Tax Tip Feed

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 →


Based on Internal Revenue Service tax return filing data, it looks like around 7 million Americans have yet to submit their 2016 forms. They need to get busy. (Yes, I get to say they, not we, this year since I filed my 1040 this summer.) The absolute, final due date is less than a week away. The six-month filing extension typically kicks the extended deadline to Oct. 15. But since that's on a Sunday this year, the IRS is giving extreme procrastinators until Monday, Oct. 16. So that you don't waste any of these last few days you have to... Read more →


October marks the start for many companies of open season for employees' workplace benefits, many of which provide workers some nice tax savings. It's also a good month to make other tax-related moves. It's time to turn our attention to health care again. This time, though, it's not medical insurance via the Affordable Care Act/Obamacare. Instead, October marks the beginning of open enrollment season for workplace-provided benefits at companies across the country. Decide now for next year: Open enrollment periods vary from company to company. Most run from two to four weeks for workers to evaluate their current benefits and... Read more →


If compassion fatigue hadn't set in after the back-to-back-to-back hurricanes that roared across the Atlantic, laying waste to much of Texas, Florida, Georgia and many Caribbean islands, it probably did when Mexico got rocked within two weeks by two massive and deadly earthquakes. A group of American tourists were literally rocked when their Sept. 19 Mexico boat ride was interrupted by a 7.1 magnitude earthquake. Click image to watch full YouTube video. Many of the small tropical islands were particularly hard hit by Hurricanes Irma and then Maria. Both were major hurricanes. Both covered wide areas. The mass of the... Read more →


Records, tax and financial, are often among the property damaged or destroyed in a natural disaster. If you're lucky, you might be able, like this woman, to salvage some of the documents. If not, you'll need to recreate them to take advantage of tax-related storm relief. (Image courtesy Louisiana Law Blog) Maybe you didn't think the hurricane's flood waters would reach your neighborhood. Or maybe you just never kept copies, either paper or digital, of your financial and tax records. Now, however, you find you're among the millions dealing with Hurricane Harvey aftermath that destroyed much of the Texas Gulf... Read more →


I don’t know about you, but I am glad to see August gone! It was a horrible, awful, no-good month for too many of my fellow Texans. We're counting on you, September, with your promise of cooler temperatures and return of routines, like the kiddos' going back to class, to get us to a better place. Among the things to think about as fall nears is, of course, taxes. Here are four quick tax tasks to consider this month. File your 2016 taxes: For the first time in years, I'm heading into fall with my prior year return already in... Read more →


People are still being rescued in flooded Houston, so very few — even those who made it through Hurricane Harvey relatively unscathed — are thinking about taxes right now. But when they do begin to face rebuilding their post-storm lives, one of the things they'll have to deal with is taxes. A Texas National Guard soldier rescues a woman from her Hurricane Harvey flooded Houston neighborhood. (Photo by 1Lt. Zachary West, 100th MPAD, via Flickr Creative Commons) The Internal Revenue Service has some good news for folks in Houston and its flooded surroundings, as well as those in other areas... Read more →


All U.S. workers know, simply from looking at their pay stubs, that our tax system is pay-as-you-earn. Our taxes come out of our paychecks as withholding, both for federal income taxes, as well as to cover future Social Security and Medicare benefits. We don't have control over those taxes we pay now for federal retirement and hospital coverage when we're older. But we can — and should — adjust our income tax withholding if there are changes in our lives, such as marriage or a family addition or home purchase that can affect a tax bill, or we're getting a... Read more →


The continental United States will be a little dimmer today as the solar eclipse moves across the lower 48. Some folks, however, focus on the sun every day. They have solar energy systems. If you’re interest in joining their sun worshiping ranks, the tax code can help. The federal solar tax credit, officially known as the solar investment tax credit (ITC), allows you to claim on your federal taxes 30 percent of the cost of a solar energy system. Good, it’s a tax credit. This means you get a dollar-for-dollar reduction of any tax you owe. Even better, installation costs... Read more →


Before you can write off your business expenses, you must show that you were indeed trying to turn a profit. That basic business tax tenet was confirmed by a recent U.S. Tax Court decision. In a summary opinion, Special Trial Judge Daniel A. Guy, Jr., sustained the Internal Revenue Service’s accuracy-related penalty against Eric Zudak based on tax that was reduced by incorrect business expenses claims. The judge held that Zudak wasn’t entitled to a deduction for expenses he paid for his film festival activity because he didn’t conduct the activity in a businesslike manner or engage in the activity... Read more →


Does the surging stock market mean it's time to take capital gains? Tax reform could complicate the decision. The U.S. stock market passed another notable boundary today, moving above the 22,000 mark. It didn’t stay there long, bouncing around a bit before, yes, finally closing at 22,031. Today's activity got investors wondering whether such flirting will turn into more than a one-day stand. A more solid investment gains relationship, perhaps. Or will it dip under 22,000 and eventually, as investment bears warn, tumble much lower? Those questions have investors pondering their options. Do they take earnings now at historic highs... Read more →


August's Dog Days of Summer are a great time to make some hot tax moves — from energy-related tax breaks to tax holidays to tax help for education costs — that could produce cool tax savings. Hello August. I’m not going to say welcome because, well, you’re typically not a good guest. August is one of the worst weather months of the year, at least when it comes to basic comfort. It’s hot. In many places it’s humid. And the thrill of summer’s arrival back in late May has worn thin. That’s why so many people take time in August... Read more →


If you've been paying attention to Donald Trump Jr.'s meeting with some Russians last summer, you know the White House has given two reasons for the get-together. The explanation that caught my tax eye was that the group talked about adoptions. The president's oldest son said that one of the Russian nationals came to Trump Tower to lobby for reversal of the Magnitsky Act. The law gets its name from attorney Sergei Magnitsky, who died in 2009 while being held in a Moscow prison. Foreign fight, domestic family effects: In 2012, the U.S. law bearing Magnitsky's name was enacted. It... Read more →


Regardless of which month you marry, there are and will be tax matters to consider. Relaxing after the ceremony. (Photo by Barney Moss via Flickr) Ever wonder why June is "the" wedding month? Me, too. So I looked it up. The Old Farmer's Almanac, which I never realized was a go-to wedding planning resource, says that June is the most popular month to marry thanks to some ancient traditions. The Roman goddess Juno, for whom the sixth month was named, was the protector of women in all aspects of life, but especially in marriage and childbearing. So, says the Almanac,... Read more →


Moving's a hassle for everyone, but in some cases the relocation costs are tax deductible. Donald J. Trump's family was finally reunited this weekend as his wife, Melania, and their 11-year-old son Barron moved into the White House. There were no moving vans spotted outside 1600 Pennsylvania Avenue to let the world know of the relocation. Rather, the word came, of course, via Twitter. This time, though it was the First Lady, not @realDonaldTrump, who let social media and the world know that the family had officially moved from Trump Tower in Manhattan to Washington, D.C. Melania used her official... Read more →


June is here! Summer. Beaches. Holidays. Weddings. Tax breaks. That's not a non sequitur or the fevered delusions of tax geek. As schools close their doors for a few months and families head out on much-needed vacations, it really is the perfect month to look at some traditional June events and their related tax moves. 1. Batten down the hatches: OK, that's a nautical phrase, but when summer rolls around, landlubbers along the Atlantic and Gulf of Mexico coasts take it to heart. They don't need a calendar to tell them that the annual hurricane season starts June 1. They... Read more →


When Donald J. Trump gets back from his first trip abroad as president, he's going to come home to something all homeowners dread. There's a problem at the house. OK, with Trump we have to ask which house? While there's plenty going on and going wrong in Washington, D.C., right now, I'm talking about the abode 45 calls the Winter White House, otherwise known as Mar-a-Lago. One of the views of Ma-a-Lago showcased on the private club's website. A sinkhole opened up this week in the street outside his landmark Palm Beach, Florida mansion. Traffic alert first: The news of... Read more →


Regardless of your thoughts, political or otherwise, when it comes to L'affaire Comey, most of us can relate to the recently fired FBI director. Like James Comey, we've at some point been out of job, either by our choice or because we, too, were let go. If that happens to you, here are five steps to take. And, of course, there are tax implications for each of the post-job moves. 1. File for unemployment. If you lose your job through no fault of your own, for example, a corporate downsizing, you should be eligible for unemployment. Depending on the circumstances,... Read more →


I'm a big fan of teachers, not just because my grandmother and one of my aunts were teachers, but because I had great instructors from elementary through college. So celebrating National Teacher Day is the least I can do. That and remind teachers and others who help educate us that there's a tax break specifically for them. Tax reward for teachers: Most teachers go beyond lesson plans and working weekends to get ready to make the learning experience one that resonates. In fact, a lot of teachers spend their own money to help make their classroom presentations effective. In recognition... Read more →