The outcome of November’s elections could determine the fate of the Tax Cuts and Jobs Act bill. Key provisions of that Republican tax code overhaul are set to expire Dec. 31, 2025. Potentially expiring tax laws include the individual income tax rates, estate taxes, the cap on deducting state and local taxes (SALT), the section 199A deduction for passthrough income, and bonus depreciation. In anticipation of the impeding end of some popular tax provisions (and what that might mean to voters this year), Ways and Means Committee Chairman Jason Smith (R-Missouri) and Tax Subcommittee Chairman Mike (R-Pennsylvania) set up teams... Read more →
Extenders
Members of the House and Senate tax-writing committees who approved bipartisan legislation last week hope the eventual outcome of their effort will be as sunny as this view of the U.S. Capitol during warmer times. (Photo: Wikipedia) Congress actually accomplished something last week. Representatives and Senators kicked the can down the legislative road agreed to measures that eliminated the immediate threat of a government shutdown. Even more surprising was another bipartisan deal. While the stop-gap government deal was being brokered, the Democratic Senate Finance Committee chair and his Republican counterpart leading the House Ways and Means Committee signed off on... Read more →
The tax year is over. Long live the tax year. Taxes are, if nothing else, persistent. Sure, there are a few (or more) changes every year, even if it's only inflation adjustments. But even in years when the changes are negligible, they are back, starting to add up on the first of every January. That's why 2023 is the first By the Numbers honoree of this new year. The transition from an old to a new tax year is also the focus of this post. It's a look at six tax matters that affected or at least fascinated us in... Read more →
Since the Tax Cuts and Jobs Act (TCJA) of 2017 nearly doubled the standard deduction amounts, even more people have chosen to use that filing method. IRS data indicate that close to 90 percent of us have opted not to mess with itemizing. But dumping the Schedule A doesn't mean you give up all deductions. On tax year 2021 returns, you can claim some of your cash charitable deductions directly on Form 1040. And if you take a look at Schedule 1, one of the documents that the Internal Revenue Service created to accompany Form 1040 when the TCJA took... Read more →
Even before 2017's Tax Cuts and Jobs Act (TCJA) greatly increased the standard deduction amounts, most people chose to use the standard deduction amount. But one thing that the latest tax reform law didn't change is the ability for many to get some added deductions without itemizing. These used to be called, at least by the tax community, above-the-line deductions. They got that moniker because pre-TCJA they appeared in the last section of the old long Form 1040, just above the last line of that form's first page where your adjusted gross income (AGI) was entered. (A handful also were... Read more →
Even though we definitely are more than ready for 2020 to end, the celebration of its official departure in a few hours — that's for us here in the United States; Happy New 2021 to all y'all on the other side of the International Date Line — likely will be subdued. Thanks, no thanks, COVID-19. May you, too, be gone soon in the coming 12 months. But even if the ringing in the New Year will be in smaller, pandemic-precautioned pods, some adult beverages will be raised as the clock strikes midnight. And among those celebrating the most will be... Read more →
UPDATE, Dec. 29, 2020, 4:20 p.m. CST: Good news for those who saw their unemployment benefits lapse by the delayed signing of the second COVID relief bill. The Department of Labor say they will get the full 11 weeks of benefits, although most will have to wait a few weeks for state agencies to reprogram the package's provisions into their computers. To reflect this decision, the original headline "Millions out of luck and money as federal unemployment assistance ends" was changed. UPDATE, Dec. 27, 2020, 7:34 p.m. CST: The presidential COVID bill holdout is over. Donald J. Trump tonight signed... Read more →
Depending on your personal situation, your deadline to claim any or additional coronavirus stimulus money is Sept. 30 or Oct. 15. Miss the deadline, and you'll have to wait until next year for much-needed COVID-19 cash. Since it's still unclear if or when we might get another COVID-19 relief payment, it's even more important that every person who's eligible get all they can from the first stimulus payout. And to do that, a lot of folks need to officially touch base with the Internal Revenue Service. Soon. Like in a couple of days for some families. Wednesday, Sept. 30, is... Read more →
The Family Handyman Millions of Americans are at home now, sheltering in place in order to slow down spread of the coronavirus. One of the side effects of spending more than normal time in your house is that you discover issues. And one of those issues might be, depending on where you live, that your heating or air conditioning system is not in the greatest shape. Maybe you need a completely new unit. I feel your pain. We've had to replace AC systems and it sucks, from both the cost and inconvenience perspectives. Or perhaps you can get by with... Read more →
Happy Pi Day 2014. March 14 is the annual celebration of pi, usually indicated by the Greek letter π, since the 3/14 calendar format is a close representation of pi's first three digits. What exactly is pi? Naturally, I went to the internet to find out, so math experts please cut me a slice of slack here. The consensus is that pi is a number that originally was defined as the ratio of a circle's circumference to its diameter. It's a mathematical constant, meaning it isn't changed by the size of the numbers it is used to equate. It's also... Read more →
To make sure you, not the U.S. Treasury, gets more of these, don't overlook possible tax deductions and credits. At tax time, filers are always searching for ways to reduce their final tax bill. You can claim deductions, either by itemizing if that gives you more than your standard deduction amount or by claiming some income adjustments, still referred to (by me, at least!) as above-the-line deductions that reduce the amount of income that's taxed. There also are tax credits, which are even better because the directly reduce what you owe Uncle Sam dollar-for-dollar and in some cases could produce... Read more →
Newark On Reddit via Twitter The Academy Awards is tonight and although I'm a big film fan, I'll probably skip it. The early awards shows have already spoiled it for me. Sorry, ABC. If Antonio Banderas somehow takes the Oscars statuette from Joaquin Phoenix, which is what I'd love to see, then I'll catch the replay on YouTube tomorrow. Some folks in New Jersey, however, will be closely watching this year's ceremony and pulling for the "Joker" actor. The street where Phoenix's disturbed Arthur Fleck character gets jumped early in the movie is in Newark. Tax breaks, of course, played... Read more →
Even before the Tax Cuts and Jobs Act (TCJA) greatly increased the standard deduction amounts, most people opted to claim the standard deduction amount. But one thing that the latest tax reform law didn't change is the ability for many to get some added deductions without itemizing. These used to be called, at least by the tax community, above-the-line deductions because. They got that moniker because pre-TCJA they appeared in the last section of the old long Form 1040, just above the last line of that form's first page where your adjusted gross income (AGI) was entered. (A handful also... Read more →
Yes, that's a photo of my filing season mess, er, process, which explains why I never seem to be able to submit our joint Form 1040 early in the filing season. Getting your tax stuff together is just one of the reasons to not file early. The Internal Revenue Service will start accepting 2019 tax year returns next Monday, Jan. 27. A lot of folks already have filled out their 1040s and put them in the queue for IRS processing next week. Good for them. Their annual tax task is done. But there also are some reasons why you might... Read more →
The individual tax filing season doesn't officially open until Jan. 27, but you're ready to file your taxes. Or are you? Tax filing, whether you do it yourself via tax software that you buy, use online or access via Free File or hand off the annual task to a tax pro, requires its own specific preparation. You've got to have all your tax-related documentation before you can start filling out that Form 1040. Here's a checklist of forms and documents you'll need to complete your taxes, as well as a look at tax situations you need to consider before filing.... Read more →
Click image for a large, clearer view. Ready to do your 2019 taxes? The Internal Revenue Service says it will be on Jan. 7. Yep, that's tomorrow. But whoa up there, cowpokes. This starting date is just for IRS acceptance of business returns. On the Modernized e-File (MeF) Operational Status page noting the Jan. 7 starting date for business returns, the IRS also says, "Individual tax returns will begin at a date to be determined in early 2020." Still, it's a good sign that Uncle Sam's tax collector is looking at any return processing date in early January. Business returns... Read more →
Owning a home has long been a symbol of the American dream. For some, however, homeownership turns into a nightmare. Those horrid homeowner dreams became evident in the Great Recession. In the late 1990s through the mid-2000s, artificially high home prices, questionable lending practices and an explosion of subprime mortgages to buyers who under regular lending standards would not have been given a home loan, created a housing bubble. It finally burst in 2007, leaving many homeowners broke as the loans on their properties suddenly were many thousands more than their homes were worth. Many went into foreclosure or walked... Read more →
The countdown is on! In a few hours, 2019 will be outta here and we'll be celebrating a brand spanking New Year. But if you want to celebrate a less costly tax bill when you file your 2019 return in 2020, you've got to make some year-end moves now. Here's a collection of my latest posts on tax tasks with a Dec. 31 deadline. 10 year-end tax moves to make now — My first nag list of end of 2019 tax moves from Nov. 4 10 December tax presents for you instead of the IRS — Another nag reminder on... Read more →
Some of the Christmas cookies the hubby and I make and decorate. Yes, we over-bake. And yes, we slather on the sugary icing and decorations because the mainly sugar and butter cookies themselves are not fattening enough. Gotta keep Santa (and friends, family and ourselves) happy! Was Santa apparently full by the time he got to your house, leaving you with some extra Christmas cookies? No worries, even if you're low on milk … or are lactose intolerant. All the adults in your household can loosen their belts and finish off those goodies with a brew or two. Sugar and... Read more →
Congress played Santa this week, averting a government shutdown and approving a wide variety of anticipated tax breaks. Merry Christmas U.S. taxpayers. H.R. 1865, the Further Consolidated Appropriations Act, 2020, is now law. In a surprise move earlier this month, House and Senate negotiators cobbled together a massive bill that not only, as the name indicates, assures that the federal government stays open, but which also included some long-awaited (at least by those who will benefit) expired tax provisions. In addition, lawmakers corrected — and by corrected, I mean repealed — some obvious — and by obvious, I mean universally... Read more →