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Daily Tax Tips January 2015

Tax_tip_icon_pencil_point Here we are yet again, welcoming in a new tax year.

The good thing about the 2015 tax year and the new filing season is that most of the tax laws we're familiar with are still in place.

Sure, there are a few new tax bumps on 2014 tax returns that are due by April 15. And the tax extenders were renewed only for 2014, which is good for filing now, but not for 2015, which is not good for this year's tax planning.

But that's what the Daily Tax Tips feature is for!

Most of the tax tips in January are aimed at early filers planning to take advantage of the 2015 filing season as soon as it opens on Jan. 20.

As 2015 rolls along, the February, March and April tips will cover more complicated filing matters -- that's why many of us put off filling out those 1040s! -- along with some advice on how to save on 2015 taxes.

As most of the ol' blog's readers know, I am contributing tax editor and chief tax reporter for Bankrate.com. And as most of the ol' blog's readers also know, I'm all about working smarter, not harder, especially when it comes to taxes.

So all of this year's tips will be courtesy of Bankrate's annual tax guide.

In an effort to ease the crush of emails to readers, Bankrate has decided it will send out only a weekly tax newsletter this year. That once-a-week mailing will include the previous week's daily tips.

But if you want to see a new tax tip Monday through Friday, you're in luck! You can find them featured in the upper right corner of the ol' blog.

Weekday tips only: There is one tax tip change on the ol' blog this tax season. In addition to being lazy a more-efficient tax journalist/blogger, I also made one New Year's resolution for 2015: to better balance personal and work, that is, tax, life.

So I've resolved to spend more time this year (and beyond) with the hubby, especially on weekends. That means no special Saturday and Sunday tax tips this year.

Sorry, super tax geeks. But consider my end-of-week tax tip break as an opportunity to put the previous daily tips into practice.

Special monthly tax tip pages: What is staying the same is that you'll be able to find all of the 2014 daily tips on special blog pages for each month. That way if you miss a tax tip on the day it's featured on the ol' blog's home page or simply want a refresher, bookmark this page and come back at your leisure to check out the January list o' tax tips.

You'll also find at the end of the completed January tips list links to the tax tips for February, March and April 2015 as those months arrive.

That's all the housekeeping I have. It's off to the January 2015 Daily Tax Tips list!

  1. 10 top tax issues that matter in 2015 -- You're focusing on filing 2014 taxes right now, but you also should check out these 10 tax issues that could affect your 2015 taxes. (Jan. 6, 2015)
  2. What's your tax IQ? -- Before you tackle your 1040, find out how much you know about filing taxes with these 10 multiple choice tax quiz questions. (Jan. 7, 2015)
  3. 7 ways to get organized for the tax year -- Tax filing can be less frustrating and less time-consuming when you're ready for the task. (Jan. 8, 2015)
  4. Income tax brackets, 2014 and 2015 -- The same seven tax rates still apply, but the taxable income that falls into each in 2015 is adjusted for inflation. Remember, 2014's tax brackets apply to your return that is due this April 15. The 2015 information is for this year's tax planning. (Jan. 9, 2015)
  5. Tax-filing requirements -- Do you have to file a tax return? Probably. Most of us do. But some folks escape this annual task. Here are the rules that release them from the Internal Revenue Service's grip. (Jan. 12, 2015)
  6. 2014 standard deduction amounts -- Most taxpayers claim the standard deduction. Here are the inflation adjusted amounts for 2014 tax returns. (Jan. 13, 2015)
  7. The skinny on paying estimated taxes -- Your final 2014 estimated tax payment is due Jan. 15. Miss it and you could end up owing more in late- and underpayment penalties and interest charges. (Jan. 14, 2015)
  8. Picking the perfect tax preparer -- Most taxpayers nowadays rely on professional tax help to complete and file their annual returns. Here's a look at your tax pro choices and how to pick the one that is perfect for your tax needs. (Jan. 15, 2015)
  9. Potential Obamacare tax credit problems -- The good news is that millions of people now have health insurance. The bad news is that the Affordable Care Act advance premium tax credit, the government subsidy they got to help them buy coverage, could cause trouble at tax-filing time. (Jan. 16, 2015)
  10. What's your filing status? -- It may sound like a simple question, but the correct answer could make a difference in your tax bill. (Jan. 19, 2015)
  11. Tax return filing starts Jan. 20 -- Ready to file your 2014 tax return? The Internal Revenue Service is ready to take it, either electronically or on paper. Free File got a head start, opening on Jan. 16. And don't forget about your state taxes! (Jan. 20, 2015)
  12. Your many e-filing options -- The Internal Revenue Service received almost 126 million e-filed returns last year. If you want to add to that ever-increasing number, you have lots of options. There's Free File for eligible taxpayers, and its free fillable forms for those who make too much (more than $60,000) to use the IRS/tax software partnership option. You can load tax software onto your own computer or use the companies' online filing programs. Or you can hire a tax professional who will e-file your return for you. (Jan. 21, 2015)
  13. 6 tax filing tips for new taxpayers -- Filing a 1040 for the first time? Don't panic. Simply being organized, picking the best way to file and checking out possible tax breaks are just a few of the ways to successfully submit your first 1040. Check out all the tips to help make your initial filing experience painless and less costly. (Jan. 22, 2015)
  14. Tax refund loan alternatives -- The Internal Revenue Service is warning that tax refunds might be delayed. But don't let that possibility lead you to take out a costly refund anticipation loan (RAL). You have other options and your tax patience could really pay off. (Jan. 23, 2015)
  15. Your three tax return choices -- Picking the proper 1040 to file doesn't seem like a big deal. After all, there are only three tax return options, the 1040, 1040A or 1040EZ. But choose carefully. Your pick could save, or cost, you money. (Jan. 26, 2015)
  16. Tax documents are on the way -- Before you can file your tax return, you need some basic information. Most of it the necessary filing data comes to you via a variety of tax forms that should arrive soon. So keep an eye on your snail and email boxes. (Jan. 27, 2015)
  17. Winning bets are taxable income -- Whether you placed a sizable bet with a Las Vegas sports book or simply dropped a few bucks into the office Super Bowl pool, if your team comes out on top in the NFL championship game, you'll owe Uncle Sam taxes on your winnings. (Jan. 28, 2015)
  18. No 1099s? No problem -- Non-wage income, such as investment earnings or independent contractor work, is typically reported on a 1099 form. You need these documents to file, but as long as you know the amounts of taxable income they contain, you can make do without 1099s. (Jan. 29, 2015)
  19. What to do if you don't get a W-2 -- If you have a wage-paying job, you can't file your tax return without your W-2. So what do you do if your employer doesn't get you your annual wage statement? It's not ideal, but you can work around this missing tax document. (Jan. 30, 2015)

And January is a wrap. But don't despair. February's tax tips are now live!

February 2015 Daily Tax Tips

March 2015 Daily Tax Tips

April 2015 Daily Tax Tips

Can't get enough tax tips? Check out the rest of the news and advice at Bankrate's Tax Guide, as well as Don't Mess With Taxes' ever-growing collection of year-round tax tips and money moves.

Today's Tax Tip

  • Tax software enhances sign-on security — When you log on to your tax software this filing season, expect it to take a tad longer. Many tax software programs now are requiring multifactor authentication. (Jan. 16, 2021)

  • Tax Tip; click pencil for all tax tip links

  • The 2021 Tax Tips offer ways to file your annual return, along with post-filing advice, important tax news and, of course, ways to cut your current tax year bill. You'll find the monthly assemblages on their own respective pages: January, February, March, April, May, June, July, August, September, October, November and December. While we're waiting for the 2021 calendar pages to flip and fill up with timely tax tidbits, check out 2020 (and earlier) tax years' advice.

COVID-19 & Taxes

  • COVID-19
    Coronavirus has wreaked havoc
    on the 2020 tax season.
    These three Coronavirus (COVID-19) and Taxes pages have details:
    March-July 2020,
    August-December 2020, and
    January-… 2021

All About Kay

  • OK, some about Kay
    Open sign
    Kay Bell — Native Texan (the blog title totally makes sense now, right?). Professional journalist. Tax geek.

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  • Tax Season 2021 is here!
    Happy New Tax Year! Are you ready to file your 2020 tax return? Me neither. With all the delays last year due to COVID-19, it seems like that prior tax season just finished. But time and taxes wait for no taxpayer. The Internal Revenue Service, which started 2021 by delivering more coronavirus economic relief payments, says it will be ready for our returns. So let's get prepared, too. The monthly tips and reminders a little further down this column should help us focus on our taxes and make the filing of them by go more smoothly. Also keep an eye on the countdown clock just below. It will help us keep track of how much time we have until Tax Day on April 15, just in case some of us want to put things off until the final hours. .
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.


Time for Tax Tasks


  • monthly tax moves

  • Oh, 2021. I cannot tell you how happy we are to see you. You will be better than 2020, right? Right?!?

    via GIPHY

    And just so there's no confusion, that's a question New Year 2021, not a challenge. So don't you dare try to outdo the just-past Year of COVID-19 and its many, many complications, including in the tax world.

    Jan. 1: While there's some good news with vaccines going out to fight the coronavirus pandemic, we'll still be dealing with it for a while. The Internal Revenue Service is delivering the second round of relief payments and the commissioner promises that the agency will start the 2021 filing season as usual later this month. I hope that's correct, but we shall see.

    Jan. 4: If your job made it through the tough last year, good for you and your company and welcome to the New Year's first work week. It's the perfect time to refine your payroll withholding. This is particularly applicable true for federal employees, including members of the military and even IRS personnel, whose withholding was suspended that last few months of 2020. That money must be paid to Uncle Sam, but a new late-year law says the repayment isn't due until the end of 2021. Adjustment withholding now will give you 52 weeks to spread it across, making the per-paycheck bite less painful.

    Jan. 7: The IRS' online withholding assistant or your tax pro can help you with your withholding amount and other tax numbers, but it's also a good idea going into a New Year to have an idea of your tax bracket and income tax rate. The rates tend to hold steady (until Congress starts fiddling!), but the brackets are adjusted annually for inflation. You can check out the 2021 income brackets (and 2020's for comparison) in the first post in the ol' blog's annual inflation series. At the end of that item, you'll find a directly to the other nine inflation items.

    Jan. 11: Continuing coronavirus precautions mean some restaurants are still closed for in-house dining. Other eateries are managing with take-out meals and deliveries. Whether you're able to enjoy table service in or getting food brought to your house, remember to tip your server or delivery person.

    restaurant check tip iStock
    If a tip isn't included in your food delivery charge, click the image above to calculate how much to tip the person who brought it to you.

    As for servers who are still on the job, remember that your tips are taxable income. If you at least $20 in job-related gratuities last December, you need to account for them today by using Form 4070 to report your tips today to your employer.

    Jan. 13: Did some of those tips come from a side hustle? That's just one of the tax matters to think about when you are part of the gig economy. In these freelance or contractor situations, you'll need to pay estimated taxes.

    Jan. 15: The final estimated tax payment for the prior year, 2020 in this case, is due today. The other three payments are for earnings in 2021 that aren't subject to withholding and are due on April 15, June 15 and Sept. 15. And be sure to account for your self-employment tax in figuring your estimated amounts.

    Jan. 18: Many people spend
    Martin Luther King Jr. Day each year as a day of service.

     MLK Day 2020 logo
    Click image to find out ways
    you can volunteer on MLK Day.

    Taking time on Dr. King's holiday to volunteer at a charity isn't tax deductible, but some costs associated with volunteering could help reduce your tax bill if you itemize. Most filers, however, claim the standard deduction and a new tax law gives them a tax break, too. On your 2020 return, you can claim up to $300 in donations directly on your Form 1040. In 2021, the $300 amount remains, but is doubled for couples who file jointly.

    Jan. 21: If the IRS meets its usual timetable, the annual tax-filing season will start soon. If you can get your tax material together, then there are several good reasons to file your return early.

    Jan. 25: Millions of filers find electronic tax options are great ways to get returns to the IRS as soon as possible. The tax agency agrees. In fact, for almost two decades, the IRS has partnered with the Free File Alliance to offer eligible taxpayers access to online tax software and e-filing through the aptly named Free File site at IRS.gov.

    IRS Free File; click image for details

    Free File companies started preparing returns for eligible filers on Jan. 15. This filing season, that's taxpayers with adjusted gross income of $72,000 or less, regardless of filing status. While the nine participating tax software companies will help you complete your 2020 return starting in mid-January, they will hold the returns for actual filing until the IRS officially starts accepting the 1040s on Feb. 12.

    Jan. 29: Of course, regardless of how you file your taxes, you can't do so until you all the necessary documents, such as W-2 and 1099 forms. Employers have until the end of the month (or Feb. 1 this year since Jan. 31 falls on Sunday) to get the to you, so be on the lookout for all the documents you need to file.

    Small Business Tax Calendar: Important filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS' online calendar page and view the full year's important business and individual tax dates in IRS Pub. 509.

State Tax Help

  • Don't forget your state taxes!
    Forty-three states and D.C. collect personal income taxes. But even if you live in of the seven states without an income levy, you still face other state (and local) taxes.

    State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.

Tax Forms

  • Tax Forms
    Thanks to our increased use of tax preparers and computer software, many of us don't see our tax forms until we sign and file them. But knowing what's on these documents, either in paper or digital form, and why the IRS wants it is key to understanding our tax system. And knowledge definitely is power, especially when it comes to tax savings. Find this valuable information in the ol' blog's special Tax Forms Fiesta! page.

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Mapping Your Tax Route

  • Do you get lost doing your taxes? Check out the Taxpayer Advocate Service's Taxpayer Roadmap.

    Taxpayer Advocate Taxpayer Maps 2019

    This publication, designed along the lines of a subway map, shows the many routes and detours of a taxpayer's journey through our elaborate Internal Revenue Code and the Internal Revenue Service's enforcement of our tax collection system.

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  • You can read more
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  • Kay Bell helps you build
    a solid tax foundation in
    "Personal Finance: An Encyclopedia
    of Modern Money Management"




    Kay Bell breaks down taxes and
    estate planning for millennials in
    "Future Millionaires' Guidebook"



    A collection of Kay Bell stories
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    of What You Win"




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I gotta tell ya ...

  • AKA Disclaimer:
    I am a professional journalist who has been covering tax issues since 1999.
    I am not a professional tax preparer.
    The content on Don't Mess With Taxes is my personal opinion based on my study and understanding of tax laws, policies and regulations. It is provided for your private, noncommercial, educational and informational purposes only. It is not a recommendation of any specific tax action(s) you should or should not take. Similarly, mentions of products or services are not endorsements. In other words, my ramblings on the ol' blog are free advice and you know what they say about getting what you pay for. That's why when it comes to filing your taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent or other qualified tax preparer who is familiar with your individual tax circumstances.

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