Hello February, and ❤ to our new 2023 Valentine, the Internal Revenue Service. OK, maybe love for the IRS is a little much, but we at least want to make nice with Uncle Sam's tax collector this month as it goes into the first full, albeit short, month of the tax season. That means some taxpayers will be getting their refunds in February!
via GIPHY
With just 28 days, it will mean some full days for both IRS employees, some of whom are still trying to catch up on that lingering COVID-19 pandemic backlog, and all of us who'll file this month. So let's not waste anymore time, and get to some tax tasks for this shortest month of the year!
Feb. 1: Employers and other third-party payers were to have issued us our W-2 and associated 1099 forms by Jan. 31. If you're still waiting, be patient and give them a tad more time. And don't forget to check your email, as many issuers sent out electronic notices of the online availability forms and other statements you need to file your taxes instead of relying on the U.S. Postal Service.
Feb. 2: Happy Groundhog Day!
The main reason to wait for the correct tax statements is to avoid getting caught in a
Bill Murray kind of tax loop, where you have to file an
amended tax return because you entered wrong info on your original 1040.
Feb. 7: Black History Month is celebrated every day this month, commemorating the achievements by black Americans and recognizing the role of African Americans in U.S. history.
The
National Association for the Advancement of Colored People (NAACP), the nation's oldest and largest grassroots-based civil rights organization, was founded on this month, specifically on Feb. 12, 1909, the centennial anniversary of the birth of Abraham Lincoln, who issued the
Emancipation Proclamation twice.
One of the NAACP's key divisions is its
Legal Defense and Educational Fund.
If you want to support the Fund's work, during Black History Month or any day of the year, you can donate to it and, since it is a 501(c)(3) organization, claim your gift as a
charitable tax deduction if you itemize. Sorry, filling out Schedule A is your only option this filing season, since Congress didn't renew the option to claim cash gifts of up to $300 for single filers or $600 for married filing jointly couples directly on Form 1040.
Feb. 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.
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 January, you must account for the tips today by using
Form 4070 to report last month's tips total to your employer.
Feb. 12: Are your ready Chiefs, Eagles, and special television commercial fans? It's finally Super Bowl Sunday! Not only will today's 57th Super Bowl decide American professional football's champion, it's also the biggest single betting day of the year. The NFL, like the other professional U.S. sports leagues, have
embraced betting. Just remember, if any of your wagers pay off, you
owe tax on your winnings. Note, too, that even if your winnings are part of a
fantasy sports bet, the associated taxes are very real.
Feb. 14: Happy Valentine's Day! Do you and your better half file a joint return? Most
married couples do. Remember to look over the 1040 carefully before you sign it. When both spouses sign their jointly filed 1040, each is
jointly and severally liable for the entire tax amount due. I don't want to spoil your Heart Day celebration, but this means the IRS can come after either spouse for payment of a tax bill, even the husband or wife who is in more dire financial circumstances.
Feb. 15: Today is the day that the Internal Revenue Service finally can issue refunds to filers who claimed the
Earned Income Tax Credit (EITC) or additional Child Tax Credit. But don't spend the money just yet. Even if you're getting your tax refund directly deposited, the IRS' general processing time plus protocols of financial institutions receiving the refunds you’re your tax cash probably won't actually show up in your account until the end of this month.
Feb. 20: Today is one of the reasons for tax refund delays. It's the
Washington Birthday federal holiday, officially honoring George Washington, the Father of Our Country. Over the years, however, this federal (three-day, yay!) holiday has come to commemorate the contributions of all our
Commanders in Chief, and is popularly known as Presidents' Day. That means we've got to give another shout out to Abraham Lincoln, who essentially was
father of our income tax system, signing into law a tax on earnings to help pay Civil War costs.
Feb. 24: You're ready to work on your tax return, but you're on a budget. No worries. The IRS and its Free File Alliance partners again offer no-cost online tax preparation and electronic filing to eligible taxpayers at the IRS' special
Free File web page. This year,
seven tax software companies are participating.
The Free File income threshold this year remains at adjusted gross income (AGI) of $73,000 or less, regardless of your
filing status.
Feb. 28: Wow! February really did speed by, especially since we were having so much tax fun. Or maybe you weren't having any fun at all trying to do your taxes yourself, even with software's prompts, and have decided to turn to professional tax help. That's a smart move, and here are some tips on how to
find the perfect tax professional for your filing and planning needs. Note, though, that at this point in the filing season, you're likely to be placed at the end of that tax pro's very long client queue, as reputable tax preparers' calendars fill up fast. So again, be patient. You're at least now in tax filing line.
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.
David Stockman wasn’t the architect of Reagan’s tax policies. He was important as a budget-cutter, but he never had much to do with tax policy. As far as I can tell, he never really supported or understood Reagan’s tax policies.
If Stockman wants to criticize Republicans for their failure to cut domestic spending, great. The federal government is too big and too expensive. On the other hand, if he wants to complain about low taxes, I say: “What low taxes?”
Posted by: John Knight | Sunday, November 28, 2010 at 01:07 PM
THE FOLLOWING IS FROM OLIVER WENDELL HOLMES*************************************
Why do I have to pay taxes?
Oliver Wendell Holmes, former Justice of the United States Supreme Court, said,
"Taxes are what we pay for a civilized society." In some respects, a "civilized society" is the rationale for government in the first place. The signers of the Declaration of Independence set out to establish a new form of government for the "protection of life, liberty, and the pursuit of happiness". To this end, the framers of our constitution enumerated the proper fiscal functions of government as "to pay the Debts and provide for the common Defense and general Welfare of the United States". Taxes are simply the preferred method for paying for these governmental functions, the other methods being the issuance of public debt and the issuance of money."
Posted by: Dominick J. | Monday, November 08, 2010 at 10:15 AM
"Optimism is not necessarily bad. Delusion is." That one is going in the quote book.
We voters want it all, don't we? Low taxes. Free government services. World peace.
Wonderful post.
Posted by: Lauren @ Richly Reasonable | Monday, November 01, 2010 at 02:19 PM
Taxes haven't been the problem. The discussion always hides the issue that we can't cut spending.
And not a soul in DC can tackle: too much military spending, too much entitlement spending, too much foreign aid, too much education spending, etc, etc.
Our current problem had it roots when foreigners decided were were like the rock of Giblatar on a national level that our spending has gone wild. They loan us money with basically no strings attached. It's not helpful to our national discipline.
"That means accepting some taxes, even those that don't provide directly for what we personally want. "
I do, but please be careful with this. I think 90% of us can agree that roads need to be built. Not all of us agree, however, that sending even minuscule amounts to the arts and certain social programs is fair or a good idea.
IMO, anytime you tax someone, you take away a little bit of their freedom. Even if they didn't earn the money, it is not my right to take it away for something I or we "feel" is right. It needs to be of the highest order of common good.
I guess what I'm saying is that I don't condone tax protesters but I understand their point of view. I understand the frustration. I just wish that it was directed in more effective manner.
Posted by: Amy | Monday, November 01, 2010 at 07:13 AM