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March 2018 Daily Tax Tips
Tackling taxes like lions.

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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

  • Shopping tips for August's 16 back-to-school tax holidays — Is your state one of the 16 holding a sales tax holiday this month? Before you head out to make tax-saving purchases, check out these 6 shopping tips. They could help you make the most of your state's no-tax August event. (Aug. 5, 2022)
  • Tax Tip; click pencil for all tax tip links

  • The 2022 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

  • COVID-19
    Coronavirus has wreaked havoc
    on the 2020 and 2021 tax seasons.
    These three Coronavirus (COVID-19) and Taxes pages have details:
    March-July 2020,
    August-December 2020,
    January-December 2021, and
    January-… 2022
    You can find medical coronavirus resource links further down this column.

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

  • Tax Season 2022 continues!

    Tax Day 2022 is finally over … unless you're one of the millions who have more time to file — looking at you taxpayers abroad and those in major disaster areas — or you got an extension to file your 2021 tax year return. That's fine. In fact, the Internal Revenue Service appreciates some of us spreading out our filings, especially when we and the agency still are dealing with all the complications of COVID-19 and taxes.

    That's why the ol' blog's focus now is on all y'all still working on returns. But I haven't forgotten my organized taxpayer readers, who are already looking for ways to reduce their 2022 tax year bills. Yep, that amount is adding up, but there are moves you can make. The monthly tips and reminders a little further down this column can help everyone, regardless of which tax year you're working on.

    Those on extension should keep a keen eye on the countdown clock below. It will help you track the days tick, tick, ticking off toward that absolutely final fall filing due date of Oct. 17. Yep, it's a few days later this year.
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.


Time for Tax Tasks


  • monthly tax moves


  • The Dog Days of Summer
    are here!

    For many of us, that means taking it easy like the pup below during these hot, sultry August days as summer winds down.

    via GIPHY


    But we can't dog it too much.
    Making some potentially money-saving tax moves this August can really pay off. So let's get to it!


    Aug. 1: School soon will be back in session. That means students need supplies. Good news for them and their parents: this month 15 states are holding back-to-school sales tax holidays. These no- or reduced-tax events are in Arkansas, Connecticut, Illinois, Iowa, Maryland, Massachusetts, Missouri, New Jersey, New Mexico, Ohio, Oklahoma, South Carolina, Texas, Virginia, and West Virginia.

    Aug. 5: The tax holidays will help ease the high cost of school supplies and other qualifying purchases a bit, especially in these inflationary times. But some taxpayers are agetting more help. Sixteen states are issuing inflation relief payments. If you're in one of them, make sure your state tax department has your correct information, since that's how most of the inflation aid money will delivered.

    Aug. 10: Restaurants are still recovering from the challenges of operating during a national health crisis, especially now that new COVID-19 variants are spreading. If your favorite eatery is now seating diners indoors, still take precautions, aka mask on until that meal arrives, please! If you're still doing take-out and deliveries, those business owners appreciate that support, too. And regardless of whether you're eating out or still getting food brought to your house, remember to tip your server or delivery person.

    restaurant check tip iStock
    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 July 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.

    Aug. 17: Did you get an extension back in April to file your tax return this fall? Well, that new due date — Oct. 17 — is now just two months away. But you don't have to wait until that day is, well, just days away. You can get to work on your tax paperwork now and be done with it any time before then.

    Whenever you do get around to finishing your tax return, the IRS recommends you do so electronically. Check out ways to e-file at no cost, including via Free File, which is, as its name says, free. The official electronic filing webpage is Free File on IRS.gov is available to qualifying taxpayers until midnight, Eastern Time, on Oct. 17.

    IRS Free File; click image for details

    Free File this year is available for taxpayers whose adjusted gross income is $73,000 or less. That income level applies to all filing statuses. This year, 8 software programs are available to eligible filers. Spoiler: The two biggies, Intuit's TurboTax and H&R Block, are not among the choices. The two leading tax prep programs decided to end their participation in the program.

    Aug. 22: The early part of the 2022 Atlantic/Gulf of Mexico hurricane season was, thankfully, not that bad. But August is when things tend to literally start heating up. The National Oceanic and Atmospheric Administration's (NOAA) National Hurricane Center says that most tropical storm activity occurs between mid-August and mid-October. If you haven't yet prepared — physically, financially, and tax wise — it's time to do so

    Hurricane satellite image

    Uncle Sam's official forecasters at the NOAA Climate Prediction Center expect 2022 to bring as many as 21 named storms, with six to 10 possibly becoming hurricanes. Three to six of those 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. That includes claiming uninsured losses from a major natural disaster as an itemized tax deduction.

    Aug. 26: The stock market has been up and down, then up and down, then … You get the idea. All the gyrations mean it's time to review your portfolio. Periodic rebalancing to meet your financial goals also could provide a tax break. If some of your taxable holdings have dropped in value, you can sell them and use the loss to offset other assets' gains. Remember, though that this tax loss harvesting strategy should be used only is you really want to sell the asset, not just use it to cut taxes. As the old (and apropos this month) saying goes, never let the tax tail wag the financial dog.

    Aug. 31: If you've already filed your 2020 taxes, were you surprised by either the size of your refund or how much you owed? If so, now's the time to make sure that doesn't happen next year. The IRS' online estimator can help you more accurately adjust your payroll withholding.

    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 Talking Tax Forms page.

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