Deductions Feed

Thanks to much larger standard deduction amounts under the Tax Cuts and Jobs Act (TCJA), fewer filers are itemizing deductions. But that doesn't mean they aren't still writing off some tax-deductible expenses. During this first filing season after the many changes wrought by the latest tax reform law, taxpayers are still claiming what used to be called above-the-line deductions. Technically, they are and always have been adjustments to income. They got the above-the-line moniker because they previously appeared in the last section of the old long Form 1040, just above the last line of that form's first page where your... Read more →


Tax Day every April is the biggie for individual taxpayers. That's when our annual Form 1040 is due. And yes, I know this year there are two Tax Days, since Patriot Day celebrants in Maine and Massachusetts get until April 17 to send in their federal returns. But most of us must meet the April 15 deadline, so that's what I focus on in this post. Completing a 1040, however, is not the only mid-April tax deadline. It's just one of the 10 tax tasks listed below that many taxpayers also must make by next Monday, April 15. 1. File... Read more →


The larger standard deduction amounts created by the Tax Cuts and Jobs Act (TCJA) mean that fewer filers claim itemized expenses. That also could be trouble for those of us who still will file a Schedule A. With fewer itemized expenses to review, the Internal Revenue Service theoretically could have more time to spend looking at everything we write off on this Form 1040 attachment. And excessive deductions are one of the common tax audit triggers. One of those deduction amounts, the one for state and local taxes, is changing, thanks to the new tax law. Some taxpayers and their... Read more →


Broad City image via Giphy.com Do you have to file a return? Sorry to be the bearer of bad news, but the answer usually is yes. But there's a difference between having to file a tax return and submitting a 1040 form because you should. And by should, I mean when it's to your advantage to do so. Yes, that does happen in the tax world now and then. When filing is required: First, though, let's look at when the tax code says we must send the Internal Revenue Service a Form 1040. Although the 1040 has a new look... Read more →


March Madness is heating up. We're down to the Elite 8. I usually don't pay too much attention to college basketball, or college sports in general. I follow the professional games because I like to yell at the players, and I feel much more comfortable cursing guys who're pocketing beaucoup bucks instead of unpaid college athletes. I am in the minority, even in my house. The hubby has been sneaking some TV time watching the NCAA men's basketball championship tournament, though truth be told that's mainly because our alma matter, Texas Tech, is doing pretty well. Only the ELITE remain!#MarchMadness... Read more →


College and its ever-increasing costs certainly have gotten a lot of attention. There's the group of Democrats seeking their party's 2020 presidential nomination. Obviously spurred by the enthusiastic supporters of Independent-turned-temporary-Democrat Sen. Bernie Sanders and his promise of free college, many other White House wannabes also are talking up educational assistance. Then there's this week's Operation Varsity Blues. You might not have caught the name, but let me drop two others to spur recognition: Felicity Huffman and Lori Loughlin. Yeah, that's the name federal investigators gave to their take down of a far-reaching college admissions scheme. Wealthy parents, elite school... Read more →


Lee County, Alabama, March 3 tornado damage. (Photo: Nicholas Baretto via Twitter) As expected, once the White House declared parts of Alabama a major disaster area, the Internal Revenue Service followed up by offering affected residents a variety of tax relief. Victims of the deadly tornadoes and severe storms that raked areas of the Yellowhammer State now have until July 31 to file some individual and business tax returns and make certain tax payments. "With the regular deadline just a few weeks away, we want storm victims to focus on their families and recovering, rather than worrying about the tax... Read more →


Part of today's International Women's Day celebrations are for the continuing employment advances by women. Our 21st century progress is due in large part to the pivotal roles of female employees in traditionally male jobs, like this woman machining parts for transport planes at the Consolidated Aircraft Corporation plant in Fort Worth, Texas, in 1942. (Photo via Wikimedia Commons) Back in 2017 when Congress was formulating the comprehensive tax law changes that would become the Tax Cuts and Jobs Act (TCJA), the #MeToo movement was in full force, shining a light on the prevalence of sexual assault. As the TCJA... Read more →


My mother and my furry little brother Willie having a conversation. While walking Willie last October, my mom fell and broke her leg, a common occurrence among older dog owners. That accident has prompted ongoing discussions (OK, fights) on possible more hands-on care options for my octogenarian mother. (Photo by Kay Bell) I'm a cat person. Fight me. Or don't. Like cats, I'm not really concerned about your pet opinion. For almost a decade, though, I've been dealing with a dog. Not mine. My mom's. She has a dog, Willie, and he's the most spoiled animal I have ever known.... Read more →


The King by Kevin Pluck via Flickr We thought we wanted you March, but your "in like lion" approach this year is way too fierce. Severe weather roared through the south today, with a rash of tornadoes claiming lives and destroying property. Meanwhile, a serious winter storm is heading to the northeast, making March's appearance more like a snow leopard than a lion. The only good thing about this early spate of destructive weather is that it reminds us all to be ready for natural disasters. They happen year-round. And under the new tax law, you can claim any damages... Read more →


A crowdfunding effort to raise money to build a wall along the U.S.-Mexico border has ended, but some folks still want to contribute. The debate on an expansive U.S.-Mexico wall (or similar structures) continues, in Washington, D.C., as well as across the country. The top issue right now is money to pay for any barriers along the United States' southern border. Donald J. Trump has declared the situation a national emergency, which his administration says would free up a total of $8 billion for the campaign-promised project. Opposition to the wall and Trump's workaround to pay for it has received... Read more →


NASCAR's 2019 season started today with the auto racing series' biggest event, the Daytona 500. Congratulations to Denny Hamlin and Joe Gibbs Racing for taking the checkered flag in the Great American Race. Things aren't so clear-cut, though for the expired tax break for motorsports speedway improvements and more than two dozen other assorted tax benefits. These tax breaks expired in 2017 and are not on track for reinstatement. Yet. In fact, they're looking as messy as today's closing laps pile-up. Extenders indecision: These assorted tax breaks are known collectively as the extenders. They get that name because they are... Read more →


I never seem to be able to submit our joint Form 1040 early in the filing season, partly because I have to sort through all this material to fill out the forms! There are many reasons why millions of taxpayers procrastinate when it comes to submitting their annual returns. Much of the time, those excuses aren't good. But there are some times when you shouldn't rush to finish your Form 1040 early in the filing season, even if you're expecting a tax refund. Here are six reasons to wait a bit before filing: 1. To get your return right. Doing... Read more →


There was national anthem controversy at Super Bowl LIII, but it wasn't about what the players did during the song. It was about how long it took Gladys Knight to sing the Star-Spangled Banner and how it affected the associated prop bet. If you did come out on the winning side of the song, here's how to report that and other taxable gambling income. There's no disagreement that Gladys Knight's Star-Bangled Banner was magnificent. However, gamblers had some issue with how long the song lasted, which was one of the prop bets wagered on the game and its ancillary events.... Read more →


Hello, February! If we ever were in need of your hearts and flowers, it is now. January was tough tax-wise. We had to worry about whether the Internal Revenue Service actually would get filing season open as the longest federal government shutdown in U.S. history dragged on. It opened as promised on Jan. 28, but be patient. Plus, we're dealing with our first filing season under the many, many changes brought about by the Tax Cuts and Jobs Act (TCJA). Yep, we definitely need some tax love. And some tax guidance, whether we're earlier filers awaiting refunds or procrastinators taking... Read more →


Much of the mass media coverage of Tax Cuts and Jobs Act (TCJA) changes has focused on how they affect individual taxpayers. There are, after all, 150 million or so of us who, for the first time this filing season, are now dealing with the practical, real-life effects of the new law. But let's be honest. Business taxes were the impetus behind the biggest tax reform measure in more than 30 years. In this area, the 20 percent Section 199A tax deduction for certain small businesses has gotten the lion's share of coverage. It was added to the bill to... Read more →


Even if you've been filling out Form 1040 and any other associated forms and schedules for years, things will be different this filing season. This is the first year we taxpayers (and tax pros) will be filing under the extensive new Tax Cuts and Jobs Act (TCJA) changes. In addition to new tax rates and deduction amounts, there are a variety of other tax law tweaks that could affect what goes on — or now doesn't — your Form 1040, which itself is new. So before you start working with your tax preparer or open up your tax software, either... Read more →


Each year on this federal holiday honoring the Rev. Dr. Martin Luther King Jr., people across the United States volunteer at their favorite nonprofit services provider. Others opt to donate to charitable causes that support the goals of Dr. King and MLK Day. Here's a look at how recent tax law changes have shifted some of those donation choices and giving methods. Charities cheered when they were spared the limitations imposed by the Tax Cuts and Jobs Act (TCJA) on many popular itemized deductions. There even was celebration of a change that allows the charitably inclined, particularly the very wealthy,... Read more →


We're almost 13 months into the largest tax reform measure enacted in more than 30 years and one thing is clear. The Tax Cuts and Jobs Act (TCJA) is in no way tax simplification. In fact, taxpayers and the professionals they pay to help make filing less taxing in every sense of the word have been struggling with just what Congress meant in way too many of the tax bill's hastily drafted provisions. Big business bill, with small biz break and confusion: Although the TCJA contains many changes that will make filing returns this year interesting for individual taxpayers, it... Read more →


Jeff and MacKenzie Bezos are getting a divorce. I know, it's hard to feel too bad for folks who are so wealthy. They tend to come through difficult circumstances quite well. But the joint announcement today (on Twitter, of course) from the world's richest man and his soon-to-be ex-wife got me thinking about, of course, taxes. By making the decision to end their marriage in 2019, Bezos is losing a tax break while Mrs. Bezos is getting one. As I said, I'm sure neither Mr. or Mrs. Bezos won't suffer too much. Both he and his wife will have lots... Read more →