Today technically is George Washington's Birthday, but it's popularly referred to as Presidents Day in honor of all our commanders in chief, like these four greats on Mount Rushmore National Memorial. (Image courtesy Mount Rushmore Facebook page) Happy birthday, George! That’s the officially correct take on this Monday federal holiday. Although it’s now popularly known as Presidents (or Presidents' or President's; the apostrophe apparently is optional and mobile) Day, the correct designation for today is Washington’s Birthday. America's first president was born on Feb. 22, 1732, and Washington’s actual birthdate was the holiday until 1968. That’s when the Uniform Monday... Read more →
We’re in the heart of tax filing season. So far, things seem to be going smoothly. But that could change. Internal Revenue Service workers processing the millions of already filed returns also are dealing with some additional, but not tax-related, work concerns. Plus, the tax agency could lose as many as 15,000 workers in the next week or so. That's 15 percent of the IRS’ approximately 100,000 staff. Dodging DOGE personal mandates: The possible layoffs are just part of the personnel chaos created when Donald J. Trump took office on Jan. 20 and immediately moved to slash the size of... Read more →
Some taxpayers got a new earnings statement this year, a 1099-K form. The tax statement arrived because they sold more than $5,000 in products or services through apps and marketplaces. The 1099-K, officially titled Payment Card and Third Party Network Transactions, finally was issued this year on a widespread basis. It was supposed to go out years earlier to sellers who made $600 or more. That was a change made in the American Rescue Plan Act (ARPA) of 2021 from the $20,000 in sales and 200 transactions trigger to issue the form. All income you make, even if you don’t... Read more →
Photo by Polina Tankilevitch This weekend is bookended by holidays. Today’s Valentine’s Day gift and card exchanges and Presidents Day sales on Monday, Feb. 17. It also marks the peak phone traffic at the Internal Revenue Service, with taxpayers taking advantage of a day off, and finally having their tax statements in hand, to work on their returns. For many callers, however, it also means time on telephone hold. Avoid bad tax-hold tunes: Instead of listening to music that’s not really your taste, the IRS suggests taxpayers with questions this weekend — and beyond — look online for the answers.... Read more →
Photo by RDNE Stock project Valentine's Day is tomorrow. The annual Feb. 14 celebration of love immediately conjures thoughts of hearts, flowers, chocolate, love songs, rom-coms, and taxes. Yes, taxes. I don’t want to interrupt, at least not too much, your efforts if you’re still nailing down events and gifts for tomorrow. But the following tax considerations might have an impact on your choices for Valentine’s Day. In most cases, it will be state taxes that come into play. And since states don’t impose sales taxes on all goods and services in a uniform manner or at a uniform rate,... Read more →
Photo by David Guerrero It's early in the 2025 filing season, but millions of taxpayers have already received their tax refunds. Most of these early filers also instructed the Internal Revenue Service to directly deposit their tax cash. Not only is direct deposit faster — in most cases, the IRS says refunds sent straight to financial accounts get there in 21 days or less — it’s a safer delivery method. You don’t have to worry about the U.S. Postal Service losing or misdelivering your Treasury check. Even better, it takes tax refund mailbox thieves out of the equation. Some taxpayers,... Read more →
Millions of taxpayers who were due refunds and filed as soon as the IRS gave the "go" signal have received their money, according to the tax agency's first filing season statistics report. (Photo by Engin Akyurt) The first week of the 2025 tax-filing season, which began on Jan. 27 when the Internal Revenue Service started processing returns, is going much like the prior year, at least when it comes to taxpayer submissions. Basically, people are slow. But many of those who filed their taxes as soon as possible are happy. They’ve already received their refunds, which is the main motivator... Read more →
Photo by Pixabay The Internal Revenue Service says that most taxpayers get refunds. Good for them. But those of us who end up owing Uncle Sam after we run our Form 1040 numbers have to come up with a way to pay. The easiest way, both for taxpayers and the tax collector, is electronic. Here's a quick review of six e-payment options available this 2025 tax filing, and paying, season. 1. Credit or Debit Card or Digital Wallet: Paying by plastic is one of the oldest and most popular tax e-pay methods, so Uncle Sam happily accepts our credit or... Read more →
This Bruce the Shark diamond pendant is just one of Tekashi 6ix9ine's pieces of jewelry that's on the tax auction block next month. (Photo courtesy Market Auctions) Music plays a big role in my life, from the tunes of my youth to many of today’s artists. In fact, I just ordered another CD last night. Yes, I am old when it comes to my playing (and owning) preference, even when it comes to newer music. And it’s easy to download select tunes to add to digital playlists, a modern version of my old cassette mixtapes. But I’ve got to admit... Read more →
Tomorrow night, we’ll have a repeat Super Bowl winner. Both the Kansas City Chiefs and Philadelphia Eagles have hoisted the NFL’s Lombardi Trophy before. As I type late Saturday afternoon, sportsbooks have the defending champion Chiefs as 1.5-point favorites to win their third consecutive professional U.S. football title. The bets on the game’s outcome, as well as the many possible prop bets mentioned in my Friday post, have gotten more attention as more states have allowed wagering within their borders since the gave them the go-ahead in 2018. So, for this Saturday Shout Out, I’m getting ready for tomorrow's game... Read more →
UPDATE, Monday, Feb. 10, 2025: Yes, that's green font in honor of Philadelphia's Super Bowl LIX win last night. I'm taking solace in that it took a Texan, Houston native Jalen Hurts, to lead the Eagles to the title. Did you place a prop bet on last night's NFL championship game? If it paid off, you owe tax on the winnings. Check out the results of some of the most popular Chiefs-Eagles prop bets. Super Bowl LIX is Sunday. It's a rematch between the Kansas City and Philadelphia. KC is looking to take home a third consecutive Lombardi Trophy. The... Read more →
Photo by Nataliya Vaitkevich It’s been an exciting time in your life. You got your diploma. You got a job. You even got your own apartment. OK, sort of your own, since you’re sharing it with a couple of roommates to give your budget a bit more flexibility. Now you’re about to face another financial first. Your first time filing taxes. I know, it’s not exactly a celebratory milestone. But it’s a crucial one. And it doesn’t have to be an ordeal. Here are seven steps that first-time tax filers can take to make sure their initiation into the taxpayer... Read more →
When you just can't with your taxes, check into getting help from a VITA or TCE volunteer. (Photo by Nataliya Vaitkevich) Even simple taxes can be confusing. So it’s a relief when a reputable, knowledgeable person can help you file. But what if you can’t afford a tax professional? The people who staff the thousands of Volunteer Income Tax Assistance and Tax Counseling for the Elderly sites across the United States could be your tax-filing answer. Locally-provided tax help: The Volunteer Income Tax Assistance, or VITA, program was created after passage of the Tax Reform Act of 1969 as a... Read more →
The standard tax deduction is used by most filers. The amounts are substantial, thanks to the increases of the Tax Cuts and Jobs Act (TCJA) of 2017. Plus, it’s easy to claim. The standard amount for each filing status is listed directly on Form 1040. See more tax forms and more about them at Tax Forms 2024 and Tax Forms 2025. But that doesn’t mean you should stop looking for deductions. There are two dozen that are available to qualifying taxpayers, regardless of whether you take the standard claim or itemize. Here’s a look at these 24 tax write-offs that,... Read more →
Hello, February! Even though it's the second month of the year, it's the first full month of the annual tax-filing season and the time when most of us finally start focusing on our 1040s. So, since February also is the shortest month, and we’re already three days into it, I’ll cut to the chase and keep this month’s recommended tax moves short. 1. Keep an eye out for tax statements. Jan. 31 is the day that W-2 and various other earnings statements are supposed to be delivered to workers. Guess what? That date usually slips. Today, for example, I got... Read more →
When severe weather leads to major disaster declarations, the tax obligations of the residents dealing with the aftermath also are affected. The Internal Revenue Service regularly announces tax relief for those taxpayers, including later filing deadlines. One of those delayed tax due dates is Monday, Feb. 3. Taxpayers in 14 states and two U.S. island territories who were struck by devastating hurricanes, floods, and various other lashings from an irate Mother Nature last year were given more time to file their 2023 tax returns for which they had received an extension. So, instead of having get their 2023 tax year... Read more →
The Internal Revenue Service has its own Groundhog Day, but it's not limited to just one specific 24-hour period. Most often, this re-do of a tax return is when you find you made a mistake on your original Form 1040. The do-over is accomplished by filing Form 1040-X, an excerpt of which is shown below. See more tax forms and more about them at Tax Forms 2024 and Tax Forms 2025. Fix errors: Nobody's perfect, and the annual filing season underscores that for many of us. When we do make a mistake on our taxes, filing an amended return takes... Read more →
Regular readers of the ol' blog noticed last week that I mentioned tax scams and identity theft in a couple of post last week. If you missed them, they were on added Internal Revenue Service efforts this filing season to detect tax scams and return fraud and about how filing early helps beat tax ID thieves to the stolen refund punch. Well, here’s a third mention. And this time, it’s some good news from the National Taxpayer Advocate (NTA). The IRS is making progress in reducing the time it takes to help people who are victims of tax-related identity theft.... Read more →
The Earned Income Tax Credit (EITC) turns 50 this year. The official date is March 29, in case you want to throw a party. The Internal Revenue Service isn’t waiting that long. With tax season 2025 underway, the tax agency again is celebrating this tax benefit created to help lower- and moderate-income workers with the annual Jan. 31 EITC Day. Today marks the beginning of efforts to get the word out to eligible taxpayers and encourage them to take advantage of the EITC. The EITC can be worth from hundreds to thousands of dollars for qualifying filers. While the larger... Read more →