• 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 January 2016

Tax_tip_icon_pencil_point

Happy New Tax Year! That's right, 2016 is here and that means not only tax (and personal) resolutions, but the rapidly approaching start of the annual tax filing season.

And you know what that means. Yep, it's time for this year's edition of Daily Tax Tips.

These bits of tax information are designed primarily to help you file your 2015 tax return. But since tax filing season for the prior year overlaps with the current tax year, some of the daily tips will offer info on cutting your 2016 tax bill.

Weekdays only: Last year the daily tips technically were just weekday tips. That worked out pretty well for me (and the hubby who, after all these years, still likes to spend time with me on weekends when he's not working) and, from the feedback I got, for readers of the ol' blog.

So I'm sticking with the Monday-through-Friday tips again this year.

Borrowing from Bankrate: Another carryover is that some of the tips will be directly from me here at Don't Mess With Taxes, either as links to earlier posts or new items, while others will come from my articles posted at Bankrate.com.

As most of the ol' blog's readers know, I am contributing tax editor and chief tax reporter for Bankrate. So it just makes sense (see my previous comment about weekends with the hubby) for me to work smarter, not harder, and share those items instead of recreating them.

Old, new, touched-up tips: In addition to finding the tips for January listed here (and February, March and April tips on their own pages as those months arrive), the Daily Tax Tips will be highlighted at the top of the ol' blog's right column.

Long-time readers also probably will notice that many of these tips have shown up here (and at Bankrate) before. That's not because I'm just phoning it in. It's because taxes are a lot like a car.

The basic tax chassis (the Internal Revenue Code) tends to stay the same, but you do need to do some tune-ups (annual tax-related inflation adjustments) and occasionally change the tires (like when some temporary tax laws became permanent thanks to the December 2015 tax extenders/fiscal 2016 budget bill changes).

Regardless of whether the daily tip is an oldie-but-goodie or a totally new piece of tax info from Bankrate or Don't Mess With Taxes, all should help in your 2015 return filing or 2016 tax planning.

Multiple tip access options: You'll find a new tip each weekday in the ol' blog's upper right corner. 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 mess up my calendars and clocks too much of the time!

If you miss the daily notice, the tips will once again be collected on monthly directory pages (like this one for January).

Most of January's tips listed here are focused on helping early filers who are ready anxious to get their 1040s to the Internal Revenue Service and refunds back ASAP. As February, March and April arrive, the tips will offer insight on more complicated tax matters -- those aggravations intricacies are why many of us put off filling our returns -- as well as advice on how to save on your 2016 taxes.

And with that housekeeping out of the way -- and with the the tax clock ticking (literally; check it out in the ol' blog's right column) -- let's get to this year's Daily Tax Tips. 

  1. Filing season 2016 opens on Jan. 19 -- Thanks to Congress' approval of tax extenders and a budget bill with tax provisions by the middle of last December, the IRS says it will be ready to start the 2016 filing season on time. That's on Tuesday, Jan. 19, for the processing of all returns, either paper or e-filed. Plus, Free File will open for eligible filers a bit earlier, on Friday, Jan. 15. (Jan. 4, 2016)
  2. 10 New Year's tax resolutions -- Have you made your New Year's resolutions? Chances are there's a tax resolution that mirrors the personal self-improvement goals most of us set every January. And if you keep your New Year's tax resolutions, they could save you some time, money and peace of mind. Here are 10 to consider. (Jan. 5, 2016)
  3. 10 top tax issues for 2016 -- With the start of the 2016 tax-filing season just around the calendar corner, you're rightfully focusing on filing your 2015 tax return. Check out these 10 tax matters that could affect that process, as well as your 2016 taxes. (Jan. 6, 2016)
  4. Get organized for tax season -- Tax filing can be less frustrating and less time-consuming when you're ready for the task. The first step is organizing your tax material. (Jan. 7, 2016)
  5. Check out your tax brackets -- The same seven tax rates still apply, but the income that falls into the 2015 and 2016 tables is slightly different. You'll want to focus on the 2015 tax rates and income brackets until you get that tax return, due by April 18, done. Then turn your attention to the 2016 table for guidance on steps to take this year to cut your already accruing tax bill. (Jan. 8, 2016)
  6. Watch out for these Dirty Dozen tax scams -- The start of a new tax filing season means an increase in tax scams. Don't fall for these 12 tax cons that popped up last year, from the long-standing frivolous arguments against paying income taxes to the newer and still growing fake IRS agent telephone scam. Most of them are likely to still be around during the 2016 filing season. (Jan. 11, 2016)
  7. Tax refund loan alternatives -- The Internal Revenue Service's processing of tax returns is slowed more each year by added review efforts to stop tax identity theft and refund fraud. That's why many filers are tempted to sidestep the IRS in order to get their refunds more quickly via refund advance loans (RALs) or refund advance checks (RACs). Don't. Even if you're counting on your tax refund to pay for life's necessities, you'd probably be better off waiting a bit. You won't get your tax money that much sooner than if you go through official IRS channels and RALs and RACs could cost you a lot more in fees and interest charges. (Jan. 12, 2016)
  8. The skinny on paying estimated taxes -- Your final 2015 estimated tax payment is due Jan. 15. Miss it and you could end up owing the Internal Revenue Service more. (Jan. 13, 2016)
  9. What's your filing status? -- It sounds like a simple question, but the correct answer could make a difference in your tax bill. Divorced filers and single parents need to pay special attention to their filing statuses. (Jan. 14, 2016)
  10. Picking the perfect tax pro -- Most taxpayers rely on professional help to complete and file their annual returns. You have lots of options when it comes to tax pro choices. Here are some ways to pick the tax pro that's perfect for your tax needs. Once you select the type of tax pro, be sure to carefully check out the specific preparer, too. (Jan. 15, 2016)
  11. Tax breaks for life's big events -- Did you start the new year with a new baby (or two)? Children, as well as weddings, divorces, job changes and other major event in your life usually have tax implications. (Jan. 18, 2016)
  12. E-filing and Free Filing now available -- Federal tax filing season 2016 opened on Jan. 19, with millions of taxpayers expected to once again submit their returns electronically. Many of them can do so at no cost thanks to Free File. And remember, most states collect income taxes and those states' filing seasons also got underway today, too. (Jan. 19, 2016)
  13. Claiming personal tax exemptions -- Every filing season you can take an exemption for yourself, your spouse and each dependent you claim. On 2015 returns due April 18, 2016, this exemption amount is $4,000 per person; it was bumped up by inflation to $4,050 for 2016 taxes. Your total exemption amount helps you get your adjusted gross income to a lower taxable level. So make sure you don't miss any exemptions. (Jan. 20, 2016)
  14. What's your tax IQ? -- The 2016 tax season is upon us! Before you tackle your 1040, find out what you know about filing taxes with these 10 multiple choice quiz questions. (Jan. 21, 2016)
  15. Standard deduction amounts for 2015 -- Most taxpayers claim the standard deduction. The amount is different for each filing status and adjusted for inflation each year. Here are the amounts that will apply to your 2015 tax return. (Jan. 22, 2016)
  16. Standard vs. itemized deductions -- Choosing which deduction method to use is easy. Pick the one that will help you get the lowest tax bill. For most filers, that's the standard claim. But run the numbers before making your final decision. (Jan. 25, 2016)
  17. Do you have to file a return? -- Probably. Most of us do. But some folks escape this task. Here are the rules. (Jan. 26, 2016)
  18. Picking the proper Form 1040 -- You have three tax return options: the long 1040, 1040A or 1040EZ. The form you pick could save, or cost, you money. (Jan. 27, 2016)
  19. 10 common tax filing mistakes -- Taxes are tough enough. Don't make things worse by committing one of these common and easily avoidable tax-filing errors. (Jan. 28, 2016)
  20. Tax documents on the way -- Before you can file your tax return, you need some basic information. Everybody knows about the W-2 wage statement. And with more folks working side jobs, a variety of 1099 forms are more common nowadays. But there are even more tax documents out there. Be on the lookout for (most of) them in your email or snail mail boxes soon. (Jan. 29, 2016)

But wait, there's more! As soon as January wraps, be sure to check out February's (and March's and April's) Daily Tax Tips. They'll run through the April 18 (yes, we get more time this year) filing deadline.

February 2016 Daily Tax Tips

March 2016 Daily Tax Tips

April 2016 Daily Tax Tips

Can't get enough tax tips? Check out Don't Mess With Taxes' continually expanding collection of year-round tax tips and money moves.

Today's Tax Tip

  • 10 often overlooked tax breaks — Are you still searching for tax write-offs? Here are 10 deductions and credits, including some that don't require itemizing, that too many taxpayers overlook every filing season. Missing them could be costly. (March 24, 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
    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 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 ☘ March.
    Your 2023 arrival is welcome, officially bringing us spring and getting us closer to the end of the main tax filing season. In fact, it's even closer, since this third month of the years also has us spring forward into Daylight Saving Time. So let's not waste any more precious hours and, ahem, march right into this month's tax tasks.


    via GIPHY


    March 1: It's the last full month of the tax-filing season, so that's a good reason to come at our taxes in the proverbial like a lion March entry mode. The first thing to attack like the feline king is the gathering of all the tax statements you'll need to fill out your 2022 return. This includes the paper ones that you tossed on a stack when they arrived, as well as those sent electronically and that you need to download or at least look at.

    March 6: Official tax statements aren't the only things you'll need to help you file. Other documents have information that's relevant to your tax return. So are the answers to some basic life questions. This tax checklist can help guide you as you work on your return. And don't forget about your previous tax return. That prior tax year filing is a good template, especially if your tax life hasn't changed that much.

    March 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.

    March 12: Feeling a bit tired after losing an hour of sleep earlier this morning? I'm right there with you. But I do love the extra end-of-day sunshine.

    Daylight Saving Time clock springs forward

    We can use that late-day natural light to work on our tax returns, including state filings if you, like most U.S. residents, live where state (or District of Columbia) personal income taxes are collected.

    March 15: This date is more than a literary reference. The Ides of March apply each year to many business taxpayers. Today is the tax filing deadline for partnerships (Form 1065 with K-1 or K-3 schedules) and S corporations (Form 1120S, again with the K schedules).

    March 17: Erin Go Bragh and
    Happy St. Patrick's Day!

    via GIPHY

    Enjoy this day, but don't trust lucky charms to get you through tax filing season. Double check your 1040 to ensure you haven't overlooked any tax breaks or made any common filing mistakes.

    March 20: Spring has sprung!

    Spring; click image for the Farmer's Almanac take on the vernal equinox

    That means it's time for spring cleaning. Your gifts won't help with your current tax return, but they could pay off next year as charitable donation deductions if you itemize.

    March 27: If you have a tax-deferred retirement account, such as a traditional IRA or workplace regular 401(k), and are in your 70s, you could be facing a required minimum distribution (RMD) due date in just more than a week. If you turned 72 last year and didn't take your initial RMD by Dec. 31, you must do so by April 1. A quick planning note, too, for septuagenarian savers not yet facing RMDs. These mandatory distributions this year kick in when you celebrate your 73rd birthday, thanks to the new SECURE 2.0 retirement law.

    March 31: This is it. March is over, which for taxes means you best shed your out like a lamb attitude and get to work on your Form 1040. The IRS recommends we file electronically, which will speed up processing of returns and issuance of any refunds. The tax agency also urges taxpayers to check out Free File, the no-cost online preparation and electronic filing web page for eligible taxpayers created by the IRS' partnership with the Free File Alliance. 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.

    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.

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.

  • TruthAboutPayingFewerTaxes
  • 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:

  • JK Lasser 2023 Taxes
    JK Lasser 2023 taxes

  • Dealing With The IRS
    Dealing With the IRS

  • JK Lassers 1001 Deductions
    JK Lasser 1001 Deductions
  • ~~~~~~~
    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
    © 2005-2023 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 & 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:
    CDC Vaccines
    CDC Booster Shots
    HHS Combat COVID
    USA.Gov COVID Info

March 2023

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