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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.

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

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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 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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    You also might enjoy these other tax tips from some of my tax-writing colleagues:

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I gotta tell ya ...

  • 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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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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    CDC Booster Shots
    HHS Combat COVID
    USA.Gov COVID Info

January 2023

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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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