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March 2020 Tax Season Filing Tips

Welcome to the king of the tax season beasts!

Tax tip pencilMarch has arrived, usually bringing a mad dash of filings in what typically is the last full month of the annual tax season. 

However, the 2020 filing season is anything but usual or typical. This month, which traditionally is said to come in like a lion and go out like a lamb, has taken on a chaotic new personality.

The potentially deadly coronavirus started spreading with a vengeance in mid-month, prompting the Treasury Department and Internal Revenue Service to push April 15 Tax Day to July 15.    

The added 90 days means we don't have to worry about an impending tax deadline as we're coping with the havoc prevention efforts, including quarantines and social distancing and remote almost everything.

But when you do get a handle on your new COVID-19 routine, working on your taxes could be a good distraction.

And whether you're finishing your 1040 this month or finally getting started or still just thinking about doing your taxes, these March filing season tips can help.

Tax planning, too: For all y'all who've already done your annual tax duty, we are definitely jealous. But we also salute you.

You industrious taxpayers can take more of a lamb approach, enjoying the tranquility of knowing that, for the most part, you're through with filing paperwork until next year.

But don't revel in our tax plaudits (and jealousy) or your tax peacefulness for too long. You still need to explore things you can do this month to make the next filing season even easier and less costly.

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

After their time in the spotlight, the March tips then will be permanently ensconced on this page.

So with an appropriate roar, let's get to them!

  1. Tax implications of asset sales — If recent stock market drops prompted you to make portfolio moves, you'll have some tax things to consider. If you made a profit, you'll owe usually lower capital gains taxes. If you sold at a loss, those negative numbers could offset any gains and even some ordinary income. (March 2, 2020)
  2. Business meals and other claims on Schedule C — The Tax Cuts and Jobs Act (TCJA) changed a lot of things, but it left the deduction for business meals in place. There has been confusion, however, since the tax reform law did eliminate the previously connected business entertainment write-off. The IRS has been trying for years to clear up the confusion. This tip looks at the agency's latest business meal pronouncement, along with what else sole proprietors can still claim on Form 1040 Schedule C. (March 3, 2020)
  3. Take care of your state taxes, too — Most U.S. taxpayers have a double dose of tax duties every year. In addition to a federal Form 1040, residents of 43 states and the District of Columbia also must file state, and sometimes local, tax returns. You can find more at your state tax department, as well as this look at the wide range of state income (and other) taxes. (March 5, 2020)
  4. VITA, TCE volunteers offer free tax filing help — Intimidated by your 1040, even when using tax software? Can't work hiring a tax pro into your budget? Then check out a Volunteer Income Tax Assistance (VITA) or Tax Counseling for the Elderly (TCE) location near you. IRS-certified volunteers at these community tax-filing sites nationwide help lower-income taxpayers prepare and e-file their returns for free. (March 6, 2020)
  5. Tennessee tornado victims get tax relief — The deadly March 3 storms and tornadoes that devastated parts of Tennessee were declared major disasters. That means affected taxpayers get some tax relief, including deadlines extended until July 15. Those who sustained damages also might be able to claim their losses on their taxes by itemizing and filing Form 4684 to get some tax money back to put toward recovery efforts. (March 9, 2020)
  6. Standard vs. itemized deduction choice & strategies — Standard time is over for the next eight months, but the standard tax deduction is around every filing season. Most people use it, but itemizing also can work for many taxpayers, as long as they put some tax deduction strategies into place. (March 11, 2020)
  7. Military tax topics and tips — Being in the military is tough enough. The Internal Revenue Service and tax code realize that and offer some special tax breaks and considerations for U.S. armed forces personnel. (March 14, 2020)
  8. 13 good luck tax breaks — It's been a crazy tax season and not just because of the tax code. Global medical matters and a March Friday the 13th put many filers on edge. Here are 13 lucky tax breaks — for students, families and older filers — that make filing a little less scary. (March 16, 2020)
  9. April 15 still filing, but not paying, Tax Day — Treasury and the Internal Revenue Service still expect us to file our tax returns by April 15, but for many that's no longer this year's tax paying deadline. Coronavirus concerns prompted Uncle Sam's financial officials to give taxpayers a 90-day grace period — that's until July 15 (so you don't have to check your calendars!) — to pay any tax owed. That extension also is for the first estimated tax payment of 2020. (March 19, 2020)
  10. July 15 is new Tax Day 2020 — July 15 is the new April 15, at least for 2020. Efforts to stem the spread of the coronavirus have meant changes in everyone's lives, including the tax portion. To help in that area, Treasury has declared that July 15, which had been the revised deadline to pay any tax due, now also is the new filing deadline for 2019 tax returns. (March 20, 2020)
  11. July 15 Tax Day 2020 Q&A — One question has been answered. Tax Day 2020 is July 15. Naturally, taxpayers have lots of questions about this latest (and we hope final!) tax calendar shift. Some of the most asked are in this collection of questions and answers about the new July 15, 2020, Tax Day. (March 21, 2020)
  12. Unemployment benefits are taxable — Lots of people are losing their jobs due to the coronavirus closures. Unemployment benefits can help a bit for those who qualify. But remember that this stop-gap money is taxable income. It must be reported on the tax return you file next year. (March 23, 2020)
  13. IRA, HSA contribution deadline is July 15 — The new 2020 Tax Day of July 15 also is the deadline to contribute to a some tax-favored accounts for the 2019 tax year. The Internal Revenue Service has confirmed that change, assuring folks who want to put money for the prior tax year that they, too, have the same automatic 90-day extension as 2019 tax return filers. (March 25, 2020)
  14. COVID-19 advance tax credit payments: good, bad & ugly — Relief checks to help make up for financial hits sustained due to the coronavirus pandemic will be going out to taxpayers in the coming weeks. They are part of a huge COVID-19 assistance measure, some of which is good, some bad for certain folks and yes, some is downright ugly, like the advance tax credit issue some will encounter during next year's tax filing season. (March 26, 2020)
  15. Charitable donation, deduction changes under COVID-19 relief bill — A new coronavirus relief measure is now law. In addition to creating the highly touted payments, it enhances tax breaks for generous taxpayers. For 2020, you don't have to itemize to get a deduction. If, however, you do still file Schedule A and claim charitable gifts, you can give and deduct even more this year. (March 27, 2020)
  16. Coronavirus payments timetable announced — The Internal Revenue Service is getting ready to send out the coronavirus relief payments. Most of us won't have to do anything but wait for our money. There are, however, some other matters discussed in this official COVID-19 payment Q&A. (March 31, 2020)

But wait, there's more! You can find the previous two month's collected tax wisdom by clicking the links below for the January and February tax tips pages.

And yes, you can click on April, too, but you'll just find a guy telling you to whoa up. We're not there yet. But rest assured, April's tax tips will be added when that month arrives.

January 2020 Filing Season Tax Tips

February 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

Coronavirus Caveat & More Information
In 2020, we're all dealing with extraordinary circumstances,
both in our daily lives and when it comes to our taxes.
The COVID-19 pandemic and efforts to reduce its transmission
and protect ourselves and our families means that,
for the most part, we're focusing on just getting through these trying days.

But life as we knew it before the coronavirus will return,
along with our mundane tax matters.
Here's hoping that happens soon!
In the meantime, you can find more on the virus and its effects on our taxes
by clicking Coronavirus (COVID-19) and Taxes.

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Weekly Tax Tip

  • Reporting your winnings to the IRS — Uncle Sam apparently is Lady Luck's cousin. Your lottery jackpot, other gambling winnings and prizes, too, are taxable income. Here's how to report them to the Internal Revenue Service on Form 1040's Schedule 1. (Jan. 11, 2021)

  • Tax Tip; click pencil for all tax tip links

  • Check out all the latest post-Tax Day tax advice in the 2020 edition of Weekly Tax Tips. Many of these once-a-week tips will focus on planning moves to cut your 2020 tax bill.
    If, however, you got an extension and are still working on your 2019 return, you can get a refresher of the 2020 Filing Season Tax Tips at their respective monthly pages:
    January, February, March, April, May, June and July.

COVID-19 & Taxes

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

All About Kay

  • OK, some about Kay
    Open sign
    Kay Bell — Native Texan (the blog title totally makes sense now, right?). Professional journalist. Tax geek.

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  • Tax Season 2021 is here!
    Happy New Tax Year! Are you ready to file your 2020 tax return? Me neither. With all the delays last year due to COVID-19, it seems like that prior tax season just finished. But time and taxes wait for no taxpayer. The Internal Revenue Service, which started 2021 by delivering more coronavirus economic relief payments, says it will be ready for our returns. So let's get prepared, too. The monthly tips and reminders a little further down this column should help us focus on our taxes and make the filing of them by go more smoothly. Also keep an eye on the countdown clock just below. It will help us keep track of how much time we have until Tax Day on April 15, just in case some of us want to put things off until the final hours. .
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.


Time for Tax Tasks


  • monthly tax moves

  • Oh, 2021. I cannot tell you how happy we are to see you. You will be better than 2020, right? Right?!?

    via GIPHY

    And just so there's no confusion, that's a question New Year 2021, not a challenge. So don't you dare try to outdo the just-past Year of COVID-19 and its many, many complications, including in the tax world.

    Jan. 1: While there's some good news with vaccines going out to fight the coronavirus pandemic, we'll still be dealing with it for a while. The Internal Revenue Service is delivering the second round of relief payments and the commissioner promises that the agency will start the 2021 filing season as usual later this month. I hope that's correct, but we shall see.

    Jan. 4: If your job made it through the tough last year, good for you and your company and welcome to the New Year's first work week. It's the perfect time to refine your payroll withholding. This is particularly applicable true for federal employees, including members of the military and even IRS personnel, whose withholding was suspended that last few months of 2020. That money must be paid to Uncle Sam, but a new late-year law says the repayment isn't due until the end of 2021. Adjustment withholding now will give you 52 weeks to spread it across, making the per-paycheck bite less painful.

    Jan. 7: The IRS' online withholding assistant or your tax pro can help you with your withholding amount and other tax numbers, but it's also a good idea going into a New Year to have an idea of your tax bracket and income tax rate. The rates tend to hold steady (until Congress starts fiddling!), but the brackets are adjusted annually for inflation. You can check out the 2021 income brackets (and 2020's for comparison) in the first post in the ol' blog's annual inflation series. At the end of that item, you'll find a directly to the other nine inflation items.

    Jan. 11: Continuing coronavirus precautions mean some restaurants are still closed for in-house dining. Other eateries are managing with take-out meals and deliveries. Whether you're able to enjoy table service in or 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 are still on the job, remember that your tips are taxable income. If you at least $20 in job-related gratuities last December, you need to account for them today by using Form 4070 to report your tips today to your employer.

    Jan. 13: Did some of those tips come from a side hustle? That's just one of the tax matters to think about when you are part of the gig economy. In these freelance or contractor situations, you'll need to pay estimated taxes.

    Jan. 15: The final estimated tax payment for the prior year, 2020 in this case, is due today. The other three payments are for earnings in 2021 that aren't subject to withholding and are due on April 15, June 15 and Sept. 15. And be sure to account for your self-employment tax in figuring your estimated amounts.

    Jan. 18: Many people spend Martin Luther King Jr. Day each year as a day of service.

     MLK Day 2020 logo
    Click image to find out ways
    you can volunteer on MLK Day.

    Taking time on Dr. King's holiday to volunteer at a charity isn't tax deductible, but some costs associated with volunteering could help reduce your tax bill if you itemize. Most filers, however, claim the standard deduction and a new tax law gives them a tax break, too. On your 2020 return, you can claim up to $300 in donations directly on your Form 1040. In 2021, the $300 amount remains, but is doubled for couples who file jointly.

    Jan. 21: If the IRS meets its usual timetable, the annual tax-filing season will start soon. If you can get your tax material together, then there are several good reasons to file your return early.

    Jan. 25: Millions of filers find electronic tax options are great ways to get returns to the IRS as soon as possible. The tax agency agrees. In fact, for almost two decades, the IRS has partnered with the Free File Alliance to offer eligible taxpayers access to online tax software and e-filing through the aptly named Free File site at IRS.gov.

    IRS Free File; click image for details

    Last year, Free File was available to filers with adjusted gross income of $69,000 or less, regardless of filing status. That threshold has been bumped up to $72,000 for this filing season. If you're eligible, be ready to log-on when Free File officially opens, which usually around this time.

    Jan. 29: Of course, regardless of how you file your taxes, you can't do so until you all the necessary documents, such as W-2 and 1099 forms. Employers have until the end of the month (or Feb. 1 this year since Jan. 31 falls on Sunday) to get the to you, so be on the lookout for all the documents you need to file.

    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 Fiesta! page.

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Mapping Your Tax Route

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

    Taxpayer Advocate Taxpayer Maps 2019

    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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  • You can read more
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  • Kay Bell helps you build
    a solid tax foundation in
    "Personal Finance: An Encyclopedia
    of Modern Money Management"




    Kay Bell breaks down taxes and
    estate planning for millennials in
    "Future Millionaires' Guidebook"



    A collection of Kay Bell stories
    is included in
    "The Gambler's Guide to Taxes:
    How to Keep More
    of What You Win"




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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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