Education Feed

Photo by Dewang Gupta on Unsplash In 2019, the Internal Revenue Service received nearly 156 million tax returns. Then came the COVID-19 pandemic. In 2022, the number of 1040s filed hit 169.7 million. The increase continued in 2021 with the IRS receiving 169.1 million returns, and into 2022, when 164.3 returns were sent to the tax agency. The main reason for the 2020-2022 filing spikes was the coronavirus-related financial help — economic impact payments and increased advance Child Tax Credit amounts — that the IRS was tasked with delivering. Many, OK most, of those millions who hadn't filed before 2020... Read more →


Every filing season, eager taxpayers, most of them expecting a refund, send their returns to the Internal Revenue Service as soon as they can. For most it works out OK. Others, however, discover on their own, or learn from the IRS, something just not quite right, and costly, on their Form 1040. It works the other way, too. In some instances, folks submit a return without claiming a tax break that would have saved them dollars. The IRS isn't going to tell you about that! The best way to make sure you enter all the data that the IRS wants,... Read more →


We're just a couple of weeks into this new year, and I've received three 1099s and a donation thank-you letter. I am not alone. Official tax forms and statements are filtering into mail boxes, both curbside and electronic, across the country. The exact tax-related documents differ from taxpayer to taxpayer, but we all share one thing. We need them in order to accurately fill out annual tax returns. They include W-2 forms for folks with wage-paying jobs, 1099-NECs for freelancers, and 1099-MISC and DIV documents for those who have investment earnings. It is, after all, called an income tax. But... Read more →


The tax year is over. Long live the tax year. Taxes are, if nothing else, persistent. Sure, there are a few (or more) changes every year, even if it's only inflation adjustments. But even in years when the changes are negligible, they are back, starting to add up on the first of every January. That's why 2023 is the first By the Numbers honoree of this new year. The transition from an old to a new tax year is also the focus of this post. It's a look at six tax matters that affected or at least fascinated us in... Read more →


Merry Monday Holiday After Christmas on Sunday. Happy Boxing Day. Joyous End-of-Year Tax Tasks to Complete Week. Yep, the start of the last week of 2022 has a lot of identities. But it's that last designation that you need to pay close attention to, since the end of the tax year is critical when it comes to many tax moves. Here are eight you need to consider and, if they apply to you, complete by Dec. 31 — or actually by Friday, Dec. 30, in some cases since it's the last business day of 2022. 1. Take your required minimum... Read more →


Yes, you've got a lot to think about during the holidays, but add this tax task, too, if you're older and have a tax-deferred retirement plan. Don't miss the Dec. 31 RMD deadline. If you read my December tax moves post a couple of weeks ago, thank you. Now I'm here to reiterate one of those end-of-year actions. Take your required minimum distribution. That sentence makes sense to older readers who used tax-deferred retirement accounts, such as a traditional IRA or traditional 401(k) workplace plan, to save for retirement. But Uncle Sam doesn't want to wait forever to collect on... Read more →


Photo by Guneet Jassal on Unsplash It's December! Are you ready for all the decorating and shopping and cooking and parties and tax moves to make? Yep, tax actions need to be added to your already very long holiday to-do list. You only have 31 days to take advantage of some Internal Revenue Code provisions that could save you money. That's always a welcome gift from Uncle Sam, but especially at this time of year. Plus, if you take relevant tax steps sooner in the month, you'll also free up time for more traditional festivities. So let's get to it.... Read more →


Tom and Tillie Turkey take care of their youngsters, like these three young Bourbon Red poults. But poultry and the rest of the animal world doesn't have to send their offspring to college. (Photo by Jennifer Kleffner via Flickr CC) A recurring phrase uttered at holiday season family gatherings is "you've grown so much since I last saw you!" What that usually means for many parents of those youngsters is that they will soon be heading off to college. And that move to campus means that mom and dad will have to come up with big bucks. The best way... Read more →


Very few of us share the same tax circumstances. However, there is one thing every taxpayer can agree on. We all want to pay the least amount of federal tax as possible. Deductions, like the standard amounts discussed in Part 2 of the ol' blogs annual tax inflation series, are a major way of reducing our annual tax bill. But wait. There's more. There are the adjustments to income, listed on Form 1040 Schedule 1 and still known as above-the-line deductions. You can claim all of these 25 tax breaks regardless of whether you itemize or take the standard deduction.... Read more →


The only thing worse than college course overload is the debt you went into to get into the university. Now, some students will be able to have some of their student loan amounts forgiven. (Photo by Pixabay) The Department of Education is now accepting online applications for full or partial discharge of student loans up to $20,000. It's a soft, beta launch, so be prepared to encounter some glitches if you're in a hurry to be done with your college debt. Technically, you'll be a test subject for the Education Department. The webpage notes: We're accepting applications to help us... Read more →


Photo by Evelyn Giggles, Flickr CC Schools nationwide are open. That means lots of teachers' bank accounts are taking hits. Last year, the National School Supply and Equipment Association's (NSSEA) survey found that educators spent an average of $750 of their own money to ensure their students have what they need to learn. Another report by Expect that cost to increase this term — another report by My eLearning World sets this year's per-teacher cost at $820 — in part due to inflation. Some small tax savings for teachers: Inflation also helped out a bit with a of tax relief... Read more →


You've had that student loan for what seems like forever. So naturally, you're eager to take advantage of the debt forgiveness offered by the Biden Administration. But don't act too quickly or you could be a scam victim. Soon after President Joe Biden announced his plan that will erase in some cases up to $20,000 in undergraduate student loans, consumer advocates had some suggestions of their own. Beware of perps on the prowl with promises that they can get rid of your student loan obligation more quickly. Or get you even more loan relief if the federal plan doesn't cover... Read more →


Photo by Alexander Grey on Unsplash Millions of people whose student loan debt will be wiped out now face another financial question. What to do with a bit more disposable income. Financial advisers suggest they pay off other debt, such as high-interest credit card balances. That's a smart move. So is the recommendation that folks put their newly available former debt payments into an emergency fund. I'd like to also toss out there the option of saving for retirement. As an added bonus, most retirement account options offer some sort of tax benefit. Here are some tax-favored retirement-saving possibilities that... Read more →


College can be fun. Paying for it, not so much, especially when you have to take out loans. Some student borrowers are getting loan relief from the White House, but also might end up owing state taxes on their forgiven student debt. (Photo by cottonbro) Around 20 million folks who borrowed money to attend college got good news last week when President Joe Biden canceled a chunk of their student loan debt. The Biden plan's major component says that individuals earning less than $125,000 (or $250,000 for married couples or heads of households) a year will be eligible for up... Read more →


School is back, and that means homework. College students and their parents especially need to review some lessons on ways the Internal Revenue Code can help pay many higher education costs. The table below offers a look at two popular educational tax credits, the American Opportunity Tax Credit (AOTC) and the Lifetime Learning Credit (LLC). The AOTC is the one most undergraduate students (or their parents) will claim. The LLC is for additional educational costs beyond the first four years, including classes you take after getting out of school. Education Benefits Comparison Tax Year 2022 Criteria AOTC LLC Maximum benefit... Read more →


Coming back from an appointment today, I saw school buses roaming my neighborhood. Classes for my local school district start Wednesday, so I guess the drivers were just on reconnaissance runs. Students, their parents, and of course teachers are making preparations, too, not just here in the Austin, Texas, area, but nationwide. Much has been written (or, in my case, blogged) about state sales tax holidays (a few are still on the horizon) and the savings on school-related items. In most cases, we tend to think of students and their families taking advantage of the no-tax events. However, teachers also... Read more →


CT and NJ shoppers get sales tax relief on classroom clothing and, in the Garden State, more at the end of this month. And then there were five. That's how many states remain in the August back-to-school tax holiday list. Three of them — in Illinois, Maryland, and Massachusetts — are this weekend. The other two, in Connecticut and New Jersey, will close out this month. Since most of the 19 states offering tax holidays this year have by now held their no-tax shopping events, all y'all know the drill. The table below has specific dates and links with tax-free... Read more →


Photo by Daniel X. O'Neil via Flickr CC With things more or less back to whatever now counts as normal, kids (and parents) are counting down the days until school restarts. They're also looking, especially with inflation bumping up prices, for ways to save on necessary school supplies, which a recent National Retail Federation (NRF) survey found are expected to be around $864 this year. Sixteen states are offering ways to help their back-to-school shoppers. They're offering state (and in some cases local) sales tax holidays in August. Florida's two-week back-to-school tax holiday began July 25 and continues through midnight... Read more →


Summer's winding down, with schools opening their doors across much of the country in just a few weeks. So of course, you're thinking of one last getaway to escape the sweltering dog days. But before you head out to a beach retreat or cooler mountain cabin, take a few minutes for taxes. August is a good time to make some tax moves that could save you some dollars and future headaches. Here are four to consider. 1. Make your tax holiday shopping list: The return this fall of students to classrooms is most welcome by COVID-weary parents who saw much... Read more →


Summer's winding down, meaning kiddos soon will be going back to school. But before they head to their classrooms, they'll need a few things. Three Southern states are focusing on families with such shopping lists. Florida, Mississippi, and Tennessee are closing out July with back-to-school tax holidays. The longest is Florida's event, which began Monday, July 25, and runs through Sunday Aug. 7. Sunshine State shoppers can save on purchases of clothing ($100 or less); school supplies ($50 or less); learning aids and jigsaw puzzles ($30 or less); and computers and certain accessories ($1,500 or less). Tax holidays in Mississippi... Read more →