Around this time each year, the Internal Revenue Service releases its annual inflation adjustments for a wide range of tax matters. The 2023 numbers kicked off the ol' blog's annual taxes and inflation series last Oct. 19. But the House Ways and Means Committee has already tinkered with those expected changes. The Congressional tax-writing panel has sent a bill to the full House that would increase the standard deduction by $2,000 for single taxpayers, $3,000 for head-of-household filers, and $4,000 for married couples filing joint returns. Standard deductions for the current 2023 tax year are $13,850 for single and married... Read more →
Filing
If you're just now getting to work on your extended 2022 tax return, which is due to the Internal Revenue Service by Monday, Oct. 16, don't panic. These tips will help you make the most of the little tax time left. (Image courtesy Taxpayer Advocate Service, which also has some tips for Oct. 16 filers.) It's almost Tax Day for extreme procrastinators. The extension you got for your 2022 return ends on Monday, Oct. 16. Since the tax clock is ticking, let's get right to these eight tips that can help you complete your Form 1040 by the fast approaching,... Read more →
You have a lot of responsibilities when you're self-employed. One includes making contributions to your retirement plan, which in some cases can be done as late as your filing extension deadline. (Unsplash+ in collaboration with Getty Images) Most IRA contributions must be made by Tax Day. For the majority of taxpayers this year, that deadline was April 18. But if you're self-employed and got an extension to file your 2022 tax return, you also got an extension to contribute to your entrepreneurial endeavor's retirement plan. That deadline, in case the days have slipped by you, is this coming Monday, Oct.... Read more →
Update, Friday, Oct. 13, 2023: Former IRS contractor Charles Littlejohn pleaded guilty on Oct. 12 in federal court to disclosing tax return information without authorization. As noted in the post below, the compromised tax data was that filed by former president Donald J. Trump, and billionaires Jeff Bezos, Elon Musk, and Warren Buffett, among others. The tax material was given to two separate media organizations, which published stories based on the information. Littlejohn's sentencing hearing is scheduled for Jan. 29, 2024. He faces a maximum penalty of five years in prison. The eighth article of the Internal Revenue Service’s Taxpayer... Read more →
Check out some October sweet tax treats below that could help make this month less scary, at least as far as your taxes are concerned. (Photo by Unsplash+ in collaboration with Getty Images) October is a scary month, and not just because of Halloween. Millions of uber procrastinators face a final mid-month deadline to file their annual tax return. It's also the beginning of the fourth quarter of the year. So, in addition to picking out your All Hallows Eve costume and hiding the holiday treats so your family won't eat them all before trick-or-treaters come knocking in a few... Read more →
A few years ago, tugboats pushing barges down the Mississippi River, like this one going under the Vicksburg Bridge, was not a problem. Extreme drought, however, has lowered the river's levels, allowing salty water from the Gulf of Mexico to creep upstream below a layer of freshwater. (Photo by Justin Wilkens on Unsplash) Salt water is creeping up the mouth of the Mississippi River and threatening the drinking supply of several parishes in Southeast Louisiana, including the city and suburbs of New Orleans. The prospects are so severe, the Federal Emergency Management Agency (FEMA) declared major disasters in Jefferson, Orleans,... Read more →
Hurricane Lee in the Atlantic on Sept. 11, 2023, before heading north. Hurricane Lee was a strange, scary storm. It formed off the coast of Africa and rapidly intensified into a large category 5 hurricane. But instead of heading for the lower U.S. east coast as is typical this time of year, it turned northward. That track sent Lee toward New England, where rotated offshore before making official landfall Sept. 17 in Nova Scotia, Canada, as a strong extratropical cyclone. Don't be deceived by meteorologists' extratropical classification. Lee still did damage to the already water-logged region. That's why the Federal... Read more →
Beyoncé on the Renaissance World Tour at Tottenham Hotspur Stadium in London on June 1, 2023, (Photo by Raph_PH - BeyonceSpurs010623) I love music. I just ordered two CDs last week. That last retail admission should tip you off that my prime concert-going days are behind me. In one way, I'm glad. The cost to see my favorite musicians perform back in my day was reasonable, even then. Today's more youthful fans, however, are shelling out big bucks to attend concerts. Marketplace economics are part of the calculation. And emotion is part of the market. So scalpers, whose targets are... Read more →
Updated Saturday, Sept. 23, 2023 Photo by Tim Mossholder on Unsplash Sept. 30, the end of the federal fiscal year, is fast approaching. What's not moving quickly are congressional efforts to keep the U.S. government open. The conventional wisdom is that we'll get a continuing resolution through October to give lawmakers, primarily the House that's dealing with Republican in-fighting, time to come up with a deal that the Senate will sign off on, too. Some agencies, critical to millions of Americans, won't be affected. Notably, Social Security benefits will continue to go out, and Medicare and Medicaid programs will remain... Read more →
Photo by Jakob Owens on Unsplash After two years of decline, thanks in part to the coronavirus pandemic, marriages in the United States have returned to pre-COVID levels, according to the U.S. Census Bureau's recently released 2022 American Community Survey (ACS). Even better for romantics, a major jewelry company is predicting a spike in engagements as more of us return to pre-pandemic lifestyles, including dating…and more. If you're planning nuptials, or already have said, "I do," congratulations. Now here are eight tax tasks you need to take care of, after the honeymoon, of course. 1. Make sure everyone knows your... Read more →
The third estimated tax payment deadline is tomorrow, Sept. 15. But this year, some usual 1040-ES filers in 10 states get more time. Don't be jealous. Their apparent tax good fortune is due to unfortunate circumstances. These individuals and business owners live in parts of Alabama, Alaska, California, Florida, Georgia, Hawai'i, Illinois, Mississippi, South Carolina, and Vermont that have been declared major disaster areas. Because Mother Nature can be fickle, some states endured her wrath multiple times, meaning different disaster areas with different deadlines. I've listed the affected areas below where taxpayers have more time to make their third estimated... Read more →
Screenshot from Atlanta's 11Alive report via YouTube on Tropical Storm Idalia's impact on Southeast Georgia. It took a while longer than expected, but southeast Georgia residents who were in the path of Hurricane-turned-Tropical-Storm Idalia finally get the same relief as their neighbors. The Internal Revenue Service announced today that individuals and businesses in 28 of the Peach State's counties qualify for special tax consideration, including a new Feb. 15, 2024, deadline for filing and paying certain taxes. The delayed tax due date, which matches the one granted Florida and South Carolina taxpayers, applies to deadlines that occurred from Aug. 30,... Read more →
The Sept. 15 deadline for paying the third installment of 2023's estimated taxes is just days away. Make sure you meet it. Also make sure you pay the correct amount. If when all is said and filed at tax time, you owe the U.S. Treasury $1,000 or more, you could face a penalty for underpaying your taxes. And where that taxable money was from sources not subject to withholding, you also could face late-payment fines for not remitting it during the proper estimated tax quarters. Estimated tax safe harbors: Most of us who must pay estimated taxes calculate that expected... Read more →
National Weather Service satellite image of Hurricane Idalia moving across South Carolina. Tax and weather watchers knew this was coming. Today, the Internal Revenue Service made it official. The tax agency announced that all individual and business taxpayers in South Carolina are eligible for tax relief in connection with damages from Hurricane Idalia, which started its journey across the Palmetto State as a tropical storm on Aug. 29. The SC trek was after Idalia made landfall in Florida's Big Bend region two days earlier as a category 3 hurricane, prompting the IRS to grant most of the Sunshine State tax... Read more →
Unsplash+ in collaboration with Martin Sanchez I hope you enjoyed your Labor Day break. Now that summer is effectively and officially coming to an end this month, it's also a good time to look at some tax tasks. Taking care of tax business in September can help you avoid a costly tax fall as autumn arrives. OK, bad seasonal quasi-pun. Sorry. Accept my apology and these four September 2023 tax moves. 1. Pay your third quarter 2023 estimated tax. Many who've already filed their annual tax return still have other taxes to take care of this month. Yes, I'm talking... Read more →
Labor Day isn't a holiday for all workers. (Photo by frank mckenna on Unsplash) Labor Day is a day off for many workers. But entrepreneurs probably put in regular shifts this first Monday in September. When your small business depends primarily on you, you tend to work even on holidays. Since you're busy being the boss, I won't take up too much of your time. But whether you're a new business owner or have been the boss for years, it's always good to stay on top of your tax responsibilities. Here are some tax basics for all of us self-employed... Read more →
Spc. LeAnn White, 2nd Scout Battalion, 49th Brigade, Alaska State Defense Force, assists with recovery operations in Crooked Creek, Alaska, following May floods. Ice dams caused riverbanks to overflow, severely damaging many homes in the area. (Photo courtesy Alaska National Guard via Defense Visual Information Distribution Service) All weather eyes recently, and understandably, have been on Florida, where on Aug. 30 Hurricane Idalia made landfall in the state's Big Bend area as a category 3 storm. Idalia's winds damaged buildings and roads in Keaton Beach and other Gulf Coast enclaves near where the hurricane came ashore. Flooding was more widespread,... Read more →
Update, Sept. 6, 2023: As expected, South Carolina taxpayers get essentially the same tax relief, since Idalia marched through the Palmetto State as a tropical storm after she hit Florida. Update, Sept. 13, 2023: Finally! Even though Idalia moved through southeastern Georgia before hitting South Carolina, it took a little longer for the IRS to grant tax relief to affected Georgians. The agency made it official today, giving the same basic tax relief to individuals and businesses in 28 of the Peach State's counties. Storm surge along Bayshore Boulevard and the Tampa Convention Center on Aug. 30, 2023, morning as... Read more →
Hawai'i Air National Guard loadmasters and maintenance specialists deliver supplies at Kahului Airport, Maui, to help with the recovery from the fires that devastated the island. The Federal Emergency Management Agency and the Internal Revenue Service also are offering affected residents and businesses relief. (Photo by U.S. Air National Guard photo by Staff Sgt. John Linzmeier via Wikimedia Commons) The Internal Revenue Service has made it official. Hawaii wildfire victims in Maui and Hawaii counties have been granted tax relief, including a Feb. 15, 2024, deadline to file various federal individual and business tax returns and make tax payments. The... Read more →
Teachers and other eligible educators, stop before filing your tax returns and make sure you claim the tax break for your out-of-pocket classroom expenses. (Photo Unsplash+ in collaboration with Getty Images) Our neighborhood schools this week welcomed students back from summer break. Teachers and other school staff already had been in the classrooms, getting ready for the youngsters' return. Those educators also likely spent some of their own money on the 2023-24 school year preparations. There's a bit of good tax news for those school employees. They can claim a tax break for their out-of-pocket educational expenses. $300 is still... Read more →