The Internal Revenue Service will start processing 2024 tax year returns on Jan. 27. Millions of people will file then, or before, getting their forms into Uncle Sam’s tax queue. But to file a complete and accurate Form 1040, you need all the information that form requests. That’s generally income statements like W-2s and 1999s. But there are many other documents that have tax-filing relevance. And most of those aren’t require by law to be sent to you until the end of January. So, most of us are just going to have to be patient for a couple more weeks.... Read more →
Education
Saying "I do" also means saying hello to some tax changes in your new wedded life. (Photo by Jakob Owens on Unsplash) The end of each year is a good time to reflect on what happened the previous 12 months. For most of us, that includes some good events, some sad ones, and some still shaking out as we’re about to enter a brand new year. Many of these changes also could affect our taxes. So, as a bit of year-end preplanning, here are six ways that the Internal Revenue Code shows up when we encounter personal and lifestyle changes.... Read more →
Stumped when it comes to some Christmas presents? It can happen to even the most experienced gift-giver. Here are some tax-related suggestions that might help you be a good Tax Santa this year. Not that anyone is counting, but Christmas is just two weeks away. OK, we’re all counting. And some of us are freaking out a little bit over what to get certain people in our lives. If you, like me, haven’t finished your holiday shopping, here are five financial gifts, some with Internal Revenue Code benefits, that could help you be a great Tax Santa. Open a Roth... Read more →
I love Santa Claus, but even the Jolly Old Elf isn’t magical enough to provide the tax solutions you asked for in your letter to him. You’re going to have to make some tax moves, like the 10 below, yourself. (Photo by Kaboompics.com) Ho, Ho, Holy Moly! December sure got here quickly! Thanks to the 2024 calendar, we (or at least I) haven't even had time to sufficiently recover from Thanksgiving. But time, and taxes, march on, meaning we’ll just have to deal with a compressed holiday schedule as best we can. I hate to be the Tax Grinch adding... Read more →
Taking advantage of these inflation-adjusted tax breaks could put more money in your hands instead of Uncle Sam's bank account. (Photo by Osarugue Igbinoba on Unsplash) Many taxpayers look forward to tax filing season because they are getting a refund. Others just want to pay the smallest possible tax bill. Some Internal Revenue Code provisions, ranging from tax deductions to tax credits to income exclusions, can help in both cases. Deductions, like the standard amounts discussed in Part 2 of the ol' blogs annual tax inflation series, are a relatively easy, and popular, way to reduce a tax bill. Deductions... Read more →
Having trouble making your student loan repayment plan and your budget add up? A workplace benefit that helps cover college debt could help. (Photo by George Becker) School is, or soon will be, starting across the United States. That means students, parents, and teachers are hearing about the variety of educational tax breaks that could help them. But what about all the former students, especially those who took out loans to cover higher education costs? You and your lots of student loans are not forgotten. Almost 43 million U.S. borrowers have federal student loan debt, according to data collected by... Read more →
Photo by Yan Krukau Some classes have already started. Others, like those in my local suburban Austin school district, begin next week. And most will be underway by the end of August. So, families are hitting the stores, especially in places with back-to-school tax holidays, picking up the supplies that will help their youngsters succeed this semester. But parents and guardians aren’t alone. Teachers also regularly spend their own money to make sure that their students have a positive educational experience. If you’re one of those educators who’s shelling out your own money for classroom supplies, save those receipts. You... Read more →
Photo by Helena Lopes Is college worth the cost? It depends. That’s not a cop out. That’s the finding of a new Pew Research Center survey. “The public has mixed views on the importance of having a college degree, and many have doubts about whether the cost is worth it,” reports the Washington, D.C.-based nonpartisan organization that follows issues, attitudes, and trends shaping policy. College survey findings: About a fifth of U.S. adults (22 percent) say the cost of college today is worth it even if someone has to take out loans. Nearly half (47 percent) say it’s worth it... Read more →
Update Aug. 6, 2024: Classes have resumed in some school districts. Others will open their doors to students soon. And most across the United States will be in session by the end of this month. So, it's no surprise that parents are shopping for supplies, especially in states holding back-to-school sales tax holidays. Two that started in July, in Florida and Ohio, are wrapping up into this month. And three others, in starting date order, begin this weekend: Texas from Friday, Aug. 9, though Sunday, Aug. 11; Massachusetts from Saturday, Aug. 10, through Sunday, Aug. 11; and Maryland, from Sunday,... Read more →
Students, and their families, have a lot to worry about. 529 plan savings can help ease some of the financial concerns. (Photo via Unsplash+ in collaboration with Andy Quezada) Happy 529 Day! OK, it’s not an official holiday. It was started in 2021 by National Day Calendar and College Savings Foundation (CSF), and is one of the many commemorations that fill up the 365 days, 366 in Leap Years, of each year. Some of the special days are, to my thinking, downright goofy, although I do believe ice cream deserves to be celebrated every single day. But some merit serious... Read more →
Photo by Keith Luke on Unsplash Congratulations to this year’s high school and college graduates. Walking across that stage and getting that diploma is a ceremony they and their families have long waited to experience. So what, besides sincere well wishes, do you give the graduates in your life for reaching this milestone? There are lots of gifts that can help young adults as they head off to college or into the work world. My personal favorite when I was that age was cash. (Truth be told, it still is my preferred present!) If your favorite graduate is like me,... Read more →
Getting a tax refund can feel like it's raining money. (Photo by Eugene Lisyuk) You filed your taxes, and now are awaiting a refund. The Internal Revenue Service's data shows the average it had issued as of April 5 was $3,011. That three grand average is a nice chunk of change. Even a smaller amount is welcome. So, what are you going to do with that money? Everyone's personal, financial, and yes, tax, needs are different. But here are some suggestions for all y'all getting a refund. 1. Open or add to a savings account or emergency fund. I know,... Read more →
A scenic overlook is always worth a stop when traveling. But when it comes to taxes, you definitely don't want to overlook tax breaks that could save you money. (Photo by Gary Yost on Unsplash) There are two ways to reduce your tax bill. You can take deductions, which reduce the amount of your money that's taxable. You also can claim tax credits, which cut any tax you owe dollar-for-dollar, and in a few cases get you refund. The options are not mutually exclusive. But they don't do you any good if you don't claim the ones to which you're... Read more →
Photo by Ozan Safak on Unsplash Higher income taxpayers tend to take the most advantage of tax breaks. That's no surprise. They can afford to hire tax professionals, who keep track of all the benefits they qualify for and claim them on the well-to-do taxpayers' returns. But there are some valuable tax breaks for the rest of us who are far from wealthy. And while higher-income households do enjoy greater per dollar benefits tax benefits, the breaks available to us tax plebeian are more beneficial when they are measured as a share of our income. Tax credits provide the most... Read more →
Unsplash+ in collaboration with Ave Calvar You checked out my post on who has to file a tax return (thank you!) and confirmed that you're one of the lucky few who doesn't have to file a Form 1040 this year. But maybe you should. Even if you aren't legally required there are some good reasons to send the Internal Revenue Service a tax return anyway. Here are eight such should-file situations. 1. You are due a refund. Most U.S. workers have income tax amounts taken from their paychecks. Other sources of income also sometimes take some tax amounts off the... Read more →
Unsplash+ in collaboration with Getty Images Tax season 2024 officially starts Monday, Jan. 29. Lots of taxpayers have already filled out their 1040 forms and are just waiting for the Internal Revenue Service to start processing them next week. Most of these early filers are expecting tax refunds. They also likely have relatively simple tax lives. Lucky them. Others, however, have more complicated tax and financial circumstances. These folks have more tax documents with details that must be transferred to their return forms and schedules. They also need to consider how their situations might affect their tax returns. Below is... 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 →
It's the last weekend of 2023, and you're busy planning how you will ring in 2024 on Sunday night. Unless you live in Florida. Oh, Sunshine State residents will party on New Year's Eve, too. But many also are making back-to-school shopping lists. That's because Monday, Jan. 1, 2024, is the start of yet another Florida sales tax holiday. This two-week event waives the sales tax, both state and local option add-ons, that's usually collected on what state officials have deemed school supplies. Among the items that will be tax free during the Monday, Jan. 1, 2024 through Sunday, Jan.... Read more →
Photo via Unsplash+ in collaboration with Getty Images College football fans are in heaven. The 2023 NCAA bowl season is underway. The first of the 42 games kicked off this morning in with Georgia Southern meeting Ohio in the Myrtle Beach Bowl. The event's sponsoring name notwithstanding, the event is actually more inland, at Brooks Stadium in Conway, South Carolina. There are six more games today, all as appetizers to the main menu meal, the College Football Playoff National Championship Game in Houston on Monday, Jan. 8, 2024. The one downside this year is the number of notable players —... Read more →
No need to wrap cash holiday gifts. Here are three that also have some tax benefits. (Photo by Kira auf der Heide on Unsplash) Still shopping for the perfect gift? Lots of folks who get stuck turn to cash. As the old saying (OK, cliché) goes, any amount is the perfect size and green looks good on everyone. Many people, though, find giving cash too crass. There are, however, ways around this that are a bit more subtle, and which can financially help others in a tax-favored way. Here are three. 1. Open a Roth IRA for a young worker.... Read more →