Hurricane Irma recovery work continues in Marathon Key, Florida, on Oct. 30 where storm debris is burned. Louisiana and South Carolina also were hit hard by this season's deadly hurricanes and some residents in those states are now getting tax relief, too. (Photo by Bill Koplitz/FEMA) The worst of the 2017 hurricane system began its assault on the United States on Aug. 25 when Hurricane Harvey made landfall on the Texas Gulf Coast as a category 4 storm. In rapid succession, the United States and it Caribbean territories also were pummeled in September by category 4 Hurricanes Irma and Maria.... Read more →


It's an exciting day in political and financial circles, what with the unsealing of the first indictments in Special Counsel Robert Mueller's probe into possible Russian involvement in and influence of the 2016 presidential election. Tax geeks also are basking in part of the buzz since the official charges include some tax matters. Among the things that Paul J. Manafort Jr., former manager of Donald J. Trump's campaign, is accused of, per the indictment, is hiding his "overseas wealth to enjoy a lavish lifestyle in the United States, without paying taxes on that income." Manafort also is alleged to used... Read more →


After four and a half years, the Internal Revenue Service Tea Party targeting scandal has been resolved. On Thursday, Oct. 26, the Justice Department announced that it has entered into proposed settlements with the two major challenges by conservative groups against the IRS. Substantial payments to plaintiffs: While the Justice Department did not discuss deal specifics, the Wall Street Journal reported that the payouts to plaintiffs in the Linchpins of Liberty and Norcal Tea Party Patriots cases could be between $1 million and $10 million. The conservative groups who joined the lawsuits had alleged in 2013 that their applications for... Read more →


Picking up some extra cash is nothing new. People have always taken on added work when they've needed or wanted a few more dollars. Now, however, side hustles have become a viable employment option. They've also become a problem for the Internal Revenue Service. Growing gigs: The head of Intuit, the maker of TurboTax tax preparation software, noted earlier this year that more than a third of the U.S. workforce participates in the gig economy and it's growing. "We think self-employed [work] has a lot of opportunity for growth as we look ahead," said Intuit CEO Brad Smith said back... Read more →


Welcome to Part 7 of the ol' blog's series on 2018 inflation adjustments. Today we look at changes to the Alternative Minimum Tax exemption amounts and next year's Social Security wage base. You can find links to all 2018 inflation posts in the first item: Income Tax Brackets and Rates. Note: The 2018 figures apply to 2018 tax returns that are due in 2019. For comparison purposes, you'll also find 2017 amounts to be used in filing 2017 tax returns due next April. When you're hit by the AMT, or Alternative Minimum Tax, you might be tempted to rearrange the... Read more →


Welcome to Part 6 of the ol' blog's series on 2018 inflation adjustments. Today we look at changes to estate, gift and kiddie taxes. You can find links to all 2018 inflation posts in the first item: Income Tax Brackets and Rates. Note: The 2018 figures apply to 2018 tax returns that are due in 2019. For comparison purposes, you'll also find 2017 amounts to be used in filing 2017 tax returns due next April. Real wealthy families like the fictional filthy rich Darlings of ABC's "Dirty Sexy Money" welcome the latest estate tax inflation adjustments. (Cast photo courtesy ABC... Read more →


Welcome to Part 5 of the ol' blog's series on 2018 inflation adjustments. Today we look at changes to some medical tax provisions. You can find links to all 2018 inflation posts in the first item: Income Tax Brackets and Rates. Note: The 2018 figures apply to 2018 tax returns that are due in 2019. For comparison purposes, you'll also find 2017 amounts to be used in filing 2017 tax returns due next April. Lucille Ball in "I Love Lucy" via Giphy.com The only thing worse than being sick is having to pay for medical treatment. One remedy that could... Read more →


Welcome to Part 4 of the ol' blog's series on 2018 inflation adjustments. Today we look at changes to some popular credits and deductions. You can find links to all 2018 inflation posts in the first item: Income Tax Brackets and Rates. Note: The 2018 figures apply to 2018 returns that are due in 2019. For comparison purposes, you'll also find 2017 amounts to be used in filing 2017 returns due next April. Millions of taxpayers depend each year on tax deductions and tax credits to cut their annual tax bills. The main tax reduction strategy is claiming the standard... Read more →


Where the heck has 2017 gone? The countdown clock over in the ol' blog's right column is steadily ticking away the time left until Dec. 31, the deadline for most moves that could affect this year's taxes. The Internal Revenue Service, however, has its eyes on November, which is just little more than a week away. The start of that 11th month effectively is the cutoff date for the federal tax agency to get ready for the next year's filing season. If the IRS can't get some certainty as to how to update forms, instructions and operational processes, the start... Read more →


There could be some consistency in how states collect sales tax on consumers' online purchases if the Supreme Court agrees to hear a South Dakota case. Many states are ignoring the sales tax law of the land, decided in 1992 by the U.S. Supreme Court's ruling in Quill v. North Dakota. Soon another Dakota high court case, this one from South Dakota, could change the state sales tax collection law for remote sellers. On Sept. 14, the Mount Rushmore State's quest to collect sales tax from online et al retailers was rejected by that state's highest court. That's just what... Read more →


Welcome to Part 3 of the ol' blog's series on 2018 inflation adjustments. Today we look at changes next year to retirement and pension plans. You can find links to all 2018 inflation posts in the first item: Income Tax Brackets and Rates. Note: The 2018 figures apply to 2018 returns that are due in 2019. For comparison purposes, you'll also find 2017 amounts to be used in filing 2017 returns due next April. Maxing out your retirement plans, both those offered at your job and your separate IRAs, can help you build an overflowing nest egg. As Congress explores... Read more →


Welcome to Part 2 of the ol' blog's 2018 series on tax inflation adjustments. We started on Oct. 19 with a look at next year's — if there isn't tax reform or cuts by or before then — income tax brackets and rates. Today we look at standard and itemized deductions, personal exemptions and limitations on these tax situations that apply to some wealthier taxpayers. Note: The 2018 figures apply to 2018 returns that are due in 2019. For comparison purposes, you'll also find 2017 amounts to be used in filing 2017 returns due next April. Standard deduction amounts edge... Read more →


This is the first in a 10-part series on the 2018 tax year inflation adjustments. Links to the other posts are at this end of this article. The White House and Congressional Republicans are still hoping to get some tax changes finalized by the end of the year. The IRS, however, isn't waiting on Capitol Hill. The Internal Revenue Service on Thursday, Oct. 19, released its annual compilation of tax provisions that are affected by inflation. It also issued next year's retirement plan contribution changes. The upshot is that most amounts will increase in 2018. Numbers, we've got lots o'... Read more →


Image by Shawn Campbell via Flickr Creative Commons What's going on with the Affordable Care Act (ACA)? It depends on where you're looking for answers. Federal lawmakers remain in a quandary over how to deal with the ACA, or as it's known (for now) Obamacare. The Internal Revenue Service, however, made it clear this week that it plans to follow the health care law's reporting requirements as long as they are officially on the books. That's a reversal of a prior IRS position. However, given the confusion with the law, both under its namesake president and since Donald J. Trump... Read more →


To err on tax returns is human. To forgive is Xtraordinary, and yes, the misspelling is intentional. Tax law lets us correct mistakes we make on our 1040s via another form, the 1040X. Most people file 1040X, which is known as amending your return, because they discovered they didn't claim a tax break that give them a (or a bigger) tax refund. Of course, since the Internal Revenue Service is involved, there are some rules and certain steps you must follow. Here are five key things to keep in mind if you discover you need to re-do a previously filed... Read more →


It's that time of year again. Monday, Oct. 16, the absolute final tax return filing deadline. Don't panic. You've still got a few hours to fill out and submit your 2016 Form 1040. The latest Weekly Tax Tip, over there at the top of the ol' blog's right column, has 10 tax tidbits to help you through today. You also can find more tax tips in this year's previously posted Daily Tax Tips, conveniently archived on their own by-month pages: January, February, March and April. Good luck with your 2016 return today. And remember, when you're done with that (yay!),... Read more →


Cook County residents lined up last week to tell county commissioners what they thought about the board's proposed soda tax. (Photo by Hal Dardick via Twitter) Cook Cook County officials implemented a tax on sugary beverages this summer. That levy, which was designed to (1) promote healthier habits among Chicago-area residents, (2) raise more much needed money for the Illinois county or (3) both, has fizzled. On Wednesday, Oct. 11, county commissioners voted 15-2 to repeal the penny-per-ounce tax, which, like similar proposals, is usually referred to as a soda — or pop in the Midwest — tax. Collection of... Read more →


Aerial view on Oct. 9 of a damaged home in the mountainous area of Barranquitas, Puerto Rico. After Hurricane Maria, many homes, businesses, roads and bridges suffered major damages due to strong winds and heavy rain. (Photo by Andrea Booher, FEMA) To borrow from James Taylor's plaintive classic, the Internal Revenue Service has seen fire and rain and is making tax accommodations for Americans having to deal with those disastrous aftermaths. Hurricane Maria made landfall in Puerto Rico on Sept. 20, pummeling the U.S. territory with category 5 force. Three weeks later, many of the island's 3.4 million residents are... Read more →


If Halloween isn't scary enough for you, this October also has a Friday the 13th, which if you haven't looked at a calendar yet, is today. It's a terrible day if you're superstitious or suffer from paraskevidekatriaphobia. And making things even more frightening, the Internal Revenue Service has some terrifying news about tax scams. This week alone, the IRS has issued two warnings about tax-related identity theft schemes. First was the phishing attempt to hook tax pros by using the agency's e-Services as bait. Now there's a fake insurance tax form scam that's being used to access annuity and life... Read more →


AT&T Stadium, originally known as Cowboys Stadium when it opened its doors in 2009 and forever known as Jerry's World regardless of which company buys naming rights, is home to America's Team. It also hosts college football's Cotton Bowl game, as well as a variety of other sports and entertainment activities. NFL team owner Jerry Jones footed most of the billion-dollar stadium's cost, but Arlington voters approved an increase of the city's sales, hotel occupancy and car rental taxes to help pay for the facility. Arlington also provided millions in bonds to help Jones cover any cost overruns. (Photo by... Read more →