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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Today's Tax Tip

Employee benefits that offer tax savings — It's workplace benefits enrollment season for many workers, the chance to make any changes to workplace enticements such as health insurance, child care, and more. Take time to assess what your company offers. Many popular office benefits have tax advantages, too. Asking these open enrollment questions can help you make better benefits choices. (Oct. 20, 2021)
The 2021 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!

COVID-19 & Taxes

Coronavirus has wreaked havoc
on the 2020 tax season.
These three Coronavirus (COVID-19) and Taxes pages have details:
March-July 2020,
August-December 2020, and
January-… 2021
You can find medical coronavirus resource links further down this column.

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

Tick ... Tick ... Tick

Tax Year 2021 Countdown
It's over! We cleared the final 2020 tax year extended filing deadline, unless you get more time because your filing deadline was affected by a major natural disaster or military service. You can find which areas of the United States got delayed due dates in this further-extended extended filing deadline post. For most of us, though, the passage of Oct. 15 means it's now time to focus on the Form 1040 that we must file next year.

In most cases, we have until Dec. 31, 2021, to make moves that will reduce our already accruing tax bills. The countdown clock below will make sure we don't miss that deadline.

And the calendar-keyed Tax Tasks below the counter will highlight some tax-saving actions to take in each of the remaining months of the year.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

BOO!

Halloween, of course, is one reason that October is the scariest month of the year. But there's also Oct. 15, the tax filing deadline for folks who got an extension to complete their annual returns. And again in 2021, we're still dealing with the COVID-19 pandemic. But these tips should help ease at least your tax fears this month.

Read about the history of jack o'lanterns

Oct. 1: In addition to medically masked adults and costumed child-size Halloween goblins and ghouls descending on your neighborhood at the end of this month, one of the scariest October items is that countdown clock a little higher up in this column. As noted at the top of this tax tasks column, the clicking clock is a stark reminder for millions of ultimate procrastinators that their deadline to file those 2020 Internal Revenue Service forms they shoved aside back in May must be done by mid-month. Don't worry. I'll remind you again as Oct. 15 nears.

But why push the deadline? Gather all the documents you need to file your Form 1040, like your W-2 and all the otherstatements, forms, and receipts you need to finish up your taxes.

And if job upheaval during the coronavirus pandemic prompted you to go to work for yourself, either via many gigs or a full-time business of your own, don't overlook the tax responsibilities and breaks associated with self-employment.

Oct. 5: OK. You're ready to finally file that Form 1040 before the 15th. Great! Now make sure you don't overspend to do so. Check out Free File, the online no-cost tax preparation and e-filing partnership between the IRS and the Free File Alliance.

The official Free File site at IRS.gov this season offers nine participating tax software options if your adjusted gross income is $72,000 or less, regardless of filing status. If you make too much to use the online software, look into using Free File's fillable forms. Both are available through Oct. 15 … if you want to wait a few more days.

Oct. 11: So another week slipped by without you filing your taxes. No judging. I've been there. The good news is that today is the federal Columbus Day holiday or, in many states and cities, now designated Indigenous People's Day. If you don't have to head into the office or check in on some work from home Zoom calls, this is a great day to deal with your extended taxes. In addition to the filing tips offered earlier in this list, as well as the monthly tax tip collection links under the pencil image at the top of this page, the IRS has some suggestions on getting the job done.

Oct. 12: Until the Delta variant showed up, many had resumed Before Days events, like eating at favorite restaurants. Some eateries are still offering table service. If you're comfortable going to them, be sure to share your happiness about being served in person again with your waiters. If you're still a bit hesitant about going to a packed diner, also tip the food delivery folks still bringing meals to your door.

If a tip isn't included in your restaurant check or food delivery charge, click the image above to calculate how much to tip.

Those of you getting the tips, remember that your tips are taxable income. If you got such added financial thanks that came to a total of at least $20 last month, whether as a waiter/waitress or hair stylist or valet or whatever job where gratuities are common, you need to account for them today. Report them to your employer on Form 4070.

Oct. 15: It's here! The absolutely, positively final filing deadline for your 2019 return. Get to it! You have until midnight your time to electronically file. But I suggest you don't push that deadline to hit the send button on your computer keyboard. A late technical problem, either by the IRS or your software provider, could turn into a costly late-filing issue.

Or if you're old-school and mailing a paper return, get to your local U.S. Postal Service branch in time to have your envelope postmarked today. That's proof that your paper filing was on time.

Oct. 20: Now that your 2020 return is finally done, it's time to work on reducing your 2020 tax bill. One easy step to take now is to review your payroll withholding. If you find, whether you filed this month or back in May, that you owed a lot or got a big refund, you should use the IRS' online withholding tool to make sure a more appropriate amount of income tax comes out of each of 2021's remaining paychecks. If your withholding tweak gets you more money each payday, consider putting some of it into your retirement savings, either your workplace 401(k) or a traditional or Roth IRA .

Oct. 26: Many folks' retirement money is in that just mentioned 401(k) plan. That's just one of the employer-provided benefits that companies offer their workers. And October is open enrollment season at many companies. Take time to carefully review what's offered before enrollment ends.

Oct. 31: Sure, it's Halloween. But even scarier than the ghosts and monsters wandering your neighborhood tonight is the knowledge that we still have another month of hurricane season ahead of us. If your area hasn't been hit by any tropical system so far, good for you. But your luck might not hold, as the Atlantic and Gulf of Mexico hurricane season runs through November. The countdown clock below lets you know how many more days you have to worry about tracking tropical systems.

So that you're ready for another Hurricane Ida, which made landfall in Louisiana and moved on to New York, or, hopefully, a less severe storm, prepare now if you haven't already.

The ol' blog's special Storm Warnings section can help. The 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. That includes claiming uninsured losses from a major natural disaster as on itemized tax deduction. And remember, your prep can pay off any time, since all types of disasters occur year-round.

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 Publication 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 Fiesta! page.

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Taxes are all about the numbers.
Check out these (mostly) weekly
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Kudos Et Cetera

National Association
for Women in Communications
Winner, Best Personal Blog
2012, 2014 & 2017
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in Personal Finance
Winner, Best Tax Blog
2011 and 2013
Lifetime Achievement Nominee 2020

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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October 2021

Tell it to the Hill

While it's easy to rail at the IRS, for the most part we can thank — or blame — our tax laws on Congress and the White House. 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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