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Don't Mess With Taxes

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August 2022 Tax Tips

August's dog days are perfect for getting taxes ready to show the IRS.

Tax tip pencilHere in the United States, we don't follow European tradition and take this usually hot and muggy month off to holiday somewhere more pleasant. Many of us are Type-A-for-American keep on working.

I'm not here to judge. You do you. But if you are intent on being productive this last month of summer, let me suggest you use some of the time on your taxes.

Technically, the Dog Days of Summer take up more of July than August. But the eighth month of the year usually is more popularly associated with the term. So I'm sticking with that take, and suggesting this month we look at dog show preparation as a tax guide.

Know and follow the forms: We can think of the tax forms and laws as the canine competitions' breed standard documents. These are the rules you and your pup must follow if you want to come out on top. T

ax-wise, following the Internal Revenue Code mean you stay out of tax trouble. Knowing the tax laws also mean you could claim some money-saving tax breaks. 

Get some guidance: Then there are the dogs' handlers. They know the ins-and-outs of the show world, and guide their breeds through the competitions. We taxpayers also rely on tax handlers, the tax professionals we hire.

If you need a tax preparer, this off-season is a good time to figure out just which kind of pro works for you. If you already have one, it's also a good time of year to talk about moves to make now before we face another tax rush.

And if you got an extension to file, you definitely want to hire a pro now to get your return done by the Oct. 17 deadline.

Don't overlook the requirements: Finally, there's getting ready. Show dogs must be immaculately groomed, their coats clipped and cleaned and combed to show off their breed's best features. The animals also must follow their handlers' leads around the ring, hitting all their marks.

The same is true of taxes. Your return must be complete and correct, or you'll hear from an Internal Revenue Service examiner.

What? You say you're rethinking your go-go-go attitude as summer winds down. All this tax and dog show talk is wearing you out. You just want to laze away the rest of the month.

So take a break (again, not judging), but don't forget your taxes (or pets) altogether.

When you're ready to work on your 1040s or make other tax moves, the August tax tips below will be here to help.

  1. States to issue inflation-related relief — If you live in one of the 16 states issuing inflation relief payments, make sure you know how to get your money. Most are offering stimulus checks or rebates based on their revenue departments' data. Check with your state tax office to make sure it has your correct data and that you're on the inflation payment list. (Aug. 1, 2022)
  2. August is heart of annual sales tax holiday season — With schools about to open for the fall semester, 16 states are holding sales tax holidays. Most are the first weekend of August.  (Aug 4, 2022)
  3. 6 tax holiday shopping tips — Is your state is holding a sales tax holiday this month, check out these 6 shopping tips before you hit the shopping center. They could help you make the most of your state's no or reduced-rate tax event. (Aug. 5, 2022)
  4. IRS getting more audit money. Don't make your 1040 an easy target — The House is expected later this week to pass the Senate-OK'ed Inflation Reduction Act. Among the tax provisions in the $739 billion total bill is $79 million for the Internal Revenue Service, with most of that money going toward enforcement efforts. While the focus will be on wealthier tax evaders, all of us want to avoid undue IRS attention. So with more tax examiners on the way, it's a good time for a refresher on audit red flags none of us want to fly. (Aug. 8, 2022)
  5. IRS provides written tax security plan guidance — Taxpayer security is more than just a promise from a reputable tax preparer. Having a written tax data security plan is required by federal law. Now the IRS and its Security Summit members have created a document to help tax professionals create the mandated written program. (Aug. 11, 2022)
  6. Educator expenses tax deduction rises (finally!) to $300 — Students and their parents aren't the only ones who spend when it comes to school supplies. Most teacher also use their own, unreimbursed dollars for items that will enhance their students' classroom experiences. Now up to $300 of those expenses can be deducted. (Aug. 15, 2022)
  7. American Opportunity vs. Lifetime Learning tax credits — As young people head off to college, it's time for a lesson review on two popular federal educational tax breaks, the American Opportunity Tax Credit and Lifetime Learning Credit. (Aug. 23, 2022)
  8. IRS penalty relief for COVID-related late returns — The coronavirus pandemic has wreaked havoc on health, finances, and our taxes. Now the IRS says it will provide some late-filing penalty relief, amounting to more than $1.2 billion to millions of affected taxpayers. Some of the automatic refunds or credits should be delivered next month. (Aug. 26, 2022)
  9. When a swimming pool might be tax deductible — Swimming pools can be a nice property upgrade. In most cases, it will bump up your property value and subsequent real estate taxes. But in certain situations, a pool and other residential improvements might be tax deductible medical expenses. (Aug. 31, 2022)

*****

Puppies in a box dog days

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And yes, you can click on the September through December links below, too, but you'll just be greeted (again) by this nay-saying guy's GIF, instead of helpful Internal Revenue Service and tax code tips.

Meanwhile, check out the 2022 filing season tips already posted in the months for which we've turned those calendar pages.

January July
February August
March September
April October
May November
June December

 

 

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Today's Tax Tip

  • IRS TACs holding special Saturday hours for walk-ins — To help taxpayers who can't make a weekday appointment at an Internal Revenue Service Taxpayer Assistance Center (TAC), the tax agency will open some of them across the country on four upcoming Saturdays nationwide. The first Saturday TAC sessions will be this weekend, Feb. 11. The other special openings will be on March 11, April 8, and May 13. Best of all, no appointments needed at any of the TAC Saturdays. (Feb. 8, 2023)

  • Tax Tip; click pencil for all tax tip links

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

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Tick ... Tick ... Tick

  • Tax Year 2023 Countdown!

    Happy New Tax Year! Are you ready to file your 2022 tax return? Me neither. But at least this year we're getting some extra time to file and pay any tax we owe. Even better, it's not COVID-19 pandemic related. Tax Day 2023 is Tuesday, April 18. This later date is because April 15, 2023, is on Saturday, and the next business day, Monday, April 17, is Emancipation Day.
    When this Washington, D.C., holiday falls on the day our federal taxes are due, it bumps Tax Day nationwide to the next business day. So this year, we have until Tuesday, April 18, to finish our federal forms and, if we find we owe, come up with the money for Uncle Sam. The states that follow the federal tax calendar, which is most of them, also tend to abide by this date change.

    The countdown clock below should help us from missing out on making important tax-saving moves the rest of this year. Plus, the Tax Moves below the counter will list some timely tasks to take care this first month of 2023, and each of the remaining 11 when they arrive. They'll speed by quickly when you're having tax fun!
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.


Time for Tax Tasks


  • monthly tax moves


  • 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!

    Fat Groundhog; click image for Groundhog Day details

    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.

    restaurant check tip iStock
    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.

    IRS Free File; click image for details

    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.

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

  • 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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I gotta tell ya ...

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    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

  • COVID-19
    Coronavirus has wreaked havoc
    on the 2020 and 2021 tax seasons.
    These three Coronavirus (COVID-19) and Taxes pages have details:
    March-July 2020,
    August-December 2020,
    January-December 2021, and
    January-December 2022
    You can find medical coronavirus resource links in the next section.

COVID-19 Resources

  • COVID-19
    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:
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    HHS Combat COVID
    USA.Gov COVID Info

February 2023

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Tell it to the Hill

  • DMWT Politics Posts
  • 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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