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Photo by Mike van Schoonderwalt Leaders of the Republican-controlled Congress are finding that pushing through one comprehensive tax (and more) bill is not that easy, even with the support of the presidential bully pulpit. The House version, christened the One Big Beautiful Bill (OBBB) in keeping with Donald J. Trump’s not-so-subtle suggestion, narrowly passed the House on May 22. Yesterday, June 16, Senate tax writers released their version, which makes substantial changes to several key House provisions. The differing bills already are sparking intra-party fighting. And depending on what’s in the final version, the Republican party also could have a... Read more →


Father's Day is Sunday, June 15. Millions of us will celebrate the importance of fatherhood, and honor the special men in our lives. This includes father figures, such as grandfathers, uncles, siblings, and friends. The U.S. Census Bureau says there are an estimated 72 million fathers across the United States, with 29 million of those fathers also being grandfathers. Gifts for the many different dads: Dads are a diverse lot, so the range of gifts that will be presented go well beyond the stereotypical necktie. My dad was an oilfield worker, and the only time I ever saw him in... Read more →


House Speaker Rep. Mike Johnson (R-Louisiana) on the phone as he and staff walk through the U.S. Capitol’s Statuary Hall. (Credit: Mike Johnson Facebook) The Republicans’ consolidated measure to enact Donald J. Trump’s tax, immigration, energy, and more policies eked through the House early this morning. The original Ways and Means Committee version of the legislation, dubbed the One Big Beautiful Bill (OBBB) per Trump’s not so subtle suggestion, was tweaked just enough this week to pass by a 215 to 214 vote. Only two GOP members, Rep. Warren Davidson of Ohio and Thomas Massie of Kentucky, defected. The pair... Read more →


Photo by Andy Quezada/Unsplash May typically is the end of high school for millions of students across the United States. After a summer break, a lot of these new graduates will be heading off to college. In addition to the new classroom challenges, these students and their families will face the daunting task of paying for college. Uncle Sam can help a bit. Be they freshmen or returning to university studies, the Internal Revenue Code has a couple of tax breaks, the American Opportunity and Lifetime Learning tax credits, that could help cover some of students’ common college costs. Here’s... Read more →


Photo by Los Muertos Crew This week in Austin is hot, and I'm not talking about one of the state capital's many music or technology or film or other festivals. It's going to be weather hot. Like sunny and 105 degrees hot tomorrow, according to forecasters. If that happens, it will break by a degree the record for May heat. I know, lots of places deal with extreme heat. Those residents also tend to face utility issues, like brown- or blackouts, when the temperatures put pressure on the electric grids. That’s why many across the nation have opted for their... Read more →


Photo by Nataliya Vaitkevich The House Ways and Means Committee this afternoon released its second run at the tax portion of the one, big, beautiful reconciliation bill demanded by the White House. This latest collection of tax provisions, released in advance of the proposal’s committee markup tomorrow (Tuesday, May 13), fills in a lot of the tax holes that were apparent in the tax-writing panel’s first version, presented on May 9. Political tax promises: Today’s measure includes many of the Trump administration’s populist policy priorities. That includes campaign promises to exempt gratuities and overtime pay from taxation. The bill also... Read more →


A recent Ways and Means Committee hearing. (W&M Republicans YouTube channel screen capture) The Republican-led House Ways and Means Committee had a late Friday surprise for the tax community. It released the tax portion of Donald J. Trump’s mandated "one big, beautiful bill," which also is slated to deal with immigration and energy. The first thing everyone noticed is that the 61-page document leaves out some of the tax provisions that the GOP has had trouble convincing all of its slim House majority to support. There’s no mention of at least increasing the state and local taxes (SALT) federal tax... Read more →


Texas' drought has made for a sparser than usual 2025 wildflower season. But the bees and I thank goodness this May for hardy lantana. (Photo by Kay Bell's hubby) Pardon the interruption of your May merry making, but now that the main tax season is over, you need to think about making some tax moves. I know. You thought you were done when you got your 1040 to the Internal Revenue Service on April 15. Or you thought you didn’t have to think about taxes for six more months when you instead filed for an extension. Sorry, but this brand... Read more →


Photo by Mikhail Nilov We're a week past Tax Day. Have you started working on your 2025 return? I don't mean your actual return, of course. I do mean thinking about what went well or went off the rails this past filing season. Now is the time to consider changes you can make so that the process is smoother next year. Shameless plug alert: You can find some tax planning ideas in my earlier posts Tax Day is done. Now what? Plenty! and Create a tax strategy that utilizes different tax baskets. Income tax brackets and rates: Another good place... Read more →


Most years, once we’re past Tax Day, the Internal Revenue Service’s work continues quietly, behind the scenes. Not now. Last week the IRS got yet another interim commissioner. Michael Faulkender, who had been serving as deputy to Treasury Secretary Scott Bessent, is the agency’s latest acting leader. Faulkender is the fifth person to take the IRS reins after former commissioner Danny Werfel resigned in January. Faulkender became the third acting leader of the agency in just a week. The latest quick personnel rotation at the IRS — equivalent to 0.36 Scaramuccis — and that it happened during the week that... Read more →


This month, we hit the five-year mark since the COVID-19 global pandemic was declared. Here in the United States, the medical situation has stabilized or gotten better in most states. Internal Revenue Service law enforcement agents, however, are still dealing with the coronavirus’ tax aftermath. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to help Americans cope with the pandemic’s economic impact. Donald J. Trump signed the $2.2 trillion economic stimulus bill into law on March 27, 2020. The CARES Act was known primarily for the first round of cash payments sent to individuals and families during... Read more →


Feeling flush thanks to your tax refund? If you’re looking for ways to spend it, here are some suggestions. (Photo by Karolina Grabowska) By mid-March, the Internal Revenue Service had sent out almost $163 billion in tax refunds. The average refund amount was $3,271. That's a nice chunk of change. Even if your refund isn't quite that large, or is more, when the money arrives comes the decision on how to use it. Most people already have ideas of what to do with their cash back from Uncle Sam. Some have already put those plans into action. But just in... Read more →


Photo by Philipp Deus Every taxpayer and tax circumstance is unique. However, there are some things that trigger trained Internal Revenue Service examiners. As you’re finishing up your 2024 tax return, take another look to see if any of the 10 situations items show up on your Form 1040. They don’t guarantee that your return will be pulled for further attention and possibly a full-blown audit. But they could cause the IRS to conduct a correspondence audit, which is sending you a notice asking for clarification about a questionable item on your return. 1. You have income other than basic... Read more →


A towering city overlook is always impressive, but you don't necessarily need the telescopic help when it comes to overlooked tax breaks. Tax software, your tax adviser, and yes, the often-missed tax breaks listed below, can help you save on this year's filing. (Photo by Ricky Esquivel) The goal of every taxpayer is to pay Uncle Sam as little as legally possible. Even the Internal Revenue Service has enshrined that goal in its Taxpayer Bill of Rights. It’s number 3 on the 10-point list. A good way to ensure you pay no more tax than required is to claim all... Read more →


Collecting a refund is one of the reasons cited in my post on why you might want to file a tax return even if you aren’t legally required to do so. It always generates a lot of comments, with people baffled as to why someone would just let Uncle Sam hang onto their tax refund. There are some reasons people don’t file their taxes even when it to their benefit, some better than others. More on this later. But regardless of why, every year the Internal Revenue Service reminds a portion of these nonfilers that if they don’t act soon,... Read more →


Photo by Gustavo Fring We all mess up sometimes. But when you make a mistake on your tax return, it could cost you. You could short your refund amount or end up owing more than you should. Your error could cause the Internal Revenue Service to take extra time processing your Form 1040, slowing down the issuance of your refund. Or it could be a mistake big enough that the IRS actually wants to discuss your filing in more detail. Your best defense against all these unwanted outcomes is to file a mistake-free return. And you especially don’t want to... Read more →


Credit: Panoramio via Wikimedia Hello March! Good to see that you're following the traditional script and, at least here in the greater Austin area, roared in like a lion. But the weather bluster also is a good reminder that some feline-style aggressiveness could pay off on your taxes. Some of the four March tax moves below could cut your 2024 tax bill that you'll compute on the return due by April 15. Others are good tax moves for the current 2025, and future, tax years. A couple do both. If any of the suggested tax moves work for you, implement... Read more →


It’s the main tax filing season, so that means it’s also tax scam season. The Internal Revenue Service has been keeping track of the year’s most prevalent schemes for more than two decades and alerting us in its annual list of the 12 scams it has found to be the most egregious over the last year. The Dirty Dozen for 2025 includes some repeat [dis]honorees. A few are new or have been tweaked. But they share one characteristic. They target taxpayers, businesses, and the tax professional community, and all too often end in the loss by victims of personal information,... Read more →


You aren't legally required to file a federal tax return, but maybe you should. Here are six reasons why it might be a good idea. (Photo by Unsplash+ in collaboration with Getty Images) Millions of taxpayers have filed their returns so far this year. Millions more are working on their taxes. But not you. You checked out my post on who has to file a tax return (thank you!) and confirmed that you're one of the lucky few who doesn't have to file a Form 1040 this year. You might want to rethink that no-filing decision. Even if you aren't... Read more →


Photo by Nataliya Vaitkevich It’s been an exciting time in your life. You got your diploma. You got a job. You even got your own apartment. OK, sort of your own, since you’re sharing it with a couple of roommates to give your budget a bit more flexibility. Now you’re about to face another financial first. Your first time filing taxes. I know, it’s not exactly a celebratory milestone. But it’s a crucial one. And it doesn’t have to be an ordeal. Here are seven steps that first-time tax filers can take to make sure their initiation into the taxpayer... Read more →