Deductions Feed

The Internal Revenue Service IRS is expected to process more than 160 million individual and business tax returns this filing season. Through March 15, the IRS had received nearly 71.6 million individual returns. Some taxpayers probably put off filing in the hopes that the Tax Relief for American Families and Workers Act would be enacted by Tax Day. Several of its provisions could help both personal and business filers. Whether that will happen is still unclear, as the tax bill that cleared the House has hit a lot of speed bumps in the Senate. Other taxpayers, however, aren't that concerned... Read more →


Unsplash+ in collaboration with Getty Images Spring officially arrived at 11:06 p.m. March 19. Have you finished your spring cleaning yet? Me neither. But I have started. To be honest, it was prompted when the hubby and I had some work done to our house. With the structure getting some sprucing up, it only seemed natural to replace some interior items. The next question was what to do with the old stuff? For many, a yard sale is a good way to get rid of unwanted but workable items. But those who don't want to spend a Saturday haggling with... Read more →


Photo by Nareeta Martin on Unsplash Moving to another country for a job involves a lot of changes, but one thing stays the same. Thanks to our worldwide tax system for individuals, as a U.S. citizen you remain a U.S. taxpayer, regardless of where you live. That makes you responsible for filing federal tax returns on your overseas earnings. Uncle Sam, however, does provide some tax breaks to his citizens living and working abroad. They get more time to file, with a June 15 deadline. And thanks to tax treaties, globally peripatetic taxpayers also get certain foreign earned income exclusions... Read more →


Photo by Caleb Cook on Unsplash Back in February in posting about tax relief for Maine residents who endured flooding, I predicted that some Californians would be joining the growing group of storm-struck areas granted more time to file 2023 returns. That wasn't a bold prediction. I've been weather and tax watching for decades, so I was confident in my tax forecast, which was correct. But some southern Californians who were hit by the recent historic rains aren't the only ones for whom the IRS has granted tax relief and a new June 17 tax filing and payment deadline. Some... Read more →


Herbal supplements might make you feel better, but such products typically don't qualify as medical treatments that are eligible for tax-favored treatment. (Photo by Photo by Priscilla Du Preez 🇨🇦 on Unsplash) Health savings accounts, or HSAs, can offer some taxpayers triple tax savings. Holders of HSAs also have a longer window to contribute to these tax-advantaged plans. As noted in my March tax moves post, you can contribute to your HSA by Tax Day (that's April 15 this year), and have it count as money put into the account for the prior tax year. In addition to being a... Read more →


March's arrival means it's time to start stalking some tax savings. (Photo via Unsplash+ in collaboration with Getty Images) While the saying that March comes in like and goes out like a lamb usually is a reference to this month's weather transition from winter to spring (or, here in Central Texas, to summer already), feline aggressiveness could come in handy at tax filing time. There are plenty of tax moves you can make during this final full month before Tax Day, which is this year is the normal April 15 due date. Here are five tax matters to consider in... Read more →


Unsplash+ in collaboration with Getty Images Most taxpayers claim the standard deduction. Those who opt to itemize do so because they have enough tax deductible expenses to exceed their filing status' standard amount. In most cases, those expenses are medical. Generally, you can claim allowable medical costs for yourself, your spouse, and dependents as long as the treatments were prescribed by a physician as necessary to diagnose, ease, or prevent a physical or mental illness. The amount of these medical costs that exceed 7.5 percent of your adjusted gross income count on your Schedule A, the form where you detail... Read more →


The IRS is OK with celebrating the closing of a business deal on a corporate jet, but not so accepting when the aircraft is used for personal jaunts. (Unsplash+ in collaboration with Getty Images) If Elon Musk and Taylor Swift were unhappy with the attention their jet flights were getting from a private citizen, a federal agency's plans could cause them even more turbulence. The Internal Revenue Service today announced that it is initiating dozens of audits on business aircraft that were used for personal travel. The audits will focus on aircraft usage by large corporations, large partnerships, and high-income... Read more →


Photo by Chandler Cruttenden on Unsplash Last August, parts of Michigan were struck by severe storms, tornadoes, and flooding, prompting the Federal Emergency Management Agency (FEMA) to issue this month a major disaster declaration for nine counties. The Internal Revenue Service subsequently announced tax relief for those individual residents and business owners. One of the tax considerations is a new June 17 filing and payment deadline for the affected Michigan taxpayers. The Great Lakes State is the sixth to be granted the new mid-June Tax Day due to disasters. Some Michigan residents join those who were ill-treated by Mother Nature... Read more →


Photo by JESHOOTS.COM on Unsplash Throughout life, we all encounter momentous firsts. First day of school. First time at a paying job. First time holding your child. First time you file a tax return. OK, that last one is probably not an event you celebrate, even if it produced a tax refund. In fact, if you remember filing your first Form 1040 it at all, it's probably because it was not a good experience. There's no way to replace that bad tax memory. But there are steps that first-time tax filers can take to make sure their initiation into the... Read more →


Muddy tracks photo by Sean Foster on Unsplash June 17 is becoming the new Tax Day for many taxpayers. Unfortunately for them, the two additional months are because they live in areas hit by major disasters. West Virginia taxpayers are the latest to join this unwelcome club. Other states where individual and business tax filers have a disaster-related June 17 deadline are Connecticut, Maine, Rhode Island, and Tennessee. In West Virginia, the Internal Revenue Service has announced tax relief for Mountain State taxpayers in Boone, Calhoun, Clay, Harrison, and Kanawha counties. Those five WV counties sustained damages from severe storms,... Read more →


Maine taxpayers join those in Connecticut, Tennessee, and Rhode Island disaster areas for whom Tax Day now is a mid-summer event. Maine road washed away after last December's severe storms. (Photo courtesy Maine Governor's Office via Facebook) Much of California is overrun today by an atmospheric river unleashing heavy rain and wind. Judging from the images of the damages, the Federal Emergency Management Agency (FEMA) likely will eventually declare the hardest hit areas as major disasters. The Internal Revenue Service then will follow, granting tax relief to those in the designated locales. But that's a bit down the flooded California... Read more →


Some other taxpayers in areas hit by more recent major disasters get even later deadlines — Feb. 29 and June 17 — to complete various 2023 tax tasks. Major disasters can strike anywhere, any time. When tax deadlines and the catastrophes coincide, the Internal Revenue Service gives affected filers more time. Some of those deadlines are coming up in February. (Disaster collage courtesy National Oceanic and Atmospheric Administration) Yes, the current tax filing season just started this week, and millions already have sent their 2023 returns to the Internal Revenue Service. But taxpayers in eight states and two U.S. territories... Read more →


Most taxpayers will never be as chill as this tabby, especially now that the annual tax filing season is here. But these tips could make the tax task a little easier. (Photo by Jacalyn Beales on Unsplash) If you've already got your 2023 tax return ready to send to the Internal Revenue Service tomorrow, Jan. 29, when the agency starts processing filings, you can peruse other items on the ol' blog. (Thank you!) If, however, you're not quite ready yet to tackle Form 1040, I got you. Even when your taxes aren't complicated, many of us dread filling out tax... Read more →


You're ready to file your tax return, but there's one problem. You don't have all the statements you need to complete your Form 1040 and associated schedules. Many of us, however, are just going to have to be patient for a couple more weeks. While some issuers have sent taxpayers the required statements, many don't get them out until close to, in most cases, the mandated Jan. 31 delivery date. The documents typically are snail mailed, but technology is gaining ground. Issuers of most of my annual tax statements now let me know by email the documents are ready. Then... Read more →


Doing your taxes can be a hassle. It's a bit easier when you claim the standard deduction instead of itemizing. (Photo via Unsplash+ in collaboration with Karolina Grabowska) This weekend, many taxpayers will be working on their 2023 tax returns. They share a couple of traits in addition to simply being eager filers. The first is no surprise. They are expecting a tax refund. And second, their tax situations are relatively simple. Typically, they have only wage income that's reported on a W-2 form, and they use the standard deduction instead of itemizing. The number of individuals who claim the... Read more →


Unsplash+ in collaboration with Getty Images If you're self-employed, use your car for work, and have taken your last business trip of 2023, go out to your vehicle and take a photo of the odometer. There's no Internal Revenue Service rule that you record your odometer's annual reading. But it's a good idea. A date-stamped smartphone image — either on the last day of the year, the first day of the next year, or, say some tax advisers, on both days — is a digital record that can help you determine how much you drove your vehicle for business. If... Read more →


Photo by olia danilevich Millions will celebrate the end of 2023 on Sunday, Dec. 31. But the last day of the year isn't just for partying. Dec. 31 also is an important tax day. It's the deadline to take care of some tasks that could affect your 2023 tax bill. Other things that happen on the year's final day also have tax implications. Here are five common end-of-year situations that have Dec. 31 tax timing implications. 1. Getting married: If you say "I do" on 12/31, then the Internal Revenue Service considers you married for the whole year. That means... Read more →


A home north of Clarksville, Tennessee, was destroyed on Dec. 9 by an EF-3 tornado. It was part of a series of deadly twisters that ravaged the area on Dec. 9-10. (National Oceanic and Atmospheric Administration photo via Wikimedia Commons) For some, the holidays are hard enough without a major catastrophe intervening. But unfortunately for some Tennessee residents, that's just what happened earlier this month. On Dec. 9 and 10, at least six tornadoes touched down in Middle Tennessee. The National Weather Service (NWS) said that the EF-3 tornado in the Clarksville's area carved a path 42 miles long with... Read more →


Even if you're not a cat, you can appreciate Boxing Day as a way to help others by making charitable donations. Happy Boxing Day! This holiday isn't formally celebrated in the United States, but many people around the world embrace the day after Christmas as a way to keep the season of giving going a bit longer. There are many explanations as to how Boxing Day, and its name, came to be. One commonly accepted origin story is that when it began in the United Kingdom during the Victorian period, household servants were given the day after Christmas off as... Read more →