Taxes Feed

Welcome to Part 4 of the ol' blog's series on 2018 inflation adjustments. Today we look at changes to some popular credits and deductions. You can find links to all 2018 inflation posts in the first item: Income Tax Brackets and Rates. Note: The 2018 figures apply to 2018 returns that are due in 2019. For comparison purposes, you'll also find 2017 amounts to be used in filing 2017 returns due next April. Millions of taxpayers depend each year on tax deductions and tax credits to cut their annual tax bills. The main tax reduction strategy is claiming the standard... Read more →


Where the heck has 2017 gone? The countdown clock over in the ol' blog's right column is steadily ticking away the time left until Dec. 31, the deadline for most moves that could affect this year's taxes. The Internal Revenue Service, however, has its eyes on November, which is just little more than a week away. The start of that 11th month effectively is the cutoff date for the federal tax agency to get ready for the next year's filing season. If the IRS can't get some certainty as to how to update forms, instructions and operational processes, the start... Read more →


There could be some consistency in how states collect sales tax on consumers' online purchases if the Supreme Court agrees to hear a South Dakota case. Many states are ignoring the sales tax law of the land, decided in 1992 by the U.S. Supreme Court's ruling in Quill v. North Dakota. Soon another Dakota high court case, this one from South Dakota, could change the state sales tax collection law for remote sellers. On Sept. 14, the Mount Rushmore State's quest to collect sales tax from online et al retailers was rejected by that state's highest court. That's just what... Read more →


Welcome to Part 3 of the ol' blog's series on 2018 inflation adjustments. Today we look at changes next year to retirement and pension plans. You can find links to all 2018 inflation posts in the first item: Income Tax Brackets and Rates. Note: The 2018 figures apply to 2018 returns that are due in 2019. For comparison purposes, you'll also find 2017 amounts to be used in filing 2017 returns due next April. Maxing out your retirement plans, both those offered at your job and your separate IRAs, can help you build an overflowing nest egg. As Congress explores... Read more →


This is the first in a 10-part series on the 2018 tax year inflation adjustments. Links to the other posts are at this end of this article. The White House and Congressional Republicans are still hoping to get some tax changes finalized by the end of the year. The IRS, however, isn't waiting on Capitol Hill. The Internal Revenue Service on Thursday, Oct. 19, released its annual compilation of tax provisions that are affected by inflation. It also issued next year's retirement plan contribution changes. The upshot is that most amounts will increase in 2018. Numbers, we've got lots o'... Read more →


Image by Shawn Campbell via Flickr Creative Commons What's going on with the Affordable Care Act (ACA)? It depends on where you're looking for answers. Federal lawmakers remain in a quandary over how to deal with the ACA, or as it's known (for now) Obamacare. The Internal Revenue Service, however, made it clear this week that it plans to follow the health care law's reporting requirements as long as they are officially on the books. That's a reversal of a prior IRS position. However, given the confusion with the law, both under its namesake president and since Donald J. Trump... Read more →


To err on tax returns is human. To forgive is Xtraordinary, and yes, the misspelling is intentional. Tax law lets us correct mistakes we make on our 1040s via another form, the 1040X. Most people file 1040X, which is known as amending your return, because they discovered they didn't claim a tax break that give them a (or a bigger) tax refund. Of course, since the Internal Revenue Service is involved, there are some rules and certain steps you must follow. Here are five key things to keep in mind if you discover you need to re-do a previously filed... Read more →


It's that time of year again. Monday, Oct. 16, the absolute final tax return filing deadline. Don't panic. You've still got a few hours to fill out and submit your 2016 Form 1040. The latest Weekly Tax Tip, over there at the top of the ol' blog's right column, has 10 tax tidbits to help you through today. You also can find more tax tips in this year's previously posted Daily Tax Tips, conveniently archived on their own by-month pages: January, February, March and April. Good luck with your 2016 return today. And remember, when you're done with that (yay!),... Read more →


Cook County residents lined up last week to tell county commissioners what they thought about the board's proposed soda tax. (Photo by Hal Dardick via Twitter) Cook Cook County officials implemented a tax on sugary beverages this summer. That levy, which was designed to (1) promote healthier habits among Chicago-area residents, (2) raise more much needed money for the Illinois county or (3) both, has fizzled. On Wednesday, Oct. 11, county commissioners voted 15-2 to repeal the penny-per-ounce tax, which, like similar proposals, is usually referred to as a soda — or pop in the Midwest — tax. Collection of... Read more →


Aerial view on Oct. 9 of a damaged home in the mountainous area of Barranquitas, Puerto Rico. After Hurricane Maria, many homes, businesses, roads and bridges suffered major damages due to strong winds and heavy rain. (Photo by Andrea Booher, FEMA) To borrow from James Taylor's plaintive classic, the Internal Revenue Service has seen fire and rain and is making tax accommodations for Americans having to deal with those disastrous aftermaths. Hurricane Maria made landfall in Puerto Rico on Sept. 20, pummeling the U.S. territory with category 5 force. Three weeks later, many of the island's 3.4 million residents are... Read more →


If Halloween isn't scary enough for you, this October also has a Friday the 13th, which if you haven't looked at a calendar yet, is today. It's a terrible day if you're superstitious or suffer from paraskevidekatriaphobia. And making things even more frightening, the Internal Revenue Service has some terrifying news about tax scams. This week alone, the IRS has issued two warnings about tax-related identity theft schemes. First was the phishing attempt to hook tax pros by using the agency's e-Services as bait. Now there's a fake insurance tax form scam that's being used to access annuity and life... Read more →


AT&T Stadium, originally known as Cowboys Stadium when it opened its doors in 2009 and forever known as Jerry's World regardless of which company buys naming rights, is home to America's Team. It also hosts college football's Cotton Bowl game, as well as a variety of other sports and entertainment activities. NFL team owner Jerry Jones footed most of the billion-dollar stadium's cost, but Arlington voters approved an increase of the city's sales, hotel occupancy and car rental taxes to help pay for the facility. Arlington also provided millions in bonds to help Jones cover any cost overruns. (Photo by... Read more →


Tax identity thieves apparently are paying close attention to official security moves that the Internal Revenue Service is making and using that information to create new schemes. The latest effort by crooks to steal taxpayer personal data comes in the form of a new phishing scam designed to steal tax professionals' passwords and data. e-Services is hook for latest ID theft effort: In an email alert sent this (Oct. 11) afternoon to tax pros, the IRS warned that this latest scheme tries to trick them into signing a new e-Services user agreement. The phishing email claims to be from "e-Services... Read more →


Based on Internal Revenue Service tax return filing data, it looks like around 7 million Americans have yet to submit their 2016 forms. They need to get busy. (Yes, I get to say they, not we, this year since I filed my 1040 this summer.) The absolute, final due date is less than a week away. The six-month filing extension typically kicks the extended deadline to Oct. 15. But since that's on a Sunday this year, the IRS is giving extreme procrastinators until Monday, Oct. 16. So that you don't waste any of these last few days you have to... Read more →


So that you can enjoy lazy days in your retirement like this couple, take advantage of tax-saving retirement moves by the October filing extension deadline. (Photo by Pug50 courtesy Flickr CC) If you're one of the millions who's put off filing your tax return until October, you know that due date — it's Monday, Oct. 16, this year — is just a week away. (More on this, complete with filing tips coming soon!) But mid-October is also a key deadline for other tax tasks, particularly when it comes to retirement savings. Here are a couple of retirement-related tax matters to... Read more →


UPDATE, Oct. 13, 2017: Public and Congressional pressure, which included Sen. Sherrod Brown's (D-Ohio) letter to the Treasury Department urging it to review and potentially bar Equifax from consideration in any new or renewed government contracts, has paid off for opponents of the credit reporting bureau deal. The IRS announced, per an Oct. 12 report by Politico, that it has temporarily suspended the $7.25 million, no-bid contract it awarded to Equifax to verify the identities of taxpayers when they create accounts on the tax agency's website. Driver's license data was among the personal info that identity thieves obtained in the... Read more →


Who's in the middle class will determine in large part whether that group of Americans gets Republican-promised middle class tax relief. One of the big debates about any tax reform is whether or how much it will benefit the middle class. That was a question in today's #TaxBuzzChat about the recently released Republican framework for tax reform. First, however, we need to decide what is and who is part of the United States middle class. There are several ways to define the middle class. Some say it is based on income. Other define it by lifestyle. Still others say middle... Read more →


Former Equifax CEO Richard Smith is grilled Oct. 3 about the credit company's security breach by members of the House Energy and Commerce Committee. (Click image to watch full hearing on YouTube) Human error, specifically one human's error, is why 145 million of us are worrying about what crooks will do with the data that was stolen earlier this year in a data breach of Equifax. Richard Smith, the credit reporting bureau's former CEO, in testimony before House Energy and Commerce Committee today blamed the initial failure to patch a known security risk on a specific individual. He did not... Read more →


October marks the start for many companies of open season for employees' workplace benefits, many of which provide workers some nice tax savings. It's also a good month to make other tax-related moves. It's time to turn our attention to health care again. This time, though, it's not medical insurance via the Affordable Care Act/Obamacare. Instead, October marks the beginning of open enrollment season for workplace-provided benefits at companies across the country. Decide now for next year: Open enrollment periods vary from company to company. Most run from two to four weeks for workers to evaluate their current benefits and... Read more →


Congress hopes to move beyond talk and have tax reform details in writing by mid-November. The Senate Budget Committee released its 2018 budget blueprint on Sept. 29, setting the stage for up to $1.5 trillion in tax cuts over the next 10 years. That's an astounding, alarming, amazing, pick-your-adjective amount. But the figure that caught my eye, and which earns this week's By the Numbers honor, is 13. As in Nov. 13. That's the date set in the Senate budget resolution by which it wants some legislative flesh attached to the framework of a tax reform that Republicans released on... Read more →