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Weekly Tax Tips 2015

We made it! Tax Day 2015 is over, at least for most taxpayers. Those of us who decided to push our 1040 due date to Oct. 15 still have some work to do.

But at least the main crush is over. And despite predictions of a horrid tax filing season because of Obamacare requirements and the increase in tax scams and fraud, things went pretty well.

Now we can take a breath. But not for long. Folks on filing extension have work to do. And those who are through with 2014 taxes need to start thinking about ways to reduce their 2015 tax bills.

Tax_tip_icon_pencil_point2The 2015 version of Weekly Tax Tips is here to help all of these taxpayers.

As in previous years, a new piece of tax advice will be featured each Wednesday in the upper right corner of the ol' blog.

Wait, you say. You noticed that the first Weekly Tax Tip showed up on Friday, April 17. Good eye! I must admit I was so jazzed about the tax season that I couldn't bear to take even a week's break.

So Weekly Tax Tip #2, courtesy Bankrate.com, will show up next Wednesday, April 22. And the full series will run through Dec. 30.

That's right. Taxes don't take the December holidays off, so neither will we.

A stray weekly tip or two also might show up in the opening week/weeks of January 2016 as we transition into that filing season and the appearance of that new year's Daily Tax Tips.

Too soon? Sorry. Back to this year and the 2015 Weekly Tax Tips.

  1. Filed for an extension? Didn't file at all? Now what? -- April 15 came and went without your tax return. Either you filed Form 4868 instead to get an extension until Oct. 15 to finish your paperwork or you didn't file at all. Whichever option you chose on Tax Day, here's what you need to do next to avoid invoking the ire (and potentially costly penalties and interest charges) of the Internal Revenue Service. (April 17, 2015)
  2. What to do if your refund is wrong -- Your refund finally arrived, but it's not what you expected. Now what? Regardless of whether the refund discrepancy goes against you or favors you, some steps can be taken to resolve the matter. (April 22, 2015)
  3. When it's OK to tap your IRA -- Roth and traditional IRAs are for retirement, but sometimes you need the money early. In many cases, the early distributions mean you owe any taxes due plus a 10 percent penalty. But not in every case. There are some specific situations where the Internal Revenue Service says it's OK to withdraw some IRA cash early. (April 29, 2015)
  4. Tax record keeping tips -- Yes, tax documentation is crucial to support your deduction and credit claims. But there's no need to be a tax paperwork hoarder. Here's what to keep and what you can toss. (May 6, 2015)
  5. No capital gains taxes for some investors -- Capital gains already are taxed at rates lower than ordinary income, but in some cases the deal is even better. Some investors won't owe the Internal Revenue Service a cent when they sell their assets. The catch? The zero tax rate generally applies to individuals in the 10 percent and 15 percent income tax brackets. (May 13, 2015)
  6. What's your income tax bracket? -- Whether you're still working on your 2014 tax return thanks to an extension, or looking ahead to your 2015 taxes, your tax bracket matters. Check out what tax rates apply to your earnings. (May 20, 2015)
  7. State taxes add to gas prices -- School's out and summer's here! If you'll be taking a driving vacation this year, watch out for pump price variations from state to state. Excise and other taxes and fees can really add to gasoline prices. (May 27, 2015)
  8. Get disaster relief at tax time -- Spring was full of floods and tornadoes. Now it's hurricane season. If you sustain storm or other natural disaster damages, Uncle Sam could help. You might be able to claim some of your property losses when you file your tax return. (June 3, 2015)
  9. Fix tax mistakes with an amended return -- You filed your taxes months ago, but you just discovered a mistake on your return. You can fix it by filing Form 1040X. (June 10, 2015)
  10. Let Uncle Sam lend a child care tax hand -- Juggling parenthood and work is a major challenge that gets bigger when school's out. Working moms and dads must find child care for full days, not just the hours after classes. The Internal Revenue Service can't help you find a summertime day care provider, but it can help cover some day camp costs thanks to the child and dependent care tax credit. (June 17, 2015)
  11. Tax breaks for life's big events -- June bride? New homeowner? Change jobs? These are just a few of life's changes that could have tax implications. In some cases, the Internal Revenue Service is an unwelcome intrusion. But in others, the tax code's involvement in your life can be a benefit. (June 24, 2015)
  12. Bunch your itemized expenses -- Itemized deductions can be a great way to reduce your tax bill. But to take full advantage of Schedule A write-offs, you need to clear some expense thresholds, such as 7.5 percent of medical costs and 2 percent of miscellaneous expenses. If you don't clear those percentage hurdles, no itemized expenses in those categories are tax-deductible. You can get around the limits by bunching tax-deductible expenses into one tax year. (July 1, 2015)
  13. Teen jobs and taxes -- Summer time and the working is easy. Or not. Finding a seasonal job is a challenge for young workers and that's only the beginning. After they're hired, the teenage employees must deal with taxes. (July 8, 2015)
  14. Home sweet home ownership tax breaks -- A home is more than a place to raise your family. Owning a house offers some of the best tax benefits around. There are the popular itemized deductions for mortgage interest and real estate taxes. And when you sell, you can exclude a nice chunk of sale profits from taxation. (July 15, 2015)
  15. 10 midyear tax moves -- The year's half over. That makes it the perfect time to take some tax steps that could lower your 2015 Internal Revenue Service bill. (July 22, 2015)
  16. Back-to-school tax holidays are back -- It's a late summer perennial, states offering shoppers special days to buy tax-free clothing, computers and classroom supplies. This year 17, and maybe 18 soon, will hold the sales tax holiday weekends or longer. The events save families a few bucks if they follow all the rules. (July 29, 2015)
  17. Home rental tax rules -- Want to put your primary residence or second home to work? Rent it. Just make sure you follow the Internal Revenue Service rules. Short-term leasing -- 14 or less days for the whole year -- could provide you with some tax-free rental cash. (Aug. 5, 2015)
  18. Uncle Sam offers many education tax breaks -- Higher education costs climb every year. But Uncle Sam can help out. The Internal Revenue Code has many education tax breaks that can help cover college costs, including those pricey textbooks. In some cases, even elementary and secondary school expenses are eligible. (Aug. 12, 2015)
  19. Coverdell accounts many tax benefits -- This oldie-but-goodie tax break doesn't offer a lot of tax dollar savings. You can only put up to $2,000 a year into it and the contributions aren't tax deductible. But it's one of the more flexible education tax breaks, letting you spend some of the tax-free money for elementary and secondary school expenses, not just college costs. (Aug. 19, 2015)
  20. Tax extenders outlook -- Tax planning for millions of Americans has been on hold since Jan. 1. That's when more than 50 tax deductions, tax credits and other tax-saving laws known as the extenders expired. And these tax breaks, for both individual taxpayers and businesses, will remain dead until Congress revives them. The two big questions we're waiting to be answered are (1) how many will be resurrected, and (2) when? (Aug. 26, 2015)
  21. Tax help for combined business, personal travel -- Thinking of tacking a couple of personal days onto the end of a business trip? It can offer a nice break. Plus, a well-planned mini-vacation can be even more satisfying when you get financial help via the federal tax code. (Sept. 2, 2015)
  22. Estimated tax time again -- If you have income that isn't subject to withholding tax, you must pay Uncle Sam via estimated tax payments. He prefers we pay up four times a year, with the third 1040-ES payment for the 2015 tax year due Sept. 15. (Sept. 9, 2015)
  23. Correct Social Security numbers are critical -- Taxes are all about the number, and that definitely includes identification numbers. In addition to the taxpayer's Social Security number, the nine digits are needed for dependents and in some cases to claim certain tax deductions and credits. An error in a tax ID number could at best slow down a refund. At worst, it could unexpectedly increase your tax bill. (Sept. 16, 2015)
  24. Domestic violence complicates tax problems -- A troubled marriage is painful enough. But things can get downright nasty when you add taxes to the mix. Since tax law hold both spouses liable for taxes when a joint return is filed, you might have to seek innocent spouse relief. (Sept. 23, 2015)
  25. FSAs can save tax dollars -- Popular workplace spending accounts can help pay child care and medical costs. They also can save you tax money if you manage them carefully. (Sept. 30, 2015)
  26. 10 overlooked tax breaks -- You put off filing your Form 1040 until the Oct. 15 extended deadline. Now make sure that you didn't waste this extra filing time by overlooking some common tax breaks. These 10 tax breaks -- some for itemizers only, others that any filer can claim -- are often ignored, but could save you some tax dollars. And if you need more, there's always the 10 costly tax sins of omission. (Oct. 7, 2015)
  27. Don't make these 10 common tax-filing mistakes -- Are you finally finishing your Form 1040 to meet the Oct. 15 extended deadline? Make sure you don't make one of these common mistakes. And if you need more errors to avoid, check out these 10 costly tax sins of commission. (Oct. 14, 2015)
  28. Avoid these 3 common tax penalties -- Everyone makes a tax mistake now and then. Just ask the Massachusetts couple that didn't properly sign their joint return. That oversight produced a costly tax penalty. The three most common IRS penalties are assessed for not filing, not paying or not paying enough throughout the year. But even though because they are common, you can avoid them. (Oct. 21, 2015)
  29. Key 2015 tax ballot initiatives -- Marijuana and sales taxes are among the tax questions voters in several states will be asked to decide on Nov. 3. (Oct.  28, 2015)
  30. Employee vs. contractor tax differences -- The holiday season is here! Are you looking for a seasonal job? Make sure you know how you'll be treated by your new, temporary employer: as an employee or a contractor. It makes a big tax difference. (Nov. 4, 2015)
  31. 10 tax-saving moves to make by Dec. 31 -- The last day of the year can be just as important as April 15. Before the holidays get hectic, take some time to make some of these moves by year's end that could help reduce your eventual tax bill. (Nov. 11, 2015)
  32. Retirement plan contribution limits -- Saving for retirement can be confusing, especially when the IRS changes the limits each year on how much you can put in various plans. Here are the rules, and inflation adjustments, for various 2015 and 2016 retirement accounts. (Nov. 18, 2015)
  33. 6 pet-related tax write-offs -- The IRS doesn't recognize pets as members of the family. That's why the taxman won't let you claim your dog, cat, guinea pig or whatever critter brightens up your life as a dependent. But there are a few ways you can write off animal-related costs on your taxes. (Nov.  25, 2015)
  34. Use or lose FSA money -- A flexible spending account, or FSA, is a way to pay for some medical expenses with pre-tax dollars. While recent changes to the workplace benefit plans have allowed for a 2½-month expenses grace period or a limited rollover option, many companies still require FSA owners to spend down their accounts by year's end or forfeit the money. Make sure you get to use, not lose your FSA funds. (Dec. 2, 2015)
  35. Home-related December tax moves -- Homeowners already know that their residences offer a variety of tax breaks. But as the tax year winds down, you can take advantage of a couple of them -- mortgage interest and property tax payments -- by Dec. 31 to maximize the deductions on your coming tax return. (Dec. 9, 2015)
  36. Harvesting tax losses -- Nobody invests to lose money, but sometimes that happens. If you have an asset that's lost value, it could still be valuable at tax time. Sell it and use the loss to offset any capital gains you have or even some of your ordinary income. (Dec. 16, 2015)
  37. Charitable gift giving tax rules -- Donating to a charity is a common year-end move -- and a great last-minute Christmas gift. It also could help lower your tax bill if you know and follow the Internal Revenue Service's charitable giving rules. (Dec. 23, 2015)
  38. Cash in on uncommon charitable gifts -- Your donations to your favorite charity -- and possible tax deduction -- can go beyond a contribution check. The Internal Revenue Service accepts many different ways to give and deduct your good will. (Dec. 30, 2015)

Did you miss some tips posted earlier this year? No worries. You can find all the 2015 Daily Tax Tips on their monthly pages: January, February, March and April.

And the new batch of Daily Tax Tips will return when the 2016 tax filing season arrives next January.

Filing Season Tax Tips

  • Ways to pay your tax bill — If you're one of many (many, many) unhappily surprised taxpayers who discovers you owe taxes when you file, check out these ways, both old school and electronic, to pay Uncle Sam. (Feb. 19, 2019)

  • Tax Tip; click pencil for all tax tip links

  • Did you miss a daily tip posted above? No worries. They're collected in the 2019 Filing Season Tax Tips pages, one for each of the three-and-a-half months that we focus on our 1040s: January, February, March and — tah-dah! — April. After a brief break to catch our post-filing deadline breath, the Weekly Tax Tips, like these from 2018, will return.

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    Kay Bell — Native Texan (the blog title totally makes sense now, right?). Professional journalist. Tax geek.

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  • Tax Season 2019 is here!
    Are you ready to file your 2018 tax return? Me neither. But we need to start thinking about it now because April 15 will be here before we realize it and we've got to figure out how the new Tax Cuts and Jobs Act changes will affect our filing — and eventual bill or refund. The countdown clock below will help you keep track of this year's due date. Happy New Tax Year!
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks


  • monthly tax moves


  • Feb. 1: Hello, February! We're thrilled that the shortest month has arrived.

    January gives way to February_LoveThisPicPinterest

    Although we have only 28 days, that's still plenty of time to make some meaningful tax moves.
    Let's get to them.

    Feb. 2: Happy Groundhog Day!

    Fat Groundhog; click image for Groundhog Day details

    Don't get caught in a Bill Murray loop and end up doing your taxes over and over. Get your 2018 return right the first time, which means waiting for all your necessary tax statements, like your W-2 and the assortment of 1099 forms, that you need to file.

    Feb. 3: Are you ready for some Super Bowl!?! Of course you are, especially if you're placing a now-legal sports bet on the NFL championship game. Even nonsports fans get in on the action through myriad prop bets. Remember, though, that whenever any bet, be it on an on-field event or something tangentially related to the game, pays off, those gambling winnings are taxable income.

    Feb. 11: Does your job include tips? If so and you received $20 in tips in January, use Form 4070 to report them today to your employer. Yes, it's usually due on the 10th, but since that was on Sunday, you have until the next business day to provide details on your gratuities.

    Feb. 12: Black History Month is celebrated every day this month, commemorating the achievements by black Americans and recognizing the role of African Americans in U.S. history.

    The National Association for the Advancement of Colored People (NAACP), the nation's oldest and largest grassroots-based civil rights organization, was founded on Feb. 12, 1909. That was the centennial anniversary of the birth of Abraham Lincoln, who issued the Emancipation Proclamation twice.

    One of the NAACP's key divisions is its Legal Defense and Educational Fund.
    If you want to support the Fund's work, you can donate to it and, since it is a 501(c)(3) organization, you can still claim it as an itemized deduction. Yes, this part of Schedule A survived the Tax Cuts and Jobs Act (TCJA) changes, although you might want to now look into other charitable giving strategies.

    Feb. 14: Happy Valentine's Day!

    Do you and your better half file a joint return? Most married couples do. Remember to look over the 1040 carefully before you sign it. When both spouses sign their jointly filed 1040, each is jointly and severally liable for the entire tax amount due. This means the Internal Revenue Service can come after either spouse for payment of a tax bill, even the spouse who is in more dire financial circumstances.

    Feb. 18: Today is Presidents Day, officially honoring George Washington, the Father of Our Country. Over the years, however, this federal (three-day, yay!) holiday has come to commemorate the contributions of all our Commanders in Chief. And we've got to give a (another) special shout out to Abraham Lincoln, who essentially was father of our income tax system, signing into law a tax on earnings to help pay Civil War costs.

    Nowadays, however, this and other Monday holidays are spotlighted as special shopping days. If you itemize, you can claim a deduction for the state and local sales taxes you pay, although they might not be as valuable on your 2018 tax return due to the overall caps on state and local income tax deductions under the TCJA.

    Feb. 22: February usually is a big filing month. If you're among the millions working on your taxes now, check out Free File. The IRS/tax software industry partnership, known as the Free File Alliance, is in its 17th year of providing eligible taxpayers the opportunity to prepare and e-file their taxes at no cost.

    IRS Free File; click image for details

    This year, qualifying taxpayers — that's those with income of $66,000 or less — can use one of the expected dozen or so special commercial tax software programs at IRS.gov's Free File online page. Even if you make too much to use the online software, you can file using Free File's fillable forms.

    Feb. 28: If you're not a tax procrastinator and have already filed, you can check the status of your return online using the IRS' "Where's My Refund?" tool.

    Small Business Tax Calendar: Speaking of business taxes, you'll find important filing, deposit and record keeping dates throughout the year that your company needs to know in the IRS' tax calendar for small businesses and the self-employed. You also can get more tax calendar information 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.

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  • 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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