January 2020 Tax Season Filing Tips

Tax reform filing redux. It's got to be better in 2020, right?

Happy New Tax Year 2020! This time 12 months ago we were facing the first federal tax filing season under the first major tax reform changes in more than 30 years.

Most of us came through it OK. Yeah, I know some folks didn't adjust their withholding, at all or enough and ended up facing a tax bill instead of getting their usual expected refund.

But when all was said and done, the Tax Cuts and Jobs Act's (TCJA) lower tax rates and wide income tax brackets meant most of us ended up paying Uncle Sam at least a little less than in prior years.

OK, it might not have been as much tax savings as we wanted, especially compared to some of our richer neighbors. And it definitely wasn't as easy as, or on a postcard-sized form, as many Republican lawmakers had promised.

But it was something.

So we're ready to do the filing thing all over again, this time with less hassle thanks to hindsight and the lessons we learned the last filings season, right?

Maybe.

If you're still a little trepidatious, don't worry. That's what the 2020 version of Tax Season Filings Tips is for. Before you put pencil to tax form — or, more likely, keyboard to software — this collection of pieces of tax advice can help.

Still not necessarily daily: In addition to getting another crack at TCJA provisions, this 2020 filing season also will be familiar in the timing of the Filing Season Tax Tips.

Last year's readers know that in 2019, this blog feature downsized from being a week day occurrence. Personal commitments and challenges forced me to pace myself a bit. It worked, so I'm sticking with not-strictly daily tax tips again in 2020.

But fear not dear readers! I promise you'll still get lots of valuable filing information here on the ol' blog, as featured tax tips and in plain old posts, which will continue to go up every day, even on weekends. Cases in point, see the Saturday and Sunday By the Numbers and Shout Out features.

And those items that are officially designated as Filing Season Tax Tips will be, as in prior years, highlighted at the top of the ol' blog's right column. They'll be there through the April filing deadline, just under the old-school yellow No. 2 pencil tip image.

Also like in previous filing seasons, once a tax tip is posted, it will be will be archived on a monthly tax tip page. Since you're reading this, you know the January 2019 is live. The February, March and April tip collections will go up when those months arrive. You'll find those links at the bottom of this page.

Focus on filing: Another constant in 2020 is that the tax tips through the April deadline primarily will focus of ways to fill out your Form 1040 and yes, this season we still are using that one, although revised yet again, tax return form.

That's 1040 mention also is a great time to note that I'm adding a new occasional feature to the ol' blog in 2020, Tax Form Tuesday. More on this is coming soon, but it's what it sounds like. And some of these forms features will be Filing Season Tax Tips.

While this year's tips will focus mainly on filling out your 2019 tax return, I won't overlook the fact that each filing season also overlaps with necessary tax planning for our 2020 taxes.

This means that some of the tax tips will, as they have for years, also offer information on what we need to do now to reduce our upcoming current year tax bills, which started running on Jan. 1.

OK, enough of the tax tip teasing and housekeeping. I present, tah-dah!, the list of January 2020 Filing Season Tax Tips.

Standard mileage rates drop in 2020 — The good news is that some tax-related driving still is deductible this New Tax Year. The bad news is that in 2020, the standard optional mileage rates for business, medical and certain moving related miles are lower than in 2019. The rates and other details are in part 10 (finally!) of the ol' blog's 2020 tax inflation adjustments series. (Jan. 1, 2020)
IRS announces 2020 tax filing season starting dates — Tax season 2020 has arrived, for business filers at least. The Internal Revenue Service started accepting tax year 2019 business returns on Jan. 7. The tax party really ramps up on Jan. 27, when the agency will begin accepting and processing individual tax returns. (Jan. 7, 2020)
Babies' birthdays determine tax year tax breaks — A baby's birthday affects when you can claim any of the many child-related tax breaks. And when it's twins, child birth, rearing and tax benefits can get a bit more complicated, especially if delivery spans both New Year's Eve and Day. (Jan. 8, 2020)
Tax return filing checklist — Filling out your 1040 actually is the easiest part of tax return filing. Before you get to that step, you need to prepare, by making sure you have all the tax statements and other documents you need. And if you itemize, that means even more pre-filing data collection. Here's a checklist (yes, a loooong checklist) of what you need to consider and collect before filing. (Jan. 9, 2020)
6 reasons to file your taxes early — Taxpayers expecting refunds typically are among the firs to file their 1040s each year. But there are other reasons to file your taxes early. (Jan. 10, 2020)
Jan. 15 is 4th quarter estimated tax deadline — Estimated tax payers face the final tax year 2019 deadline next week. The 4th installment is due on Jan. 15. If you miss it or have paid too little for the prior tax year, you could face tax penalties. (Jan. 12, 2020)
Form 1040 revised again — The new tax reform law meant that taxpayers last filing season saw the first substantive changes to Form 1040 in decades. But the revisions haven't stopped. With tax-filing season 2020 upon us, the IRS has again tweaked the lone individual tax return and eliminated 3 of its original schedules. (Jan. 14, 2020)
Finding and checking out your tax preparer — If you're looking for a tax preparer, you need to make sure you find one that fits your filing needs. Then you need to thoroughly check out that person to make sure he or she is a reputable and qualified tax professional. (Jan. 16, 2020)
Who must file a tax return — Most of us who make any money generally must file a tax return. Here are the details on the three filing requirements — age, income and filing status — that will determine whether you're one of the millions from whom the Internal Revenue Service demands a Form 1040. (Jan. 17, 2020)
Who should file a tax return — If you're lucky enough not to have to file a tax return, congrats! But sometimes you should file even if you're not legally required to do so. Here are 10 such reasons to send the Internal Revenue Service a Form 1040. (Jan. 20, 2020)
Decoding your W-2 — You must have your W-2 to file your tax return. But that relatively small tax statement has a whole lot of information on it beyond how much you earned and the amount of taxes you paid via withholding. This overview looks at what to look for on your W-2 and how to use the information. (Jan. 22, 2020)
Do your taxes for free at Free File — Free. It's the best four-letter word out there, especially when it comes to your taxes. The Internal Revenue Service/tax software industry's no-cost tax prep and e-filing option Free File is open, ahead of the tax agency's official Jan. 27 start of the 2020 tax season. Here are your options, eligibility info and tips on making the most of it. (Jan. 23, 2020)
6 reasons to wait to file — The 2020 tax filing season officially starts next week, but here are six reasons why you might not want to be among the first filers to send in your 1040 to the Internal Revenue Service. (Jan. 24, 2020)
States also offer free online tax filing — The federal Free File option is available as tax season 2020 starts on Jan. 27. But many of the 43 states that collect tax from their residents also have their own no-cost online state tax preparation and e-filing programs. (Jan. 26, 2020)
Tax statements needed to file returns — The opening of every filing season there is a rush by millions of taxpayers to submit their returns. Many taxpayers, however, can't yet file 1040 forms. They're still waiting for one or more of these tax statements. (Jan. 27, 2020)
Deductions that don't require itemizing — Most taxpayers don't itemize, especially with the new tax law's larger standard deductions, but they still can claim some write-offs directly on Form 1040 Schedule 1. These possibilities, formerly known (apologies to Prince) as above-the-line deductions, include the recently resurrected tuition and fees claim. (Jan. 29, 2020)
Claim the EITC if you qualify — The Earned Income Tax Credit (EITC) offers savings, and possible tax refunds, to low- and moderate-income workers. But every year, millions who are eligible to claim the EITC don't. Check out this tax credit's benefits (including a possible refund!) and if you qualify, claim it. (Jan. 31, 2020)

As I mentioned earlier on this 2020 inaugural Filing Season Tax Tips page, as soon as January wraps (and all this month's tips fill up this page), you can check out February's (and March's and April's) Filing Season Tax Tips.

If you're curious, those tax tip pages already are live, but for now with a fun GIF instead of tips. Tax info will replace that animated fellow when those months arrive.

February 2020 Filing Season Tax Tips

March 2020 Filing Season Tax Tips

April 2020 Filing Season Tax Tips

May 2020 Filing Season Tax Tips

June 2020 Filing Season Tax Tips

July 2020 Filing Season Tax Tips

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Filing Season Tax Tips

7 ways to pay your tax bill — Tax Day 2020 is almost here. Most of us think it's the day we must file our 1040s. It is. But more importantly, if you owe it's the day you must pay any tax you owe. You can extend the sending Uncle Sam your return, but not your money. Here are 7 ways you can pay up on July 15. (July 13, 2020)
Did you miss a tax tip posted above? No worries. They are, or eventually will be, collected in the 2020 Filing Season Tax Tips pages. That's usually January through mid-April, but this year is definitely unusual. The coronavirus' spread has pushed Tax Day 2020 from April 15 to July 15. So the ol' blog has adjusted, too, with extended Tax Tip pages for each of this year's six-and-a-half months that we now will focus on our 1040s: January, February, March, April, May, June and — tah-dah! — July. Then, after a very brief break to catch our post-filing deadline breath, the Weekly Tax Tips, like these from 2019, will return.

COVID-19 & Taxes

Coronavirus has wreaked havoc
on the 2020 tax season.
This Coronavirus (COVID-19) & Taxes page has details.

All About Kay

OK, some about Kay

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

My Other Accounts

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Tax Year 2020 Countdown
Happy New Tax Year! Are you ready to file your 2019 tax return? Me neither. But this year we're getting some extra time to file and pay any tax we owe, until July 15. This later date, however, is for a terrible reason. The coronavirus pandemic hit the United States hard in March, dramatically disrupting lives. Our normal tax routine is among the many things that have changed for all of us.
The monthly tips and reminders a little further down this column should help you focus on your taxes and make the filing of them by mid-summer go more smoothly. Also keep an eye on the countdown clock just below. It will help you keep track of the arrival of the new July 15, 2020, Tax Day.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

July 1: In a normal year, most of us would be celebrating the end of school years, planning summer vacations and generally loving life. As has been long noted, both here on the ol' blog and elsewhere, this is not a normal year and especially not when it comes to taxes.

In fact, this July is the new April. Due to COVID-19 disruptions and precautions, Tax Day 2020 was moved to July 15. With that due date on the fast-approaching horizon, let's get cracking!

July 3 & 4: Happy 244th Birthday, America!

This is one of the problems with moving Tax Day to July. It immediately gets interrupted by celebrating the United States' creation. That birth was spurred in part by taxes, so take a break and celebrate. Since July 4 this year falls on Saturday, Friday, July 3 also is an official federal holiday. So we get two days of partying, safely, of course, both when it comes to fireworks and coronavirus social distancing.

July 6: Welcome back to the real and tax world. With the sparklers and bottle rockets done, it's time to focus on July 15. Not only is the due date for your 2019 tax return, there are other tax tasks to take care of by this mid-July deadline. These added tax moves include filing an old tax return, making 2020 estimated tax payments, contributing to retirement and medical saving accounts, dealing with tax notices and taking care of your state taxes.

July 8: As you finish up (or start) your 2019 tax return, this checklist can help you ensure you have all the documents you need to file your Form 1040 and its now just three (instead of six) schedules.

July 10: Most restaurants across the country closed earlier this year due to COVID-19. Some opened, then reclosed as the virus resurged. And many eateries simply stuck with take-out meals and deliveries. Whether you're able to dine in or still getting food brought to your house, remember to tip your server or delivery person.

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 June 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.

July 13: Still working on or finishing up your 2019 tax return? Check out the filing pieces of advice in the ol blog's monthly tax tips pages, one each for January, February, March, April, May, June and, finally, July.

July 15: Finally, Tax Day 2020 is here.

.
You've got until midnight tonight (your local time) to electronically file your 1040. The IRS can help you do that and save money with Free File, the IRS/tax software industry partnership that offers eligible taxpayers access to online tax preparation programs and federal return e-filing at no cost.

This year 10 software companies are participating at IRS.gov's Free File webpage. It's available for taxpayers with adjusted gross income of $69,000 or less regardless of filing status. If you make too much to use the online software, look into using Free File's fillable forms.

And if you just can't finish your 1040, send the IRS instead Form 4868 to get until Oct. 15 to file your return. Remember though, you must pay any due tax with your extension request.

July 20: Whew! Now that filing is done (except for us procrastinators on extension) and you've had a few days to get settled, it's time to take care of your tax records. You need to hang onto some filing paperwork just in case the IRS has follow-up questions.

July 24: When you filed your taxes, either this month or earlier in the year, did you get or are you now expecting a big refund? Or did the other tax possibility happen and you ended up owing Uncle Sam a lot more than you expected? Then it's time for a paycheck checkup and possibly adjust your payroll withholding.

July 28: An immediate review of your 2020 filing experience might have made it clear that you need personal help you’re your taxes. Start your search for a tax professional who will work with you year round to make your tax obligations less, well, taxing.

July 31: The 2020 Atlantic/Gulf of Mexico hurricane season got off to a quick start, but we made it through June without a major 'cane making U.S. landfall. Still, there's no reason to get complacent.

Uncle Sam's official forecasters at the National Oceanic and Atmospheric Administration (NOAA) expect 2020 to bring as many as 19 named storms, with six to eight possibly becoming hurricanes. Three to six 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.

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

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 Tax Form Tuesday page.

Mapping Your Tax Route

Do you get lost doing your taxes? Check out the Taxpayer Advocate Service's Taxpayer Roadmap.

This publication, designed along the lines of a subway map, shows the many routes and detours of a taxpayer's journey through our elaborate Internal Revenue Code and the Internal Revenue Service's enforcement of our tax collection system.

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I gotta tell ya ...

AKA Disclaimer:
I am a professional journalist who has been covering tax issues since 1999.
I am not a professional tax preparer.
The content on Don't Mess With Taxes is my personal opinion based on my study and understanding of tax laws, policies and regulations. It is provided for your private, noncommercial, educational and informational purposes only. It is not a recommendation of any specific tax action(s) you should or should not take. Similarly, mentions of products or services are not endorsements. In other words, my ramblings on the ol' blog are free advice and you know what they say about getting what you pay for. That's why when it comes to filing your taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent or other qualified tax preparer who is familiar with your individual tax circumstances.

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