House Speaker Rep. Mike Johnson (R-Louisiana) on the phone as he and staff walk through the U.S. Capitol’s Statuary Hall. (Credit: Mike Johnson Facebook) The Republicans’ consolidated measure to enact Donald J. Trump’s tax, immigration, energy, and more policies eked through the House early this morning. The original Ways and Means Committee version of the legislation, dubbed the One Big Beautiful Bill (OBBB) per Trump’s not so subtle suggestion, was tweaked just enough this week to pass by a 215 to 214 vote. Only two GOP members, Rep. Warren Davidson of Ohio and Thomas Massie of Kentucky, defected. The pair... Read more →
Healthcare Medical
A health savings account, or HSA, helps high deductible health plan, or HDHP, enrollees cover their larger out-of-pocket medical costs. HDHP plan limits and HSA contribution amounts are adjusted annually for inflation. Here are the 2026 numbers. Sometimes just searching for health insurance can send your blood pressure sky high. (Photo by Thirdman) Health care is a major concern for most Americans. Not only do they want solid coverage for themselves and families, they want it at the most affordable price. For many, the best option is a high deductible health plan, or HDHP. HDHP, HSA costs and savings: A... Read more →
The April 15 federal income tax filing deadline is Tuesday. For most folks, that’s the only thing they have to worry about on that day. But there are some of us for whom Tax Day means more tax tasks. Here are nine instances — yes, that includes the regular annual filing of tax returns — where some people might need to take additional tax action on April 15. Most of these tax-related moves will ensure you fulfill your tax duties and avoid any additional contact with the Internal Revenue Service. But some also could save you some tax dollars. File... Read more →
Getting to a doctor's appointment is challenging for many patients. But the travel costs could count as an itemized tax deduction. (Photo by RDNE Stock project) The Tax Cuts and Jobs Act’s increased standard deduction amounts moved me from an itemizing taxpayer to one who claims the standard deduction. Well, my improved health also helped. Even after the Republican tax reform bill took effect, for a couple of years I still had enough medical expenses — not to get too personal, but the serious medical scares included, even with insurance, some costly surgeries — to make tallying them on Schedule... Read more →
Credit: Panoramio via Wikimedia Hello March! Good to see that you're following the traditional script and, at least here in the greater Austin area, roared in like a lion. But the weather bluster also is a good reminder that some feline-style aggressiveness could pay off on your taxes. Some of the four March tax moves below could cut your 2024 tax bill that you'll compute on the return due by April 15. Others are good tax moves for the current 2025, and future, tax years. A couple do both. If any of the suggested tax moves work for you, implement... Read more →
Photo by Pixabay The 2025 federal tax filing season officially starts Monday, Jan. 27. Millions of taxpayers already are working on their returns. Some have even completed them. Most of these folks are in a hurry to get their Form 1040 to the Internal Revenue Service because they are expecting a refund. Many also don’t have very complicated tax situations. Or they think they don’t. But something may have changed in their personal lives that could affect their filings, for better or worse. So before they — or you — hit send on their tax year 2024 filing, it’s a... Read more →
The Internal Revenue Service will start processing 2024 tax year returns on Jan. 27. Millions of people will file then, or before, getting their forms into Uncle Sam’s tax queue. But to file a complete and accurate Form 1040, you need all the information that form requests. That’s generally income statements like W-2s and 1999s. But there are many other documents that have tax-filing relevance. And most of those aren’t require by law to be sent to you until the end of January. So, most of us are just going to have to be patient for a couple more weeks.... Read more →
Saying "I do" also means saying hello to some tax changes in your new wedded life. (Photo by Jakob Owens on Unsplash) The end of each year is a good time to reflect on what happened the previous 12 months. For most of us, that includes some good events, some sad ones, and some still shaking out as we’re about to enter a brand new year. Many of these changes also could affect our taxes. So, as a bit of year-end preplanning, here are six ways that the Internal Revenue Code shows up when we encounter personal and lifestyle changes.... Read more →
This pup is just making sure he got all his presents! (Photo by freestocks.org) In a couple of days, many families will welcome new members. No, I’m not talking about Christmas babies. I’m talking about Christmas fur babies. A puppy, kitten, or other pet of any type or age can be a wonderful addition to a home, as long as everyone is on the same page. Pros and cons of pets as presents: Many animal groups and veterinarians warn against giving a pet, especially as a surprise, during the holidays. The holiday season already is stressful for many. Suddenly having... Read more →
Photo by Tatyana Mazepova It’s the holiday season, so many of us have travel on our minds. That includes the Internal Revenue Service. AAA expects 2.5 million more people will be on the roads for the year-end holiday period, which is classifies as Saturday, Dec. 21 to Wednesday, Jan. 1, 2025. That comes to a total of 107 million people making a road trip of 50 miles or more, just shy of the record 108 million drivers in 2019. But Uncle Sam’s tax collector isn’t narrowly focused on who is hitting the highways over the next few days. The IRS,... Read more →
Photo by Anna Nekrashevich I know, this month started off with 10 tax moves to make, or at least consider, by Dec. 31. With 2024 winding down, I wanted to remind you of those suggestions again. And now, because nagging reminding is just part of who I am, I have a couple more things you might want to think about. Specifically, you need to look at some of the tax numbers that will come into play when you file your return next year. This includes the tax brackets — rates and dollar amounts to which they apply — that will... Read more →
Prescription copays are a common way to spend flexible spending account (FSA) money, but there are lots of other options to use so you don't lose the tax-favored funds. Your most important list this time of year is the one detailing all the Christmas gifts you’ve got to find by Dec. 25. But you also need to make another for flexible spending account eligible items you need to buy by Dec. 31. A medical flexible spending account, or FSA as it’s usually referred to, is workplace benefit that allows you to set aside some pre-tax money from each paycheck. Then... Read more →
Stumped when it comes to some Christmas presents? It can happen to even the most experienced gift-giver. Here are some tax-related suggestions that might help you be a good Tax Santa this year. Not that anyone is counting, but Christmas is just two weeks away. OK, we’re all counting. And some of us are freaking out a little bit over what to get certain people in our lives. If you, like me, haven’t finished your holiday shopping, here are five financial gifts, some with Internal Revenue Code benefits, that could help you be a great Tax Santa. Open a Roth... Read more →
Osarugue Igbinoba via Unsplash+ We're just weeks from New Year's Resolutions. Most of them involve ending bad habits, like smoking. Taxes already have helped here. Studies have shown people tend to give up this form of tobacco as the price of a pack of cigarettes increased due to states’ added excise taxes. That’s particularly true of young smokers who have less disposable income. Other nicotine addicts, however, find workarounds. While this tactic may satisfy their cravings, it damages the smokers’ health, stresses our medical systems due to increased smoking-related illnesses, and costs states needed revenue. Tobacco taxes tie smuggling: One... Read more →
Okay, one more turkey, but the Thanksgiving dinner version. To go along with the leftovers from this meal, below is a wrap-up (sans foil) of last week’s Five Tax Turkeys to Avoid. (Photo by cottonbro studio) How are you doing this post-Thanksgiving weekend? Still feeling a bit stuffed, and now looking at way too many leftovers? With the 2024 calendar pushing Turkey Day to the end of November, maybe you can repurpose some of the excess food for the Christmas gathering that will be upon us in less than a month. But rather than worry right now about the next... Read more →
You need to get your medical flexible spending account (FSA) expenditures in a row so you don’t lose any of the tax-favored account money. (Photo by Jackie A) Thanksgiving get-togethers can be wonderful. They also can be stressful. And in many cases, literally painful. There are headaches caused by traffic hassles, anxiety prompted by annoying relatives, indigestion from over eating, and back pain from sleeping on that horrid bed in your parent’s guest room. The good news is that you can use your flexible spending account (FSA) funds to pay for the Tums, aspirin, or whatever over-the-counter (OTC) remedies make... Read more →
You have two main deduction options when you file, standard or itemizing. This gobbler duo represents that choice, which you make each year, based on which gives you the most beneficial tax result. You can make sure you make the most of your deductions by having a bunching strategy. (Photo by sterlinglanier Lanier on Unsplash) Deductions are one way to trim you tax bill. But since the Tax Cuts and Jobs Act (TCJA) of 2017 essentially doubled the standard deduction amounts, most taxpayers claim that set amount instead of collecting receipts and itemizing. That’s the wisest tax move for most... Read more →
Prescription co-pays are just one medical expense that can be paid with money in a healthcare flexible spending arrangement, or FSA. If you watch cable television (or like me, too much cable TV), you know that it’s Medicare open season for older Americans. Many younger people also are making medical selections for the coming year from the cafeteria of benefits offered by their companies. The biggest employer-provided benefit is health care. In addition to medical insurance coverage, lots of businesses also offer their workers the option of opening a healthcare medical flexible spending arrangement (or account), popularly known as an... Read more →
Photo by Jill Wellington Thanksgiving, of course, is the main focus this month. We spend the days leading up to the holiday thinking about what we’re going to cook, or eat if someone else is doing the kitchen heavy lifting. And figuring out a tactful way to deal with that, shall we say, out-there uncle. Good luck! November is also a great month to make sure we don't fall afoul of tax turkeys. To prevent that, there are some tax moves you can make this month. Since it’s already four days into the month — my bad; I got caught... Read more →
Mom is the best nurse, but sometimes you need outside medical care. In those cases, some inflation adjusted medical tax breaks could be just the Rx. Autumn’s seasonal change also can bring some medical challenges. Different flora means new pollens to aggravate allergies. Youngsters are back in classrooms, but all that reuniting with friends means sharing germs, too. And, of course, it’s cold and flu (and still COVID-19) season; get your vaccines! Just one unexpected medical emergency can really ding a budget. But the tax code offers some ways that can help your financial hurt, if not your specific ailment.... Read more →