It's official. The Internal Revenue Service today announced that it will begin accepting and processing 2022 tax year individual returns on Monday, Jan. 23. The IRS also has a date for taxpayers eligible to use its Free File service. It opens for no-cost business tomorrow, Friday, Jan. 13. Seven companies are participating this year. With the announcement of these tax season 2023 dates, the official filing kickoff calendar is complete. Today, Jan. 12, is the start of the agency's business e-filing season. On hold for just a little longer: Word on the official processing date also is good news for... Read more →
January 2023
We're just a couple of weeks into this new year, and I've received three 1099s and a donation thank-you letter. I am not alone. Official tax forms and statements are filtering into mail boxes, both curbside and electronic, across the country. The exact tax-related documents differ from taxpayer to taxpayer, but we all share one thing. We need them in order to accurately fill out annual tax returns. They include W-2 forms for folks with wage-paying jobs, 1099-NECs for freelancers, and 1099-MISC and DIV documents for those who have investment earnings. It is, after all, called an income tax. But... Read more →
UPDATE, Feb. 27, 2023: Since damages are so severe, and additional areas subsequently were designated by FEMA, the IRS has decided to further extend the tax deadline for victims of California's major disasters first declared in January. Affected Golden State taxpayers now have until Oct. 16 to take care of multiple tax responsibilities. Details in this post. The California Governor's Office of Emergency Services (Cal OES) coordinates emergency responses, such as this one in early January before the latest disastrous rains and flooding engulfed the state. (Photo courtesy Cal OES Facebook) California covers a huge area, so there's room for... Read more →
Lyriq photo courtesy Cadillac Sometimes the obvious is, well, obvious. Until it isn't. Back in 1964, Supreme Court Justice Potter Stewart's famous intuitive declaration about knowing pornographic material when he saw it made things clear. Then on Jan. 11, 2015, we Dallas Cowboys fans, then belatedly the NFL, knew that Dez Bryant's touchdown catch was definitely a catch. Now General Motors (GM) and Uncle Sam are fighting over what, for most of us, is pretty clear, specifically what counts as an SUV. The government's final answer will affect the new Inflation Reduction Act tax credit for electric versions of sports... Read more →
Photo by Hassan OUAJBIR The first work week of 2023 is in the books. How many miles did you drive for business purposes? If you're using your personal vehicle to conduct business you need to know. And if the number is to satisfy an Internal Revenue Service examiner's question about your mileage deduction, you need to be exact. The IRS can disallow questionable guesstimates, meaning your tax deduction could end up being zero. The U.S. Tax Court has backed up the agency when taxpayers don't keep adequate records. To help you avoid that unwanted tax reversal, here are some do's... Read more →
Image by Gerd Altmann from Pixabay Most states operate on a fiscal year that runs from July 1 to June 30. That's why we see some new laws take effect each summer across the United States. However, those states also make the effective date for other changes the first of the year. It's easier for us residents, who operate on a January to December calendar, to accept that timetable. That's especially true of tax laws, since most states also tend to follow the Internal Revenue Service calendar. New tax laws effective New Year's Day: This Jan. 1, notes the Tax... Read more →
Massive waves on Lake Erie splashed homes in Hamburg, New York, during the historic blizzard that moved across the Empire State just before last Christmas. While the result was a collection of real-life ice sculptures, the storm's ultimate effects were far less lovely. (Screen capture from WXChasing YouTube video) I admit it. I whined about the unusual cold front that moved into the Austin area Christmas week 2022. One of the reasons we moved here was for the area's generally moderate winters. But I was properly shamed. A few freezing nights was nothing like the deadly storm that gripped parts... Read more →
Money troubles lead some taxpayers to refund anticipation loans. If you're not careful, it could make finances worse. When the Internal Revenue Service officially opens the 2023 tax filing season, which is expected to be at near the end of the month (it was Jan. 24 last year), it will process e-filed 1040s first. Those returns' electronic data automatically goes into the IRS processing system. That means, says the agency, most of those early filers should get their refunds within 21 days. But what if you just can't wait three weeks for the tax cash? Or you know your refund... Read more →
The tax code is like a car. A big, old, clunky car that just keeps chugging along. But every now and then you need to tune it up and change the tires. Here are some tweaks to the 2023 filing season model. (Photo by Andrea Piacquadio) Tax filing rolls around every year. But every year, there also are a few changes that make the process slightly different from prior filings. We didn't have any major tax law changes in 2022. But some old rules come into play, as does the expiration of some tax breaks that many folks had enjoyed... Read more →
It's ready, set, go for tax season 2023, at least for business taxpayers. The IRS has announced a start date for these filings. (Photo by Andrea Piacquadio) We have a start date for the Internal Revenue Service's 2023 tax filing season! Stop cheering all you tax early birds who've already got your personal returns ready to go. This is not for you. Thursday, Jan. 12, is the day that the IRS will begin accepting electronically filed business returns. That's a few days later than in 2022. Last year, business filers got the jump on the rest of us on Jan.... Read more →
Image by Pintera Studio from Pixabay We're two days into the New Year. Feel any different? Aside from thinking it's a Sunday instead of Monday, me neither. But some things, in addition to flipping calendar pages, have changed. From a tax standpoint, you'll see some differences, starting with those calendars. Weekends and holidays will shift some regular tax deadlines to new days. You also could see some differences on your 2022 Form 1040, thanks in part to tax breaks that no longer apply. Those changes are just a few things to note as we head into the 2023 tax year.... Read more →
The tax year is over. Long live the tax year. Taxes are, if nothing else, persistent. Sure, there are a few (or more) changes every year, even if it's only inflation adjustments. But even in years when the changes are negligible, they are back, starting to add up on the first of every January. That's why 2023 is the first By the Numbers honoree of this new year. The transition from an old to a new tax year is also the focus of this post. It's a look at six tax matters that affected or at least fascinated us in... Read more →