Taxes Feed

The IRS still has a desk waiting for its new commissioner. (Photo courtesy Cage Design Group) David Kautter, no doubt, was among the millions of Americans who were glad to see the 2018 high tax season end. Kautter is the acting Internal Revenue Service commissioner and he was on his way to Congressional hearing on how things were going when he got news of his agency's Tax Day computer hardware problems. How much longer will Kautter, who also is assistant Treasury secretary for tax policy, have to deal with all the IRS' operational matters, including the many issues related to... Read more →


While millions of U.S. taxpayers were focusing last week on 2017 tax returns, a tax benchmark slipped past us. Tax Freedom Day 2018 arrived on April 19, a day after this year's revised Tax Day filing deadline and 109 days into the year. This day, according to the Washington, D.C.-based tax policy group The Tax Foundation, represents how long Americans as a whole have to work in order to pay the nation's tax burden. The nonprofit takes all federal, state, and local taxes and divides them by the nation’s income. The Tax Foundation has been making the annual calculations since... Read more →


@bublywater via Giphy.com If you missed this year's doubly extended tax filing deadline simply because you procrastinated, or actually over-procrastinated, then you're out of luck. If you owe tax for the 2017 tax year, interest and penalties already are piling up. If this is you — no judging here, just some advice — at least get a belated extension request into the Internal Revenue Service ASAP, along with the money you owe, to stop that costly process from getting worse. The first Weekly Tax Tip of 2018 offers some guidance on moves to make if your missed the Tax Day... Read more →


Missouri taxpayers who have federal tax refunds burning holes in their pockets have a tax-saving way to spend that money. Today, Thursday, April 19, is the start of the state's annual Show-Me Green Sales Tax Holiday. Since 2009, this week-long event provides buyers the opportunity to purchase qualifying new Energy Star appliances without paying any state sales tax on the items. That's an immediate savings of 4.225 percent that, during the other 51 weeks of the year, would be added to these appliances' prices. Plus, depending on where you live (or travel to buy), the sales tax savings could be... Read more →


The Internal Revenue Service had issues with some of its online systems on Tuesday, April 17, the day that was supposed to be the filing deadline for our 2017 tax returns. Those problems notwithstanding, e-fling and electronically paying any tax that's due today, Wednesday, April 18 — yes, today, the new filing deadline provided by the IRS to make up for its online inconveniences yesterday — is still the best move for many filers. The agency for years has been encouraging, and in some cases forcing, electronic filing and paying of taxes. The reasons are that it's easier (definitely for... Read more →


Take this broken computer and multiply by millions. That was what it felt like April 17 for many taxpayers who were trying to use IRS.gov online services to finish up their tax tasks on deadline day. (Photo by Brian Herzog via Flickr) Tax Day 2018 has been awful for a lot of folks, including those at the Internal Revenue Service. That's why the IRS is going to take another run at it on April 18. Late Tuesday, April 17, afternoon, the tax agency announced that it's going to give everyone an additional day to file and pay their taxes following... Read more →


It's been years since U.S. Post Office branches in Austin have stayed open for Tax Day. I suspect that's the case across much of the United States. Most of us e-file our 1040s. Through April 6, the Internal Revenue Service had received almost 96 million electronically filed returns. It's expecting millions more electronically delivered returns as we rush to make today's filing deadline. So the mail service isn't swamped like in olden days when some offices had special pre-midnight festivities for taxpayers to drop off their returns. This shift means that if you're still committed to mailing a paper Form... Read more →


April 17 is Tax Day 2018. That means, of course, that tax returns for last year are due. But other tax tasks also share the annual April deadline. A big one for millions of taxpayers is the filing of the year's first estimated tax payment. Estimated tax payments are made by folks who have income that isn't subject to withholding. This typically is money made from full-time self-employment, side hustles, investment income and/or prize or gambling winnings (which is often like investing, but I digress). An earlier post has the scoop on these four extra tax payments. For today's purposes,... Read more →


Source: CafePress tax jigsaw puzzle Still trying to put the pieces of your Form 1040 (or 1040A or even 1040EZ) together? Time's running out. Tax Day is almost here. Since the tax filing deadline is April 17 this year, here are 17 tax tips. Not only do they earn this week's By the Numbers honor, some could help you put together a return to send to Uncle Sam on time and at the least possible tax cost to you. 1. File on time. Yes, this first tip is obvious, but a lot of people let the filing date slip by... Read more →


Apparently working on your taxes works up an appetite. That's the message from businesses offering freebies, or at least discounted items, on Tuesday, April 17, aka Tax Day 2018. Bagels, cinnamon rolls, sandwiches (sub, traditional and breakfast versions), cookies and Texas favorites corndogs (although some vendors — Yankees, perhaps? — call them hot dogs on a stick) and tacos (same culinary language nationwide) are there for your tasty taking on Tax Day. Taxes got you too stressed to eat? Take advantage of massages to ease you into a post-filing relaxed state. If you prefer to stay focused on the day's... Read more →


"If anyone from the, uh, from the IRS is watching, I…forgot to file my, my, my 1040 return. Um, I meant to do it today, but…." That tax oversight admission was made on April 11, 1970, by National Aeronautics and Space Administration (NASA) astronaut and Apollo 13 command module pilot John "Jack" Swigert. Bill Paxton as Fred Haise, Tom Hanks as Jim Lovell and Kevin Lovell as Jack Swigert in a pivotal scene from the 1995 Universal Pictures film "Apollo 13." (Image courtesy IMBD.com) By now, everyone knows, either because they're fans of NASA (like me!) or the popular Ron... Read more →


Tax Day is less than a week away. But finishing up your 2017 Form 1040 is not the only tax task facing millions of Americans. Here are 10 tax matters that must be taken care of by April 17. 1. File your 2017 tax year federal tax return. Yeah, I started with the easy (so to speak), obvious one. But it is the reason for the tax season. If you don't get your return into or on the way if snail mailing by Tax Day, the late-filing penalty is 5 percent of the additional taxes owed amount for every month... Read more →


Federal, and most state, tax returns are due in less than a week. Don't panic! You still have time to finish your return (or get an extension). But don't be in such a rush that you make a costly mistake. Yes, errors on 1040s still happen, even though most of use tax preparation software that catches errors on our annual returns. Here are a dozen common tax mistakes that millions of taxpayers make every year. Some are directly from the Internal Revenue Service. Others are based on my and other filers' experiences. 1. Missing or inaccurate Social Security numbers: This... Read more →


Most taxpayers have never itemized their deductions. And the new tax law that took effect this year will ensure that even fewer filers fill out a Schedule A. By nearly doubling the standard deduction amounts, the Tax Cuts and Jobs Act (TCJA) will prompt more folks to use them instead of messing with the record keeping and extra paperwork itemized deductions require. Plus, as I'm sure you've heard by now, starting with the 2018 tax year and running through, for now, 2025, other TCJA changes will make itemizing even less valuable. The amount of state and local taxes, including your... Read more →


Most U.S. taxpayers get refunds. But the time it takes to get that over-withheld money seems to get longer every filing season, at least according to the emails I've received and comments on my refund-related blog posts. Part of the reason is the annual mandated hold until mid-February of refunds associated with returns that included Earned Income Tax Credit (EITC) or Additional Child Tax Credit claims. Realistically, that money doesn't show up in many affected filers' hands until the end of February. Then earlier this year, Congress decided to renew some tax breaks after the filing season had already been... Read more →


New York magazine's Nov. 13-26, 2017, cover featured Cardi B. Click to see full image. (Photograph by Hassan Hajjaj) Things have been going great for Bronx-born rapper Cardi B. She was the musical guest on last night's Saturday Night Live, hosted by "Black Panther" star Chadwick Boseman. It seems a New York magazine cover last November got it right when it proclaimed she was made to be this famous. On her way to membership in music and pop culture's top echelon, Cardi B's career has covered an astoundingly wide spectrum. After losing her job as a teenage employee at an... Read more →


Hurricanes Katia, Irma and Jose (left to right) lined up last September, each possibly headed for landfall. (National Hurricane Center radar image) A key forecast group expects the 2018 Atlantic hurricane season to be even more active than normal. That is not what people who endured Hurricanes Harvey, Maria and Irma last year and are, in some areas, still struggling to recover, wanted to hear. Dr. Phil Klotzbach and his team at Colorado State University's Tropical Meteorology Project are forecasting 14 named tropical storms this hurricane season, which officially runs from June 1 through Nov. 30. Mother Nature and her... Read more →


Tax Day 2018 is almost here. This mid-April deadline, which falls on April 17 this year due to the Emancipation Day federal holiday in Washington, D.C., means that millions of us are in the midst of finishing up our federal tax returns. Many filers also are doing double tax duty right now. That's because they live in a state that taxes some portion of income. And most of those income tax collecting states follow the IRS filing calendar. That means those states' deadlines this year also are April 17. No, some or all state taxable income: Here in Texas, the... Read more →


Identity theft is bad enough, but when it's connected to your tax data, things can be particularly scary. Not only does a crook have personal information about you, but he or she can steal the tax refund you've been counting on. In some situations where your data has been hacked, you'll want to file a Form 14039, Identity Theft Affidavit, to let the inform the Internal Revenue Service that you think you may be a victim of tax-related identity theft. Now you finally can file that form online. IRS, FTC take ID theft fight further online: The IRS now will... Read more →


Being your own boss means you are responsible for many tasks, including setting up a retirement plan for yourself and your business' employees. If you're self-employed, your primary focus, especially in your entrepreneurial effort's early years, likely is to just make sure your business survives. But once you're on stable business footing, it's wise to look into tax-deferred retirement plan options for your small business. Not only are these retirement accounts a great way to save for the day you are ready to stop working, they also can help you reduce your current tax bill. Here are three self-employed retirement... Read more →