March 1: When this day arrived, it was the start of the last full month of high tax-filing season. Back in that simpler time not so long ago, all we had to worry about was whether to attack our tax returns like a
lion or be more cautious tax lambs facing impending federal and, for most folks,
state taxes.
Now, however, health concerns have complicated things. The spreading COVID-19 virus resulted in a delay of the usual spring tax deadlines. So instead of crashing this March to meet an April 15 filing and payment due date, we get until
July 15 to finish our taxes.
As we aim for that new deadline, and regardless of which
March spirit animal you still embrace, these tips are designed to help you cope with your tax obligations under these new and sometimes frightening times.
March 4: If you're just now tackling your taxes, start at the beginning: a look at some of the
forms and relevant tax amounts that were
adjusted for the 2019 tax year.
Form 1040 and its schedules have been revised (again). And the key figures are the
standard deduction amounts, as well as how much of last year's earnings fall into what
income tax brackets.
You'll also want to make sure you have all the tax statements you need to complete your return. This
tax checklist can help.
March 10: The coronavirus has closed many restaurants across the United States. That's meant a loss of income for millions of workers in the consumer food sector. If, however, you still are working at a job that includes
tips, remember to account for them. If you received at least $20 in gratuities in February, use
Form 4070 to report them today to your employer.
Click image
to calculate how much to leave your server.
March 13: Many of us who are superstitious dread any Friday the 13th. One in tax season usually is even more frightening, since we already have enough things to worry about as we work on our returns. But not to fear, especially when it comes to some seemingly scary tax concepts. This
scoop on 13 misguided tax beliefs eases some common tax misperceptions.
March 15: What the what? We just cleared spooky Friday the 13th and on its heels is today's
Ides of March. But it's not so scary this year for many business filers. The usual
March 15 tax filing deadline for partnerships (Form 1065 with K-1 schedules) and S corporations (Form 1120S) gets pushed to 3/16 since today is a Sunday.
March 17: Erin Go Bragh and
Happy St. Patrick's Day!
via GIPHYBut don't trust lucky charms to get you through filing season. Double check your 1040 to ensure you haven't
overlooked any tax breaks or made any common
filing mistakesMarch 20: Spring has sprung!
That means it's time for
spring cleaning. Your gifts won't help with your current return, but they could pay off next year as
charitable donation deductions if you itemize on your 2020 tax return. Just be sure to
value any donated goods accurately or you could prompt the Internal Revenue Service to take a closer look at your return.
March 24: Any time an IRS examiner looks at any of your return entries, you need to
be prepared. Make sure you have sufficient documentation for all your tax claims. Avoid waving
audit red flags. And definitely consider hiring a
tax pro with audit defense experience to guide you through the process.
March 27: If you celebrated your
70½ birthday last year (and who doesn't have parties for half birthdays?) and didn't take money out of your tax-deferred retirement accounts by the end of 2019, you must make a specified withdrawal by April 1. No joke. These
required minimum distributions, or RMDs, are how Uncle Sam finally gets his piece of your traditional IRA, workplace 401(k) or self-employed
retirement plan pie.
Savvy taxpayers are pointing out that recently-enacted retirement provisions push the applicable birthday back to age 72. True, but that didn't take effect until this year. If you reached 70½ in 2019, the prior rule regarding that age applies and you must take your first RMD by this rapidly approaching April 1. However, if you reach age 70½ in 2020 or later, your first RMD is due by April 1 of the year after you hit age 72.
March 31: Wait! We're at the end of March and you still haven't filed? No worries. As noted, this filing season we get 90 more days. So whenever you do get around to finishing up that 1040, look into the possibility of using
Free File, which, as its name says, offers eligible taxpayers access to tax software and e-filing at no cost. It's available for taxpayers with adjusted gross income of $69,000 or less.
There are 10 software companies participating this year at IRS.gov's
Free File webpage. If you make too much to use the online software, look into using Free File's fillable forms.
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.
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