July truly is April this year, at least as far as my personal budget. Some of our insurance payments are quarterly. That means every April, we have to come up with that money, as well as cash to cover the first quarter of our estimated taxes. The Internal Revenue Service's calendar when it comes to its second quarter estimated tax payment doesn't strictly follow the Gregorian calendar. Uncle Sam's tax collector wants the tax year's second Form 1040-ES and payment in June. My main estimated tax explainer discusses the timing of these payments, but below is a quick look from... Read more →
Estimated taxes
Hello July, which according to this year's goofy tax calendar is April. That means instead of heading to the beach, which is closed anyway due to COVID-19, or taking a longer trip to Europe, which isn't letting U.S. residents in, again due to COVID-19, we're spending mid-summer focusing on taxes. The main one, of course, is filing 2019 returns by the new Tax Day 2020: July 15. That date also is key for several other tax tasks to take care of in July. Here are six that you need to deal with in these two weeks before the 2020 tax... Read more →
June has arrived. But the coronavirus pandemic and its effects on our lives, including our tax lives, mean that in 2020 we likely won't be able to enjoy our usual summertime living is easy lifestyles. (Photo courtesy City of Clearwater, Florida) Hello weird, scary, frustrating June 2020. We're sort of glad you're here, even though the coronavirus means many of us aren't going to be taking a summer vacation and many more of us will still be messing with 2019 taxes until mid-July. Yep, as everyone knows by now, COVID-19 precautions by the Internal Revenue Service have pushed this year's... Read more →
We're less than two months from Tax Day 2020, which was pushed to July 15 due to the coronavirus pandemic. Or are we? There's been some talk and a few actual reports in the media that the White House is contemplating pushing the tax deadline back again, possibly to Sept. 15 or even mid-December. Just talk, so far: An NBC News report noted that talks of an even later Tax Day are preliminary. In that same article, Trump Administration officials stressed that no tax date change decision has been made. But some in the tax community are still a little... Read more →
Click image to watch the Mos Eisley cantina scene, in which these musicians provide the catchy background tune, from the 1977 Star Wars movie that launched the acclaimed sci-fi film franchise. Welcome to the first week of May 2020. It's a decidedly weird month, in large part because of the coronavirus pandemic. When the deadly COVID-19 infection started spreading in force across the United States, most of the country shut down to some degree. Now many states are loosening their stay-home orders and things are starting to some degree to get back to normal, or what will pass as that... Read more →
The first two estimated tax payments for 2020 aren't due this week because of COVID-19 changes, but it's still time to look at how much you owe via 1040-ES and how best to figure those amounts. I've paid estimated taxes for almost as long as I've filed taxes. These payments, in case this tax is new to you, are the equivalent of withholding. With estimated taxes, however, we taxpayers must cover the income (and usually other) tax on things like freelance earnings or investment payouts since we get the money without anything being taken out beforehand for Uncle Sam. There... Read more →
July is America's big celebratory month. The major time to party is, of course, on the United States' birthday, July 4. But in 2020, the tax community's revelry will be on July 16. That's the day after this year's revised Tax Day of July 15. And now we tax geeks, gurus and everyday Joe and Jane Taxpayers will have even more to celebrate since the Internal Revenue Service has expanded the July 15 due date to more tax situations. Below is a review of the key tax deadlines that now fall on July 15. Tax return filing and payments: Individual... Read more →
We definitely are no longer living in normal tax or other times. (Images from Young Frankenstein) April has always been a serious month for taxpayers. April 15 has been Tax Day for 65 years and since most of the millions of at-the-deadline filers tend to owe Uncle Sam, they're not very happy. This year, though, there is an even more solemn reason for no April fooling around. Things, tax and otherwise, have gotten very serious as the United States and the world fight the deadly coronavirus pandemic. On the tax front, new laws have been written and old ones adjusted... Read more →
The Senate also addresses this year's tax filing and payment deadline, as well as those for 2020 estimated tax payments, in its coronavirus relief bill. Keep reading for more on this latest change and check out this Q&A for elaboration from the IRS on some specific tax considerations under the new mid-July deadlines. 2019 tax year returns and any due payments now will be due on July 15, 2020, according to a Treasury Department announcement this morning. And yes, I drew that sloppy circle and scribbled the info on my own calendar. I should have had a cup of coffee... Read more →
Unemployment claims are skyrocketing across the United States as more businesses close as a precaution to stem the spread of the coronavirus. The latest on claims for unemployment benefits was released today by the U.S. Department of Labor. For the week ending on March 14, around 281,000 Americans filed first-time claims for the benefits. That's up 33 percent from the 211,000 benefits claims the week before. Percentage wise, the increase was among the largest one-week spikes on record. Here in the Lone Star State, the Texas Workforce Commission reports that from March 8 to March 14 it received 16,038 unemployment... Read more →
Ah, March. The days get longer. The weather gets warmer. And we've got about six weeks before our tax returns are due. I know it feels like these 31 days of March is plenty of time to take care of all the tax tasks still on your to-do list this filing season. But it's easy to get distracted by the charms of early spring. To keep you at least partially on tax track, here are six March tax moves you can make. Most are easy, so you can soon be back to less taxing activities. 1. Contribute to your 2019... Read more →
You just read my post on tax filing requirements (thanks!) and discovered you don't have to file a Form 1040 this year. So, as fictional television attorney (though not a tax specialist) Jimmy McGill might say, "'S'all good, man." Right? Not necessarily. Sometimes even if you don't have to file a federal tax return, it's to your benefit to do so. Here are 10 situations when you should send the Internal Revenue Service a return: You're due a refund. This often is the case if you had federal income tax withheld. The only way to get any of that prepaid... Read more →
Image via GotCredit.com The year's first obvious and, for some, painful acknowledgement of taxes is next week. Jan. 15 is the due date for the final estimated tax payment for the 2019 tax year. That upcoming deadline day is this weekend's By the Numbers figure. Generally, if you expect you'll owe more than $1,000 in taxes, then you must pay estimated taxes throughout the year. If you've been paying estimated taxes for a while, you already know that these payments cover earnings that aren't subject to withholding. This includes things like investment earnings that pay out periodically during the year... Read more →
The individual tax filing season doesn't officially open until Jan. 27, but you're ready to file your taxes. Or are you? Tax filing, whether you do it yourself via tax software that you buy, use online or access via Free File or hand off the annual task to a tax pro, requires its own specific preparation. You've got to have all your tax-related documentation before you can start filling out that Form 1040. Here's a checklist of forms and documents you'll need to complete your taxes, as well as a look at tax situations you need to consider before filing.... Read more →
Yes, I know I'm a nag when it comes to year-end tax moves. I've posted about individual steps to take by Dec. 31 both at the beginnings of November and December, as well as looked at business tax moves to make now. But as happens all the time in life and taxes, I've come up with a few more year-end tax moves that didn't make the earlier lists, or at least were mentioned just in passing. So here goes with five more tax moves to make by Dec. 31 1. Don't miss the RMD deadline. You followed all the financial... Read more →
Thanksgiving is still a week away. It's another month-plus until Santa puts presents under trees. But holiday shoppers have been hitting the stores and online hard thanks to early Black Friday sales. In fact, more than half of consumers have already started this year's holiday shopping and nearly a quarter of planned purchases have been made, according to the annual survey conducted by the National Retail Federation (NRF) and Prosper Insights & Analytics. Still, there's plenty of shopping and shoppers to do it out there. That means that retailers still are looking for help to handle the remaining seasonal shopping... Read more →
If you read last week's September tax moves post (thanks), you might remember that one of the four suggested actions was to pay your estimated taxes. Not to be a nag, or a reminder as I insist to the hubby, but I'm putting that tax task out there again today. The third installment for the 2019 tax year is due Sept. 16. Yes, that's a day later than normal, but the usual 9/15 due date falls on Sunday. So you get an extra day, next Monday, to either snail mail your 1040-ES voucher and check or money order to the... Read more →
September usually is a welcome month. The summer's hot temperatures finally moderate as the official start of fall nears. Parents and children get their routines back as school is in session. Then there's the reason why usually comes into play as far as September's arrival. It's traditionally the most active month of the annual hurricane season. Nobody wants to see that. We'll have to wait a few more weeks to see if that holds for 2019, but September's start is ominous. Hurricane Dorian, which already has smashed all sorts of intensity records, is stalking Florida as I type. If forecasts... Read more →
Backup withholding basically is the tax collector's knuckleball mitt. The over-sized baseball glove helps a catcher handle, he hopes, the hard to predict (and hold onto!) pitches. The IRS uses backup withholding to catch potentially errant income amounts. (Baltimore Orioles' Gus Triandos showed how the mitt at left, which he used when Hall of Fame knuckleballer Hoyt Wilhelm was on the mound, compared to his regular one. Photo courtesy Tom's Old Days via Twitter) In most income earning instances, the Internal Revenue Service finds out how much we make and owe taxes on thanks to reports from those who pay... Read more →
June 17 is the deadline this year for the second installment of 2019's estimated taxes. It's just one mid-June deadline that millions of U.S. taxpayers face. June 15 is a major tax deadline. Except for this year. For 2019, June 17 is the next red-letter Tax Day. That's because the 15th falls on Saturday, meaning that the usual due date moves to the next business day. A couple of extra days are nice, especially for folks who like to wait until the last minute. But don't get too comfortable. Here are three tax situations which require millions of taxpayers to... Read more →