The Internal Revenue Service has delivered two rounds of COVID-19 economic impact payments (EIPs). The first was the $1,200 per person approved in late March 2020 under the Coronavirus Aid, Relief and Economic Security (CARES) Act. The second EIP for $600 per person was authorized at the end of last December as part of the Consolidated Appropriations Act (CAA), with payments distributed through the first two weeks of January 2021. By now, folks know that if they didn't get the full amounts, which included additional payments for eligible dependents, they need to claim the Recovery Rebate Credit (RRC). You'll do... Read more →
Finances
Photo by Haley Owens on Unsplash The hubby is a patient and tolerant man. I'm glad those traits apply to some of my annoying tendencies. But one thing I do that drives him crazy is picking up coins on the street. Or, in the case of the penny I found yesterday as I got out of my car at the grocery store, in parking lots. Lucky for me, he doesn’t see me do this very often. I stick the pennies and other found change in my pocket and dump them in the coin jar when I get home. And yes,... Read more →
Any kind of saving is good, but for your retirement, a better option is a workplace retirement plan or IRA. A new Saver’s Match will help some when it takes effect in a couple of years. (Photo by Diane Helentjaris on Unsplash) The Setting Every Community Up for Retirement Enhancement (SECURE) Act, enacted at the end of 2022, includes a notable change in how eligible individuals can collect the Saver’s Credit. This tax credit turns contributions to popular retirement plans, which already are tax-favored, into addition funds. Qualifying lower- and middle-income savers who put $2,000 into an Internal Revenue Service-authorized... Read more →
So how was your summer? That’s right, it’s that time of year again. The summer break officially ended on Sept. 1 with the arrival of meteorological fall, which runs through Nov. 30. I know, it’s kind of an arcane tidbit, but we have other more recognizable autumnal indicators. Youngsters across the country are back in classrooms. Their parents are back to the 9-to-5 grind after the long Labor Day holiday, with the next extended break not until the holidays. And temperatures here in Central Texas have dropped into the upper 80s! Yes, that’s early fall weather for us. I hope... Read more →
Labor Day isn't a holiday for some workers. They are on the job helping customers. (Photo by Ron Lach) Happy Labor Day! This holiday, which we celebrate with a three-day weekend, was created in the late 1800s to “recognize the many contributions workers have made to America’s strength, prosperity, and well-being.” States were the first to officially adopt the holiday. New York led the way as the first state to introduce a bill, but Oregon was the first to pass a law, on February 21, 1887, recognizing Labor Day. That year, four more states — Colorado, Massachusetts, New Jersey, and... Read more →
Photo by Katt Yukawa on Unsplash Crowdfunding, a personal way of raising money that’s been supercharged by social media’s reach, has tax implications. Most of us are familiar with charitable crowdfunding. Expect to see a lot more of that in the wake of natural disasters, with solicitations by individuals and groups looking for help for themselves or others. In addition to charitable fundraising, there also are lots of online financial solicitations by and for businesses. Regardless of the crowdfunding reason, the Internal Revenue Service notes that distribution of the funds may be includible in the gross income of the person... Read more →
Having trouble making your student loan repayment plan and your budget add up? A workplace benefit that helps cover college debt could help. (Photo by George Becker) School is, or soon will be, starting across the United States. That means students, parents, and teachers are hearing about the variety of educational tax breaks that could help them. But what about all the former students, especially those who took out loans to cover higher education costs? You and your lots of student loans are not forgotten. Almost 43 million U.S. borrowers have federal student loan debt, according to data collected by... Read more →
A few years ago, when housing prices here in Austin kept climbing, the hubby and I hired a company to protest our annual real estate appraisal. That assessment is used to calculate just how big our property tax bill will be. Other factors, such as local tax rates and certain exemptions, also come into play. But if your house is deemed to be worth a whole lot of money, and you’re not planning on selling it for or near that amount, then a generous appraisal will cost you property tax dollars. So, we hired a firm with time and experience... Read more →
Vice President Kamala Harris, Democratic presidential nominee, revealed some of her economic plans in a speech Friday, Aug. 16, in Raleigh, North Carolina. (Screenshot of X-Twitter video) Vice President Kamala Harris rolled out her presidential campaign’s economic proposals Friday in a roughly half-hour speech in Raleigh, North Carolina. They included a federal ban on alleged corporate price gouging on food products, ways to help people buy their first home, and financial help for families. Much of Harris’ assistance would come from tax breaks, some of them familiar fiscal tools, both enacted or previously proposed by the Biden Administration. New tax... Read more →
The Nov. 5 election results will help put the fate of the Republican tax reform law into sharper focus. Provisions that affect individual taxpayers will end on Dec. 31, 2025. The next Congress and president will decide which ones will stay or go. Regardless of who wins the U.S. presidency this November, the next occupant's first year in (or return to) the Oval Office will be during a potentially tumultuous year for taxes. That’s because 2025 is when the Tax Cuts and Jobs Act’s (TCJA) individual provisions expire. So, Congress will be working to save or ax, depending on party... Read more →
In addition to moving more valid Employee Retention Credit (ERC) payments through the system, the Internal Revenue Service says it has stopped $5 billion invalid claims of the business tax credit. The Employee Retention Credit (ERC) saga continues, this time with some good news for businesses awaiting the benefits of the tax credit. The ERC was created in 2020 to help businesses and their staff stay afloat during the COVID-19 pandemic. But a rash of recent claims, many of them questionable filings encouraged by aggressive ERC promoters, created problems for the Internal Revenue Service and legitimate claimants. The IRS instituted... Read more →
When the COVID-19 pandemic was at its worst in 2020 and 2021, Uncle Sam offered help to businesses who kept workers on payroll. But the Employee Retention Credit (ERC), like many tax benefits, was complicated. That's led to wrong claims, so the IRS is asking companies to review their claims, both filed or about to be submitted. The Internal Revenue Service says another major announcement about the Employee Retention Credit (ERC), the tax break created to help companies weather the COVID-19 pandemic’s economic challenges, is on the way. But until then, the agency is urging businesses to re-evaluate their filings.... Read more →
Update Aug. 6, 2024: Classes have resumed in some school districts. Others will open their doors to students soon. And most across the United States will be in session by the end of this month. So, it's no surprise that parents are shopping for supplies, especially in states holding back-to-school sales tax holidays. Two that started in July, in Florida and Ohio, are wrapping up into this month. And three others, in starting date order, begin this weekend: Texas from Friday, Aug. 9, though Sunday, Aug. 11; Massachusetts from Saturday, Aug. 10, through Sunday, Aug. 11; and Maryland, from Sunday,... Read more →
Unsplash+ in collaboration with Getty Images Tipping for services apparently is misunderstood, which helps explain why it sparks resentment in some customers, including some of my own family members, I’m sad to say. So I thought I give unemotional artificial intelligence a shot at explaining it. Here’s what ChatGPT says about tipping. Tipping for services typically refers to giving an additional amount of money to service providers, such as waitstaff in restaurants, hairdressers, taxi drivers, or hotel staff, as a token of appreciation for their service. Tipping customs vary widely by country and culture, but it's generally seen as a... Read more →
Unsplash+ in collaboration with Getty Images The Employee Retention Credit (ERC) was created to help businesses stay afloat and keep staff on the payroll during the height of the COVID-19 pandemic. Basically, this tax credit’s benefits — thousands of dollars per employee that eligible companies kept paying — were for the 2020 and 2021 tax years. It has turned into a major tax headache, for both businesses and the Internal Revenue Service. But, says the IRS, it has made progress on evaluating the plethora of claims filed after the pandemic’s peak. And it has some good news for small businesses... Read more →
The tornado that struck Afton, Iowa, in Union County on April 26, 2024. That county is one of eight that have been declared major disaster areas, meaning residents are eligible for a variety of federal assistance, including tax relief. (Photo by Dean Baron via National Weather Service) Iowans in eight Hawkeye State counties that were struck by severe storms and tornadoes last month now have until Oct. 15 to file various federal individual and business tax returns and make tax payments. This latest Internal Revenue Service disaster relief applies to individuals and households that live or have a business in... Read more →
Photo by Keith Luke on Unsplash Congratulations to this year’s high school and college graduates. Walking across that stage and getting that diploma is a ceremony they and their families have long waited to experience. So what, besides sincere well wishes, do you give the graduates in your life for reaching this milestone? There are lots of gifts that can help young adults as they head off to college or into the work world. My personal favorite when I was that age was cash. (Truth be told, it still is my preferred present!) If your favorite graduate is like me,... Read more →
Our annual property tax protest has been filed. Not by us. We finally hired a company to take care of it. But the hubby and I and our neighbors are not the only ones concerned about property taxes. So are the government officials in charge of levying and collecting them, albeit for different reasons. Property tax problems: Real estate taxes are the primary financing source for city, county, and other local governments. Tax Foundation analysts found that in fiscal year 2020, property taxes comprised 32.2 percent of total state and local tax collections in the United States, more than any... Read more →
Photo by Amina Filkins If National Small Business Week has you thinking about starting your own company, congratulations. You’ll be joining a growing sector of the U.S. economy. The Small Business Administration (SBA) describes a small business as one with fewer than 500 employees. That covers enterprises from one-person shops to manufacturing facilities with hundreds of workers. The U.S. Census Bureau’s Business Dynamics Statistics indicate there were 5,358,600 firms that met that definition in 2021, the latest year for complete data. That was an increase from 5,322,155 in 2020. But small really is key here. County Business Patterns (CBP) data... Read more →
Photo by Joshua Rodriguez on Unsplash It’s National Small Business Week 2024! Technically, the U.S. Small Business Administration’s annual recognition event started yesterday, Sunday, April 28. The kick-off yesterday of this year's National Small Business Week (NSBW) included an awards ceremony where this year’s National Small Business Person of the Year and runner-up were named, along with the Small Business Persons of the Year from each state, the District of Columbia, Guam, and Puerto Rico. The event, with a theme this year of Building on America’s Small Business Boom, continues through Saturday, May 4. Your small business taxes: The full... Read more →
Photo by Leeloo The First You didn’t file a tax return on April 15 and you’re still avoiding the task because you owe more than you can pay. That’s a terrible reason. You actually are making things worse. Penalty and interest charges automatically started running as soon as your tax filing and nonpayment became delinquent on April 16. So you need to act now, first by filing a return, and then by exploring ways to eventually pay Uncle Sam what you owe. Failure to file and/or pay penalty costs: Even if you can't afford to immediately pay the full amount... Read more →