure because the agency has not yet corrected dozens of information security weaknesses. We're a computerized world, and the GAO notes that the IRS takes advantage of such technology to collect taxes (about $2.7 trillion in fiscal year 2007), process returns and ensure compliance. But that also means the agency needs to utilize "effective information security…