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TurboTax won't be a Free File option when the 2022 tax filing season arrives. Taxpayers who used TurboTax to complete and e-file their returns at the Internal Revenue Service's Free File website are going to have to find a new program in 2022. The popular tax software is leaving the Free File program next filing season. It will, however, remain on the IRS.gov site for use by taxpayers who got an extension until Oct. 15 to finish their 2020 returns. TurboTax is the second major tax software provider to leave the Free File Alliance, the nonprofit coalition of tax software... Read more →


No, that money from the Internal Revenue Service that just showed up in your bank account or snail mail box is not another COVID-19 economic impact payment. It's the result of the IRS working through tax returns that were filed before a new tax law that excludes a chunk of unemployment benefits from taxation. This week, the IRS announced that another 1.5 million taxpayers will get these unemployment-income-related refunds. The IRS says the average refund going out now is $1,686. COVID relief for the out-of-work: This is the latest round of refunds made to comply with changes in the American... Read more →


One of the severe storms that hit Michigan on June 26. In the wake of a major disaster declaration, the IRS is giving some of the state's taxpayers until Nov. 1 to take care of tax tasks. (Photo by Ben Kessler via the National Weather Service) The 2021 Atlantic hurricane season got off to an early start. Since then, though, it's been a slow tropical season. Thank you, Saharan dust (and Deb Fox)! However, other major natural disasters have made up for it. So far in 21, there have been 14 instances of tax relief provided by the Internal Revenue... Read more →


Millions of filers are still working on 2020 tax returns, some due to extensions, others filing for the first time to get various COVID-19 economic impact payments. But time, tide and taxes wait for no man or woman. Or the Internal Revenue Service, which has revised the individual Form 1040 and its three schedules for the 2021 tax year. Form 1040: Aside from the usual year notations, there are some line number reference that have changed in connection with items that are transferred to the 2021 Form 1040 from the form's three schedules. That's no surprise since, as noted a... Read more →


Just about a month ago, the Internal Revenue Service reportedly had a backlog of more than 35 million individual and business returns that required manual processing. That was up from 29 million back in April. Last week, however, the IRS said it's essentially caught up with early season individual filings. Hey, don't shoot the messenger. That's the official word from the IRS, via its special IRS Operations During COVID-19: Mission-critical functions continue webpage. In a July 23 update to a portion of the What You Can Expect section of that site, the tax agency says it "is opening mail within... Read more →


It's no surprise that, after facing a ginormous backlog of paper tax forms that piled up when the Internal Revenue Service closed most of its campuses during the height of the COVID-19 pandemic last year, the agency is looking to force more electronic filings. Proposed regulations published in today's Federal Register add seven forms to the IRS list of returns that businesses must, once a certain filing threshold is reached, submit electronically. The move is made possible by a provision of the Taxpayer First Act (TFA), which became law in July 2019 and included a variety of changes designed to... Read more →


Everybody needs some help now and then. On Friday, July 23, and Saturday, July 24, the Internal Revenue Service is providing assistance to those in 16 metropolitan areas who need to file a 2020 tax return so they can get various COVID-19 relief payments. The first of six scheduled Advance Child Tax Credit (AdvCTC) payments hit bank accounts and U.S. Postal Service boxes last week. The bulk of these initial payments — the Internal Revenue Service says it sent out $15 billion to about 35 million families — were dispersed automatically. The recipients, who had previously filed returns or used... Read more →


July has become a big month for the Internal Revenue Service. Last year, in the heart of the COVID-19 pandemic, July 15 was the delayed regular tax return filing deadline. This year, July 15 is the kickoff date for Advance Child Tax Credit payments and resumption of some IRS collection and enforcement efforts. This summer month also a welcome time for folks who early in 2021 filed tax returns reporting all their 2020 unemployment benefits. The IRS announced today that around 4 million of those taxpayers are about to get refunds for their tax overpayments. Where the IRS has taxpayers'... Read more →


Kickback apparently has discontinued its bottled cold coffee with CBD, but still offers the cannabis chemical in ready-to-drink teas and ground coffee. (Photo by Deceptitom via Wikipedia) It's been one of those weeks. That's why when I woke up late this morning – OK, early afternoon — I thought (was hoping) it was Saturday. Once the caffeine kicked in, I discovered that maybe I should be using another energy booster. Cannabidiol, or CBD as it's commonly called. CBD is the second most prevalent of the active ingredients in the Cannabis sativa plant, also known as marijuana or hemp. As recreational... Read more →


Knowing whether a group is a tax-exempt organization is important, not just from Uncle Sam's revenue collection (or not) perspective, but also from a public standpoint. Donors who want to deduct charitable gifts need to know that the group to which they're giving is legit in the Internal Revenue Service's eyes. These public charities are referred to as 501(c)(3) organizations, getting their name from the section of the tax code that created them. However, there are several other tax-exempt classifications under Internal Revenue Code section 501(c). They are granted, for example, to groups that have charitable, educational, religious, or similar... Read more →


Your youngster might not have enjoyed the Fourth of July fireworks (I'm right there with you, kiddo, when it come to the noise!), but your son or daughter could make you eligible for Advance Child Tax Credit payments starting this month. Hello, July! Yeah, I know my welcome to the first full month of summer is a bit late. But admit it. You don't really focus on the month either until after July 4th. Since it's the midpoint of the tax year, July usually is a great time to look into some tax saving tasks (more on this a bit... Read more →


Photo by 竟傲 汤 from Pexels Texas is pretty much open. Even my local grocery store, which for almost a... Read more →


Here's some good news to kick off you weekend. Most U.S. taxpayers say cheating on taxes is wrong. Of the taxpayers who participated in the Internal Revenue Service's 2020 Comprehensive Taxpayer Attitude Survey (CTAS), 87 percent said it is not at all acceptable to cheat on their income taxes. Even more, 94 percent, believe it is a civic duty to pay their fair share of taxes. Another 91 percent said everyone who cheats on their taxes should be held accountable. The combination online-telephone survey was conducted from Aug. 24, 2020, through Sept. 24, 2020, by Pacific Consulting Group (PCG). PCG... Read more →


Need help filing a 2020 tax return so you can get Advance Child Tax Credit payments? The IRS and community groups in 12 metro areas are holding events to help you do just that. In a few weeks, the Internal Revenue Service will start sending out advance payments of the Child Tax Credit. The early credit amounts will go out automatically to taxpayers who, based on their 2019 or 2020 tax filing data in the IRS system, qualify for the family-friendly tax break. But not everyone who's eligible for the Child Tax Credit, which generally will be $300 a month... Read more →


Millions are awaiting Advance Child Tax Credit payments, which will start going out in July, but only to those for whom the IRS has info in its system. If you haven't had to file a return for a while, the agency has a new online tool you can use to register for the payments. Some folks don't have to send the Internal Revenue Service a Form 1040 every year. The reason, though, is not necessarily a welcome one. They don't have to file because they don't make enough money to require telling Uncle Sam about it. And since the COVID-19... Read more →


June 15 — yep, this coming Tuesday — is Tax Day for all Louisianans (and Texans and Oklahomans) who endured mid-February's historic freeze. But some Pelican State taxpayers now get even longer to finish up their 2020 tax year returns. The Internal Revenue Service says victims of severe storms and flooding in parts of Louisiana that began May 17 now have until Aug. 16 to file various individual and business tax returns and make tax payments. The affected filers live in or have businesses in Ascension, Calcasieu, East Baton Rouge, Iberville, and Lafayette Parishes. These parishes were designated as disaster... Read more →


ProPublica's recent article on how little — sometimes nothing — that rich people pay in taxes was not a revelation. It's long been known that the tax code is full of loopholes, which aren't necessarily illegal. Equally acknowledged is that the super wealthy can afford high-dollar tax professionals to find and put these tax breaks to work. Still, the trove of Internal Revenue Service information from, per the investigative journalism nonprofit, "the tax returns of thousands of the nation's wealthiest people, covering more than 15 years" has captured the fancy of all us fellow and much less well-off taxpayers. It's... Read more →


Photo by Min An from Pexels Among the many welcome events that are returning as we continue to move beyond complete COVID-19 lockdown are weddings. Congratulations and best wishes to all the brides and grooms out there who finally are enjoying their long-planned celebrations. My gift to all y'all newlyweds is a few words of marital tax advice. With apologies for the spare gift wrapping, here are some tax tasks you need to take care of now, or at least as soon as you get back from your honeymoon. 1. Make sure everyone knows your new name. After marriage, some... Read more →


Are you ready for Tax Day take two? It's June 15 and it's almost here. That mid-June day is the annual deadline for millions of U.S. taxpayers who are living outside the country. That includes members of the armed forces stationed abroad. It's also the due date for the current year's second estimated tax payment. And this year, even more taxpayers will participate. June 15, 2021, is the first Tax Day for millions who literally endured disastrous situations earlier this year. Here's the scoop for all these folks now facing impending June tax obligations. U.S. taxpayers living abroad: Every year,... Read more →


Unemployment benefits were a lifesaver for many Americans who saw their jobs eliminated during the height of coronavirus pandemic. Now some of those unemployment insurance (UI) recipients are getting another boost from the benefits thanks to a change in how the COVID-related funds are taxed. The American Rescue Plan Act of 2021 (ARPA) deemed up to $10,200 per taxpayer in unemployment compensation as tax-free. ARPA became law on March 11, meaning some filers submitted their 2020 returns and paid tax on all the UI benefits they got last year before the change took effect. Rather than make those folks redo... Read more →


June's arrival, especially now that many coronavirus limits are being lifted, means the start of summertime fun. But it's also a good month to make some key tax moves before heading off to your favorite recreational pursuits. We did it! Survived Tax Day 2021 … unless you're among the millions who got an extension to file or live in a state where the deadline to submit 2020 tax returns was even further delayed. In that case, one of the things you need to take care of this month is filing your taxes. Here more on that and four other tax... Read more →