The Internal Revenue Service will start processing 2024 tax year returns on Jan. 27. Millions of people will file then, or before, getting their forms into Uncle Sam’s tax queue. But to file a complete and accurate Form 1040, you need all the information that form requests. That’s generally income statements like W-2s and 1999s. But there are many other documents that have tax-filing relevance. And most of those aren’t require by law to be sent to you until the end of January. So, most of us are just going to have to be patient for a couple more weeks.... Read more →
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 outbreak started Jan. 7, at least 24 people have died. More than 180,000 residents have been evacuated. More than 12,000 structures have been destroyed. And the winds that have spread the flames and hampered efforts to douse them continue.... Read more →
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... Read more →
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... Read more →
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... Read more →
Millions are getting ready to file federal tax returns so they can collect refunds. Crooks are among them. And things get even worse for the taxpayers whose identities were stolen and used to file false returns claiming fraudulent refunds. The average time it took the Internal Revenue Service to resolve identity theft cases and issue refunds to the affected victims in fiscal year 2024 was two years, according the National Taxpayer Advocate’s 2024 annual report to Congress, issued today. These delays impacted nearly half a million taxpayers, noted National Taxpayer Advocate (NTA) Erin M. Collins, and were even worse than... Read more →
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... Read more →
Photo by Matheus Bertelli Happy New Year! I know, we’re well past the Jan. 1 hangover phase, but it is the first full work week of 2025, so I stand by my greeting. And I up it with Happy New Tax Year! On Jan. 20, Republicans who crafted that major tax reform bill will be in control of all three branches of federal government. They plan to keep and, if reports are true, expand the TCJA. As for paying for all those tax breaks, well that's another matter. Like I said, exciting tax times ahead. But while lawmakers on Capitol... Read more →
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... Read more →
Photo by Lara Jameson Change is a constant when it comes to life. And since taxes are a big part of life, that means we deal with tax code changes, too. At the federal level, that happens automatically every year when the Internal Revenue Service makes inflation adjustments to a wide variety of existing laws. Congress also tends to get involved. That didn’t happen so much in 2024. Perhaps Capitol Hill lawmakers were saving up for this year’s coming tax battles over expiring Tax Cuts and Jobs Act individual tax provisions. Then we have state taxes. There usually are changes... Read more →
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... Read more →
Some older workers can contribute even more in catch-up contributions to their workplace retirement plans starting in 2025. (Photo by Andrea Piacquadio) Welcome to the first work day of 2025! At least it’s a short week. And some folks also are thinking about the day they no longer have to return to an office at all. The start of a new year is a good time to focus on your eventual retirement. To ensure that your post-work years are what you want, you need to start or continue saving. The Internal Revenue Code (IRC) can help, thanks to the various... Read more →
AARP While we were ringing in 2025, some new tax laws took effect when the clock officially clicked over to Jan. 1. Since I know many of you, and by you I mean me, have hangovers from eating, drinking and/or just plain staying up way past your normal bedtime last night (I'm guilty of all three!), I’m going to ease into the tax news on this first day of the brand New Year. I’m starting with a couple of reminders of tax changes announced as last year was winding down. You got it. The Internal Revenue Service's annual inflation adjustments... Read more →
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... Read more →
Saying "I do" also means saying hello to some tax changes in your new wedded life. (Photo by Jakob Owens on Unsplash) The end of each year is a good time to reflect on what happened the previous 12 months. For most of us, that includes some good events, some sad ones, and some still shaking out as we’re about to enter a brand new year. Many of these changes also could affect our taxes. So, as a bit of year-end preplanning, here are six ways that the Internal Revenue Code shows up when we encounter personal and lifestyle changes.... Read more →
Photo by Alexas Fotos 2024 is almost over, with millions making plans to celebrate the calendar changed on New Year’s Eve. But before you don your party hat and raise your glass to say goodbye to the old year and ring in 2025, you need to be aware of the tax importance of Dec. 31. Actions on the final day of a year could affect your full 2024 tax bill. Here are five that could make a difference. 1. Getting married. If you say "I do" on 12/31, then the Internal Revenue Service considers you married for the whole year.... Read more →
Life is tough for lots of people. Unfortunately, that’s true even during, or because of, the holiday season. But caring people still exist. They donate dollars and, more importantly in many cases, their time to help those in need. That’s true in the tax world, too. It’s no secret that Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) programs provide free help to many who need personal assistance, but can’t afford to pay a tax professional, to fill out and file their annual returns. Then there are those who offer similar free aid to those who... Read more →
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... Read more →
It’s the day after Christmas. That means we’ll find a handful of holiday cards in our snail mail box. And watch the neighbors stack boxes that held presents on the curb, even though our recycling and trash pickups are days away. Those boxes also are a reminder that in many parts of the world Dec. 26 is Boxing Day. It’s typically a day to keep the season of giving going a bit longer. There are many explanations as to how Boxing Day, and its name, came to be. One commonly accepted origin story is that it began in the United... Read more →