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Daily Tax Tips March 2016

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March is here! The month of lions, lambs, Ides and ideas on how to cut your tax bill.

We're heading into the home stretch of the annual filing season. Even though we get a few extra days before our taxes are due -- April 18 this year -- we can't afford to waste time.

So quit being a tax lamb. Summon that inner tax lion and let's get to the tax tasks at hand.

This month's tips will suggest ways to cut your 2015 tax bill, as well as offer ways to make 2016's Internal Revenue Service bill less, well, taxing.

And as has been the case for the two previous months, this page will collect all the tax advice that's highlighted in the upper right corner of the ol' blog during March.

Now, let's get this tax list started! 

  1. Capital gains and your home sale -- Homeownership provides many tax breaks, the best of which is a sizable tax-free profit when you sell your residence. (March 1, 2016)
  2. 8 outrageous tax deductions -- Yes, you can write off a lot of things, but not everything. Here are some of the craziest tax deductions folks have tried to slip past the IRS and their tax professionals. (March 2, 2016)
  3. The many ways to e-file your taxes -- If you plan to electronically file your tax return, you've got lots of options, some of which are low-cost or even free. (March 3, 2016)
  4. What's taxable and what's not -- It sure seems like every penny you make is taxed, but that's not true. There are a few items from which Uncle Sam doesn't take a cut. (March 4, 2016)
  5. Is your hobby really a business? -- If you're regularly turning a profit on your recreational pursuit, you might save some tax money by officially converting it to a job. (March 7, 2016)
  6. 12 small business tax breaks -- If your business is booming, you'll want to check out these 12 deductions that could help reduce what you'll owe the Internal Revenue Service. (March 8, 2016)
  7. Simplified home office deduction -- If you don't have a lot of home office expenses, this alternate way to claim residential workplace costs could be just what you need. (March 9, 2016)
  8. Unemployment and taxes -- Being out of work presents a variety of financial considerations. There are some tax breaks that could help ease the loss of income. But you also might owe taxes on unemployment benefits. (March 10, 2016)
  9. Writing off job-hunting costs -- You got a new job last year. Congratulations! Now see if you can deduct your job-search expenses. (March 11, 2016)
  10. How the Earned Income Tax Credit can help -- Lower and middle income workers might be eligible for this refundable tax credit. For the 2015 tax year, the EITC could be worth up to $6,242 for some qualifying families. (March 14, 2016)
  11. Properly defined dependents pay off -- Claiming your kids and other relatives, including those folks who aren't technically family but qualify under the Internal Revenue Service definition of relative, as dependents can lower your taxes. Just make sure you follow the sometimes confusing IRS rules. (March 15, 2016)
  12. IRS tax credit helps with childcare costs -- The IRS can't help you find a day care provider for your children, but Uncle Sam can help you cover some of the costs via the child and dependent care tax credit. (March 16, 2016)
  13. Take advantage of the adoption tax credit -- Adopting a child can be a joy, but also costly. Your Uncle Sam, however, offers ways through the tax code to save when you add to your family. (March 17, 2016)
  14. Getting tax help to care for an aging parent -- If your mom or dad is older, you might be helping them out, physically and financially. Uncle Sam offers adult kids some tax relief when they are taking care of, and claiming as a tax dependent, an aging parent. (March 18, 2016)
  15. Check out the many education tax breaks -- College expenses are ever increasing, but your Uncle Sam can help. The tax code offers an array of tax-advantaged ways to cover the many higher education costs. (March 21, 2016)
  16. An education tax credit primer -- Tax credits help cut what you owe Uncle Sam dollar-for-dollar. For students and their families, the American Opportunity and Lifetime Learning tax credits can help cover many of their higher and continuing educational costs. (March 22, 2016)
  17. Older folks face April 1 RMD deadline -- The mandatory minimum retirement account distribution (RMD) deadline is April 1 for some older individuals. No joke. Another option: Directly donating your RMD to a charity. (March 23, 2016)
  18. Deducting state and local taxes -- Residents of 43 states and the District of Columbia pay more than just federal income taxes. The one consolation is that those state and local levies can be useful as itemized deductions to reduce your IRS bill. (March 24, 2016)
  19. Maximizing medical deductions -- To claim itemized medical deductions your expenses must be more than 10 percent of your adjusted gross income. Here are some ways to clear that hurdle. (March 25, 2016)
  20. 5 terrible tax surprises -- Taxes are bad enough, but things get worse when you come upon one of these costly tax surprises. (March 28, 2016)
  21. Roth IRA rules -- The deadline to contribute to a Roth IRA is April 18. If you're planning to put money into or open a Roth retirement account, make sure you know all the tax-free account's rules. (March 29, 2016)
  22. Traditional IRA rules -- The original individual retirement account has fallen out of favor with many folks, but it still can provide some a nest egg for later and tax savings now. (March 30, 2016)
  23. Retirement savers credit -- Uncle Sam rewards some savers now for contributions to their future nest eggs. Qualifying taxpayers can claim this tax credit worth up to $1,000 per person directly against any taxes owed. (March 31, 2016)

    March went out like a crazy Sasquatch, big-footing my schedule and throwing me behind. So here's April's first Daily Tax Tip, no fooling! The separate April page is coming soon. Thanks for your patience.

    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) 

When we wrap up March, it's full steam ahead to the April deadline. And whenever you need some tips on filing your return, you can always visit the collected tax tips pages listed below.

January 2016 Daily Tax Tips

February 2106 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.

Filing Season Tax Tips

  • EITC and ACTC refunds are good to go, sort of — Since 2017, the Internal Revenue Service has been required to hold until mid-February tax refunds when the filers claimed the Earned Income Tax Credit (EITC) or additional child tax credit (ACTC). That deadline is here, but if you're affected by this law, be patient. It will take the IRS some time, especially in this government shutdown-affected filing season, for your tax money to be sent. (Feb. 15, 2019)

  • Tax Tip; click pencil for all tax tip links

  • Did you miss a daily tip posted above? No worries. They're collected in the 2019 Filing Season Tax Tips pages, one for each of the three-and-a-half months that we focus on our 1040s: January, February, March and — tah-dah! — April. After a brief break to catch our post-filing deadline breath, the Weekly Tax Tips, like these from 2018, will return.

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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 Season 2019 is here!
    Are you ready to file your 2018 tax return? Me neither. But we need to start thinking about it now because April 15 will be here before we realize it and we've got to figure out how the new Tax Cuts and Jobs Act changes will affect our filing — and eventual bill or refund. The countdown clock below will help you keep track of this year's due date. Happy New Tax Year!
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks


  • monthly tax moves


  • Feb. 1: Hello, February! We're thrilled that the shortest month has arrived.

    January gives way to February_LoveThisPicPinterest

    Although we have only 28 days, that's still plenty of time to make some meaningful tax moves.
    Let's get to them.

    Feb. 2: Happy Groundhog Day!

    Fat Groundhog; click image for Groundhog Day details

    Don't get caught in a Bill Murray loop and end up doing your taxes over and over. Get your 2018 return right the first time, which means waiting for all your necessary tax statements, like your W-2 and the assortment of 1099 forms, that you need to file.

    Feb. 3: Are you ready for some Super Bowl!?! Of course you are, especially if you're placing a now-legal sports bet on the NFL championship game. Even nonsports fans get in on the action through myriad prop bets. Remember, though, that whenever any bet, be it on an on-field event or something tangentially related to the game, pays off, those gambling winnings are taxable income.

    Feb. 11: Does your job include tips? If so and you received $20 in tips in January, use Form 4070 to report them today to your employer. Yes, it's usually due on the 10th, but since that was on Sunday, you have until the next business day to provide details on your gratuities.

    Feb. 12: 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 Feb. 12, 1909. That was 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, you can donate to it and, since it is a 501(c)(3) organization, you can still claim it as an itemized deduction. Yes, this part of Schedule A survived the Tax Cuts and Jobs Act (TCJA) changes, although you might want to now look into other charitable giving strategies.

    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. This means the Internal Revenue Service can come after either spouse for payment of a tax bill, even the spouse who is in more dire financial circumstances.

    Feb. 18: Today is Presidents Day, 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 we've got to give a (another) special 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.

    Nowadays, however, this and other Monday holidays are spotlighted as special shopping days. If you itemize, you can claim a deduction for the state and local sales taxes you pay, although they might not be as valuable on your 2018 tax return due to the overall caps on state and local income tax deductions under the TCJA.

    Feb. 22: February usually is a big filing month. If you're among the millions working on your taxes now, check out Free File. The IRS/tax software industry partnership, known as the Free File Alliance, is in its 17th year of providing eligible taxpayers the opportunity to prepare and e-file their taxes at no cost.

    IRS Free File; click image for details

    This year, qualifying taxpayers — that's those with income of $66,000 or less — can use one of the expected dozen or so special commercial tax software programs at IRS.gov's Free File online page. Even if you make too much to use the online software, you can file using Free File's fillable forms.

    Feb. 28: If you're not a tax procrastinator and have already filed, you can check the status of your return online using the IRS' "Where's My Refund?" tool.

    Small Business Tax Calendar: Speaking of business taxes, you'll find important filing, deposit and record keeping dates throughout the year that your company needs to know in the IRS' tax calendar for small businesses and the self-employed. You also can get more tax calendar information 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.

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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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