The surprise move beat the House, which has a similar provision in its still pending One Big Beautiful Bill, to the tax relief punch. Photo by RDNE Stock project The House’s One Big Beautiful Bill (OBBB) does contain one of Donald J. Trump’s campaign trail tax promises. It provides tax relief for some workers who rely on tips to increase their income. The Senate, however, decided it was tired of waiting for its counterpart on the other side of Capitol Hill to act on this issue. On Tuesday, May 20, Senators unanimously, and surprisingly, passed their own the No Tax…

Pope Leo XIV during an audience with the media on May 12. (Photo by Edgar Beltrán, The Pillar/Wikipedia Commons) On May 8, history was made by the Catholic church. Chicago native Cardinal Robert Prevost was elected to succeed the late Pope Francis. Pope Leo XIV, the name Prevost chose as the new Bishop of Rome and leader of Catholics worldwide, is the first American to be pope. There’s been much pride in and curiosity about the man who now is the supreme pontiff. But I must admit that one of my favorite comments about the election of Pope Leo XIV was…

Much attention on federal agencies this year has been on ways to prevent fraud and save Uncle Sam money, with mixed results. But such efforts have always have been a focus of the Internal Revenue Service Criminal Investigation (IRS-CI). This week, IRS-CI and the Department of Justice (DoJ) announced the judicial payoff from one case that cost the U.S. Treasury more than $3 million. Fake claims on false tax returns: Diandre Mentor of Miami pleaded guilty before a Florida magistrate to conspiring to defraud the United States by filing false tax returns for clients. According to court documents and statements…

Photo by Andy Quezada/Unsplash …May typically is the end of high school for millions of students across the United States. After a summer break, a lot of these new graduates will be heading off to college. In addition to the new classroom challenges, these students and their families will face the daunting task of paying for college. Uncle Sam can help a bit. Be they freshmen or returning to university studies, the Internal Revenue Code has a couple of tax breaks, the American Opportunity and Lifetime Learning tax credits, that could help cover some of students’ common college costs. Here’s…

Photo by Los Muertos Crew This week in Austin is hot, and I'm not talking about one of the state capital's many music or technology or film or other festivals. It's going to be weather hot. Like sunny and 105 degrees hot tomorrow, according to forecasters. If that happens, it will break by a degree the record for May heat. I know, lots of places deal with extreme heat. Those residents also tend to face utility issues, like brown- or blackouts, when the temperatures put pressure on the electric grids. That’s why many across the nation have opted for their…

Thank you teachers! It’s something students and their families should say every day, but today especially. The first full week of May is Teacher Appreciation Week, and Tuesday of that week is designated National Teacher Day. That’s today, May 6, this year. The National Education Association (NEA) says that the whole week, but notably today’s special designation is a time for honoring teachers and recognizing the lasting contributions they make to our lives. Adequate funding for schools and better wages for teachers are among the issues championed by the NEA and other education advocacy groups. While those fiscal decisions generally…

North Carolina filers originally facing next month’s filing deadline now have until Sept. 25 to complete their tax obligations. Hurricane Helene was responsible for extreme flooding last September in Burke County, North Carolina. Taxpayers in the Tar Heel State were among those granted more time by the Internal Revenue Service to file their 2024 tax returns and pay any due tax. (Photo by NCDOTcommunications, CC BY 2.0) Hurricane season 2025 has yet to start, but the effects from last year’s major Atlantic and Gulf of Mexico storms is still being felt by many across the southern and southeastern part of the…

It doesn’t matter what kind of filing system you use to keep your tax records, just pick one and use it. You’ll be glad you did if the IRS ever questions one of your tax returns.

Photo by Mikhail Nilov We're a week past Tax Day. Have you started working on your 2025 return? I don't mean your actual return, of course. I do mean thinking about what went well or went off the rails this past filing season. Now is the time to consider changes you can make so that the process is smoother next year. Shameless plug alert: You can find some tax planning ideas in my earlier posts Tax Day is done. Now what? Plenty! and Create a tax strategy that utilizes different tax baskets. Income tax brackets and rates: Another good place…

Photo by Belle Co … We made it. Tax Day 2025 is finally over for most of the country’s 140 million or so individual tax return filers. Now what? First, take a minute or more to celebrate being done with this annual tax obligation. Then, start thinking about taxes again. Wait! Come back! You did click over here, after all. And to reward your post-Tax Day curiosity, here are seven tasks you should consider. I promise they aren’t that difficult. 1. Adjust your paycheck withholding. Your tax goal each year should be for your paycheck withholding to cover as closely…

Emergency workers doing flood salvage. (Photo: FEMA)     Millions of taxpayers across the United States on this Tax Day 2025 are finishing up their returns or filing for an extension. But some, including U.S. taxpayers abroad and who live or have businesses in major disaster areas, get more time. That list of delayed filings for disaster victims grew this week. The Internal Revenue Service announced that all taxpayers in Arkansas and Tennessee who were affected by severe storms and accompanying winds, tornadoes, and flooding that began on April 2, and who have not yet filed now can wait until Nov.…

If you've put off your tax filing until the very last minute, don't panic. But get to work on that return or filing extension request. Tax Day is almost here. If you’re a last-minute filer, you’re painfully aware of the dwindling filing time frame. I don’t want to interrupt your work, but if you are looking for some suggestions on how to get the job done, here are six tips to help you finish by tomorrow, April 15. 1. Get an extension. Your wisest move at this point, even if you are close to finishing your Form 1040 and accompanying schedules,…

The April 15 federal income tax filing deadline is Tuesday. For most folks, that’s the only thing they have to worry about on that day. But there are some of us for whom Tax Day means more tax tasks. Here are nine instances — yes, that includes the regular annual filing of tax returns — where some people might need to take additional tax action on April 15. Most of these tax-related moves will ensure you fulfill your tax duties and avoid any additional contact with the Internal Revenue Service. But some also could save you some tax dollars. File…

You live in a state with a high personal income tax rate. Would you benefit by moving to a low- or no-tax state? Maybe. Maybe not.

Next Tuesday is April 15. If you haven’t filed your 2024 tax return, then you know you have some work to do. You are not alone. Every year, millions of individuals put off their filing until the last minute. If that’s you, and you are committed to finishing your Form 1040 by April 15, here are some tips to make sure it’s not a lost tax weekend. The first tip is get more time. That’s right. Don’t rush to finish by April 15. You’ve gone this long without filing your tax return, so why push yourself into an urgent panic?…

Photo by Andrey Grushnikov The tax deadline countdown clock is ticking away (literally, there over in the ol’ blog’s right column). With just days to file your Form 1040 slipping away, many of us will determine the best move is to file for an extension. You can do that by Tax Day, April 15, too. Just send the Internal Revenue Service Form 4868, Application for Automatic Extension of Time to File U.S. Individual Income Tax Return. But some taxpayers get a bit more time to ask for more filing time. Already extended disaster area taxpayers: As noted in my Tax…

April 15 is double Tax Day for those of us who must pay estimated taxes. It’s the end of the prior tax year, with returns (and payment) due for those earnings. It’s also the start of tax filing (and paying) for this year. The payment for money made, but not subject to withholding, in the first quarter of 2026 is due on April 15. Extra payments for certain income: The U.S. tax system is pay as earn. For the most part, that's taken care via tax withholding from employees’ paychecks. But even if you have a job where income (federal…

Updated Monday, April 14, 2025: All taxpayers in Tennessee and Arkansas now now have until Nov. 3, 2025, to file their tax returns. The Internal Revenue Service announced this latest major disaster related tax relief in connection with disastrous weather in those states that began on April 2, 2025. The Volunteer State was hit by severe storms, straight-line winds, tornadoes, and flooding. The Natural State was struck by severe storms, tornadoes, and flooding. U.S. service members posted abroad, as well as civilian taxpayers living and working overseas, don't have to file their tax returns in April. Neither do taxpayers in major…

Hanging on for more time to file your taxes? Get more by filing Form 4868. (Harold Lloyd in 1923 film Safety Last!) Tax returns are due in just over a week. A lot of taxpayers, however, don’t seem in that big of a hurry. Last year, more than 163 million taxpayers filed returns. With the 2025 filing deadline looming, the Internal Revenue Service reports that has received just more than 89.5 million returns. Sure, millions will get their 1040 forms filled out and to the IRS by Tuesday, April 15. But based on past filing numbers, a sizeable group won't.…

Has your tax filing frustration got you thinking about getting, shall we say, creative when you fill in your return? Don't. Even with the current chaos, the Internal Revenue Service still has ways to track down tax cheats. (Photo by Nataliya Vaitkevich) Tax Day is almost here, and millions of Americans are working on their 1040s. Generally, late filers tend to owe taxes. They want to put off the inevitable for as long as possible. Some of these still-to-file owing taxpayers are still searching for ways to trim this year’s tax bill. There are a few options available, such as…

Have you been putting off filing your return because you’re having trouble coming up with the money to cover your tax bill? Check out the Internal Revenue Service’s extended payment options.

Ah, April. Your spring showers and the flowers they bring are just one reason we’re thrilled you’re finally here. (Photo by Stefan Stefancik) Hello, April! You’re a month we love to see arrive. You’re also a month we dread. On the positive side, we welcome the consistent warmth you bring most of us. We’re more than ready to stow our winter, or even winter-adjacent, apparel for a while. And, of course, baseball is back in full force! But then, April, your arrival brings a dreaded task. Millions of us must confront the filing of our annual federal — and in…

Mississippi’s individual income tax will be phased out under a new law signed by Gov. Tate Reeves. But the complete end of filing won’t come until next decade.

Almost half of taxpayers in a recent survey said they are more dependent on their tax refund to make ends meet this year than they have been in the past.

Or, consider postponing your filing by asking the IRS for more time. Tax Day is fast approaching, but you’re still waiting for a key tax statement. Most of these documents — notably W-2 and/or myriad 1099 forms — were required to be issued by Jan. 31. Even given issues with the U.S. Postal Service, it’s well past time for the material to have arrived. So, what now? Call you’re the issuer: Yes, time is running out, but if you haven’t already, contact your employer about your W-2 or the company that issued the 1099. If you have already reached out,…

Spring has sprung, with the accompanying seasonal focus is on spring cleaning. One of our neighbors is focusing on sprucing up their yard. The pile of dirt in the street, shown in the photo topping this post, is now being transferred to flowerbeds. So, of course, it got me thinking about taxes. While this household and other people on our block pay crews to mow their lawns even in the dead of winter (go figure), landscaping generally is seasonal work. These companies tend to make most of their income during the warmer months of the year. They also are a good…

As you’re finishing up your tax return, take another look to see if any of the 10 situations items show up on your Form 1040. They are red flags that trigger trained Internal Revenue Service examiners.

Photo by Ksenia Chernaya     While Department of Government Efficiency (DOGE) personnel are looking for Social Security benefits they believe were fraudulently sent to very old, probably deceased individuals, Uncle Sam’s official tax watchdog has a different take. The Treasury Inspector General for Tax Administration (TIGTA) recently examined situations where Uncle Sam owes taxpayers who passed away. TIGTA found, in its report 2025-IE-R12 issued March 12, that “Improvements Are Required to Promptly Validate and Issue Manual Refunds Associated With Deceased Taxpayers.” Overall, TIGTA’s analysis found that in the more than 440,000 final filings it reviewed, survivors were owed a total…

DOGE and Congressional efforts appear to be putting up a stop signal for many of the IRS’ goals. (Photo by Kari Bluff Nesler via Flickr) …The Department of Government Efficiency (DOGE), the quasi-governmental group created by billionaire Elon Musk, contends it has so far found $100 billion in fraud and waste across multiple federal agencies. Even if that’s true, which scrutiny from other organizations questions, the way DOGE, with the White House’s approval, is slashing Uncle Sam’s operations could end up costing more than the purported savings. “Just one move — the plan to shrink the Internal Revenue Service’s staff…

Major flooding in Hazard, Kentucky, in February led to Perry County being declared a major disaster area. It’s just one of the counties in the Bluegrass State where residents are now eligible for tax relief. You can watch the video from which the screenshot above was taken at Live Storms Media's YouTube channel. We’re just more than a month away from the April 15 filing deadline, but some taxpayers will have until Nov. 3 to finish their 2024 returns. They live in areas of Kentucky and West Virginia that were pummeled in mid-February by a severe winter storm that move…

A towering city overlook is always impressive, but you don't necessarily need the telescopic help when it comes to overlooked tax breaks. Tax software, your tax adviser, and yes, the often-missed tax breaks listed below, can help you save on this year's filing. (Photo by Ricky Esquivel) The goal of every taxpayer is to pay Uncle Sam as little as legally possible. Even the Internal Revenue Service has enshrined that goal in its Taxpayer Bill of Rights. It’s number 3 on the 10-point list. A good way to ensure you pay no more tax than required is to claim all…

Collecting a refund is one of the reasons cited in my post on why you might want to file a tax return even if you aren’t legally required to do so. It always generates a lot of comments, with people baffled as to why someone would just let Uncle Sam hang onto their tax refund. There are some reasons people don’t file their taxes even when it to their benefit, some better than others. More on this later. But regardless of why, every year the Internal Revenue Service reminds a portion of these nonfilers that if they don’t act soon,…

You were really counting on your tax refund, but the amount the Internal Revenue Service sent you was less than you expected. Welcome to the world of tax offsets.

Photo by Porapak Apichodilok You took that job in Rome and things are working out great. But you discovered that there’s one part of the United States that hitched an international ride with you. The Internal Revenue Code. Thanks to our worldwide tax system for individuals, as a U.S. citizen you remain a U.S. taxpayer, regardless of where you live. That makes you responsible for filing federal tax returns on your overseas earnings. Uncle Sam, however, does provide some tax breaks to his citizens living and working abroad. They get more time to file, with a June 15 deadline. And…

We made it through the first week of March. Have you filed your taxes yet? You’ll get no judging from me. I usually file our tax return on April 15 or get an extension, so I’m in no position to chide anyone for being a tax procrastinator. But by the end of February, 54.4 million taxpayers had sent the Internal Revenue Service their returns. And most of those — 51.2 million — arrived electronically. Nearly 24 million of those returns were electronically filed by tax professionals for their clients. The remaining 27+ million were e-filed by individuals. Those numbers are…

Photo by Ksenia Chernaya .While doing my weekly grocery shopping every Tuesday morning, I tend to encounter the same folks, both H-E-B employees and other customers. This week, though, a woman I hadn’t seen before made an impression. I dubbed her the Egg Crier, since she posted herself by the store section holding those products. And in her best town crier form, she personally informed every shopper who picked up a carton — and all those even remotely close to the area — of the cost, noting with some exasperation the current high prices. The dozen Grade A large white…

Photo by Gustavo Fring We all mess up sometimes. But when you make a mistake on your tax return, it could cost you. You could short your refund amount or end up owing more than you should. Your error could cause the Internal Revenue Service to take extra time processing your Form 1040, slowing down the issuance of your refund. Or it could be a mistake big enough that the IRS actually wants to discuss your filing in more detail. Your best defense against all these unwanted outcomes is to file a mistake-free return. And you especially don’t want to…

You aren’t legally required to file a federal tax return, but maybe you should. Here are six reasons why it might be a good idea. (Photo by Unsplash+ in collaboration with Getty Images) Millions of taxpayers have filed their returns so far this year. Millions more are working on their taxes. But not you. You checked out my post on who has to file a tax return (thank you!) and confirmed that you’re one of the lucky few who doesn’t have to file a Form 1040 this year. You might want to rethink that no-filing decision. Even if you aren’t legally required to…

Here’s hoping your tax procrastinating doesn’t go this far! (Photo by Tara Winstead) More than 33 million taxpayers already have filed their 2024 tax returns this year. Chances are a lot of them live in the Midwest. Taxpayers in Wisconsin, Ohio, Michigan, and Indiana tend to procrastinate the least when it comes to filling out their federal returns, according to IPX1031’s latest Tax Procrastinators report. Midwest-adjacent Pennsylvania rounds out the five states, coming in between Ohio and Michigan, where filers don’t dally So where do taxpayers tend to put off filing? Waiting to file: The sixth annual study from the…

   We’re through a full month of the 2025 tax filing season. Many of the taxpayers who filed when the season started at the end of January have already received their refunds. The official count, last updated by the Internal Revenue Service on Feb. 14, shows nearly 13.7 million refunds have been issued. The average refund check so far is $2,169. You, however, are still waiting for the IRS to send you your money. The best way to find where it is in the IRS system is to use the agency’s online tracking tool Where’s My Refund? Here are some…

Retirement can be more enjoyable when you don’t have to worry about money. That could happen if some lawmakers get their way and end taxes on Social Security benefits.

Federal tax returns get most of the attention during the annual tax season. That's because Uncle Sam's individual income tax laws apply across the country. But as noted in yesterday's post, states also demand taxes from their residents, and most of them require annual income tax filings, too.  taxes also are demanded of most Americans. And in most of the 43 states and District of Columbia that tax some type of individual earnings, April 15 also is the due date. No individual income tax states: The only states with no personal income tax at all are Alaska, Florida, Nevada, New…

UPDATE, Monday, Feb. 24, 2025: The Internal Revenue Service layoffs did happen, but fewer than what might have been. Still, say seven former IRS Commissioners who served during both Democratic and Republican administrations say that the firing of 6,700 agency employees in the middle of tax season is a huge mistake. We’re in the heart of tax filing season. So far, things seem to be going smoothly. But that could change. Internal Revenue Service workers processing the millions of already filed returns also are dealing with some additional, but not tax-related, work concerns. Plus, the tax agency could lose as…

Some taxpayers got a new earnings statement this year, a 1099-K form. The tax statement arrived because they sold more than $5,000 in products or services through apps and marketplaces. The 1099-K, officially titled Payment Card and Third Party Network Transactions, finally was issued this year on a widespread basis. It was supposed to go out years earlier to sellers who made $600 or more. That was a change made in the American Rescue Plan Act (ARPA) of 2021 from the $20,000 in sales and 200 transactions trigger to issue the form. All income you make, even if you don’t…

Photo by Polina Tankilevitch This weekend is bookended by holidays. Today’s Valentine’s Day gift and card exchanges and Presidents Day sales on Monday, Feb. 17. It also marks the peak phone traffic at the Internal Revenue Service, with taxpayers taking advantage of a day off, and finally having their tax statements in hand, to work on their returns. For many callers, however, it also means time on telephone hold. Avoid bad tax-hold tunes: Instead of listening to music that’s not really your taste, the IRS suggests taxpayers with questions this weekend — and beyond — look online for the answers.…

Photo by David Guerrero It’s early in the 2025 filing season, but millions of taxpayers have already received their tax refunds. Most of these early filers also instructed the Internal Revenue Service to directly deposit their tax cash. Not only is direct deposit faster — in most cases, the IRS says refunds sent straight to financial accounts get there in 21 days or less — it’s a safer delivery method. You don’t have to worry about the U.S. Postal Service losing or misdelivering your Treasury check. Even better, it takes tax refund mailbox thieves out of the equation. Some taxpayers,…

Millions of taxpayers who were due refunds and filed as soon as the IRS gave the "go" signal have received their money, according to the tax agency's first filing season statistics report. (Photo by Engin Akyurt) The first week of the 2025 tax-filing season, which began on Jan. 27 when the Internal Revenue Service started processing returns, is going much like the prior year, at least when it comes to taxpayer submissions. Basically, people are slow. But many of those who filed their taxes as soon as possible are happy. They’ve already received their refunds, which is the main motivator…

Photo by Pixabay … The Internal Revenue Service says that most taxpayers get refunds. Good for them. But those of us who end up owing Uncle Sam after we run our Form 1040 numbers have to come up with a way to pay. The easiest way, both for taxpayers and the tax collector, is electronic. Here’s a quick review of six e-payment options available this 2025 tax filing, and paying, season. 1. Credit or Debit Card or Digital Wallet: Paying by plastic is one of the oldest and most popular tax e-pay methods, so Uncle Sam happily accepts our credit…

UPDATE, Monday, Feb. 10, 2025: Yes, that’s green font in honor of Philadelphia’s Super Bowl LIX win last night. I’m taking solace in that it took a Texan, Houston native Jalen Hurts, to lead the Eagles to the title. Did you place a prop bet on last night’s NFL championship game? If it paid off, you owe tax on the winnings. Check out the results of some of the most popular Chiefs-Eagles prop bets. Super Bowl LIX is Sunday. It’s a rematch between the Kansas City and Philadelphia. KC is looking to take home a third consecutive Lombardi Trophy. The…

Doing your federal taxes for the first time? Sorry. But welcome to the taxpaying club. Here are some tips to make your membership easier.

When taxes are too overwhelming, you might be able to get free tax help at a local VITA or TCE site.

There are two dozen tax deductions that qualifying taxpayers can claim without having to itemize. Here’s a look at these tax breaks, popularly known as above-the-line deductions.

Hello, February! Even though it's the second month of the year, it's the first full month of the annual tax-filing season and the time when most of us finally start focusing on our 1040s. So, since February also is the shortest month, and we’re already three days into it, I’ll cut to the chase and keep this month’s recommended tax moves short. 1. Keep an eye out for tax statements. Jan. 31 is the day that W-2 and various other earnings statements are supposed to be delivered to workers. Guess what? That date usually slips. Today, for example, I got…

When severe weather leads to major disaster declarations, the tax obligations of the residents dealing with the aftermath also are affected. The Internal Revenue Service regularly announces tax relief for those taxpayers, including later filing deadlines. One of those delayed tax due dates is Monday, Feb. 3. Taxpayers in 14 states and two U.S. island territories who were struck by devastating hurricanes, floods, and various other lashings from an irate Mother Nature last year were given more time to file their 2023 tax returns for which they had received an extension. So, instead of having get their 2023 tax year…

The Earned Income Tax Credit (EITC) turns 50 this year. The official date is March 29, in case you want to throw a party. The Internal Revenue Service isn’t waiting that long. With tax season 2025 underway, the tax agency again is celebrating this tax benefit created to help lower- and moderate-income workers with the annual Jan. 31 EITC Day. Today marks the beginning of efforts to get the word out to eligible taxpayers and encourage them to take advantage of the EITC. The EITC can be worth from hundreds to thousands of dollars for qualifying filers. While the larger…

Taking things a bit more slowly often is a good idea. For many, that applies to filing their annual tax return. (Photo by Kay Bell) Few people like doing taxes, even when doing so will get them a refund. That’s every year, some people who are due money back from Uncle Sam still put off finishing their taxes. But there are other reasons in addition to plain procrastination to wait to file your taxes. Here are five. 1. To allow for all your tax statements to arrive. We’re almost at the Jan. 31 deadline that most tax statement providers must…

Few people like doing taxes, even when doing so will get them a refund.

Photo by Nataliya Vaitkevich Beating identity thieves to the punch is one reason to file your tax return as soon as you can. Getting your legitimate Form 1040 to the Internal Revenue Service first will stop crooks who try to file a fake return in your name. But that’s not the only tax fraud increase that the tax agency sees each filing season. So, this year, the IRS and its partners in the Coalition Against Scam and Scheme Threats (CASST) are taking new and additional actions to lessen the threats. The CASST task force, comprised of representatives from federal and…

Fortune cookie tax filing wisdom (Photo by Kay Bell) We’re into the second official day of the 2025 tax season and millions of taxpayers have already filed their returns. This post is not for you. It’s for folks who haven’t yet even thought about their 2024 tax year returns. That’s okay. We all work at our own pace. But there actually are some good reasons to get to your annual tax filing task sooner rather than later. Here are 10. 1. To get your federal tax refund sooner.This is the main reason early filers get their 1040 forms to the…

We’re into the second official day of the 2025 tax season and millions of taxpayers have already filed their returns. This post is not for you.

Getting something for free is the ultimate bargain. That's true for taxes, too, if you're able to use one the four no-cost tax preparation and filing options available to some taxpayers this filing season. (Photo by Ken Hawkins via Flickr) Tax filing season 2025 officially starts today, Jan. 27. The Internal Revenue Service is now processing the millions of returns filed earlier this month, both electronically and the relatively few still sent via the U.S. Postal Service. These early filers tend to have less complicated tax lives. They also are comfortable doing their taxes themselves, usually using tax software. Some…

Tax filing season 2025 officially starts today, Jan. 27.

Tropical Storm Ernesto's battering of the U.S. Virgin Islands was one of the major disasters last year that led to tax deadlines being postponed until 2025. USVI filers and those in other disaster areas across the country are facing a Feb. 3 deadline. (NOAA-GOES satellite image) If you follow me on social media, thanks. And thanks especially for putting up with my whining about the recent cold spell here in Central Texas. To be honest, it’s nothing like the prolonged freezes of a few years ago. I also realize that other parts of the Lone Star State and the country…

Your answers to these tax-filing checklist questions can make the process easier, and could save you some tax dollars.

Internal Revenue Service Commissioner Danny Werfel, who is resigning his position, frequently touted the tax agency’s digital transformation plan.

Photo by Anna Shvets from Pexels The 2025 tax season officially starts Jan. 27, and millions of taxpayers are working on their returns. Some, however, are asking whether they must file a Form 1040 at all. I hate to dash your no-filing hopes, but the answer probably is yes. When you make money, it’s generally a safe bet that the Internal Revenue Service will want to know about it, and collect a portion. But not always. Here's a look at whether you might be among the select few legal nonfilers. Basic filing requirements: Generally, if you are a U.S. citizen or…

Image by Clker-Free-Vector-Images from Pixabay Even in those few years when Congress mercifully stays out of major messing with the Internal Revenue Code, we taxpayers still encounter some changes at return filing time. Here are some highlights of what you might find as you file your taxes this year. Standard deduction amount increased. Around 90 percent of taxpayers claim the standard deduction. The choice was always the favorite, in large part because it’s easy. The numbers are show directly on Form 1040. But the number of standard deduction claims increased when the Tax Cuts and Jobs Act of 2017 essentially…

Don’t forget to pay your final 2024 tax year estimated tax amount by tomorrow, Jan. 15. I know. I’m cutting it close with my reminder. But if your life is as hectic as mine is right now and this tax task has crept up on you, then better late than never. Electronic options: Since time is of the essence, the fastest and easiest way to pay is electronically. Those options include — Debit or credit card or digital wallet. This is fast, easy, and familiar to most of us. The two Internal Revenue Service-approved vendors Pay1040 and ACI Payments, Inc.…

UPDATE, Monday, Jan. 13, 2025: California officials also are offering taxpayers in Los Angeles County a postponement on filing 2024 state tax returns and making tax payments that would have been due between January 7 and October 15, 2025. The extent and ferocity of the wind-propelled Palisades fire is, in many cases, an insurmountable challenge for Los Angeles, California, firefighters. (Photo by CAL FIRE_Official – Palisades Fire, Public Domain) California firefighters, joined by their brethren from other states and Canada and Mexico, are still struggled to contain the catastrophic wildfires that have engulfed the Los Angeles metropolitan area. Since the…

That last Monday in January is when the Internal Revenue Service will start processing all 2024 tax year returns, including those filed earlier by taxpayers who qualified to use the already open Free File program.   Photo by Nataliya Vaitkevich It’s official. Tax season 2025 starts Monday, Jan. 27. The Internal Revenue Service says it expects more than 140 million individual 2024 tax year returns to be filed by the April 15 deadline. IRS Commissioner Danny Werfel, who could be overseeing his final filing season if incoming president Donald J. Trump follows through on his plans for the agency, says the…

If you used Free File last year to complete your federal taxes, then the 2025 version, which opened today, is mostly déjà vu. The same eight tax software companies are participating. One of them will offer software for Spanish speakers. The main difference this year is that the Internal Revenue Service/Free File Alliance partnership can be used by taxpayers whose adjusted gross income (AGI) is $84,000. That’s five grand more than last year’s AGI threshold, but it still applies to all filers, regardless of filing status. Same 8 software options: The eight returning private-sector tax software companies that are part…

The Internal Revenue Service this week officially announced Free File will open on Friday, Jan. 10, to eligible taxpayers (those with adjusted gross income of $84,000 or less). In that statement, the agency also indirectly told us the main tax filing season will begin on Monday, Jan. 27. But taxpayers in 24 states are still waiting to hear when in 2025 Direct File, the IRS’ own online tax preparation and e-filing software will be available. The tax agency was so pleased with Direct File’s pilot last year, it expanded not only the software offerings, but also doubled the number of…

Millions of taxpayers already are filling out their 2024 tax returns. Now they just need to know when the Internal Revenue Service will start processing them.

Updated, Wednesday, Jan. 8, 2025 Millions of taxpayers already are filling out their 2024 tax returns. Now they just need to know when the Internal Revenue Service will start processing them. On Friday, Jan. 10, Free File opens. The no-cost online tax preparation and e-filing option can be used by taxpayers whose adjusted gross income (AGI) is $84,000 or less. Business taxpayers will be able to electronically file their returns on Jan. 15. As for individual filers who make more than the Free File AGI threshold, they can start using Free File’s Fillable Forms on Jan. 27. That date follows…

The first group of taxpayers in 14 states and two U.S. island territories hit by declared major disasters must get their forms to the IRS by Feb. 3. Residents in the other 10 states have until May 1. Photo by Analogue Kid at English Wikipedia, CC BY-SA 3.0 Much of the United States is facing the first weather catastrophe of the new year. A brutal winter storm is forecast to sweep through a 1,300-mile swath of the country, leaving an estimated 62 million people to deal with heavy snow, ice, rain, and severe thunderstorms. This early 2025 burst of anger…

It's ready, set, almost go for tax season 2025. The Internal Revenue Service has set Jan. 15 as the date it will start accepting electronically filed 2024 tax year business returns. (Photo by BOOM 💥) We have a start date for the Internal Revenue Service's 2025 tax filing season! But hold your celebrations, tax-filing early birds. It’s not for everyone. Wednesday, Jan. 15, is the day the IRS will begin accepting electronically filed business returns. That's a day earlier than it started processing business filings last year, but still about two weeks earlier than the agency is expected to start…

Bet legally, and pay tax on all your winnings — Fall is football and betting season in the United States. Both the college and professional games attract a sizeable amount of wagering. The Internal Revenue Service urges anyone putting a few (or more) dollars down to do so at a legal betting establishment. It’s safer for bettors, and it helps Uncle Sam get what he’s due, since gambling winnings are taxable income.

Another new tax year has arrived. And for the third consecutive year, it comes in on the heels of a year in which we didn’t see any major changes to the Internal Revenue Code

No place in the world is disaster proof. Mother Nature unleashes her horrors globally and year-round via hurricanes, tornadoes, wild fires, floods, blizzards and more. This special Natural Disasters Recovery Page, part of the overall Storm Warnings collection of Don’t Mess With Taxes blog posts about disasters and the associated tax implications, provides information on what you can do and where you can get help to recover as quickly as possible when Mother Nature turns into Mommy Dearest. So, since time is of the essence when you’re trying to get your life back after a natural disaster, here are some…

If you're self-employed, use your car for work, and have taken your last business trip of 2024, go out to your vehicle and take a photo of the odometer. It could help when you file your tax return next year. (Photo by Fortune Vieyra on Unsplash) I grocery shop every Tuesday. That meant today’s weekly trip was to my local H-E-B was on the last day of 2024. It was the last time I’ll get in the car this year. So when I pulled into my garage after stocking up on necessities (milk, bread, produce) and other items (potato chips…

A federal court this week granted the Internal Revenue Service a John Doe summons to get information on individuals who answered client questions via a digital platform. (Photo by Olha Ruskykh) Some individuals who worked for an online site providing answers as experts in various fields soon could be hearing from the Internal Revenue Service. On Monday, Dec. 23, a federal court in California authorized the IRS to serve a John Doe summons on JustAnswer LLC. The federal tax agency is seeking information about U.S. taxpayers who were paid for answering questions during the years 2017-2020 on the Covina, California-based…

Photo by Kaboompics.com The Internal Revenue Service is sending out holiday gifts this month to around a million people. The recipients are people who were eligible for, but did not claim, the 2021 Recovery Rebate Credit (RRC). By the end of next month, they should have the funds in hand, or directly deposited into their bank accounts. The maximum RRC amount is $1,400 per person, but the exact amount will depend on the individuals’ specific circumstances, such as income, filing status, and number of dependents. Overall, the IRS says it will be delivering about $2.4 billion to the eligible recipients. That’s…

Photo by Pixabay We’re heading into the home stretch, and playoff push, of the National Football League (NFL) season. It’s the most popular sport in the United States. Since the U.S. Supreme Court in 2018 okayed state-authorized sports betting, the NFL has gained new fans who are more interested in how the games can make them a few, or more, bucks. Currently, 38 states, along with the District of Columbia and Puerto Rico, have legalized some form of sports betting, though not all have implemented it. Now the National Council of Legislators from Gaming States (NCLGS) wants to help states…

Donald J. Trump signed 220 executive orders (EOs) the last time he was president. Some GOP lawmakers want him to end the IRS Direct File program by signing another EO to that effect on the first day he's back in the Oval Office next year. (Photo by Sean Spicer, White House Press Secretary via Twitter/Wikimedia Commons) Republicans who oppose the Internal Revenue Service’s online tax return preparation and e-filing program are hoping that it will end next month before the 2025 filing season starts. Direct File, the free online program expected to be available to qualifying taxpayers in 24 states…

If you sold more than $5,000 in products or services through apps and/or marketplaces, get ready to receive a tax form next year alerting you, and the Internal Revenue Service, of the potentially taxable income. The amount will be reported on IRS Form 1099-K. Changing 1099-K amounts: The fluid nature of the amount of earnings that trigger issuance of the reporting form has been a hassle for both taxpayers and the IRS since changes were made in the American Rescue Plan Act (ARPA) of 2021. Before ARPA’s enactment, third-party settlement organizations, or TPSOs, — think PayPal, Venmo, CashApp, eBay, Etsy,…

Gift cards make great presents for family and friends. The cards, however, cannot be used to pay taxes during the holiday season or any time. (Gift card wreath via Pinterest) Gift cards are a great last-minute gift or a present for that hard-to-shop-for person in your life. That’s why they are so popular, particularly during the holiday season. The plastic presents also are popular with crooks. They tamper with easily accessible gift cards in store displays, obtain card barcodes and other information, then put them back on the rack. When a card is purchased and activated, the criminals use it…

The Internal Revenue Service today announced grants to groups that support volunteer tax preparation and tax-filing programs. (Photo by Liza Summer) It’s December, so you’re focusing, as you should, on holiday plans. But the arrival of the last month of the year also means that the 2025 tax-filing season is almost here. Lots of taxpayers already are planning to file as early as they can. And many do so by using free and personal tax preparation and filing help two nationwide programs, Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE). Today the Internal Revenue Service announced…

Five turkeys might not technically be enough to be classified a rafter or gang or death row of turkeys — and yes, all are among the many collective nouns for a gathering of this particular fowl — but these birds represent today's fifth and final Tax Turkey to Avoid. (Photo by Chris Henry on Unsplash) Are you enjoying your Thanksgiving break? Maybe time off from work this week has you thinking about when you can leave the 9-to-5 completely. Whenever that happens, you’ll want to have enough of a nest egg to enjoy your retirement. That will be possible if you’ve been…

You have two main deduction options when you file, standard or itemizing. This gobbler duo represents that choice, which you make each year, based on which gives you the most beneficial tax result. You can make sure you make the most of your deductions by having a bunching strategy. (Photo by sterlinglanier Lanier on Unsplash) …Deductions are one way to trim you tax bill. But since the Tax Cuts and Jobs Act (TCJA) of 2017 essentially doubled the standard deduction amounts, most taxpayers claim that set amount instead of collecting receipts and itemizing. That’s the wisest tax move for most filers. But…

Tax turkeys can be costly. The ol’ blog’s Thanksgiving tradition of Tax Turkeys to Avoid looks at fowl tax fouls. The first is ignoring withholding adjustments.

The Internal Revenue Service has made good progress in stopping fraudulent filings, but there’s always room for improvement. And there are ways taxpayers can help not only the IRS, but also themselves when it comes to filing security. Most U.S. taxpayers can obtain an identity protection personal identification number, or IP PIN. An IP PIN is a special six-digit number issued by the IRS to requesting individuals who have a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN). Since only IP PIN recipients and the IRS know their number, the special code serves as a way to…

The construction sector is one of the areas in which veteran-owned companies play a major role. Veterans Day is tomorrow, Nov. 11. This solemn day is one of the few federal holidays that isn't shifted to Monday. It is always commemorated on Nov. 11 because the 11th hour of the 11th day of the 11th month in 1918 was the specific moment marking the armistice between World War I's Allied forces and Germany, ending the fighting on the Western Front. The Veterans Day date has held firm, but its focus was expanded in 1954. That year, at the urging of…

Photo by Marcus Aurelius Business success, especially in the retail sector, depends a lot on prioritizing customers and their needs. Sometimes that means making physical changes to an establishment. Uncle Sam might be able to help. The federal tax code has a couple of incentives for businesses that make structural adaptations or other accommodations for employees or customers with disabilities. One tax break is the Disabled Access Credit. As a credit, it provides a dollar-for-dollar offset of tax due. The other is a tax deduction for costs to remove mobility barriers. A deduction reduces a business’ gross income so that…

Since the Supreme Court in 2018 let states allow betting on college sports, sportsbook activity, like this in a Las Vegas casino, has pick up substantially.

The Internal Revenue Service does more that issue red cards for tax penalties. Filing mistakes, unintentional or otherwise, could mean costly penalties, some of which increase due to inflation. (Photo by BOOM 💥) The United States' tax system depends on voluntary compliance by taxpayers. But Uncle Sam is no fool. He and his tax collectors are believers of the adage "trust, but verify." The Internal Revenue Service also follows up on that verification with penalties when it finds taxpayers — and the professionals we pay to take care of our taxes — aren't fulfilling our tax responsibilities on our own.…

Photo by Brett Jordan Here’s a subject line you never want to see in your email box: There’s a problem with your tax return. But that is what’s happening to some taxpayers. No, it wasn’t from the Internal Revenue Service. Uncle Sam snail mails you a tax notice with questions about your filing. Rather, it was an email from TurboTax to its users with the subject line — CRITICAL NOTICE: Regarding your 2023 TurboTax return And here’s the message — Hi there, We’re contacting you because there might be an issue with the accuracy of your 2023 tax return. Due…

And the disasters (and tax relief) keep coming. A glacial lake outburst in the Juneau, Alaska, area in August produced flooding in the state capital, prompting a major disaster declaration and a new May 1, 2025, tax deadline. Millions of Floridians are still trying to put their lives back together after the one-two punch of deadly Hurricanes Helene and Milton. And we’re still watching Hurricane Helene’s aftermath in North Carolina, where storm damage has affected early voting in a key presidential election swing state. But there are lots of major disasters across the United States that don’t get national coverage.…

Deductions can help reduce your taxable income. And the annual inflation adjustments to these amounts, like these for 2025, can help make your annual bill even smaller.

The IRS faces an annual Tax Gap. This is the amount of tax legally owed, but which the agency is unable to collect. The Tax Gap for 2022 is projected to hit $696 billion.

  Tax season is done for most filers. We’ve made it through April’s main Tax Day, and this week’s extension filing deadline. Now it's time for some clean-up and record keeping. But before you start tossing tax documents, make sure you know which can go and which you need to keep. And for how long. The time frame for hanging on to tax-related material generally is determined by the Internal Revenue Service’s audit statute of limitations. That essentially means that you need to hang on to some of the material for as long as the IRS has to question your…