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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.

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


  • Hello 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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    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

  • COVID-19
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    Call 1-800-232-0233
    or TTY 1-888-720-7489.
    More information and resources at:
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February 2023

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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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