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February 2018 Daily Tax Tips
Taxes just keep happening and happening and happening and ...

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Groundhog Day is probably the most bizarre holiday, at least of those we celebrate here in the United States.

I mean really, we rely on a sleepy, cranky rodent to predict weather when we have the National Oceanic and Atmospheric Administration's National Weather Service with all it's scientific and technological meteorological bells and whistles?

But it's tradition.

And, like the still popular "Groundhog Day" movie that re-airs on cable and is in some theaters as each Feb. 2 nears, the holiday and Punxsutawney Phil and his peers across the country just keep showing up year after year after year.

That's why it makes it a fitting holiday for our tax system.

Tax tip tradition: Like Phil, who just keeps doing his winter weather forecasting every year, millions of taxpayers head into February every year ready to tackle the recurring annual hassle of filing  tax returns.

And like Phil, the ol' blog heads into February with more Daily Tax Tips. As with January's weekday pieces of tax advice, the tips for February will be highlighted in the upper right corner of the ol' blog.

After a day in the spotlight, from Feb. 1 through Feb. 28, the tips then will find a permanent home here on the February tax tips page.

Since it's a short month, let's get to it.

  1. Why you should file ASAP — It's generally a good idea to file your tax return early, whether you're getting a refund or owe the IRS. Here are six reasons why. (Feb. 1, 2018)
  2. Tax tips from athletes in tax trouble — The sports world focus this weekend is on Super Bowl LII, either as football fans or fans of gambling on the game. Most of the NFL players make millions, and sometimes all that money leads to tax troubles. Here are some important lessons we can learn from pro athletes who found themselves in trouble with tax collectors. (Feb. 2, 2018)
  3. Reporting your gambling winnings — When a bet pays off, like your wager on the Philadelphia Eagles upsetting the New England Patriots in Super Bowl LII, that money is taxable. It doesn't matter if the bet was legally placed at a Nevada sports book or made illicitly with a bookie or at a U.S.-banned online gambling website. Don't press your luck by hiding the money from the Internal Revenue Service. Here's how to report it. (Feb. 5, 2018)
  4. Side hustle tax deductions — If you had some side hustles to add to your wage income or a series of part-time jobs as your full-time work, that's taxable income. But there also are deductions that can help you cut the taxes you owe on your gigs. (Feb. 6, 2018)
  5. Don't be a side hustle tax evader — While some folks are diligent in collecting records to claim every possible side hustle tax break, others don't bother. Why not? Because they don't plan to report the income. Not a good idea. The IRS eventually will catch some of these gig economy tax evaders. When that happens, they have to pay back taxes, plus penalties and interest. And that could be very costly.  (Feb. 7, 2018)
  6. 6 charitable deduction FAQs — People give to their favorite charities because they want to help. That said, your philanthropy also might help you save a few tax dollars. Here are answers to six commonly asked questions about donating and deducting your gift on your tax return. (Feb. 8, 2018)
  7. 5 amended tax return filing tips — If you discover you made a mistake on a tax return, or missed a tax break because, say, it was approved retroactively after you filed, it's a good idea to file an amended return. That's true even when the changes mean your tax bill is a bit bigger. Here are some ways to get your 1040X just right. (Feb. 9, 2018)
  8. Picking the proper filing status — Most folks' filing status stays the same from tax year to tax year. But a change in your personal situation could mean you need to revisit how you file your return. The Internal Revenue Service gives us 5 filing status choices. Pick the proper one. It could make a big difference in your tax bill. (Feb. 12, 2018)
  9. How to handle a wrong tax refund — Your federal tax refund finally arrived, but it's not what you expected. Now what? (Feb. 13, 2018)
  10. 3 charitable ways to celebrate Valentine's Day — In love with love and someone else this Feb. 14 and want to share your joy? Check out these charitable and potentially tax-deductible ways to celebrate Valentine's Day. (Feb. 14, 2018)
  11. 6 electronic tax help options — The Internal Revenue Service wants to be part of our ever increasing digital world. It's encouraging taxpayers to get filing help from it electronically. Here are six ways to do just that. (Feb. 15, 2018)
  12. Hold on EITC & ACTC refunds is over — The waiting period for releasing tax refunds to filers who claimed the Earned Income Tax Credit (EITC) and/or Additional Child Tax Credit (ACTA) is over. But the tax cash won't be delivered until the end of February. (Feb. 16, 2018)
  13. Deducting state and local sales taxes — Are you a big shopper? The state and local sales tax you pay on those purchases might help reduce your federal tax bill. That's definitely the case on 2017 returns. And even with the Tax Cuts and Jobs Act changes beginning with the 2018 tax year, this itemized deduction still might be worthwhile for some bargain-hunting taxpayers. (Feb. 19, 2018)
  14. 5 tax breaks for pet owners — Pets add a lot to our lives. In some circumstances, our furry family members also could provide some tax breaks, at least for 2017 tax year returns. (Feb. 20, 2018)
  15. No W-2? What to do now — Yikes! You're still waiting for your W-2 earnings statement so you can file your taxes. Here are some steps to take. (Feb. 21, 2018)
  16. Decoding your W-2 — You finally got your W-2 and are ready to file your taxes. Here's what you need from all the boxes on that wage statement to fill out your 1040. (Feb. 22, 2018)
  17. IRS phone help lines, web links — Looking for tax help from the Internal Revenue Service? The agency suggests you start online at these links. But if you must call, make sure the IRS doesn't ask who dis? Call the telephone hotline that will provide you the appropriate assistance. Here are some of those numbers. (Feb. 23, 2018)
  18. Excellent tax exemptions — A big family could lead to a smaller tax bill thanks to personal exemptions. This dollar amount for yourself, your spouse and dependents is still available for your 2017 tax year returns, but ends starting in 2018. (Feb. 26, 2018)
  19. Joint filing means two form signers — Marriage means sharing most things including, for most wedded couples, tax filing. In our case, I do our taxes and the hubby signs off on the filing, literally. He has to and not just because I say so. Federal tax law requires both spouses sign the joint 1040 or pay a penalty. (Feb. 27, 2018)
  20. Capital gains and losses tax law tweaks — The good news is that the recent tax law changes didn't alter the current capital gains tax rates. They're still 0 percent, 15 percent and 20 percent. But the income amounts that determine which of these rates applies to you have been tweaked for 2018. (Feb. 28, 2018)

As I mentioned back in January when this filing season's Daily Tax Tips series started, as soon a month ends, you can find all its tips on its special blog page. The links below will go live as this happens.

January 2018 Daily Tax Tips

March 2018 Daily Tax Tips

April 2018 Daily Tax Tips

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Today's Tax Tip

  • White House seeks federal gas tax holiday — If your gas tank can hold out, you might soon pay a little less at your neighborhood gas station's pumps. President Joe Biden has asked Congress to enact a 3-month gas tax holiday this summer. (June 24, 2022)

  • Tax Tip; click pencil for all tax tip links

  • The 2022 Tax Tips offer ways to file your annual return, along with post-filing advice, important tax news and, of course, ways to cut your current tax year bill. You'll find the monthly assemblages on their own respective pages: January, February, March, April, May, June, July, August, September, October, November and December. Remember, tax tasks and tips don't stop after you file your annual return!

COVID-19 & Taxes

  • COVID-19
    Coronavirus has wreaked havoc
    on the 2020 and 2021 tax seasons.
    These three Coronavirus (COVID-19) and Taxes pages have details:
    March-July 2020,
    August-December 2020,
    January-December 2021, and
    January-… 2022
    You can find medical coronavirus resource links further down this column.

All About Kay

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    Kay Bell — Native Texan (the blog title totally makes sense now, right?). Professional journalist. Tax geek.

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Tick ... Tick ... Tick

  • Tax Season 2022 continues!

    Tax Day 2022 is finally over … unless you're one of the millions who have more time to file — looking at you taxpayers abroad and those in major disaster areas — or you got an extension to file your 2021 tax year return. That's fine. In fact, the Internal Revenue Service appreciates some of us spreading out our filings, especially when we and the agency still are dealing with all the complications of COVID-19 and taxes.

    That's why the ol' blog's focus now is on all y'all still working on returns. But I haven't forgotten my organized taxpayer readers, who are already looking for ways to reduce their 2022 tax year bills. Yep, that amount is adding up, but there are moves you can make. The monthly tips and reminders a little further down this column can help everyone, regardless of which tax year you're working on.

    Those on extension should keep a keen eye on the countdown clock below. It will help you track the days tick, tick, ticking off toward that absolutely final fall filing due date of Oct. 17. Yep, it's a few days later this year.
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.


Time for Tax Tasks


  • monthly tax moves


  • Hello ☀️ June.
    We are so happy to see your sunny face, bringing us the start of summer. Some brightness and warmth and a general better times ahead feeling is definitely what we need after a tax season, although back on an April schedule, still is feeling lingering COVID-19 effects.


    via GIPHY


    June 1: While we're ready to head to the beach, this month is important for coastal areas for another, less welcome reason. Today is the start of the Atlantic/Gulf of Mexico hurricane season. At least for the first time in eight years, we didn't have a tropical system form early on the eastern and southern sides of the United States. However, Hurricane Agatha did kick off the Pacific hurricane season. Regardless of where you live, it's time to get prepared for these potentially stormy summer months.

    Hurricane satellite image

    Uncle Sam's official forecasters at the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center expect 2022 to bring as many as 21 named storms, with six to 10 possibly becoming hurricanes. Three to six of those could reach major status, which is category 3, 4 or 5 with winds of 111 mph or higher. Regardless of the count, it only takes one to wreak havoc. The countdown clock below can help you keep track of how many more days you have to worry about tracking any size or type of tropical storms.



    You also might want to check out the ol' blog's special Storm Warnings.
    These multi-page collections of posts offer tax advice on preparing for, recovering from and helping those who sustain damages from the many ways that that weather goes wild. That includes claiming uninsured losses from a major natural disaster as an itemized tax deduction.

    June 5: Speaking of disasters, some other fits by Mother Nature earlier this year, delayed Tax Day for some taxpayers. Certain filers in Puerto Rico dealt with disastrous flooding in February, so the Internal Revenue Service gave them until June 15 to file their 2021 tax returns. If that's you, now's the time to get to work on those Form 1040s or file for an extension.

    June 10: Eateries are still recovering from the challenges of operating during a national health crisis. Restaurants closed, then opened, then closed again. Others relied on and have stuck with take-out and deliveries. Whether you're dining in or still getting food brought to your house because of the latest Omicron coronavirus wave, remember to tip your server or delivery person.

    restaurant check tip iStock
    If a tip isn't included in your food delivery charge, click the image above to calculate how much to tip the person who brought it to you.

    As for servers who now are back on the job, remember that your tips are taxable income. If you worked at least some of May at a job where you got gratuities, you need to account for them today if they came to at least $20 last month. Use Form 4070 to report your tips today to your employer.

    June 14: Happy Flag Day! It's not a day-off-work federal holiday, but Flag Day has been an official day to celebrate the Star-Spangled Banner since 1949. If you need to buy a U.S. flag to fly today, you also might get a tax break. Several states exempt the national symbol from sales tax. Check with your state's tax department to see if you can save on your patriotic display.

    June 15: In addition to being the federal 2021 return filing due date for some Puerto Rican taxpayers, today also is the due date for annual Form 1040 filings by U.S. citizens or resident aliens living and working abroad, as well as military personnel stationed outside the United States.

    This mid-June day also is the deadline for the second estimated tax payment for the 2022 tax year.

    June 19: Happy Father's Day!

    Happy Father's Day

    Dad might not say so, but he appreciates being recognized, so take time today to let him know you care. And if your father is getting on up in years, take the time when you visit to make sure he doesn't need some added help from you. If you provide Pop a little, or even a lot of assistance, there's a chance you could get some help from a couple of tax credits.

    June 19-20: June 19 also is our newest federal holiday, Juneteenth. This date marks when Texans finally received word that all slaves were free, and is the oldest nationally celebrated commemoration of the ending of slavery in the United States.

    Juneteenth


    Since Juneteenth this year falls on Sunday, the federal holiday is on Monday, June 20.

    June 21: It's official at 5:14 a.m. Eastern Time. Summer is here, on this longest day of the year.

    Summer sun

    Many charitable groups help people cope with the heat. Your gift to such IRS-qualified nonprofits could be tax deductible on next year's taxes. For now, you'll have to itemize to claim it. But there's a chance that Congress might reinstate the tax deduction for charitable gifts of up to $300 for single filers, double that for married jointly filing couples, that can be claimed directly on Form 1040.

    June 30: If you missed spring cleaning, summer's still a good time to determine what you can do without. If that includes clothing or household items, you also can donate those and, if you itemize, claim what the items are worth on Schedule A. Just make sure you set the correct fair market value, or the IRS might disallow your tax break.

    Small Business Tax Calendar: Important filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS' online calendar page and view the full year's important business and individual tax dates in IRS Pub. 509.

State Tax Help

  • Don't forget your state taxes!
    Forty-three states and D.C. collect personal income taxes. But even if you live in of the seven states without an income levy, you still face other state (and local) taxes.

    State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.

Tax Forms

  • Tax Forms
    Thanks to our increased use of tax preparers and computer software, many of us don't see our tax forms until we sign and file them. But knowing what's on these documents, either in paper or digital form, and why the IRS wants it is key to understanding our tax system. And knowledge definitely is power, especially when it comes to tax savings. Find this valuable information in the ol' blog's special Talking Tax Forms page.

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  • DMWT Politics Posts
  • While it's easy to rail at the IRS, for the most part we can thank — or blame — our tax laws on Congress and the White House. So if you have an issue with tax legislation or want a tax bill passed, you need to let your federal legislators and the White House occupant know of your concerns. You can find out who in Washington, D.C., to contact (and how), as well as get information on your local lawmakers for matters, tax or otherwise, closer to home, at USA Gov.

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