A towering city overlook is always impressive, but you don't necessarily need the telescopic help when it comes to overlooked tax breaks. Tax software, your tax adviser, and yes, the often-missed tax breaks listed below, can help you save on this year's filing. (Photo by Ricky Esquivel) The goal of every taxpayer is to pay Uncle Sam as little as legally possible. Even the Internal Revenue Service has enshrined that goal in its Taxpayer Bill of Rights. It’s number 3 on the 10-point list. A good way to ensure you pay no more tax than required is to claim all... Read more →
Elderly
Retirement can be more enjoyable when you don't have to worry about money or, if some lawmakers get their way, taxes on Social Security benefits. (Photo by RDNE Stock project) Lots of folks are paying more than usual attention to Social Security of late. We’re wondering just what Elon Musk’s Department of Government Efficiency (DOGE) minions are doing as they poke around the federal system that provides financial support to millions of older and medically disabled people. We’re also curious as to when Donald Trump might follow through on his campaign promise to end taxation of Social Security benefits. The... Read more →
Photo by Polina Tankilevitch This weekend is bookended by holidays. Today’s Valentine’s Day gift and card exchanges and Presidents Day sales on Monday, Feb. 17. It also marks the peak phone traffic at the Internal Revenue Service, with taxpayers taking advantage of a day off, and finally having their tax statements in hand, to work on their returns. For many callers, however, it also means time on telephone hold. Avoid bad tax-hold tunes: Instead of listening to music that’s not really your taste, the IRS suggests taxpayers with questions this weekend — and beyond — look online for the answers.... Read more →
When you just can't with your taxes, check into getting help from a VITA or TCE volunteer. (Photo by Nataliya Vaitkevich) Even simple taxes can be confusing. So it’s a relief when a reputable, knowledgeable person can help you file. But what if you can’t afford a tax professional? The people who staff the thousands of Volunteer Income Tax Assistance and Tax Counseling for the Elderly sites across the United States could be your tax-filing answer. Locally-provided tax help: The Volunteer Income Tax Assistance, or VITA, program was created after passage of the Tax Reform Act of 1969 as a... Read more →
Hello, February! Even though it's the second month of the year, it's the first full month of the annual tax-filing season and the time when most of us finally start focusing on our 1040s. So, since February also is the shortest month, and we’re already three days into it, I’ll cut to the chase and keep this month’s recommended tax moves short. 1. Keep an eye out for tax statements. Jan. 31 is the day that W-2 and various other earnings statements are supposed to be delivered to workers. Guess what? That date usually slips. Today, for example, I got... Read more →
Getting something for free is the ultimate bargain. That's true for taxes, too, if you're able to use one the four no-cost tax preparation and filing options available to some taxpayers this filing season. (Photo by Ken Hawkins via Flickr) Tax filing season 2025 officially starts today, Jan. 27. The Internal Revenue Service is now processing the millions of returns filed earlier this month, both electronically and the relatively few still sent via the U.S. Postal Service. These early filers tend to have less complicated tax lives. They also are comfortable doing their taxes themselves, usually using tax software. Some... Read more →
Photo by Pixabay The 2025 federal tax filing season officially starts Monday, Jan. 27. Millions of taxpayers already are working on their returns. Some have even completed them. Most of these folks are in a hurry to get their Form 1040 to the Internal Revenue Service because they are expecting a refund. Many also don’t have very complicated tax situations. Or they think they don’t. But something may have changed in their personal lives that could affect their filings, for better or worse. So before they — or you — hit send on their tax year 2024 filing, it’s a... Read more →
Photo by Anna Shvets from Pexels The 2025 tax season officially starts Jan. 27, and millions of taxpayers are working on their returns. Some, however, are asking whether they must file a Form 1040 at all. I hate to dash your no-filing hopes, but the answer probably is yes. When you make money, it’s generally a safe bet that the Internal Revenue Service will want to know about it, and collect a portion. But not always. Here's a look at whether you might be among the select few legal nonfilers. Basic filing requirements: Generally, if you are a U.S. citizen... Read more →
Some older workers can contribute even more in catch-up contributions to their workplace retirement plans starting in 2025. (Photo by Andrea Piacquadio) Welcome to the first work day of 2025! At least it’s a short week. And some folks also are thinking about the day they no longer have to return to an office at all. The start of a new year is a good time to focus on your eventual retirement. To ensure that your post-work years are what you want, you need to start or continue saving. The Internal Revenue Code (IRC) can help, thanks to the various... Read more →
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 →
You’re 73. You have a traditional IRA or other tax-deferred retirement account. You’ve yet to take your required minimum distribution (RMD). You better get to it. The deadline for most who are subject to this tax rule is Dec. 31. Here’s a quick RMD to-do list to help ensure you complete the task. As a bonus, there also are some suggestions on how to use the retirement money. Take out the mandated amount. Your traditional IRA or affected retirement account trustee should have been bugging you about this. It’s time to take the nagging seriously and withdraw your RMD. The... Read more →
The Internal Revenue Service today announced grants to groups that support volunteer tax preparation and tax-filing programs. (Photo by Liza Summer) It’s December, so you’re focusing, as you should, on holiday plans. But the arrival of the last month of the year also means that the 2025 tax-filing season is almost here. Lots of taxpayers already are planning to file as early as they can. And many do so by using free and personal tax preparation and filing help two nationwide programs, Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE). Today the Internal Revenue Service announced... Read more →
If you've met or exceeded your IRA savings target, a Qualified Charitable Distribution, or QCD, might be worth considering. This month, millions of U.S. residents gather with family and friends. But you can help others find thing to be thankful this Thanksgiving season by donating to charitable organizations. Gifts typically are cash, which in Internal Revenue Service parlance includes those made by check and credit card. If the tax agency rules are met, the donations also might be tax deductible. But some older philanthropists have another option. They can give part or all of their required minimum distribution, or RMD,... Read more →
Photo by Jill Wellington Thanksgiving, of course, is the main focus this month. We spend the days leading up to the holiday thinking about what we’re going to cook, or eat if someone else is doing the kitchen heavy lifting. And figuring out a tactful way to deal with that, shall we say, out-there uncle. Good luck! November is also a great month to make sure we don't fall afoul of tax turkeys. To prevent that, there are some tax moves you can make this month. Since it’s already four days into the month — my bad; I got caught... Read more →
Whether your dream retirement is traveling the world or enjoying your own backyard, you need to save now so you can enjoy it. One way to ensure your post-work years are golden is to take full advantage of tax-favored retirement plans. Regardless of who wins the White House, the Social Security system is going to get a lot of attention in the coming years. The aging population, combined with the much ballyhooed birth dearth, is going to put more pressure on Uncle Sam’s retirement program. Even if the new president and Congress can agree on ways to bolster Social Security,... Read more →
Mom is the best nurse, but sometimes you need outside medical care. In those cases, some inflation adjusted medical tax breaks could be just the Rx. Autumn’s seasonal change also can bring some medical challenges. Different flora means new pollens to aggravate allergies. Youngsters are back in classrooms, but all that reuniting with friends means sharing germs, too. And, of course, it’s cold and flu (and still COVID-19) season; get your vaccines! Just one unexpected medical emergency can really ding a budget. But the tax code offers some ways that can help your financial hurt, if not your specific ailment.... Read more →
Photo: Investment Zen via Flickr Deductions can help reduce your taxable income. The less money subject to taxes, the small your annual bill to Uncle Sam. Some people get the most advantageous deduction amount by itemizing. Most of us, however, claim the standard deduction, especially after the Tax Cuts and Jobs Act of 2017 dramatically increased those amounts. Even better, every year the standard deductions amounts — there are several because the amounts depend on your filing status — get reviewed by the Internal Revenue Service. That usually leads to at least some hike in the standard deduction amounts. Best... Read more →
On Oct. 10, Social Security recipients got the annual word on how their benefits will change in the coming year. It was not exactly the news many had hoped to hear. The 2.5 percent increase for 2025 for around 68 million retirees and disabled workers who receive Social Security payments was one of the lowest in recent years. Recipients’ grumbling about the 2025 increase also were likely influenced by this year’s 3.2 percent hike, and the 8.7 percent boost in 2023 when inflation was at an historic level. Fixed-income folks also are still worried about inflation. Although it has eased,... Read more →
The coming wage base bump also means more FICA taxes for higher earners. Running the numbers is important for everyone, but critical for older folks who rely on Social Security benefits, and the annual cost-of-living increases, to cover much of their expenses. (Photo by Getty Images via Unsplash) There’s some good news for the more than 72.5 million recipients of Social Security payments. The Social Security Administration (SSA) today announced they’ll soon see an increase in their retirement and/or Supplemental Security Income (SSI) benefits. Nearly 68 million retirees who receive monthly Social Security deposits will see a 2.5 percent cost-of-living... Read more →
If you have a big heart like the Tin Man in The Wizard of Oz classic movie, consider helping out fellow taxpayers as a volunteer during the coming tax-filing season. Volunteering is getting a lot of attention right now, as people are doing what they can to help each other in areas ravaged by Hurricane Helene. These good deed doers are as critical as the official government and organized philanthropic organization workers. The Internal Revenue Service also depends on volunteers every filing season. They are the IRS-trained people who staff Volunteer Income Tax Assistance (VITA) and Tax Counseling for the... Read more →