Deductions Feed

Couples by Michael Lehet/Flickr CC The hubby and I basically have a pretty equal, albeit traditional gender swapped, marriage. He's more persnickety when it comes to cleaning. So he does much of those household duties, including bathrooms and whole-house vacuuming. I hate that noise, so he vacuums when I'm out; that's one of the reasons I love him! We split kitchen duties, with the person who doesn't cook dinner doing the cleanup. We collaborate on investments, deciding how much and where our money goes. As for the day-to-day expenses, I take care of making sure the bills are paid on... Read more →


One of those hammocks has my name on it, after I finish a few July tax tasks. (Photo by Roberto La Forgia via Flickr CC) School is out. The fireworks have been shot (except for the stashes of my neighborhood's teens, which based on prior post-July 4 experiences, probably will last another week). And the heat is definitely on. That means it's finally, fully summer. And that means that it's time to get down to some serious summertime tax moves. Yes, I know you want to head to the pool or beach or catch up on neglected novels or just... Read more →


Kilauea lava flow from U.S. Geological Survey via Giphy.com Hawaiians got some relatively good news this week in connection with the continuing lava flow from Mount Kilauea. The volcano is continuing to spew potentially deadly gases and pour flaming lava across a growing southeastern section of the 50th state's Big Island. The eruption, which started May 3, also is still producing explosions and earthquakes. Now, however, the catastrophe has been declared a major disaster by the White House. That is good tax news for affected residents, which is everyone on the state's largest island, also named Hawaii, as is the... Read more →


June generally is a good time to review your tax situation and make moves while there are months for them to make a difference to your upcoming tax bill. That's particularly true this year, what with the Tax Cuts and Jobs Act (TCJA) changes in full force. Unfortunately, questions remain as to just how the new tax law changes will affect some folks. Business change uncertainty: Businesses in particular are among the taxpayers still unsure about TCJA provisions. Many are waiting for clarification of the new law's elimination of business entertainment expenses. The tax community is divided as to whether... Read more →


Yes, as soon as I heard about the New York Attorney General filing a lawsuit against Donald J. Trump's charitable foundation, I checked the Internal Revenue Service exempt organization online search tool. There it, or they, were. When I entered Trump Foundation into the Tax Exempt Organization Search, or TEOS because everything in Washington, D.C. has an acronym, it turned up six results. The top two were what I was looking for: Trump Foundation EIN: 13-3054537 | New York, NY, United States Donald J Trump Foundation Inc. EIN: 13-3404773 | Woodbury, NY, United States Both organizations are listed in IRS... Read more →


Our home's celebration of the 2018 Stanley Cup Champion Washington Capitals. It's champions day at our house! I spent the morning watching the Washington Capitals, the new National Hockey League champions, parade down Constitution Avenue showing the Stanley Cup to their long-suffering fans. Then I switched over to watch the Golden State Warriors, the National Basketball Association's back-to-back champs, celebrate with their fans along the downtown Oakland parade route. It's fitting that the latest major league champs on both U.S. coasts had their parades today. Their festivities come on the heels of expanded sports betting across the country. N.J. sports... Read more →


The Republican's new tax law is expected to be the focus of the coming midterm elections. GOP candidates are telling taxpayers that they — or most of them, anyway — will owe the U.S. Treasury less in 2018 thanks to the Tax Cuts and Jobs Act (TCJA). Democrats running for office, however, argue that any individual tax cuts under the new law are relatively small and, unless their colleagues across the aisle can change things in the next few months, are temporary. That ending date is Dec. 31, 2025. So who's telling the truth? It depends — wait for it... Read more →


Tired of being a wage slave? Thanks to the Tax Cuts and Jobs Act (TCJA), some disgruntled salaried employees are looking into becoming independent contractors. But before you take the leap into a new way of working, you need to take tax and other matters into account. "Congress flipped traditional tax-planning upside down" with the new tax law, noted the Tax Policy Center's Steven M. Rosenthal in a TaxVox post soon after the new tax law took full effect earlier this year. "Many moderate-income workers may be able to exploit a tax break that higher-income workers cannot. And by shifting... Read more →


Tax law changes mean that some previously deductible miles can no longer be claimed. (Traffic photo by Jo via Flickr) Back in March, the Internal Revenue Service announced revised inflation changes for many tax provisions that were affected by the recently-enacted Tax Cuts and Jobs Act (TCJA). One area that didn't change, however, was the list of 2018 standard mileage amounts used to calculate the driving-related tax breaks associated with medical, business, charity and moving costs. For the 2018 tax year, those cents-per-mile amounts are shown in the table below, along with the 2017 figures for folks who might be... Read more →


The 2018 Atlantic basin tropical storm season, which began early with Alberto's late May arrival, is now officially here. Get ready for possible storms. And note that tax law changes mean you might not get any tax help with your recovery efforts this year. Remember this? A National Oceanic and Atmospheric Administration satellite caught Hurricanes Katia and Irma and Tropical Storm Jose (left to right) lining up on Sept. 8, 2017. Mother Nature has her own calendar. She ignored today's official start of the 2018 Atlantic/Gulf of Mexico hurricane season by, in late May, creating Tropical Storm Alberto. That storm... Read more →


Losing your job. It's one of the worst things that can happen, especially when it comes as a total surprise. That's what folks who worked on Roseanne are dealing with after ABC pulled the plug on the rebooted sitcom. Being out of work is not so high-profile for most of us. But we all share the panic, anger and helplessness of suddenly losing the reason we get up every morning. To help you get through being let go, here are six steps you can take. And, of course, there are tax implications (nine total) for each of these post-job moves.... Read more →


Lots of my neighbors are looking to sell, even though for most of us there's no longer a tax break for moving. However, many homeowners still will pocket tax-free sales cash that should help cover relocation expenses. No, this is not my neighborhood, although where we live is, except on lawn service days, pretty quiet, too. Summer always kind of freaks me out, and not just because here in Central Texas it tends to get too damn hot too damn soon. I'm talking about all my neighbors who want to leave. Every summer there's a plethora of "For Sale" signs... Read more →


"On this day, take time to remember those who have fallen. But on every day after, do more; put the freedoms they died for to greater and nobler uses." — Richelle E. Goodrich, author During holidays, we're generally encouraged to remember the reason behind the special day. The two instances where this is most prevalent is Christmas and Memorial Day. Memorial Day's purpose often gets lost in the revelry of summer's arrival … except when your awash in a tropical storm's rain bands. But today is supposed to be more than time with family and friends at picnics, trips to... Read more →


Expensive real estate no longer provides owners unlimited federal property tax deductions. The Internal Revenue Service announced today that it will make an announcement about states efforts to provide taxpayers workarounds to the Tax Cuts and Jobs Act's $10,000 limit on state and local tax (SALT) federal deductions. The issue has arisen as a handful of states have enacted or are considering law changes to allow their residents to make contributions to state accounts, from which their state taxes then are paid. State "charity" workarounds: Essentially, the states' general approaches have been to effectively turn the tax payments into charitable... Read more →


Prince Harry and Meghan Markle exit St. George's Chapel as husband and wife. (Photo: Kensington Royal Instagram) I'm not a fashionista, but I was impressed with Meghan Markle's wedding dress. The simple, elegant Givenchy gown was perfect. So what happens to the hand-stitched dress that reportedly cost around £100,000 (almost $135,000 U.S.)? Will it be sent to a museum? Sealed, boxed and stuck at the top of a closet for use by a next-generation bride? Lent to a friend for her coming wedding? There's another option, maybe not for the new Duchess of Sussex, but for us commoners. Donate your... Read more →


Teachers give more than their time and energy to students. They literally pay in many instances to help their students learn. That's why educators were pleased when the Tax Cuts and Jobs Act left the above-the-line deduction for their out-of-pocket expenses in the tax code. This tax break, which is claimed directly on Form 1040 with no need to fill out a Schedule A, lets a single filing teacher claim $250 spent toward classroom supplies. For married educators, $500 in personal payment for school supplies can be deducted (or more technically subtracted from filers' gross income) on their joint tax... Read more →


Margaret Reid won $1.2 million on an $18 Kentucky Derby bet at Retama Park in San Antonio. It was the biggest payout ever at the track, according to the racetrack's general manager Bill Belcher, who congratulated Reid. (Photo courtesy Rachel Bagnetto, Retama marketing department) The Internal Revenue Service loves the Kentucky Derby. Actually, it loves the full Triple Crown slate. Not only do thoroughbred owners, trainers and jockeys makes big, taxable bucks during the Derby's run for the roses, as well as at the subsequent Preakness and Belmont races, so do some bettors. Few race aficionados, however, are as lucky... Read more →


Lava slowly flows from a fissure that opened on a Leilani Estates street on May 5, 2018, after Hawaii's Kilauea volcano erupted. (United States Geological Survey public domain photo via Wikimedia Commons) The United States' 50th state is home to many extraordinary things. Exotic flowers. Magical beaches. Unique birds. An active volcano. It's that last thing that's got folks worried right now. Hawaii's Kilauea volcano erupted Thursday, May 3, accompanied by dozens of earthquakes, the release of dangerous sulfur dioxide and lava flows. The 6.9 magnitude Kilauea-associated earthquake that shook the Big Island on May 4 was the most powerful... Read more →


Small businesses like Wild Scoops, which sells handcrafted Alaskan ice cream and is featured on the Small Business Administration Instagram account, are saluted this National Small Business Week. Happy National Small Business Week 2018. OK, technically it started yesterday, Sunday, April 29, and runs through Saturday, May 5. I like that it's a full seven-day week, not just a Monday-through-Friday work week since most small business owners are on the job way more than the traditional five-day, 40-hour weeks. This week has been celebrated annual since 1963 as a way to recognize the contributions of U.S. entrepreneurs and small business... Read more →


It's no secret that the Tax Cuts and Jobs Act (TCJA) was designed to primarily benefit big businesses. But in order to make those tax cuts more palatable to the rest of the U.S. taxpaying universe, Congress added what it promised were benefits for Main Street mom-and-pop operations, too. What's that saying about best laid plans? Four months into the new tax law and it looks like small businesses have a couple of issues with the TCJA. First, an analysis by the Joint Committee of Taxation found that the key tax break for smaller operations, the Section 199A pass-through deduction,... Read more →