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January 2018 Daily Tax Tips
New year, dual tax considerations

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Happy New Tax Year! Yes, 2018 is here, marking the end of a tax filing system we've used for decades and bringing in a whole new set of tax considerations.

Are you ready? Me neither.

But we can work through this together, with the tax information and advice contained in 2018's Daily Tax Tips.

Two tax systems: There's naturally much interest in and, for many folks, concern about the tax code changes that took effect Jan. 1, 2018, under provisions of the Tax Cuts and Jobs Act.

And we do need to familiarize ourselves with and plan for these changes, which for many are substantial.

But for the first part of 2018, we've also got to file our 2017 taxes. And those returns will be based, for the most part, on the old tax laws.

The Daily Tax Tips, starting with these for January, are designed to help accomplish this task.

We aren't, however, ignoring the fact that the prior year's filing season and the current tax year for which we must plan overlap. That means that some of the Daily Tax Tips will, as they have for years, will offer info on the new tax laws and how we can use them to reduce our 2018 tax bills, especially as we get further into the year.

Weekdays only: Another thing remains the same this 2018 tax year. The Daily Tax Tips will be posted Monday through Friday only.

Yep, I'm still trying to take added me (well, me and hubby) time on weekends. I know I'm not alone here. My blog analytics show that most of y'all are reading on weekdays. (I won't tell your bosses that you're using the office computer!)

Good for all of us for having a more balanced life!

And for now, that scale is tipping to the tax side, so here goes with January's Daily Tax Tips.

Multiple tip access options: You'll find a new tip each weekday in the ol' blog's upper right corner. Clicking on each tip's boldfaced red-font title will take you to the full post or article.

I'll try to get the post up as early as I can each day, but I learned long ago to make as few time-related promises as possible. Life just seems to run on its own schedule, often mocking my own calendars and clocks!

If you miss the daily notice, the tips will once again be collected on monthly directory pages (like this one for January). As the 2018 tax year progresses, I'll post the Daily Tax Tips for February, March and April, thorugh the filing due date, on their own pages. 

That's all housekeeping I have. So, with the the tax clock literally ticking down (you can check that out, too, in the ol' blog's right column), let's dive right into January's Daily Tax Tips.

  1. Tax rates, income brackets for 2017 and 2018 tax years — The first question every taxpayer wants answered is, "How much will I owe?" Get an idea by looking at where your income falls in the annual tax rates and income brackets. Check out 2017's amounts you'll use to figure taxes on your return due in April. Then look at how new tax laws might change what tax bracket you're in so you can do some 2018 planning. (Jan. 8, 2018)
  2. Standard tax deduction amount changes — Most taxpayers claim the standard deduction rather than go to the trouble to itemize. Check out the 2017 amounts you'll use on your return due April 17 this year, as well as the increased (thanks to new tax laws) standard deductions for tax year 2018. (Jan. 9, 2018)
  3. Tax credits, deductions, inflation and new tax laws — Many popular tax deductions and tax credits — ranging from Uncle Sam's help in adopting children to paying for schooling to assisting commuters to supporting moderate- and lower-income workers — are affected each year by inflation. Some of those tax breaks also have been changed under the newly-enacted tax laws. Here's how they'll be treated on 2017 and 2018 returns. (Jan 10, 2018)
  4. Medical itemized deductions easier to claim on 2017, 2018 returns — Inflation adjustments and the new Tax Cuts and Jobs Act provisions mean many changes to health care related tax matters. A popular medical deduction, claiming the many allowable itemized medical expenses on Schedule A, even got easier for tax years 2017 and 2018. (Jan 11, 2018)
  5. Free File 2018 is now open — The IRS won't process your return until Jan. 29, but you can get it lined up early by using, if you qualify, the now-open Free File option. (Jan 12, 2018)
  6. Tax breaks for volunteers — The itemized tax deduction for charitable gifts survived basically unscathed in the recent tax laws changes. That means that while you can't deduct the value of the time you volunteer on this Martin Luther King Day (or any other time), you still might be able to claim some service-related contributions on Schedule A. (Jan 15, 2018)
  7. The scoop on paying estimated taxes — Millions of U.S. taxpayers have to make four extra tax payments every year. The fourth and final one for 2017 is due today. Here's the who, what, when, where, why and how (to pay) of estimated taxes. (Jan. 16, 2018)
  8. Time to get tax organized — A successful tax filing season starts with preparation, and I'm not talking about just filling out your 1040. To do that properly and in the most expeditious way, you need to be organized. When you have all the data you need to fill out your return, you'll be ready to go the minute the IRS officially opens filing season, which is Jan. 29 this year. (Jan. 17, 2018)
  9. Tax pro or tax software? — It's time to decide just how you'll do your taxes. You can join millions who opt for tax software to prepare their returns. Or you can get more personal guidance from a tax preparer. Check out these tips on how to determine which method is better for you. (Jan 18, 2018)
  10. Picking the perfect tax pro — You've decided this year to get professional help in completing and filing your tax return. Here's a look at your tax preparer choices and how to pick the one that is perfect for your tax needs. (Jan 19, 2018)
  11. How to stop tax procrastinating — It's no fun doing your taxes, even if you're getting a refund. But putting off the annual tax task could make things worse. Here's why we avoid doing our taxes — until the very last, extended minute for many of us! — and how to break our potentially costly tax delay habit. (Jan 22, 2018)
  12. Is your child your tax dependent? — It's usually pretty clear when a child is a dependent for tax purposes. But there actually are five tests that must be passed to claim your kiddo on your Form 1040. (Jan 23, 2018)
  13. Tax refund loan alternatives — The recent three-day government shutdown plus the requirement that the Internal Revenue Service hold certain refunds until at least mid-February has many folks thinking about getting a refund advance loan (RAL) or refund advance check (RAC). While these tax-money-up-front programs are more consumer friendly, you might want to think twice before applying, even if you're counting on your tax refund to pay for life's necessities. Instead, consider these options that are totally fee-free. (Jan. 24, 2018)
  14. 5 tips for Free File users — Free File, the partnership between the Internal Revenue Service and tax software manufacturers, could be a good, and money-saving, move for millions of taxpayers. But before you decide, check out these tips on how to evaluate and use the free e-filing option. (Jan. 25, 2018)
  15. Don't overlook the EITC — The Earned Income Tax Credit (EITC) provides a welcome, and sometimes quite generous, tax break for millions of Americans. Many, however, don't ever file for it. Here's a look at how to qualify for this tax credit and how much of a tax refund it offers. (Jan 26, 2018)
  16. Tax filing checklist — The annual tax filing season is officially underway. But before you tackle your 1040, make sure you have all the necessary documents on hand. Also ask yourself some key filing questions to ensure you don't overlook any tax breaks. This checklist can help. (Jan 29, 2018)
  17. Maximizing medical itemized deductions — Taxes make us jump through many hoops, as well as over an income threshold bar when it comes to medical expense deductions. Here are some ways to maximize your doctor-related costs on Schedule A. (Jan 30, 2018)
  18. Tax benefits of being a temporary landlord — Is your city hosting a big event, like this weekend's Super Bowl LII or South by Southwest here in Austin or some of the annual NCAA March Madness college basketball tournament games? That craziness could be an easy and tax-free way to make some extra money by turning your home into a short-term rental during the special happening. (Jan 31, 2018)

But wait, there's more! As I mentioned, as soon as January wraps, you can check out February's (and March's and April's) Daily Tax Tips. When those months and tips arrive, the links below will become live.

February 2018 Daily Tax Tips

March 2018 Daily Tax Tips

April 2018 Daily Tax Tips

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Today's Tax Tip

  • Key 2023 federal tax deadlines — We made it through the first week of tax season 2023, but another deadline is looming. Jan. 31 is the filing, and tax payment, deadline for taxpayers who opted not to make their final 2022 estimated tax payment on Jan. 17. This tax calendar has that and other key individual tax due dates for the rest of this year. (Jan. 30, 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

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

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  • 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


  • Hell 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 ...

  • AKA Disclaimer:
    I am a professional journalist who has been covering tax issues since 1999.
    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

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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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