Updated Friday May 15, 2020, 7 p.m. CDT Many found the first $1,200 (at most) of coronavirus relief payments to be too little and a tad too late. This latest round of relief, which calls for additional payments of up to $6,000 for some families, isn't likely to advance beyond the House in its current form, but at least it's a start toward more federal financial help. House Speaker Nancy Pelosi opens debate on the latest COVID-19 relief bill. (Live House video feed screenshot) Today's good COVID-19 relief news is that the House is expected to vote on (and pass)... Read more →
Family
The child care workplace benefit, as well as medical ones, are enhanced under two just-issued Internal Revenue Service notices. If your job doesn't offer child care benefits, you might be able to get other tax help in taking care of your youngsters via a tax credit. This mom is representative of many parents, who are starting to feel the pressure of weeks of quarantining with and homeschooling their children during COVID-19 stay-home orders. Earlier this year as the coronavirus was surreptitiously infecting Americans, lots of parents were going about their usual business, which included making summer plans for their children.... Read more →
And what you might be able to do about it. But not until next year. The hubby and I recently got our COVID-19 economic impact payment, despite my grumblings last month about not being able to get into the Get My Payment online tracking tool. We knew that due to some financial moves we've made in recent years in preparation for retirement, we wouldn't get the full possible payment. In case it's slipped your mind, that's $1,200 per individual, twice that for married couples who file a joint return. If you have qualifying dependent children younger than age 17, you... Read more →
Photo by Mrs. Flinger via FlickrCC It's Mother's Day 2020. This holiday, first celebrated regionally in 1908 before going nationwide six years later, usually means that children spend the day with their moms. Such closeness, however, has been happening every day for weeks for many families. Moms and dads and children and sometimes extended family members have hunkered down together at home 24/7 as a COVID-19 precaution. But it is mom's special day, so I hope that all y'all came up with some change of pace this second Sunday in May to celebrate all that mothers do and all the... Read more →
FreeStocks.org via Pexels The Internal Revenue Service is continuing to send out COVID-19 economic relief payments, but some folks have to act fast to ensure that they aren't shorted. Recipients of Supplemental Security Income and Department of Veterans Affairs benefits who also are caring for dependent children need to let the IRS know about those kids. If the youngsters are age 16 or younger, they could mean an added $500 each in coronavirus relief. But if these child-rearing SSI and VA recipients don't let the IRS know about their families by Tuesday, May 5, those won't get the added $500... Read more →
The coronavirus pandemic has added a whole other layer of worry for parents. The COVID-19 relief payment of $500 for each qualifying child won't erase those worries, but the money could help ease some financial concerns. (Photo by Julia M. Cameron via Pexels) Parents know that kids are costly. That fiscal fact is especially notable when mom and dad have been laid off during the coronavirus crisis. That's why the Internal Revenue Service is making what it's dubbed the Plus $500 Push. It's an effort to ensure that everyone who's eligible for a COVID-19 economic relief payment gets all the... Read more →
When your job doesn't pay much, the Earned Income Tax Credit (EITC) can be a big help. This tax break for lower- and middle-income workers has been a part of the tax code since 1975's Tax Reduction Act. It was a logical extension of the 1960s-era War on Poverty, creating a way for lower-paid workers to offset the Social Security taxes that take a relatively bigger bite out of their smaller paychecks. Since it's a tax credit, the EITC provides a dollar-for-dollar offset of any tax owed. And since it's a refundable tax credit, eligible recipients can get any EITC... Read more →
Photo by Vera Arsic via Pexels The biggest problem for most of us in coronavirus lockdown with our families, whether ordered by state or local officials or self-imposed, is figuring out how to not get on each other's last nerve. For some, however, the forced togetherness is deadly serious. Possibly just deadly. Domestic violence since COVID-19 appeared has spiked as victims find themselves forced to stay home with abusers, according to those who work to protect people, still primarily women, from abusive partners and spouses. It's happening globally, across the United States and here in Texas. "During a time of... Read more →
This new legislation could be part of the now-developing Phase 4 coronavirus relief measure expected to be considered in late April. Unlike this pre-coronavirus campus study group, current college kids are utilizing e-learning options to provide them appropriate social distancing and other COVID-19 protections. Young adults fell through the cracks in the Coronavirus Aid, Relief and Economic Security (CARES) Act. That new law created the COVID-19 relief payments that the Internal Revenue Service says it will begin processing this week. It will send checks of up to $1,200 to single taxpayers, $2,400 to married couple who file a joint return,... Read more →
A first job is a major life event with obvious major tax implications. Other momentous changes throughout our lives involve taxes, too. As COVID-19 continues to spread across the United States, the White House has decided to follow state and local officials in urging continued social (aka physical) distancing. For millions of us, this new April 30 stay home recommendation means more time cooped up with loved ones. Or not-so-loved ones. My favorite non-medical virus-related debate right now is whether all the coronavirus forced togetherness ultimately will end with a baby boom (coronials, anyone?) or a marriage bust. While the... Read more →
We're a third of the way to coronavirus relief checks. Last night (March 25), the Senate approved the massive measure, which includes in its 880 pages payments of $1,200 per person and $500 per dependent child. (More on this in a minute.) The bill, known as the Coronavirus Aid, Relief and Economic Security (CARES) Act, now goes to the House for approval. There may be some procedural stumbling blocks, but it's expected to pass there, probably by voice vote to avoid the congregating caused by a roll call on the chamber's floor. That probably will happen Friday. Then it heads... Read more →
Friday the 13th scares a lot of folks, but there are some tax breaks that are almost as cuddly as this ebony kitten. It's another Friday the 13th, but the last thing we need in March 2020 is more stuff to worry about. So what's better help take our minds off the very scary COVID-19 pandemic and all its ramifications — like no sports to divert our attention! — than taxes? Yes, taxes. Really. There's no word yet as to whether the April 15 filing deadline and any due tax payments will be extended. But there still are a lot... Read more →
UPDATE, March 24, 2020: As the coronavirus spread across the United States, the Internal Revenue Service and many associated tax programs have been adversely impacted. Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE) sites were among those affected, with most closing earlier this tax season. If COVID-19 conditions improve in some clinic areas before the new July 15 tax filing and payment deadline, some VITA and TCE operations may reopen. Meanwhile, some are offering phone help. Check with your local clinic (details on how to do that in the post below). Volunteer tax preparers help Florida... 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 →
The Setting Up Every Community for Retirement Enhancement Act, or SECURE Act as it's popularly known, was attached to the omnibus spending legislation enacted in late 2019. Taxpayers, lawmakers and investment advisers generally supported most of the measure's changes to how we stash and ultimately access our retirement funds. One SECURE provision, however, is causing some concerns, especially among those who have accumulated large IRA holdings and who had planned to leave the bulk of that money to heirs. They and, more importantly, their heirs no longer have access to what used to be known as a stretch IRA. Ending... Read more →
First comes love. Then comes marriage. Then come two filing as one When it comes to their taxes. OK, "marriage" and "taxes" in my opening verse don't rhyme, which is why I'm a journalist, not a poet. But since I focus on taxes and today is, so romantics tell me, the most important day of the year for couples, I thought I'd give the marrying of taxes and wedded bliss a try. Here are five love and tax considerations. 1. Marriage date matters Sure you marry for love. But you might want to consider when you formally tie the knot.... Read more →
Thanks to a 2018 Supreme Court ruling, many other states have joined Nevada in accepting bets on sporting events. But casino operations like this one in Las Vegas still get plenty of action on days like Super Bowl Sunday. Happy Tuesday to everyone who skipped work yesterday. I hope you've fully recovered from your Super Bowl hangover. I also hope that at least some of your prop bets on the NFL championship game also paid off. So does the Internal Revenue Service. All your Super Bowl LIV winnings, as well as any other gambling proceeds are taxable income. Yes, even... Read more →
What would you do with an extra $2,504? That's the average amount received by taxpayers who claimed the Earned Income Tax Credit (EITC) in 2019. Overall, the Internal Revenue Service says that across the country last year, 25 million taxpayers received more than $61 billion from this tax break for lower-and middle-income workers. Every tax year, however, folks who qualify for the Earned Income Tax Credit don't claim it. Many don't know about the tax break. Others don't realize that changes in their marital, parental or financial status means they now qualify. That's why for more than a decade, the... Read more →
The birth of the Rev. Dr. Martin Luther King, Jr. has been officially celebrated as a federal holiday on the third Monday of January for more than three decades. For 25 of those years, it's also been a Day of Service, during which we're all challenged to transform the King Holiday into a day of citizen action volunteer service in honor of the slain civil rights leader. There are various ways to honor Dr. King on his holiday. One recommended by the Corporation for National and Community Service is to volunteer on #MLKDay and beyond as a tutor or mentor... 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 →