Photo by cottonbro studio Last week, the Internal Revenue Service Criminal Investigation unit released its fiscal year 2024 annual report that touted the success the agency’s law enforcement branch had in taking down tax criminals. Yes, Al Capone’s name was mentioned. This week it’s the overall IRS’ turn to brag. In its quarterly update on Dec. 12 to its Strategic Operating Plan, the IRS detailed accomplishments that have, among other things, allowed the IRS to recovered $4.7 billion in taxpayer dollars. More than $1.3 billion of that total comes from wealthy, high-income individuals who have not filed taxes or paid... Read more →
Forms
If you sold more than $5,000 in products or services through only apps and marketplaces, get ready to receive a tax form next year alerting you, and the Internal Revenue Service, of the potentially taxable income. The amount will be reported on IRS Form 1099-K. Changing 1099-K amounts: The fluid nature of the amount of earnings that trigger issuance of the reporting form has been a hassle for both taxpayers and the IRS since changes were made in the American Rescue Plan Act (ARPA) of 2021. Before ARPA’s enactment, third-party settlement organizations, or TPSOs, — think PayPal, Venmo, CashApp, eBay,... Read more →
Photo by Pixabay I know it’s early December and you're already frazzled. Oh, wait. Maybe that’s just me. Even if you are a bit swamped like me, but still think you can make room for one more thing (I'm jealous!), the Internal Revenue Service wants to hear from you. Specifically, the tax agency is seeking new members for the Electronic Tax Administration Advisory Committee (ETAAC). And actually, you don’t have to decide right now. (Whew!) The IRS is accepting applications through Jan. 31, 2025. Even better for those who need to clear some items from their current to-do lists and/or... Read more →
You have two main deduction options when you file, standard or itemizing. This gobbler duo represents that choice, which you make each year, based on which gives you the most beneficial tax result. You can make sure you make the most of your deductions by having a bunching strategy. (Photo by sterlinglanier Lanier on Unsplash) Deductions are one way to trim you tax bill. But since the Tax Cuts and Jobs Act (TCJA) of 2017 essentially doubled the standard deduction amounts, most taxpayers claim that set amount instead of collecting receipts and itemizing. That’s the wisest tax move for most... Read more →
This showy Texas turkey, not to be confused with music icon Bob Wills' Turkey, Texas, hometown, is a spectacular representation of the ol’ blog’s first tax turkey to avoid this holiday season, or any time of year. It’s Thanksgiving week. Most Americans are looking forward to the upcoming fourth Thursday in November, when they’ll gather to share food and fun with family and friends. A turkey will be the featured food on most tables, a tradition dating from the turn of the 19th century. But turkey also is disparaging slang for loser. Tax turkeys, in addition to being unwanted, can... Read more →
The Internal Revenue Service has made good progress in stopping fraudulent filings, but there’s always room for improvement. And there are ways taxpayers can help not only the IRS, but also themselves when it comes to filing security. Most U.S. taxpayers can obtain an identity protection personal identification number, or IP PIN. An IP PIN is a special six-digit number issued by the IRS to requesting individuals who have a Social Security number (SSN) or an Individual Taxpayer Identification Number (ITIN). Since only IP PIN recipients and the IRS know their number, the special code serves as a way to... Read more →
If you've met or exceeded your IRA savings target, a Qualified Charitable Distribution, or QCD, might be worth considering. This month, millions of U.S. residents gather with family and friends. But you can help others find thing to be thankful this Thanksgiving season by donating to charitable organizations. Gifts typically are cash, which in Internal Revenue Service parlance includes those made by check and credit card. If the tax agency rules are met, the donations also might be tax deductible. But some older philanthropists have another option. They can give part or all of their required minimum distribution, or RMD,... Read more →
Unsplash+ in collaboration with Getty Images I haven’t yet seen any of those holiday car commercials with big red bows atop the gifted vehicles. But is a good time to start thinking of new transportation, particularly if you’re considering an electric vehicle (EV). That’s because under the second Trump Administration, and with the support of a Republican-led House and Senate, the $7,500 EV tax credit soon could be history. Trump's tax credit aversion: While Donald J. Trump has vacillated between loving or hating electric vehicles, he’s more consistently been opposed to them, or at least the associated tax breaks. "Tax... Read more →
The construction sector is one of the areas in which veteran-owned companies play a major role. Veterans Day is tomorrow, Nov. 11. This solemn day is one of the few federal holidays that isn't shifted to Monday. It is always commemorated on Nov. 11 because the 11th hour of the 11th day of the 11th month in 1918 was the specific moment marking the armistice between World War I's Allied forces and Germany, ending the fighting on the Western Front. The Veterans Day date has held firm, but its focus was expanded in 1954. That year, at the urging of... Read more →
Photo by Marcus Aurelius Business success, especially in the retail sector, depends a lot on prioritizing customers and their needs. Sometimes that means making physical changes to an establishment. Uncle Sam might be able to help. The federal tax code has a couple of incentives for businesses that make structural adaptations or other accommodations for employees or customers with disabilities. One tax break is the Disabled Access Credit. As a credit, it provides a dollar-for-dollar offset of tax due. The other is a tax deduction for costs to remove mobility barriers. A deduction reduces a business’ gross income so that... Read more →
Since the Supreme Court in 2018 let states allow betting on college sports, sportsbook activity, like this in a Las Vegas casino, has pick up substantially. (Photo by Kay Bell) College and professional sports dominate screens right now. And sports wagering has increased annually since the Supreme Court of the United States in 2018 opened the door for states to allow sports betting on collegiate competitions. The high court’s move also made it possible for the Internal Revenue Service to collect on winning bets placed at legal sportsbooks. For the most part, those operations report the amounts that went into... Read more →
Photo by Brett Jordan Here’s a subject line you never want to see in your email box: There’s a problem with your tax return. But that is what’s happening to some taxpayers. No, it wasn’t from the Internal Revenue Service. Uncle Sam snail mails you a tax notice with questions about your filing. Rather, it was an email from TurboTax to its users with the subject line — CRITICAL NOTICE: Regarding your 2023 TurboTax return And here’s the message — Hi there, We’re contacting you because there might be an issue with the accuracy of your 2023 tax return. Due... Read more →
Updated, Tuesday, Oct. 15, 2024 Tuesday, Oct. 15, is Tax Day again, this time for most taxpayers who got an extension to file their annual tax return. (Photo by Nataliya Vaitkevich) Another Monday holiday has come and gone. At the federal level, yesterday was Columbus Day. But some states and localities instead celebrated Indigenous Peoples' Day. Even the White House recognizes both, issuing separate proclamations for Christopher Columbus’ landing in the Americas and the native people already here. Technically, Columbus Day still is a legal holiday, meaning U.S. government workers had the day off and no mail was delivered. But... Read more →
The deadly and destructive aftermath of Hurricanes Debby, Helene, and Milton, prompted the Internal Revenue Service to designate a new statewide federal tax deadline of May 1, 2025, for various tax filings and payments. Hurricane Milton seemed to take a skull shape in this radar image captured as the storm neared Florida on Oct. 8. (Image from post by @MaxVelocityWX on X, formerly Twitter) After Hurricane Debby made landfall in Florida’s Big Bend on August 5, the state got a brief respite. That changed late Sept. 26 when the same area was the target for Hurricane Helene. Helene’s doubling down... Read more →
If that sticky note retirement is your goal, then you need to save as much as possible, especially if you're self-employed. And yes, I did put that note on the board. 😉 (Photo by Kay Bell) Most IRA contributions must be made by April’s Tax Day. Unless you’re self-employed and got an extension to file your tax return. That means you also might be able to contribute to, and even establish, a retirement plan for your entrepreneurial endeavor. Here's an overview of some of the more popular, and relatively easy, self-employed retirement plans to which you can still contribute by... Read more →
Photo by RDNE Stock project A home of one’s own has long been part of the traditional American Dream. Nowadays, though, some say it’s a nightmare trying to join the homeownership ranks. So, of course, as we head into the last few weeks of the 2024 election, candidates at all levels also are focusing on housing. Vice President Kamala Harris, the Democratic presidential nominee, has proposed tax breaks she says will increase the housing supply, which should lead to lower prices. She’s also promoting a first-time buyer tax to help buyers get into those homes. Using the tax code to... Read more →
Photo by Francisco De Legarreta C. on Unsplash Owing a big tax bill is a terrible feeling. The only thing worse is not being able to come up with the money to pay Uncle Sam. The Internal Revenue Service offers some solutions. You can pay over time by setting up an installment plan with the tax agency. Sometimes, even spreading out payments isn’t enough. Dealing with a huge tax bill: If your tax debt is so large that you know you’ll never be able to pay it all, you can turn to an Offer in Compromise, or OIC. By submitting... Read more →
Photo by Mikael Blomkvist The third estimated tax payment deadline was Monday, Sept. 16, but today the Internal Revenue Service eased the minds of some Pennsylvanians who missed it. The IRS announced that taxpayers in areas of the Keystone State that were deluged by Tropical Storm Debby as it moved up the country’s east coast are eligible for a variety of tax relief. They’ve been given until Feb. 3, 2025, to meet a variety of tax filing and payment deadlines, including this week’s estimated tax due date. You can read more about the tax relief for storm-affected Pennsylvania individual and... Read more →
It’s not unusual, especially here in Texas, for undocumented workers to be employed in industries that depend on manual labor, such as agriculture or construction. (Photo by Zohair Mirza on Unsplash) “They’re eating the dogs” is now forever part of U.S. presidential campaign lore, for worse or worst since there’s no better take. Following Donald J. Trump’s exclamation of a false social media rumor of pet deaths in Springfield, Ohio, during his Sept. 10 debate last week with Kamala Harris, the municipality about half an hour northeast of Dayton has encountered much unwanted attention. It has included bomb threats to... Read more →
NOTE, Sept. 18, 2024: This estimated tax deadline is extended for taxpayers in officially designated major disaster areas. To date, such extensions apply to today's tax due date (and more) in 20 states and two U.S. territories. Millions of taxpayers will be sending Uncle Sam some more money next week. Monday, Sept. 16, is the due date for their third 2024 tax year estimated tax payment. At least we — yes, I’m a long-time payer of estimated taxes — have an extra day to fulfill this tax obligation, since the regular Sept. 15 deadline is on Sunday. But we all... Read more →