Don't forget an FSA gift for yourself

California flood, mud disaster

Merry Christmas 2010
from the Texas Christmas Armadillo

Don't forget an FSA gift for yourself

Friday, December 24, 2010

As you head out on this Christmas Eve to pick up last-minute presents, don't forget a tax-related gift for yourself.

This is the last year that you can easily spend medical flexible spending account, or FSA, funds on over-the-counter, or OTC, medications.

With this workplace benefit, you put money in your FSA before it's taxed. Then you use the funds to pay for allowable medical expenses. For years, OTC drugs have filled up the shopping bags of FSA owners looking to spend down their accounts, usually by Dec. 31, so they don't lose the money.

The OTC option has been tightened beginning in 2011 thanks to a provision in the health care reform act. Next year, you'll need a doctor's prescription for that NyQuil and Tylenol for it to be FSA reimbursable.

I bring this up now because if your holiday family gathering is anything like mine, those antacids (sure, Mom, I'll have another piece of pie), aspirin (cousin Jim can you keep your kids quiet for just five minutes?!) and cold treatments (really, Uncle Billy, we're glad you decided to come visit even though you have that terrible cough) will come in very handy.

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Posted on Friday, December 24, 2010 at 09:23 AM in Healthcare Medical, Taxes, Work-job-career | Permalink | Comments (0)

Tags: FSA, FSA deadline, health care, medical flexible spending account, taxes

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Today's Tax Tip

Tax tips for newlyweds — Everyone loves love! Even the tax man. If you and your beloved have or will tie the knot, here are some tax to-do's to take care of after you say "I do." And, of course, after the honeymoon! (Sept. 25, 2023)
The 2023 Tax Tips offer ways to file your annual return, along with post-filing advice, important tax news and, of course, ways to cut your current tax year bill. You'll find the monthly assemblages on their own respective pages: January, February, March, April, May, June, July, August, September, October, November and December. Remember, tax tasks and tips don't stop after you file your annual return!

All About Kay

OK, some about Kay

Kay Bell — Native Texan
(the blog title totally makes sense now, right?). Professional journalist. Tax geek.
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Tax Season 2023 Continues!

Tax Day 2023 is finally over … unless you're one of the millions who have more time to file — looking at you taxpayers abroad and those in major disaster areas — or you got an extension to file your 2022 tax year return. That's fine. In fact, the Internal Revenue Service appreciates some of us spreading out our filings, especially when it means we are taking the time to submit a complete and correct return.

This tax focus shift means the ol' blog will continue to provide filing tips through the Oct. 16 extension deadline. Yep, it's a day later this year, since 10/15 is on Sunday. But I haven't forgotten my organized taxpayer readers, who are looking for ways to reduce their 2023 tax year bills. Yep, that amount already is adding up, but there are moves you can make. The monthly tips and reminders a little further down this column can help everyone, regardless of which tax year now is in your sights.

Those on extension should also keep a keen eye on the countdown clock below. It will help you track the days tick, tick, ticking off toward that absolutely final fall filing due date. They'll speed by quickly when you're having tax fun, and aren't we always having tax fun?!?
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

Hello 🍂 September
Fall is here! OK, not yet, at least not temperature wise, here in Texas anyway. But forecasters say they're on the way, and that promise of cooler days and nights gives up hope.

via GIPHY

As we get ready to literally chill a bit, September also is a great month to make some cool tax moves, like those listed below.
Sept. 1: Today is Meteorological Fall, the three months from Sept. 1 through Nov. 30 when days get shorter and cooler, but not cold. It's also the start of the annual National Preparedness Month. The devastating wild fires in Hawai'i and Hurricane Idalia's landfall in Florida's Big Bend as a category 3 storm underscore the need to be/get ready for whatever disaster Mother Nature may bring. In September, that's likely to be more tropical systems. The ninth month of the year generally is the most active of the Atlantic/Gulf of Mexico hurricane season, which runs through Nov. 30.

In fact, today the National Oceanic and Atmospheric Administration (NOAA) National Hurricane Center (NHC) issued an alert for Tropical Storm Gert, bringing up closer to the Climate Prediction Center's updated forecast of 14 to 17 named storms 14 to 17 named storms, with 6 to 11 of those possibly becoming hurricanes.. As many as 5 could reach major status, which is category 3 (like Idalia), 4 or 5 with winds of 111 mph or higher. Regardless of the count, it only takes one to wreak havoc. The countdown clock below can help you keep track of how many more days you have to worry about tracking any size or type of tropical storms.

You also might want to check out the ol' blog's special Storm Warnings.
These multi-page collections of posts offer tax advice on preparing for, recovering from, and helping those who sustain damages from the many ways that that weather goes wild. That includes claiming uninsured losses from a major natural disaster as an itemized tax deduction.

Sept. 4: Happy Labor Day! This celebration of workers' contributions is a federal holiday and day off for many.

via GIPHY

Unemployment rates have dropped and many workers have had success this year negotiating better deals. Continued options to work from home are among the wishes of many employees. But take note that such hybrid arrangements — some days working from home, others at the office — could produce tax complications for workers. One of them is the unwelcome realization that as employees, a home office is not tax deductible.

Sept. 11: If your job is 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. Remember, though, that those tips 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.

And if you got at least $20 in gratuities in August for doing a good job as a food server or hair stylist or parking valet or whatever job where tipping is common, you must report that amount by today. Use Form 4070 to let your employer know the total tips you took in last month.

Sept. 15: It's Tax Day if you're among the millions who must pay estimated taxes. The amount for earnings in June, July, and August that weren't subject to withholding is due. Some estimated tax payers, however, do get more time to make this third quarter payment, but the reason is not one any of would want. Their deadline is delayed because they live in major disaster areas.

Sept. 23: The Autumnal Equinox arrives today at 2:50 a.m. Eastern Daylight Time in the Northern Hemisphere, marking the first day of Fall for all us who don't follow the meteorological fall calendar. Adjust for your time zone, since the equinox occurs at the same moment worldwide. It's also a go-to day to think about home maintenance that will help you weather the coming colder weather. The Inflation Relief Act includes extension of older and addition of new energy-related tax breaks, including some for residential improvements.

Sept. 30: It's the last day of September. That means if you got an extension back in April to file your tax return, that new Oct. 16 deadline is just weeks away. I get that procrastination is your thing, often with good tax reasons, but you don't have to wait until the very last minute. Again. You can use this last weekend of September to finish up and file your 2022 return.

The easiest way to file any time of the year is electronically. And if your adjusted gross income (AGI) is $73,000 or less, regardless of your filing status, check out Free File, the online preparation and electronic filing web page for eligible taxpayers created by the IRS' partnership with the Free File Alliance. It's still operational.

This year, you can select from seven tax prep companies participating in Free File so that you can, as the name says, prepare and e-file your return at no cost.

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.

State Tax Help

Don't forget your state taxes!
Forty-three states and D.C. collect personal income taxes. But even if you live in of the seven states without an income levy, you still face other state (and local) taxes.

State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.

Tax Forms

Thanks to our increased use of tax preparers and computer software, many of us don't see our tax forms until we sign and file them. But knowing what's on these documents, either in paper or digital form, and why the IRS wants it is key to understanding our tax system. And knowledge definitely is power, especially when it comes to tax savings. Find this valuable information in the ol' blog's special Tax Forms 2023 page.

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Tax Reading Room
You also might enjoy these other tax tips from some of my tax-writing colleagues:
JK Lasser 2023 taxes
Dealing With the IRS
JK Lasser 1001 Deductions
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I gotta tell ya ...

AKA Disclaimer:
I am a professional journalist who has been covering tax issues since 1999.
I am not a professional tax preparer.
The content on Don't Mess With Taxes is my personal opinion based on my study and understanding of tax laws, policies and regulations. It is provided for your private, noncommercial, educational and informational purposes only. It is not a recommendation of any specific tax action(s) you should or should not take. Similarly, mentions of products or services are not endorsements. In other words, my ramblings on the ol' blog are free advice and you know what they say about getting what you pay for. That's why when it comes to filing your taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent or other qualified tax preparer who is familiar with your individual tax circumstances.

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COVID-19 & Taxes

Coronavirus has wreaked havoc
on the 2020 and 2021 tax seasons.
These five Coronavirus (COVID-19) and Taxes pages have details:
March-July 2020
August-December 2020
January-December 2021
January-December 2022
…and so it continues into 2023
You can find medical coronavirus resource links in the next section.

COVID-19 Resources

Need help finding a coronavirus vaccine in the United States?
Call 1-800-232-0233
or TTY 1-888-720-7489.
More information and resources at:
CDC Vaccines
CDC Booster Shots
HHS Combat COVID
USA.Gov COVID Info

September 2023

Tell it to the Hill

While it's easy to rail at the IRS, for the most part we can thank — or blame — our tax laws on Congress and the White House. So if you have an issue with tax legislation or want a tax bill passed, you need to let your federal legislators and the White House occupant know of your concerns. You can find out who in Washington, D.C., to contact (and how), as well as get information on your local lawmakers for matters, tax or otherwise, closer to home, at USA Gov.

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Just in case,
backup countdowns.

Filing Extension Time Left
Hurricane Season Ends In
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