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

Today's Tax Tip

Later estimated tax deadline delayed for disaster-area filers — Sept. 16 is the deadline for most estimated tax payers to make 2024's third payment, but not all. Those who live in a location where tax relief has been granted because of a major disaster get more time. That’s the case 19 states and 2 U.S. territories. Some now have a Nov. 1 due date. Others have until Feb. 3, 2025, to meet their estimated and other tax obligations. (Sept. 13, 2024)
The 2024 Tax Tips offer ways to file your annual return, along with post-filing advice, important tax news and, of course, ways to cut your current tax year bill. You'll find the monthly assemblages on their own respective pages: January, February, March, April, May, June, July, August, September, October, November and December. Remember, tax tasks and tips don't stop after you file your annual return!

All About Kay

OK, some about Kay

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

Tax Season 2024 continues!

We made it. Tax Day 2024 is finally over. For most of us. An estimated 19 million taxpayers got an extension to file their 2023 tax year return. That's fine.
In fact, the Internal Revenue Service appreciates some of us spreading out our filings. It gives the agency time to process the surge of returns
that came in on April 15.

But enough about Uncle Sam's tax collector and its issues. The focus now is on all y'all who filed for extensions, giving you another six months to complete your return. Let's get started on meeting that new Oct. 15 deadline. It will be here before you know it.

The monthly tips and reminders a little further down this column can help you finish up your Form 1040. There also will be tax tidbits each month that make sure you meet other tax deadlines. And, of course, you'll find advice on ways to cut your still adding up 2024 tax bill.

Finally, keep an eye on the countdown clock below. It will help you track yet more days tick, tick, ticking off toward that absolutely final fall filing due date.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

🍁 Hello 🍁 September 🍁
🍂 Fall 🍂 is 🍂 here! 🍂

OK, fall’s not here yet, at least not here in Texas according to still quite-warm temperatures. But forecasters say cooler weather — like highs in the 80s; yes, everything, especially weather, is relative — is on its way, and that meteorological promise gives up hope.

via GIPHY

As we get ready for the promised bit of chill, September also is a great month to make some cool tax moves, like those listed below. So, grab a sweater (or not yet), and let's go!
Sept. 1: Today is Meteorological Fall, the three months from Sept. 1 through Nov. 30 when days get shorter and cooler, but not cold. It's also the start of the annual National Preparedness Month. This year’s theme is “Start a Conversation,” since it's important to talk with your loved ones about potential emergencies. It's also critical to be prepared, as the Atlantic and Gulf of Mexico hurricane season usually peaks in September.

We’ve already had three tropical systems do enough damage to prompt Federal Emergency Management Agency (FEMA) major disaster declarations. The 2024 tropical storm season’s second named storm, Hurricane Beryl, landed as “just” a category 1 on the Texas coast, but still took 38 souls and left Lone Star State residents facing an estimated $30 billion in damages.

Hurricane Debby made two U.S. landfalls, in the Big Bend area of Florida and then again in South Carolina before moving up the Eastern Seaboard, producing disaster declarations all the way up to Vermont. Tropical Storm Ernesto, followed, slamming the U.S. territories of Puerto Rico and the U.S. Virgin Islands, as well as spawning deadly rip tides along East Coast beaches as the storm moved toward Bermuda.

And, coinciding with Meteorological Fall, we’ve still got three months of the 2024 hurricane season to go!

That has coastal residents on edge, since Uncle Sam's official forecasters at the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center say we could get 17 to 25 total named storms, which are those with winds of 39 mph or higher. Of those, eight to 13 are forecast to become hurricanes, meaning winds of 74 mph or higher. Four to seven becoming major hurricanes; that’s category 3, 4 or 5, with winds of 111 mph or higher.

Regardless of the count, it only takes one to wreck your world. If you haven’t already, get ready for not just tropical systems, but whatever dangerous weather that’s common where you live. The countdown clock above 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 collection of special pages with posts offer tax advice on preparing for, recovering from, and helping those who sustain damages from the many ways that that weather goes wild.

Sept. 2: Happy Labor Day! This annual celebration of workers' contributions is a federal holiday and day off for many.

When you get back to work after this three day holiday, take a few minutes to check the federal tax amount that’s coming out of your paychecks. If you need to adjust your withholding so that you have the most accurate amount of taxes withheld, now is the time to do that. Submitting a new W-4 early this month will mean any changes are spread over the last four months of the year, making any impact less noticeable.

Sept. 3: If you live in Auglaize, Crawford, Darke, Delaware, Hancock, Licking, Logan, Mercer, Miami, Richland, or Union counties in Ohio, today is your Tax Day. The Internal Revenue Service granted individual and businesses in those counties tax relief since they were declared major disaster areas following a tornado outbreak in March.

Sept. 10: Do you work as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation? I hope you get all the tips you deserve for doing your job well. Remember, though, that those tips are taxable income.

Whether you're dining at your favorite eatery or getting food delivered to your home, if a tip isn't included on your restaurant or delivery bill, click the image above to calculate how much to tip the person who brought it to you.

And if you got at least $20 in gratuities in August for your extraordinary services as a food server or hair stylist or parking valet or whatever job where tipping is common, you must report that amount by today. Use Form 4070 to let your employer know the total tips you took in last month.

Sept. 16: Today is the deadline to pay your third installment of estimated taxes. This tax is due on income that’s not subject to withholding, such as investment earnings or contract work. Most estimated tax filers make the payments four times a year. The September payment is for such earnings received in June, July, and August. It’s usually on the 15th, but since that was Sunday, the deadline is pushed to the next business day — today!

Sept. 23: Sept. 22: The Autumnal Equinox arrives today at 8:44 a.m. Eastern Daylight Time in the Northern Hemisphere, marking the first day of Fall for all us who don't follow the meteorological fall calendar. Adjust for your time zone, since the equinox occurs at the same moment worldwide. It's also a go-to day to think about home maintenance that will help you weather the coming colder weather. The Inflation Relief Act includes extension of older and addition of new energy-related tax breaks, including some for residential energy improvements.

Sept. 30: Wow! Where did September go? That’s a good question to ask if you got an extension to file your 2023 tax return earlier this year. The last day of this ninth month means that your absolutely final Oct. 15 due day is another month closer. So you might want to get to work on that Form 1040 now. The easiest way to do do is to use tax software and electronically file.

If your adjusted gross income is $79,000 or less, you should check into Free File, the no-cost online tax preparation and electronic filing program offered by the IRS and its Free File Alliance partners. It’s open through the Oct. 15 extension deadline. This year, eight tax software companies offer programs to qualifying taxpayers.

Note that the Free File $79,000 or less income threshold applies to all filing statuses. If your income is too high, you still can file for free by using Free File's Free Forms option.

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 Forms 2024 page.

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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 interpretation and 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. While I work to ensure each post's accuracy, the items are not recommendations of any specific tax action(s) you should or should not take. Similarly, mentions of commercial tax products or services are not endorsements.

In other words, my ramblings on the ol' tax blog are free advice, and you know what they say about getting what you pay for. That's why when it is time for you to file your own taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent, or other reputable, qualified tax preparer who is familiar with your individual tax circumstances.

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COVID-19 & Taxes

Coronavirus has wreaked havoc
on the 2020 and 2021 tax seasons.
These five Coronavirus (COVID-19) and Taxes pages have details:
March-July 2020
August-December 2020
January-December 2021
January-December 2022
…and so it continues into 2023
…and, alas, into 2024
You can find medical coronavirus resource links in the next section.

COVID-19 Resources

Need help finding a coronavirus vaccine in the United States?
Call 1-800-232-0233
or TTY 1-888-720-7489.
More information and resources at:
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USA.Gov COVID Info

September 2024

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Tell it to the Hill

While it's easy to rail at the IRS, for the most part we can thank — or blame — Congress and the White House for our tax laws. So if you have an issue with tax legislation or want a tax bill passed, you need to let your federal legislators and the White House occupant know of your concerns. You can find out who in Washington, D.C., to contact (and how), as well as get information on your local lawmakers for matters, tax or otherwise, closer to home, at USA Gov.

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