March 1: March is the last full month of the tax-filing season, so that's a good reason to come at our taxes in the month's proverbial "in like a lion" mode. The first thing to attack like the feline king is the gathering of all the tax statements you'll need to fill out your 2024 return. This includes the paper ones that you stuck in a drawer when they arrived last month. Find them now, as well as download those that are delivered that way.
March 5: Official tax statements aren't the only things you'll need to help you file. Other documents have information that's relevant to your tax return. So are the answers to some basic life questions. This tax checklist can help guide you as you work on your return. And don't forget about your previous tax return. That prior tax year filing is a good template, especially if your tax life hasn't changed that much.
March 9: How are you feeling today? If you're like me, a bit tired after losing an hour of sleep earlier this morning when we shifted to Daylight Saving Time.
I know you have plenty of fun things to spend the added late-day natural daylight on, but you might want to also work on your tax returns. Yes, plural. In addition to federal returns, most Americans live in states, or the District of Columbia, that also collect personal income tax. The good news is that tax software usually includes state filing, too. If you need to file state taxes separately, most states offer free online state tax filing options.
March 10: 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 get all the tips you deserve for doing your job well. Remember, though, that those tips are taxable income.
Whether you're dining at your favorite eatery or getting food, groceries and/or prepared meals, 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 February for your extraordinary services 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.
March 17: Erin Go Bragh and Happy St. Patrick's Day!
via GIPHYEnjoy this day, but don't trust lucky charms to get you through tax filing season. Double check your 1040 to ensure you haven't overlooked any tax breaks or made any common filing mistakes.
March 20: Spring has sprung!
That means it's time for spring cleaning. Your gifts won't help with your current tax return, but they could pay off next year as charitable donation deductions if you itemize.
March 25: If you have a tax-deferred retirement account, such as a traditional IRA or workplace regular 401(k), and are a septuagenarian, you could be facing a required minimum distribution (RMD) due date in just more than a week. If you turned 73 last year and didn't take your initial RMD by Dec. 31, you must do so by April 1. Note that your RMD deferment last year means you'll face another RMD at the end of this year, so start planning now on how you're going to deal with the 2025 taxes on two mandatory withdrawal amounts.
March 31: This is it. March is over, which for taxes means you best shed your out like a lamb attitude and get to work on your Form 1040. The IRS recommends we file electronically, which will speed up processing of returns and issuance of any refunds. And millions of taxpayers can do their taxes and e-file for free.
First, there’s the IRS-Free File Alliance partnership, which again offers no-cost online tax preparation and electronic filing to taxpayers whose adjusted gross income (AGI) is $84,000 or less, regardless of filing status at the official IRS.gov Free File website. The same eight software companies that participated last year are back for the 2025 filing season.
If your income is too high, you still can file for free by using Free File's Fillable Forms option.
You also might want to check out IRS Direct File, the IRS’ own free online tax prep and e-filing program if you live in one of the 25 states where the free online tax preparation and e-filing is offered. In addition, Direct File offers more options that apply to more taxpayers’ situations this year.
Small Business Tax Calendar: Important filing, deposit and record keeping dates throughout the year that your company needs to know. The IRS is updating the online version. Until that link is operational, you can get the full year's important business and individual tax dates in IRS Pub. 509.
The idea of taxing the rich is an impossible concept IMO. The rich offset their tax burden with write offs through corporations and all of this is completely legal.
As individuals, our taxes are removed from our gross income, the remainder is ours to spend, save and invest. This is why tax increases hurt the middle class more than any other. The lowest income brackets receive much of the taxes they do pay as refunds. High income (the rich) utilize tax shelters through investments and corporations.
For a corporation, paying bills, payroll, purchase of new equipment, settling debts, etc. all comes before taxes! Company vehicles, housing, computers, software, office furniture, travel, loss leader products and services, charity donations, your niece's startup the boss was so kind to invest in...all of these are tax write-offs. Whatever is remaining, or the profit, is taxed.
I've worked in sales since the early 90's. The highest sales volume months of the year for business to business sales, are June and December. Fiscal year end. This is when businesses have analyzed their books, and NEED to spend money. They spend money on equipment, give employee bonuses, make donations & investments, etc. because all of this is eligible for write-off.
"The rich" employ skilled tax professionals who use the law to minimize tax burden. Any new tax is researched and loopholed, before it has the slightest chance to make an impact.
Just to end with a bit of humor...This book "Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes (Rich Dad Advisors)" is the advertisement right beneath this post. If that's not funny, IDK what is!
Posted by: Raina Casbon-Kelts | Saturday, September 14, 2019 at 03:41 PM