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March 2018 Daily Tax Tips
Tackling taxes like lions.

Tax_tip_icon_pencil_point

Welcome March, the last full month of the annual tax filing season.

Traditionally, the month is said to come in like a lion and go out like a lamb.

But savvy taxpayers know they need to keep attacking taxes like the king of beasts for the full 31 days of March.

Finishing, or getting started if you (like me) still haven't begun, your Form 1040, is the focus of most of March's tips.

Tax planning, too: Some folks, however, have been industrious. Kudos to you.

You already finished filers can take more of a tax lamb approach, calmly exploring ways to make the most of the 2018 changes to our taxes under the new Tax Cuts and Jobs Act.

Regardless of whether you're a tax lion or lamb, the March's weekday pieces of tax advice, like January's and February's before them, will be highlighted in the upper right corner of the ol' blog.

After a day in the spotlight, Monday through Friday from March 1 through the 31st, the tips then will be permanently ensconced on this March tax tips page.

So with an appropriate roar, let's get to the tips.

  1. Adjust your withholding to match new tax law — Want to make sure your payroll withholding matches the new tax law changes? Use the updated IRS online withholding calculator and file a new Form W-4, which also has been revised. (March 1, 2018)
  2. How to adjust your withholding — You used the new, improved updated to align with new tax laws Internal Revenue Service withholding calculator. Now what. Here's how to translate that to the W-4 that will actually impellent the changes. (March 2, 2018)
  3. 7 online security steps — Tax scams, like those that make the IRS' annual Dirty Dozen list, increase during tax filing season. That's why we need to be careful now and the other less taxing months of every year. These security moves can help keep your tax and personal data safe year-round. (March 5, 2018)
  4. 10 things that aren't taxed — What does the Internal Revenue Service tax? Just about everything. Earned and investment income. Gambling and prize winnings. Barter payments. Even ill-gotten gains (right, Scarface?). But despite the wide net that Uncle Sam's tax collector casts, there is some money that he doesn't get to reel in. Here are 10 examples. (March 6, 2018)
  5. Day camp costs and the child care credit — Summer will be here before you know it. That's why parents are now looking into camp options for their kids once school is out. If the youngsters go to a day camp, the costs can be used to claim the child and dependent care tax credit. (March 7, 2018)
  6. Where's the rest of your federal tax refund? — Did the Internal Revenue Service send you a smaller tax refund than you expected? The reason might be because Uncle Sam collected money you owed on delinquent debts. These offsets include past year federal taxes you owe, unpaid student loans and even state-ordered child support payments. (March 8, 2018)
  7. Retirement plan limits in 2018 — The Tax Cuts and Jobs Act made a lot of changes to the tax code, but not to popular tax-favored retirement savings options. Check out the amounts that apply in 2018 to IRAs, workplace retirement plans and the Saver's Credit. You'll also find how they compare to and in some cases were increased from 2017 retirement plan limits. (March 9, 2018)
  8. Donation tax deduction rules — If you give to a legitimate charity, not a fake nonprofit that makes the Internal Revenue Service's Dirty Dozen tax scam list, your donation could be tax deductible. As long as your follow the IRS rules. (March 12, 2018)
  9. Business tax record tips — The impending March 15 filing deadline for some companies (that weren't granted a weather-related delay) underscores the importance of good, and separate, business records. (March 13, 2018)
  10. Choose auto expense deduction method carefully — Taxpayers generally have a choice in deciding how to deduct their business miles. They can claim the standard mileage deduction or write off actual auto expenses. Making the correct choice could mean more tax savings. (March 14, 2018)
  11. Why tax credits rule — Both tax deductions and tax credits help reduce what you owe Uncle Sam. But credits are better that deductions because they cut your Internal Revenue Service tax bill dollar-for-dollar. (March 15, 2018)
  12. Don't overlook these 17 tax breaks — Before you head out to St. Patrick's Day parties, check out these ways to save on your 2017 tax return. It's the last year for some of these deductions and credits, for a while at least in their current form. You don't want to miss out on the ones that could save you some tax green! (March 16, 2018
  13. Short-term home rental tax benefits — A city's hosting of a special happening, like South by Southwest here in Austin or some of the NCAA March Madness college basketball games, could provide homeowners a big tax break. When you turn your home into a temporary rental during a big event, the lease money you pocket could be tax free. (March 19, 2018)
  14. Valuing your donated goods — Spring is here, at least according to the calendar. That means it's also spring cleaning time. But don't just toss out your old and unused items. Those that are in good shape could help out a charity and, if you follow federal charitable giving rules and value your donated property properly, help lower your tax bill. (March 20, 2018)
  15. Watch out for these Dirty Dozen tax scams — Tax filing season is tax scam season. These 12 criminal schemes have been around for years because, sadly, they work. Don't fall for these oldies and baddies. (March 21, 2018)
  16. Checking out your tax pro — You decided to use a tax pro this year. You determined which type of tax preparer is best for your personal situation. Now follow these tips to ensure that your chosen tax professional is indeed competent and reputable. (March 22, 2018)
  17. 10 reasons to file a tax return — Tax filing can be a hassle that most of us have to deal with each year. But in some cases, it pays to file a Form 1040 even if you aren't legally required to do so. (March 23, 2018)
  18. 5 FAQs about RMDs — If you're in your 70s and have tax-deferred retirement accounts, then you must take some of the money out, and pay tax on it, every year. Here are some key things to know about these required minimum distributions, or RMDs. (March 26, 2018)
  19. Tax cost of eliminated exemptions — The 2017 tax year is the last (at least for a while) for which taxpayers can claim exemptions. So be sure to take them this filing season and make plans for the loss of the exemptions on your 2018 taxes. One move to make now is to reassess your payroll withholding if you're losing exemptions under the new Tax Cuts and Jobs Act. (March 27, 2018)
  20. Adoption tax credit helps families grow — Adopting a child can be a joy, but also costly. Your Uncle Sam, however, offers ways through the tax code to save when you add to your family. (March 28, 2018)
  21. Deducting moving expenses — When you move for a job, the costs of getting you and your family to your new work location are deductible. The good news is you don't have to itemize. But don't go wild with the moving expenses and be sure to back them up with receipts. Also, due to the new tax law changes, your 2017 tax return is the last time (at least until 2026) that your moving costs for most of us are tax deductible, unless you're a member of the military. (March 29, 2018)
  22. Alimony tax considerations — When the end of matrimony leads to the start of alimony, each parting partner can feel the tax effects. For divorces granted through 2018, that means alimony payments are tax deductible (without itemizing!) and the recipient of the spousal support owes tax on the money. In 2019, however, the tax treatment changes for both ex-spouses thanks to the new tax law. (March 30, 2018)

Want more tax tips? You are in luck! You can find the previous two month's collected tax wisdom by clicking the following links. (April to be added when that month arrives.)

January 2018 Daily Tax Tips

February 2018 Daily Tax Tips

April 2018 Daily Tax Tips

 

 

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Today's Tax Tip

  • Bunch your itemized expenses — There's not a bunch of time left in 2023, but enough to look into bunching itemized tax-deductible expenses. This deduction strategy essentially means alternating each year between your standard or itemized deduction amount. To get a Schedule A total that's larger than your allowable standard deduction, you'll have to pull your itemized expenses into one tax year, or push them into the next, aka bunch them! It takes some planning, calculating, and guesstimating, but when it works, it maximizes all those itemized amounts (and receipts) that are too often lost because they're just not quite enough to claim. (Dec. 8, 2023)

  • Tax Tip; click pencil for all tax tip links

  • The 2023 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

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

  • It's the final
    2023 tax countdown!


    It's over! We cleared 2023's extended filing deadline, unless you get more time because your filing was affected by a major natural disaster, military service, or some other Internal Revenue Service recognized special situation. If that's you, be sure to check out all the ol' blog's earlier Tax Tips, listed by month just under the old-school No. 2 yellow pencil tip atop this column.

    For most of us, though, the passage of Oct. 16 means it's time to focus on the Form 1040 that we'll file next year. In most cases, we have until Dec. 31 to make moves that will reduce our still accruing 2023 tax bill.

    The countdown clock below should help us from missing out on making important tax-saving moves the rest of this year. Plus, the Tax Moves below the counter will list some timely tasks to take care of in each of these final 2½ months of 2023.
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.


Time for Tax Tasks


  • monthly tax moves


  • Ho 🎅 Ho 🎅 Ho!
    December is here!

    You better watch out. You better not cry. But you better make some year-end tax moves this December or next April 15 could turn out to be the tax equivalent of Santa Claus putting coal in your stocking.

    Santa Claus is watching YOU!
    Click image to hear a musical Santa message from Bruce Springsteen.

    St. Nick can't deliver a festively wrapped, already prepared tax return for you (unless he's even more magical than I think!) to file next year, but he does have a tax connection. Santa's tracking of naughty and nice boys and girls basically is the same method that the Internal Revenue Service uses. That's why we all need to be nice, especially to ourselves, in this final month of the year by making some important tax-saving moves. Let's get to it!

  • Dec. 1: This last filing season was more-or-less back to pre-COVID-19 pandemic normal, but if your own personal filing circumstances remained a mess, it's time to act. Maybe you realized you need professional tax help. If so, now is the time to find a tax preparer who can help ensure your return filing next year goes more smoothly. You have lots of options.There's also a December bonus. If you hire a tax pro this month, you might get some year-end tax tips!

    Dec. 4: Are you taking on a variety of gig work to make some extra holiday cash? Those added jobs mean you're an independent contractor. And that means you're responsible for paying income taxes due on the money, as well as any self-employment tax. Now is the time to start gathering those records and tallying this taxable income so you're not surprised at filing time.

    Dec. 11: If your job, over the holidays or full-time, is as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation, I hope you get extra seasonal financial thanks this month for doing your job well. Remember, though, that those tips are taxable income

    restaurant check tip iStock
    Whether you're dining at your favorite eatery, or during the coronavirus pandemic discovered you really like 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 November 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.

    Dec. 15: Christmas is just 10 days away! If you're still shopping for gifts, you're probably searching for the perfect present online. But beware and be wary. Internet crooks also are logged on, looking to steal your money and identity, using many of the techniques they employ in tax scams. Any personal information they get now can be used at tax time to file a fake return in your name and claim a fraudulent refund. So be careful out there, now and next filing season, and, well, unfortunately all the time.

    Dec. 18: Many of us are trying to concentrate this final work week before Christmas. As far as taxes go, it's a good time to revisit your estimated tax situation, especially if you got some money from those previously mentioned gigs. Since these amounts typically aren't subject to withholding, you'll need account for the December earnings in your January 2024 final 1040-ES amount for 2023.
    Better to know that amount now, than on Jan. 16's due date.

    Dec. 22: It's Christmas Weekend! That means holiday treats, final decorations — or first, if you wait until the very end to get a tree — and frantic last-minute shopping! Rather than worry about how you'll get the perfect gift under the tree on time, consider instead some easy tax-favored gifts. Open a Roth IRA for your child or grandchild who earned some money this year. Or pay tuition for classes that will start in the first quarter of 2024 by Dec. 31. Those college costs then can be used to claim the American Opportunity Tax Credit.

    Dec. 24: Christmas Eve!
    No taxes tonight. It's early to bed for kiddies of all ages. Santa's on his way!

    Santa Claus is on his way!
    Click image to watch
    Santa's delivery route as tracked by NORAD.


    Dec. 25: Merry Christmas! My gift to you is another day without tax thoughts.
    Just enjoy the holiday and your family and friends.

    Dec. 26: Happy Boxing Day. This unofficial holiday on St. Stephen's Day is celebrated by additional giving.
    If you donate to your favorite charity on this Boxing Day or any other day by Dec. 31, on your 2023 taxes you'll have to itemize your gifts on Schedule A to claim them. The option to claim a limited amount directly on your Form 1040 expired at the end of 2021. What didn't expire is the IRS' tax donation deduction rules.

    Dec. 31: This is it. The drop-dead deadline to make most 2022 tax moves. A quick and easy action today is to zero out your medical flexible spending account (FSA) by buying over-the-counter medications for which the funds can be used. This is especially important if your employer doesn't offer a grace period to use the money or let you roll it over into 2024. Without those alternatives, you'll lose any FSA funds you don't use.

    Done? Great! Make sure the champagne is chilling and settle in for your New Year's Eve party or a cozy night at home with your friends and loved ones. Either way, cheers and Auld Lang Syne as the ball drops at midnight.

    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

  • 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 2023 page.

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    You also might enjoy these other tax tips from some of my tax-writing colleagues:

  • JK Lasser 2023 Taxes
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  • JK Lassers 1001 Deductions
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  • 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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COVID-19 & Taxes

  • COVID-19
    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
    You can find medical coronavirus resource links in the next section.

COVID-19 Resources

  • COVID-19
    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:
    CDC Vaccines
    CDC Booster Shots
    HHS Combat COVID
    USA.Gov COVID Info

December 2023

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  • Christmas presents phot by Isaac Martin on Unsplash
    Photo by Isaac Martin on Unsplash


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Tell it to the Hill

  • DMWT Politics Posts
  • 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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