How accommodating is your state's tax system? Kiplinger lists the top 10 most tax-friendly states. Most U.S. taxpayers are breathing a sigh of relief as this week winds down. They made it through Tax Day 2019, getting their annual federal return to Uncle Sam. Millions also filed their state returns at the same time. They live in the 43 states and District of Columbia that collect some sort of personal income tax. The majority of those state tax departments follow the Internal Revenue Service's filing time frame. But not all. Five states have return due dates that are a tad... Read more →
Tax Tip
We made it! Tax Days 2019 — and yes, Days is correct, since there were two April deadlines this year — are done! OK, maybe we made it because we filed for an extension. That's OK. We got something in to the Internal Revenue Service on time. Now we can relax. But not too much. In addition to meeting that Oct. 15 due date, all of us need to be proactive with tax moves over the next few months to ensure that our 2020 bill is as small as possible when we file next year. That's what the Weekly Tax... Read more →
You didn't file your taxes by the April deadline but you had a really good reason. Or did you? Excuses people make for not filing their taxes are right up there with rationalizations for claiming weird deductions. Both are creative exercises par excellence. And both will get you in bit trouble with the Internal Revenue Service. What won't fly: The Internal Revenue Code as we know it has been around since 1913. That means that for more than a century, Uncle Sam has heard just about every excuse for not getting a Form 1040 in on time or at all.... Read more →
Most U.S. taxpayers filed their annual tax returns or got extension on Monday, April 15. But what about folks who missed the Tax Day deadline? Don't panic, but don't procrastinate any longer. The IRS is serious about hearing from you each April. It imposes three main filing-related penalties, the harshest of which is for not filing. Here are four things late-filing steps you need to take ASAP. 1. File a return. Yes, the filing deadline is over. But still get the IRS a return. Now. You need to get something into the IRS system that will show the tax man... Read more →
Giphy It's finally here! Tax Day 2019. Congratulations to all y'all who survived this first filing season under the new Tax Cuts and Jobs Act (TCJA) provisions. We all deserve a hearty pat on the back. A hug. A drink, potent as the Jeopardy category goes, or not. Some freebies. I'll take one of the massages, thank you. A Major League Baseball break. Patriots Day and celebrants in Maine and Massachusetts get more tax-filing time so they can, among other things, enjoy today's Jackie Robinson Day Red Sox-Orioles game. Some sleep. And some tax talk. Radio tax ruminations: Wait, isn't... Read more →
Photo by Coolcaesar via Wikipedia Commons Two American institutions that regularly catch a lot of flak find that they are good partners each April. I'm talking, of course, about the Internal Revenue Service and U.S. Postal Service. True, software-assisted return prep and e-filing by individual taxpayers or the tax preparers they hire now is the dominant way we get our 1040s to the IRS every year. Most of the 50 million yet-to-file taxpayers, who are this week's By the Numbers honorees, will use these electronic methods by the end of tomorrow. But until Uncle Sam forces all of us to... Read more →
This wading bird doesn't mind being knee-deep, but it's not a good position if you're trying to dig through your taxes on this last weekend of the filing season. (Photo by I Am birdsaspoetry.com via Flickr CC) We're knee- or in some cases neck-deep into the final days of Tax Season 2019. How's it going for you? If you're among the more than 103 million U.S. taxpayers who have already filed their returns, you're probably feeling pretty good about things. So is Charles Rettig, who's overseeing his first federal filing season as commissioner of the Internal Revenue Service. "The filing... Read more →
The time left until Tax Day is tick, tick, ticking away. If you're feeling like silent movie legend Harold Lloyd (pictured above), hanging on by your fingernails as you try to get your tax filing act together, I have some good news and some bad news. The bad news is that there's no way to stop the tax deadline clock. The good news is you can get an extension to file your 1040. By filing for an extension, the Internal Revenue Service will give you six more months, up to Oct. 15, to submit your return. You still have to... Read more →
Federal and most state, tax returns are due in few days. Don't panic! You still have time to finish your return (or get an extension). If you do decide to just be done with your Form 1040 — new, but not necessarily improved this year under Tax Cuts and Jobs Act (TCJA) changes — make sure you don't make any of these common filing errors in your rush to finish. For the most part, tax software has helped eliminate a lot of mistakes. Still, we're not yet at the total tax automation point yet. And that old garbage in, garbage... Read more →
Thanks to much larger standard deduction amounts under the Tax Cuts and Jobs Act (TCJA), fewer filers are itemizing deductions. But that doesn't mean they aren't still writing off some tax-deductible expenses. During this first filing season after the many changes wrought by the latest tax reform law, taxpayers are still claiming what used to be called above-the-line deductions. Technically, they are and always have been adjustments to income. They got the above-the-line moniker because they previously appeared in the last section of the old long Form 1040, just above the last line of that form's first page where your... Read more →
Tax Day every April is the biggie for individual taxpayers. That's when our annual Form 1040 is due. And yes, I know this year there are two Tax Days, since Patriot Day celebrants in Maine and Massachusetts get until April 17 to send in their federal returns. But most of us must meet the April 15 deadline, so that's what I focus on in this post. Completing a 1040, however, is not the only mid-April tax deadline. It's just one of the 10 tax tasks listed below that many taxpayers also must make by next Monday, April 15. 1. File... Read more →
Photo by Will Keightley via Flickr CC Afraid you'll face an Internal Revenue Service audit? Don't bet on it, says a veteran oddsmaker. The tax audit odds for 2019 will be approximately 1 in 172, says SportsInsider.com's James Murphy, a sportsbook consultant and specialist in novelty betting odds. 25% of filers worry about audits: That slim audit possibility, however, didn't seem to affect folks who participated in a LexingtonLaw survey conducted before this tax season started. The Salt Lake City-based law firm found that a quarter of Americans are afraid they'll be audited. Older filers are more worried. Thirty-three percent... Read more →
The larger standard deduction amounts created by the Tax Cuts and Jobs Act (TCJA) mean that fewer filers claim itemized expenses. That also could be trouble for those of us who still will file a Schedule A. With fewer itemized expenses to review, the Internal Revenue Service theoretically could have more time to spend looking at everything we write off on this Form 1040 attachment. And excessive deductions are one of the common tax audit triggers. One of those deduction amounts, the one for state and local taxes, is changing, thanks to the new tax law. Some taxpayers and their... Read more →
It's official. House Democrats have formally requested copies of the last six years of Donald J. Trump's personal and business federal tax returns. Trump has steadfastly refused to make public his taxes, breaking a modern-day tradition set by presidential candidates — and in-office presidents (and vice presidents) — of letting the public have a glimpse of White House 1040s. The main reason Trump has given for keeping his taxes private is that his personal and business filings are under audit. Tax experts throughout the media agree that no sane person would give their tax returns during an audit. After the... Read more →
Broad City image via Giphy.com Do you have to file a return? Sorry to be the bearer of bad news, but the answer usually is yes. But there's a difference between having to file a tax return and submitting a 1040 form because you should. And by should, I mean when it's to your advantage to do so. Yes, that does happen in the tax world now and then. When filing is required: First, though, let's look at when the tax code says we must send the Internal Revenue Service a Form 1040. Although the 1040 has a new look... Read more →
I don't know about you, but March sure seemed to roar right past me. Lion, lamb, whatever your tax animal, last month was a big one for filers. We finally seemed to find our tax stride, with Internal Revenue Service statistics showing that, for the most part, this first tax season under major tax law changes is finally starting to look normal. Or as normal as life can be during tax filing time, at least when it comes to refund amounts. If you were among those more than 84 million taxpayers who filed a return during the first three weeks... Read more →
Umbrellas at the Venetian in Las Vegas (Photo by Kay Bell) April is the proverbial month of showers. That typically refers to the rain that falls to nourish the flowers that are predicted to arrive in May. But this month also is known for personal precipitation. Yep, I'm talking tax-time tears. Some folks will cry when they discover how much they owe. Others will shed tears of frustration as they struggle to decipher the Tax Cuts and Jobs Act (TCJA) changes that affect returns for the first time this 2019 filing season. And for others, it will be tears of... Read more →
March Madness is heating up. We're down to the Elite 8. I usually don't pay too much attention to college basketball, or college sports in general. I follow the professional games because I like to yell at the players, and I feel much more comfortable cursing guys who're pocketing beaucoup bucks instead of unpaid college athletes. I am in the minority, even in my house. The hubby has been sneaking some TV time watching the NCAA men's basketball championship tournament, though truth be told that's mainly because our alma matter, Texas Tech, is doing pretty well. Only the ELITE remain!#MarchMadness... Read more →
March 29 is Vietnam Veterans Day. This day commemorates the sacrifices of the 9 million Americans who served in the Vietnam War. All veterans are eligible for a variety of benefits, from discounts that can facilitated by the Department of Veteran Affairs' veterans ID card program to critical VA healthcare, thanks to their service. There also are special considerations for U.S. military personnel who are still serving, particularly in the tax area. With the April tax deadline quickly approaching, today's Vietnam Veterans Day also is a good time to review the tax breaks and resources available to current duty service... Read more →
UPDATE, Thursday, March 28: Well, I'm not the new Powerball multimillionaire. The lottery jackpot, which hit $768.4 million before the drawing last night, is going to the lucky person who bought the winning ticket in New Berlin, Wisconsin. But save this post. There will be other chances to win! Yes, I bought a ticket for the March 27 drawing of the $750 million and counting Powerball lottery. Yes, I know the odds of winning the jackpot, which is the fourth largest Powerball prize in U.S. history, are about 1 in 292 million. I know many of my hardcore personal financial... Read more →