Before gig work because the popular way to make extra money, a lot of folks relied on their hobbies. One of my neighbors, for example, loves to spend his weekends snapping photos of the many natural areas here in Central Texas. But he soon discovered that he can pocket some extra cash by aiming his camera at weddings, anniversary celebrations, and youngsters’ birthday parties. He doesn’t consider it a second job, but maybe he should. The extra cash he’s making from his avocation is taxable income. If he operates it as a business, he might be able to deduct some... Read more →
Tax Tip
Rescue and recovery efforts continue in the Kerrville, Texas, area, which was the hardest hit when the Guadalupe River flooded as the July 4 holiday period was beginning. (Photo by World Central Kitchen, whose volunteers were among the earliest responders, CC BY 4.0) Thousands of Texans are now dealing with the deadly, tragic flooding across the state. My regional backyard, the Hill Country, was the hardest hit. As of today, the catastrophic count from the July 4 flooding is at least 129 killed, and around 170 people missing. Obviously, no one even remotely affected by the disaster is thinking about... Read more →
Get ready Alabama, Mississippi, New Mexico, and Tennessee shoppers. Your back-to-school tax holidays are this month, with the Magnolia State kicking things off on Friday, July 11. Thirteen more no-tax shopping events are on July’s heels, with many of the August sales set for that month’s first weekend. Backpacks, like these at my local H-E-B grocery (and more) store, are a necessity for today's students. They also are tax-free here in Texas if you buy them during the state's back-to-school tax holiday in August. (Photo by Kay Bell) Ah, summer. No school. Lots of vacation time. Just kicking back doing... Read more →
The latest comprehensive tax law also makes the seven ordinary income tax rates created by the 2017 tax reform law permanent. Photo by Nataliya Vaitkevich The individual tax breaks created by the 2017 Tax Cuts and Jobs Act (TCJA) were a prime focus of the massive tax and spending measure signed during a July 4 White House ceremony. Those provisions, notably the seven ordinary tax rates and the essentially doubled standard deduction amounts, were set to expire at the end of this year. Now, thanks to the One Big Beautiful Bill (OBBB) Act, now officially Public Law 119-21, they are... Read more →
Photo by Towfiqu barbhuiya It’s been a tax crazy July and we’re just a week into the month. There’s the One Big Beautiful Bill (OBBB) Act that was signed into law on July 4. We’re all still sorting through its many provisions to see just how it might help us on our 2025 taxes and beyond. Most states also saw various new or revised tax laws kick in on July 1. One state levy that affects most Americans is the sales tax. It’s collected by 45 states and the District of Columbia. Even in Alaska, one of the five states... Read more →
Any time Congress messes around with the tax code, there’s a price to be paid. It could be literal dollars if the Internal Revenue Code changes don’t favor your tax situation. But even when the tax revisions benefit you, you need to know exactly how they apply, and then properly file to claim them. Confusion and frustration in trying to figure out what the tax changes mean to you exact their own fee. We’re all dealing to some degree with that psychic tax toll now that the One Big Beautiful Bill Act is law. Getting tax change translation help: You’ve... Read more →
Photo by olia danilevich The senior bonus is one of the new tax breaks in the One Big Beautiful Bill Act that became law on July 4. It’s not tax-free Social Security benefits that Donald J. Trump promised. But the $6,000 maximum tax break, or $12,000 for married jointly filing couples where each spouse is age 65 or older, will provide some tax relief to the country’s senior citizens. The new tax break is available to taxpayers regardless of whether they itemize or claim the standard deduction. The tax bonus also is age-related, not tied to the federal retirement benefits.... Read more →
If you’re reading this post, it probably means that you haven’t started your long July 4th holiday yet. Sorry. I share your delayed break frustration. Millions of Americans, however, are on the road or have already arrived at their Independence Day destination. Increased July 4 travel: AAA expects 72.2 million people will travel at least 50 miles or more from home over the Fourth of July holiday period, which it defines as from Saturday, June 28, to Sunday, July 6. That forecast is an increase of 1.7 million travelers compared to last year. The calendar is a major factor. “With... Read more →
Admit it. You never get anything done this month until after July’s fireworks. That’s especially true this year, with July 4 falling on Friday. Many of us are taking extra-long holiday breaks. Enjoy your Independence Day celebrations. And be safe, both in traveling to share the holiday with family friends and in the actual igniting of displays. But once the last mini bombs have burst in the air, leaving only the bottle rocket's red glare, it’s time to get to work. That includes taking a midyear tax checkup. A review now, with half a tax year left, can help you... Read more →
Credit: Unsplash+ in collaboration with Diana Light The Senate is in the midst of its marathon to pass its version of the One Big Beautiful Bill (OBBB) full of tax and other Trump administration domestic policies. The so-called vote-a-rama is expected to go into Monday (June 30) night on the 940-page bill, with Senators trying to revise or remove various provisions that could negatively affect their individual and business constituents, also known as voters. One area that bears close watching by both those voting blocs of particular are the clean energy tax breaks in the Biden Administration’s Inflation Reduction Act.... Read more →
More than 22 million U.S. workers lost their jobs during the early stages of the COVID-19 pandemic. Crooks took advantage of their misfortune to file fraudulent unemployment insurance claims. COVID-19 has to be one of the most persistent illnesses ever, from both medical and financial perspectives. While federal health agencies debate COVID vaccine recommendations and warnings, Uncle Sam’s law enforcement officers, including those with the Internal Revenue Service’s Criminal Investigation unit, continue their efforts to prosecute those who abused coronavirus relief programs. On June 24, officials notched another win when David Godin was sentenced by a federal judge in Baltimore... Read more →
The National Taxpayer Advocate’s midyear report to Congress that was released on June 25 included, among other things, recommendations that the Internal Revenue Service continue its efforts to expand digital tax transactions and make them easier for taxpayers to use. Such technological tax advances are also are of keen interest to the Electronic Tax Administration Advisory Committee (ETAAC). The federal advisory committee was established by Congress as part of 1998's IRS Restructuring and Reform Act. And on the same day this week that the Taxpayer Advocate’s report was issued, ETAAC released its annual report to Congress. ETAAC’s primary goal when... Read more →
The National Taxpayer Advocate’s latest report to Congress urges the Internal Revenue Service to continue its technology upgrades to meet coming challenges, with the top priority being enhanced taxpayer online account options. (Photo by Glenn Carstens-Peters on Unsplash) Despite what you may have heard from the Trump administration and Department of Government Efficiency (DOGE), the Internal Revenue Service has been doing a pretty good job. “Since the COVID-19 pandemic disruptions, the IRS has rebounded to provide much improved taxpayer service,” notes National Taxpayer Advocate Erin M. Collins in her introduction to her midyear report to Congress, Fiscal Year 2026 Objectives... Read more →
The National Hurricane Center's image of Tropical Storm Andrea. The first named system of the 2025 Atlantic hurricane season formed in the central Atlantic Ocean, meaning it's not a threat to make landfall. Almost a month into the 2025 hurricane season, Tropical Storm Andrea has arrived. The good news is that the storm, which is the latest first named system since Hurricane Arthur’s arrival in 2014, is not a threat to any land. Even better news is that Tropical Storm Andrea is not expected to become a hurricane. Forecasters say the storm should weaken later tonight, and dissipate by tomorrow,... Read more →
Image by rakinmorjaria from Pixabay Congratulations to all the newlyweds who tied, or will, the knot this June. Or during any ceremony this summer, or spring or coming fall or winter. Marriage can be challenging, but I wouldn’t trade the decades I’ve spent with the hubby for anything. That includes many joint tax returns we’ve filed. But you shouldn’t wait until tax filing season to get ready for how marriage changes your taxes. Here are six tax matters newly married couples should consider as soon as they get back from the honeymoon. 1. Make sure everyone knows your new name.... Read more →
These pups probably would be cooler in the air conditioned inside, instead of atop the cooling unit’s condenser. Everyone, including our furry family members, need to find ways to stay cool during the summer so as not to become victims of the heat. It’s officially summer and Mother Nature is not wasting any time. Summer 2025 is starting with sweltering heat across the central and eastern United States. Many escape hot temperatures by heading to the beach or cooler mountain areas. Those who stay closer to home can go to the movies, wander shopping malls (yes, some still exist), or... Read more →
The official holidays sometimes affect taxes, since the Internal Revenue Service, like all federal offices, closes on these days. Photo by Thomas Wilson Celebrations are planned, and some already underway, across the United States to commemorate Juneteenth. This newest U.S. federal holiday marks June 19, 1865, the day when the last enslaved people in the United States finally got official notification in Galveston, Texas, that they were free, two and a half years after President Abraham Lincoln signed the Emancipation Proclamation. Former President Joe Biden joined other dignitaries in Galveston to observe the day. Biden’s participation is not surprising, since... Read more →
As Congress continues to haggle over how best to prevent falling off a tax cliff when myriad Internal Revenue Code provisions expire at the end of 2025, two other critical deadlines involving popular U.S. social safety net programs were announced. The news is not good for those who currently rely on or one day hope to collect Social Security and Medicare benefits. The report by the trustees of the Social Security and Medicare trust funds, which annually assesses the state of and future outlook for these federal retirement and medical benefits, says both programs will face fiscal shortfall sooner than... Read more →
Photo by Mike van Schoonderwalt Leaders of the Republican-controlled Congress are finding that pushing through one comprehensive tax (and more) bill is not that easy, even with the support of the presidential bully pulpit. The House version, christened the One Big Beautiful Bill (OBBB) in keeping with Donald J. Trump’s not-so-subtle suggestion, narrowly passed the House on May 22. Yesterday, June 16, Senate tax writers released their version, which makes substantial changes to several key House provisions. The differing bills already are sparking intra-party fighting. And depending on what’s in the final version, the Republican party also could have a... Read more →
Delivery jobs are a popular summer gig for many looking to make extra money during this traditional time to take some time off from work. (Photo by Kampus Production) Summer is in full swing, meaning that most of us will be taking some time off work to enjoy the warmer weather. Some people, however, see this traditional vacation period as a way to add to their income. That’s true. But the added earnings also could have tax implications. Student jobs: Some young people spend their summers working. Whether the earnings go to pay for college classes or a purchase they... Read more →