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Daily Tax Tips January 2016

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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

  • Tax-saving HSA contribution limits go up in 2026 — The amounts that health savings account (HSA) owners can put into this tax-advantaged medical plan is going up next year. The increase is part of the IRS’ adjustment this week of the 2026 limits for HSAs, associated high deductible health plans (HDHPs), and the lesser-used health reimbursement arrangement (HRA). (May 2, 2025)


  • Tax Tip; click pencil for all tax tip links

  • The 2025 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 2025 Continues!

    We made it. Tax Day 2025 is finally over. For most of us. When the filing season started on Jan. 27, the IRS said it expected more than 140 million individual tax returns for tax year 2024 to be filed by April 15. When the month started, the agency was around 39 million short of that number. While many taxpayers no doubt got their 1040s in by Tax Day, million every year get an extension to file. That's fine.

    In fact, the Internal Revenue Service appreciates some of us spreading out our tax submissions. It gives the agency time to process the surge of returns that arrive en masse on April 15.

    But enough about Uncle Sam's tax collection issues. The focus now is on all y'all who filed for extensions, giving you another six months to complete your return. Let's get started on meeting that new Oct. 15 deadline. It will be here before you know it.

    The monthly tips and reminders a little further down this column can help you finish up your extended Form 1040. There also will be tax tidbits each month that make sure you meet other tax deadlines. And, of course, you'll find advice on ways to cut your 2025 tax bill.

    The monthly tips and reminders a little further down this column can help you finish up your extended Form 1040. There also will be tax tidbits each month that make sure you meet other tax deadlines. And, of course, you'll find advice on ways to cut your 2025 tax bill.
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.


Time for Tax Tasks


  • monthly tax moves


  • 💐 May 💐 is 💐 here! 💐

    You've got to love a month that starts with a celebration, at least globally. But even though May Day isn’t an official or very big deal here in the United States, there still are lots of other May celebrations. Cinco de Mayo. Mother’s Day. Memorial Day.

    May Pole Dance via GIPHY


    In between, we can celebrate the arrival of the month that, for most taxpayers, means the main 2025 tax task of filing our returns is behind us. Now it’s on to shower-fed flowers, balmy days, and additional tax moves to take care of so that the rest of the year goes smoothly. Let the May tax merriment begin!


  • May 1: It’s not such a merry day for some taxpayers. Not only did the residents of eight states have to earlier deal with a major natural disaster, their Tax Day that was delayed because of those damages is today, May Day, no doubt prompting a mayday call from some affected filers.

    May 2: The rest of us made it through last month, the one that is home to the annual U.S. filing deadline. Did Tax Day mean you got or are expecting a big refund from that filing? Or did you end up owing Uncle Sam a lot? Either way, with your most recent taxes fresh in your mind, it's a good time for a paycheck checkup to determine whether you should adjust your payroll income tax withholding.

    May 5: ¡Feliz Cinco de Mayo! Fiestas are always en vogue in Tejas, but the epitome of them is this Mexican holiday.

    Feliz Cinco de Mayo

    No, it is NOT Mexican Independence Day, and May 5 tends to spur more festivities here north of the border, especially when it comes to imbibing margaritas, the Lone Star State's unofficial cocktail. With every Cinco toast, remember that the cost of state and federal alcohol taxes are included in the mixing.

    May 11: Happy Mother's Day!

    Happy Mother's Day

    Your mom meant it when you were young and she told you she didn’t need a gift today. But she definitely will appreciate a longer-than-usual hug on her special day. Love, flowers, and the best of health and happiness to every mother, from the new ones just discovering the joys, tax and otherwise, of new parenthood to those gracefully maneuvering their Golden Years and getting some year-round tax-advantaged help from their families.

    May 12: If your job is as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation, I hope you get all the tips you deserve for doing your job well. Remember, though, that those tips are taxable income.

    restaurant check tip iStock
    Whether you're dining at your favorite eatery or getting food, groceries and/or prepared meals, 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.

    And if you got at least $20 in gratuities in April for your extraordinary services as a food server or hair stylist or parking valet or whatever job where tipping is common, you must report that amount by today, a bit late since the normal 10th of the month deadline fell in May on Saturday. Use Form 4070 to let your employer know the total tips you took in last month.

    May 19: Millions of taxpayers got an extension to file, or automatically got a later Tax Day due to a major disaster declaration. These individuals can still file electronically, which the IRS recommends. E-filing will speed up processing of returns whenever they are filed, as well as help Uncle Sam get refunds out more quickly. And yes, some late filers are due refunds.

    The IRS-Free File Alliance partnership offers no-cost online tax preparation and electronic filing to taxpayers whose adjusted gross income (AGI) is $84,000 or less, regardless of filing status at the official IRS.gov Free File website.

    Even better for eligible late filers, Free File will be available through the Oct. 15 extension deadline, with the same eight software companies that participated last year back for the 2025 filing season.

    IRS Free File; click image for details

    If your income is too high, you still can file for free by using Free File's Fillable Forms option.

    May 23: Millions of Americans will be welcoming the unofficial start of summer this long Memorial Day weekend. It’s also when gasoline prices always seem to increase. Some of the pump price is attributable to fuel excise taxes. If pump prices climb too much, that may prompt you to look more closely into getting an electric vehicle (EV) before your next road trip, and before the current White House and Congress eliminate the potential $7,500 tax credit for some EVs.

    May 26: Yes, the end-of-May long weekend is a time for fun. But don’t forget the real reason for the Memorial Day holiday. Take time to honor the military personnel who made the ultimate sacrifice. And don't forget about their families. There are some tax considerations offered survivors of lost soldiers, sailors, and air crew.

    May 31: You filed your tax return six-plus weeks ago and you’re still waiting on your refund. What the what?! Quit fuming and check your refund’s status using the IRS' "Where's My Refund?" online tracking tool.

    Small Business Tax Calendar: If you run your own company, you know there are myriad important filing, deposit and record keeping dates throughout the year that your company needs to meet. You also can track key business and individual tax deadlines in IRS Pub. 509.

State Tax Help

  • Don't forget your state taxes!
    Forty-two states and D.C. collect personal income taxes. But even if you live in of the eight states without any 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 2025 page.

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  • 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 interpretation and 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. While I work to ensure each post's accuracy, the items are not recommendations of any specific tax action(s) you should or should not take. Similarly, mentions of commercial tax products or services are not endorsements.

    In other words, my ramblings on the ol' tax blog are free advice, and you know what they say about getting what you pay for. That's why when it is time for you to file your own taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent, or other reputable, 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 five Coronavirus (COVID-19) and Taxes pages have details:
    March-July 2020
    August-December 2020
    January-December 2021
    January-December 2022
    …and so it continues into 2023
    …and, alas, into 2024
    It is 2025 and, yes, it's still an issue
    You can find medical coronavirus resource links in the next section.

COVID-19 Resources

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    or TTY 1-888-720-7489.
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Tell it to the Hill

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  • While it's easy to rail at the IRS, for the most part we can thank — or blame — Congress and the White House for our tax laws. 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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