• Home
  • Table of Contents
  • Tax Tips
  • Credits
  • Deductions
  • Refunds
  • State Taxes
  • Politics/Laws
  • Tax Terms
  • Archives

Don't Mess With Taxes

Translating taxes into money-saving English

Home Table of Contents Tax Tips Credits Deductions Refunds State Taxes Politics/Laws Tax Terms Archives

Daily Tax Tips April 2016

Tax_tip_icon_pencil_point

It's here! Uncle Sam's favorite month, no April fooling, since it's the home to the Internal Revenue Service's annual mid-month filing deadline.

This year we get a few extra days, until April 18, thanks to the relatively unknown Emancipation Day federal holiday falling on April 15. Since that's on a Friday this year, it pushes the due date for our 2015 Form 1040s and any owed tax money to the following Monday.

The millions of us who put off filing -- or asking for an extension to file -- until the very last minute are very grateful for those three extra days. They give us more time to gather all our filing data, make sure we haven't missed any possible tax breaks and contribute to our retirement accounts, be they traditional or Roth IRAs or, if you're self-employed like me, a SEP or other similar account.

Actually, those retirement tips were offered last week while we still were in March. But no worries. There still are plenty of tax tips to get us through April 18.

Let's get started! 

  1. Don't make these 5 foolish tax mistakes -- Don't be an April Tax Fool. Here are some tax errors you should avoid as the IRS deadline nears, and really any month. (April 1, 2016)
  2. Take tax care with your 1040 -- It's two weeks until our 2015 tax returns are due. As you wrap up your annual 1040 task, make sure you don't make any common filing mistakes or miss out on any possible tax breaks. (April 4, 2016)
  3. The many capital gains tax rates -- If you've been a patient investor, Uncle Sam gives you a break at tax time. Most investors are familiar with the 15 percent long-term capital gains rate, but there are many more. Wealthier folks pay 20 percent and those at the other end of the earnings scale can sell assets and owe no tax. Here's more on those three rates and a couple of special capital gains rates in-between. (April 5, 2016)
  4. Don't tempt the tax auditor -- Few taxpayers are audited nowadays, but your chances increase if your return tempts the tax auditor. Be especially careful about waving audit red flags. And remember, the burden of proof in an IRS examination is always on you to show your claims are legitimate. (April 6, 2016)
  5. Tax deductions for nonitemizers -- If you don't itemize, don't worry. There are still plenty of tax breaks, known as above-the-line deductions, that you can claim directly on Form 1040 (and a few on the 1040A, too). (April 7, 2016)
  6. Educators' deduction now permanent -- Teachers and certain other school employees who spend their own money for classroom projects can claim some of those costs without having to itemize. Even better, this deduction is now permanent and indexed for inflation. (April 8, 2016)
  7. Don't dare deduct these expenses! -- Taxpayers are always searching for every last penny to write off at tax-filing time. Here are some expenses that are close, but not deductible. Try to claim them, and you'll hear from an IRS auditor. (April 11, 2016)
  8. Alternative Minimum Tax alert -- The only thing worse than doing your taxes is doing them twice and owing Uncle Sam more. This happens to some taxpayers who, because of legitimate tax breaks they claim to lower their tax bills, end up owing the Alternative Minimum Tax, or AMT. Find out if you're in danger of being hit by this parallel tax system. (April 12, 2016)
  9. Private mortgage insurance still deductible -- If you don't make a large enough down payment when you buy your house, your lender could require you buy private mortgage insurance, or PMI. This is coverage that you, the home buyer, pay for, but it protects your lender in case you default on your loan. But at least through the 2016 tax year, some PMI payers can deduct those payments on Schedule A. (April 13, 2016)
  10. 6 tax e-payment options -- If you don't want to mail the IRS a check, Uncle Sam offers six ways to electronically pay your tax bill. You can use a credit card, debit card, the Direct Pay option, electronic funds withdrawal (EFW), Electronic Federal Tax Payment System (EFTPS) and, new in 2016, by cash at some 7-Eleven stores. (April 14, 2016)
  11. Ways to pay a big IRS bill -- If you discover you owe Uncle Sam more money than you can get your hands on in one fell swoop, then what? Don't worry. The Internal Revenue Service (and others) offer some alternative payment options. (April 15, 2016)
  12. Tax Day last-minute filing tips -- Tax Day 2016 is finally here. It's time to file something, either your tax return or an extension to file. Either way, be sure to pay any tax you owe, or at least as much as you can. (April 18, 2016)

To ensure that your filing is complete and correct, feel free to check out the Daily Tax Tips posted during the first three months of the 2016 filing season.

January 2016 Daily Tax Tips

February 2106 Daily Tax Tips

March 2016 Dail Tax Tips

And don't worry about the tip parade ending. The Weekly Tax Tips for 2016 will start on Wednesday, April 20.

If you just can't get enough tax tips, you also can check out Don't Mess With Taxes' continually expanding collection of year-round tax tips and money moves.

Today's Tax Tip

  • Shopping tips for August's 16 back-to-school tax holidays — Is your state one of the 16 holding a sales tax holiday this month? Before you head out to make tax-saving purchases, check out these 6 shopping tips. They could help you make the most of your state's no-tax August event. (Aug. 5, 2022)
  • Tax Tip; click pencil for all tax tip links

  • The 2022 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!

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-… 2022
    You can find medical coronavirus resource links further down this column.

All About Kay

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

My Other Accounts

Advertisements

  • *************

Tick ... Tick ... Tick

  • Tax Season 2022 continues!

    Tax Day 2022 is finally over … unless you're one of the millions who have more time to file — looking at you taxpayers abroad and those in major disaster areas — or you got an extension to file your 2021 tax year return. That's fine. In fact, the Internal Revenue Service appreciates some of us spreading out our filings, especially when we and the agency still are dealing with all the complications of COVID-19 and taxes.

    That's why the ol' blog's focus now is on all y'all still working on returns. But I haven't forgotten my organized taxpayer readers, who are already looking for ways to reduce their 2022 tax year bills. Yep, that amount is adding up, but there are moves you can make. The monthly tips and reminders a little further down this column can help everyone, regardless of which tax year you're working on.

    Those on extension should keep a keen eye on the countdown clock below. It will help you track the days tick, tick, ticking off toward that absolutely final fall filing due date of Oct. 17. Yep, it's a few days later this year.
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.


Time for Tax Tasks


  • monthly tax moves


  • The Dog Days of Summer
    are here!

    For many of us, that means taking it easy like the pup below during these hot, sultry August days as summer winds down.

    via GIPHY


    But we can't dog it too much.
    Making some potentially money-saving tax moves this August can really pay off. So let's get to it!


    Aug. 1: School soon will be back in session. That means students need supplies. Good news for them and their parents: this month 15 states are holding back-to-school sales tax holidays. These no- or reduced-tax events are in Arkansas, Connecticut, Illinois, Iowa, Maryland, Massachusetts, Missouri, New Jersey, New Mexico, Ohio, Oklahoma, South Carolina, Texas, Virginia, and West Virginia.

    Aug. 5: The tax holidays will help ease the high cost of school supplies and other qualifying purchases a bit, especially in these inflationary times. But some taxpayers are agetting more help. Sixteen states are issuing inflation relief payments. If you're in one of them, make sure your state tax department has your correct information, since that's how most of the inflation aid money will delivered.

    Aug. 10: Restaurants are still recovering from the challenges of operating during a national health crisis, especially now that new COVID-19 variants are spreading. If your favorite eatery is now seating diners indoors, still take precautions, aka mask on until that meal arrives, please! If you're still doing take-out and deliveries, those business owners appreciate that support, too. And regardless of whether you're eating out or still getting food brought to your house, remember to tip your server or delivery person.

    restaurant check tip iStock
    If a tip isn't included in your food delivery charge, click the image above to calculate how much to tip the person who brought it to you.

    As for servers who now are back on the job, remember that your tips are taxable income. If you worked at least some of July at a job where you got gratuities, you need to account for them today if they came to at least $20 last month. Use Form 4070 to report your tips today to your employer.

    Aug. 17: Did you get an extension back in April to file your tax return this fall? Well, that new due date — Oct. 17 — is now just two months away. But you don't have to wait until that day is, well, just days away. You can get to work on your tax paperwork now and be done with it any time before then.

    Whenever you do get around to finishing your tax return, the IRS recommends you do so electronically. Check out ways to e-file at no cost, including via Free File, which is, as its name says, free. The official electronic filing webpage is Free File on IRS.gov is available to qualifying taxpayers until midnight, Eastern Time, on Oct. 17.

    IRS Free File; click image for details

    Free File this year is available for taxpayers whose adjusted gross income is $73,000 or less. That income level applies to all filing statuses. This year, 8 software programs are available to eligible filers. Spoiler: The two biggies, Intuit's TurboTax and H&R Block, are not among the choices. The two leading tax prep programs decided to end their participation in the program.

    Aug. 22: The early part of the 2022 Atlantic/Gulf of Mexico hurricane season was, thankfully, not that bad. But August is when things tend to literally start heating up. The National Oceanic and Atmospheric Administration's (NOAA) National Hurricane Center says that most tropical storm activity occurs between mid-August and mid-October. If you haven't yet prepared — physically, financially, and tax wise — it's time to do so

    Hurricane satellite image

    Uncle Sam's official forecasters at the NOAA Climate Prediction Center expect 2022 to bring as many as 21 named storms, with six to 10 possibly becoming hurricanes. Three to six of those could reach major status, which is category 3, 4 or 5 with winds of 111 mph or higher. Regardless of the count, it only takes one to wreak havoc. The countdown clock below can help you keep track of how many more days you have to worry about tracking any size or type of tropical storms.



    You also might want to check out the ol' blog's special Storm Warnings.
    These multi-page collections of posts offer tax advice on preparing for, recovering from and helping those who sustain damages from the many ways that that weather goes wild. That includes claiming uninsured losses from a major natural disaster as an itemized tax deduction.

    Aug. 26: The stock market has been up and down, then up and down, then … You get the idea. All the gyrations mean it's time to review your portfolio. Periodic rebalancing to meet your financial goals also could provide a tax break. If some of your taxable holdings have dropped in value, you can sell them and use the loss to offset other assets' gains. Remember, though that this tax loss harvesting strategy should be used only is you really want to sell the asset, not just use it to cut taxes. As the old (and apropos this month) saying goes, never let the tax tail wag the financial dog.

    Aug. 31: If you've already filed your 2020 taxes, were you surprised by either the size of your refund or how much you owed? If so, now's the time to make sure that doesn't happen next year. The IRS' online estimator can help you more accurately adjust your payroll withholding.

    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 Talking Tax Forms page.

What are you looking for?

  • Looking for something in particular? Start with the Table of Contents.
    Or check out the Archives, where you can review posts by month and category. Or enter specific keywords in the box below to search
    Don't Mess With Taxes.

Search

Subscribe:
E-mail, RSS or both!

  • Enter your Email


    Powered by FeedBlitz
  • RSS

Privacy Policy

  • Wondering what happens to your information once you subscribe? Don't worry. Don't Mess With Taxes respects your wish not to be a mere data source. Check the ol' blog's privacy policy at the Table of Contents page, as well as on the separate Privacy Policy page.

Sponsored Products

Affiliate Books

  • The Truth
    About Paying Fewer Taxes
  • Are you a tax geek? Got tax geek friends? Do you or they just want to make sure you don't overpay the IRS? Then my book, "The Truth About Paying Fewer Taxes," is for all y'all.

    Look for it on bookstore shelves
    or order a copy (or two!) from
    Amazon or Barnes & Noble.

  • TruthAboutTaxes
  • Find out more about my book and excerpted chapters at the FT Press
    Truth About Paying
    Fewer Taxes
    Web page
    .

  • You can read more
    of Kay's tax insights in ...


  • Kay Bell helps you build
    a solid tax foundation in
    "Personal Finance: An Encyclopedia
    of Modern Money Management"




    Kay Bell breaks down taxes and
    estate planning for millennials in
    "Future Millionaires' Guidebook"



    A collection of Kay Bell stories
    is included in
    "The Gambler's Guide to Taxes:
    How to Keep More
    of What You Win"




  • Tax Reading Room

    You also might enjoy these other tax tips from some of my tax-writing colleagues:




  • Don't Mess With Taxes
    is an Amazon Affiliate.
    If you click on the product links above and/or buy the items,
    I will be compensated.

0, 1, 2, 3, 4, 5, 6, 7, 8, 9 ...

  • Numbers
    Taxes are all about the numbers.
    Check out these (mostly) weekly
    By the Numbers figures.

Kudos Et Cetera

  • Association for Women Clarion Award Winner
    National Association
    for Women in Communications

    Winner, Best Personal Blog
    2012, 2014 & 2017

  • Plutus Award Winner
    Plutus Financial Bloggers Awards
    Celebrating the Best
    in Personal Finance

    Winner, Best Tax Blog
    2011 and 2013
    Lifetime Achievement Nominee 2020


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.

©©©©© & ®®®®®

  • Don't Mess With Taxes®
    is a registered trademark
    of S. Kay Bell.

    All content on this site is
    © 2005-2022 S. Kay Bell
    dba Write Here, a division of
    SKB Editorial Services, LLC

  • And a bit of housekeeping.
  • Note 1: Some of the links on this site
    are affiliate links. That means that
    if you click through from
    a Don't Mess With Taxes link
    and then buy the product,
    I receive a commission.

    Note 2: Links to outside content
    might become inactive due to changes
    at the copy's originating website.
    If you discover dead links, please e-mail me the details. Thanks.

    Note 3: The banner art for the ol' blog
    is courtesy Pictures of Money
    via Flickr Creative Commons.
Blog powered by Typepad
Member since 11/2005

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:
    CDC Vaccines
    CDC Booster Shots
    HHS Combat COVID
    USA.Gov COVID Info

August 2022

Sun Mon Tue Wed Thu Fri Sat
  1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31      

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.

..................................................



  • .................................................................
  • Don't Mess With Taxes •
  • Powered by Typepad
Top