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Daily Tax Tips April 2015

Finally! April is here, bringing with it Tax Day.

Wait. Don't freak out. You still have plenty of time to finish up your 1040 (or 1040A or 1040EZ) or file Form 4868 to get six more months to finish the paperwork.Tax_tip_icon_pencil_point

Either way, if you owe Uncle Sam, you must send that amount or a close estimate of it by April 15. If you don't, you'll end up with a bigger bill thanks to the penalties and interest that will be tacked onto it.

These April 2015 Daily Tax Tips will help you finish your filing.

And if you've already wrapped up your tax tasks this filing season -- and I am sooooo jealous! -- you'll also find some tax planning moves to help you cut your 2015 tax bill.

One administrative note. While the January, February and March tax tips (links are at the end of the April list) featured a piece of tax advice each weekday of the month, April's tips list will end on the 15th.

But don't worry. Since tax concerns continue year round, we'll switch to weekly tax tips from mid-April through the end of December. 

Regardless of the tip timing, you'll find the featured tip in the upper right corner of the the ol' blog.

Now, with April 15 fast approaching, it's tax tip time!

  1. Take advantage of the retirement saver's credit -- If you contributed to a workplace or personal retirement account, check out the retirement saver's tax credit. It could provide eligible taxpayers with as much as $1,000 in tax savings. Note, too, that since it's a credit, it offers dollar-for-dollar savings on what you owe Uncle Sam. And to ensure you get the most out of all your tax-favored retirement savings accounts, check out the contribution limits for the 2014 and 2015 tax years. (April 1, 2015)
  2. 7-day tax filing plan -- Time's running out to finish your taxes, but don't panic. Here's a way to spend just an hour or so a day and finish your taxes in a week. One of those days is devoted to deductions. That includes the amount you can claim for miles driven in connection with business, medical treatments or in service to your favorite charity. The Internal Revenue Service's annual standard mileage amounts you can claim for those areas make this write-off easier.(April 2, 2015)
  3. EITC help for lower-income workers -- The Earned Income Tax Credit, or EITC, was created to help low- and moderate income employees hang onto a bit more of their wages. While folks with kids do get a bigger break, the EITC also is available to eligible child-free taxpayers. The earning limits and qualification rules are a bit complicated, but if you qualify, not only could the EITC wipe out your tax bill, but it could net you a refund. And be sure to check on whether you state offers its own EITC; 25 and Washington, D.C., do. (April 3, 2015)
  4. Tax deductions without itemizing -- If you don't itemize, don't worry. There are still plenty of tax breaks, known as above-the-line deductions, that you can claim directly on Form 1040. A few are even on the 1040A. They include such popular tax breaks as teacher out-of-pocket expenses, deductible IRA contributions, self-employment taxes and retirement plan contributions, student loan interest, and college tuition and fees. (April 6, 2015)
  5. A tax break to cover tuition and fees -- Uncle Sam offers several ways to cover college costs. A popular one is the tuition and fees deduction. It can save you up to $4,000 in school costs and there's no need to itemize. Once you have that degree in hand, check out the moving expense deduction, another above-the-line break that doesn't require Schedule A. New graduates can use this tax break when they relocate to take their first job. (April 7, 2015)
  6. Tax breaks for teachers and students -- Students and teachers share more than classrooms. They both get tax breaks directly on Form 1040 or 1040A. The student loan interest deduction allows qualifying students to subtract up to $2,500 of their education loan's interest. In that same section of the 1040 and 1040A, teachers and other school employees can get a deduction of up to $250 to cover some of the out-of-pocket money they spend on classroom projects. (April 8, 2015)
  7. More mortgage tax breaks -- Homeowners already know they can claim mortgage interest and property tax payments as itemized deductions. Some also might be able to claim a couple more home-related write-offs. Take points; these are 1 percent of your loan amount and paying them could get you a better home loan rate. Then at tax time, the points also could be tax deductible. Some homeowners also must buy private mortgage insurance, or PMI, if they can't make at least a 20 percent down payment. In some cases, the PMI payments are tax deductible, too. (April 9, 2015)
  8. Don't fly these tax audit red flags -- No one wants to be audited by the Internal Revenue Service, but there are some definite tax red flags that might tempt the agency to take a closer look at your return. They include lots of contract rather than wage income, many noncash charitable deductions, a home-based business (with, yes, a home office deduction), and large business meal and entertainment expenses. (April 10, 2015)
  9. Tax e-payment options -- More of us have abandoned paper checks. That's not a problem when it comes to paying taxes. The Internal Revenue Service offers several types of tax e-payment options. (April 13, 2015)
  10. Payment options for a big tax bill -- If you owe too much in taxes to pay in one lump sum, the Internal Revenue Service offers you some options. If your credit card has enough room, put it on plastic. Or get an installment plan from the IRS. Or give the IRS an Offer in Compromise amount. But choose one, or you'll be in bigger trouble if you simply decide your bill is too big to pay. (April 14, 2015)
  11. Tax Day! File something! -- April 15 is here. It's time to file something, either your tax return or Form 4868 to get an extension until Oct. 15 to file. Pick one or you could owe more in penalties and interest. And speaking of owing, be sure to pay anything due taxes with your extensions request. (April 15, 2015)

Check out

January 2015 Daily Tax Tips

February 2015 Daily Tax Tips

March 2015 Daily Tax Tips

Want more? 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

  • Tips for first-time filers — Welcome to the tax paying club! The only initiation rite for this large society is filling out your first Form 1040. These tips for first-time taxpayers can make the process a little less intimidating. Even if you're a tax veteran, check them out; some of the advice applies to all us filers. (Jan. 24, 2023)

  • Tax Tip; click pencil for all tax tip links

  • The 2023 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. Remember, tax tasks and tips don't stop after you file your annual return!

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 Year 2023 Countdown!

    Happy New Tax Year! Are you ready to file your 2022 tax return? Me neither. But at least this year we're getting some extra time to file and pay any tax we owe. Even better, it's not COVID-19 pandemic related. Tax Day 2023 is Tuesday, April 18. This later date is because April 15, 2023, is on Saturday, and the next business day, Monday, April 17, is Emancipation Day.
    When this Washington, D.C., holiday falls on the day our federal taxes are due, it bumps Tax Day nationwide to the next business day. So this year, we have until Tuesday, April 18, to finish our federal forms and, if we find we owe, come up with the money for Uncle Sam. The states that follow the federal tax calendar, which is most of them, also tend to abide by this date change.

    The countdown clock below should help us from missing out on making important tax-saving moves the rest of this year. Plus, the Tax Moves below the counter will list some timely tasks to take care this first month of 2023, and each of the remaining 11 when they arrive. They'll speed by quickly when you're having tax fun!
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.


Time for Tax Tasks


  • monthly tax moves


  • 🎆 Happy 🎉 New 🥂 Year! 🎆

    via GIPHY

    Hello 2023! I cannot tell you how happy I am to see you! I know, I said that about 2021 and 2022, but I really, really mean it. And I'm hoping you reciprocate, you brand spanking new year, on the personal front by letting go of COVID-19, and, on the tax side, by making this the year that taxes also get back to normal. Don't laugh. A gal can hope!

    Jan. 1: Once more for the official date — Happy New Year! One way to make things more enjoyable on the tax front is to get organized this month. Early this month. It will help you keep track of the myriad tax documents — W-2 earnings statements, 1099 forms, charitable donation receipts, year-end account statements — that will soon be on their way to your email or snail mail box. You'll need those (and more) to file your 2022 tax return as soon as the Internal Revenue Service starts accepting them.

    Jan. 3: It's the first official work day of 2023. It's also a deadline for employers, including those who are self-employed, who took advantage of the COVID relief option in 2021 to defer the employer's portion of the Social Security payroll tax; that's 6.2 percent of each worker's wages. If you didn't remit thr taxes before the end of December, today is the absolute final due date for paying the balance of those postponed tax collections.

    Jan. 6: It's Friday, the end of the first holiday-shortened work week of 2023. Even though most of us are thinking about filing our 2022 returns when the IRS opens filing season later this month, we also need to start our 2023 tax planning. Start with the inflation adjustments that apply to a variety of tax situations. You can find this year's figures in the ol' blog's 10-part tax inflation series.

    Jan. 9: Tonight, TCU's Horned Frogs and Georgia's Bulldogs face off at SoFi Stadium in Los Angeles to decide the men's college football championship. Thousands of fans are rooting for their teams. Even more people with no personal connections are betting on the game, thanks to the Supreme Court's 2018 ruling to allow states to accept sports wagers. If you're one of those bettors and your pick pays off, remember that you'll owe taxes on your winnings. The good news is that you won't have to share your luck with Uncle Sam until you file your 2023 return next year. The better news is that there are ways to reduce your taxable winnings.

    Jan. 10: Do you work as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation? I hope you got lots of financial thanks for doing your job well, but remember that those tips are taxable income.

    restaurant check tip iStock
    Whether you're dining in or, still COVID leery and getting food delivered to your home, if a tip isn't included on your restaurant or delivery bill, click the image above to calculate how much to tip the person who brought it to you.

    If you got at least $20 in gratuities in November, you must account for the tips today by using Form 4070 to report last month's tips total to your employer.

    Jan. 13: It's the first Friday the 13th of 2023. That might not worry you, but even non-superstitious folks are frightened a bit by taxes. However, on this or any other day, don't fear, or fall for, these 13 scary, but wrong, tax myths.

    Jan. 16: Every Martin Luther King Jr. Day, millions of people commit to a day of service.

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

    Taking time on the Rev. 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.

    Jan. 17: Today is the due date for the final estimated tax tax payment for the 2022 tax year. It's usually on the 15th, but that fell on Sunday. Then Monday was the federal MLK Day holiday. So the final estimated tax payment deadline was shifted to the next business day, Tuesday, Jan. 17.

    Jan. 17: This date isn't firm yet, but the IRS and its Free File Alliance partners usually offer their no-cost online tax preparation and electronic filing program Free File around the middle of January. When the special Free File website at IRS.gov is available, take advantage of it if you qualify.

    IRS Free File; click image for details

    Free File last year was open to taxpayers whose adjusted gross income was $73,000 or less, but that earnings limit should be bumped up a bit for the 2023 filing season. Whatever the amount, the income level applies to all filing statuses.

    Jan. 23: If you make too much to use Free File, and don't want to use its Free Forms option, you always can purchase your own tax prep software or high a tax pro to handle your taxes. If you looking to hire someone, get to it now. At this point, if you can find a tax preparer taking new clients, you'll be at the end of the filings list. But at least you'll be on the list.

    Jan. 27: It was this week last year that the IRS started accepting and, more importantly, processing tax year returns. If you plan to be among the earliest of filers, you need to make sure you have all the necessary information and documentation. Check out this list of the statements, documents, and forms you'll need before you start work on your return.

    Jan. 31: Wow! The first month of 2023 is over? Time really does fly when you're having tax fun. We'll keep it going here in this new year with new Tax Moves to Make each month, which you also can find on their monthly tax tips pages. January already is filling up!

    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 2023 page.

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    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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COVID-19 & Taxes

  • COVID-19
    Coronavirus has wreaked havoc
    on the 2020 and 2021 tax seasons.
    These three Coronavirus (COVID-19) and Taxes pages have details:
    March-July 2020,
    August-December 2020,
    January-December 2021, and
    January-December 2022
    You can find medical coronavirus resource links in the next section.

COVID-19 Resources

  • COVID-19
    Need help finding a coronavirus vaccine in the United States?
    Call 1-800-232-0233
    or TTY 1-888-720-7489.
    More information and resources at:
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    USA.Gov COVID Info

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Tell it to the Hill

  • DMWT Politics Posts
  • While it's easy to rail at the IRS, for the most part we can thank — or blame — our tax laws on Congress and the White House. So if you have an issue with tax legislation or want a tax bill passed, you need to let your federal legislators and the White House occupant know of your concerns. You can find out who in Washington, D.C., to contact (and how), as well as get information on your local lawmakers for matters, tax or otherwise, closer to home, at USA Gov.

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