Pixabay via Pexels Members of the military have a lot of things to worry about. New enlistees are concerned whether they'll make it through basic training. Military personnel who are stationed far from their families worry about how spouses and children are faring. And, of course, those posted in dangerous parts of the world are in constant concern for their own safety. But every tax filing season, members of the military also must worry about taxes. Taxes for all, but some military breaks: Yes, with all the other responsibilities we place on the men and women who serve the United... Read more →
Military
Photo by sarachicad via Flickr CC Since COVID-19 lockdowns began in March 2020, both employers and employees have been struggling to recover. There was hope when vaccines became widely available in early 2021, things would change. Coronavirus jab hesitancy and the Delta variant wrecked that. Some blamed added federal unemployment benefits on the trouble companies had finding staff when they reopened. Others said it was the businesses' fault for not offering better wages and benefits. Now, in the midst of the Great Resignation in which millions of workers have opted not to return to their prior workplaces, companies are still... Read more →
Are you ready for Tax Day take two? It's June 15 and it's almost here. That mid-June day is the annual deadline for millions of U.S. taxpayers who are living outside the country. That includes members of the armed forces stationed abroad. It's also the due date for the current year's second estimated tax payment. And this year, even more taxpayers will participate. June 15, 2021, is the first Tax Day for millions who literally endured disastrous situations earlier this year. Here's the scoop for all these folks now facing impending June tax obligations. U.S. taxpayers living abroad: Every year,... Read more →
Memorial Day weekend is a day of recreation for most of us. But we get to enjoy our time off in part because others served in the Armed Forces. The ultimate sacrifice of those military service personnel is the real reason for Memorial Day remembrances every May. And while losing a loved is an unthinkable, difficult situation, survivors of service members do get some special tax considerations. Tax-free benefits, forgiven tax claims: Survivors of deceased Armed Forces members are provided a $100,000 payment. This amount is not taxable. Military survivors also might qualify for tax forgiveness. This situation occurs, notes... Read more →
Even before 2017's Tax Cuts and Jobs Act (TCJA) greatly increased the standard deduction amounts, most people chose to use the standard deduction amount. But one thing that the latest tax reform law didn't change is the ability for many to get some added deductions without itemizing. These used to be called, at least by the tax community, above-the-line deductions. They got that moniker because pre-TCJA they appeared in the last section of the old long Form 1040, just above the last line of that form's first page where your adjusted gross income (AGI) was entered. (A handful also were... Read more →
Since the American Rescue Plan Act (ARPA) was enacted on March 11, the Internal Revenue Service has distributed approximately 159 million COVID-19 economic impact payments (EIPs). Those deliveries come to more than $376 billion. This third round of coronavirus pandemic payments, worth up to $1,400 per person, has been going out in batches. Recipients include taxpayers who've filed 2020 returns, Social Security recipients, and veterans and their families. Still, there are some folks who aren't on the IRS' EIP delivery list. These are, for the most part, people who haven't file a tax return because they're not legally required to... Read more →
Are you a retiree constantly checking your bank account for your third COVID-19 economic impact payment? The IRS says you should get it next week. The Internal Revenue Service has some good news for the around 30 million Social Security recipients anxiously awaiting the latest COVID relief money You should get your $1,400 economic impact payment, dubbed EIP3, next week. The IRS' precise projection is that most of the third relief amounts, dubbed EIP3, will be sent electronically and show up in the recipients' accounts on April 7. Perpetual payment challenge: Getting coronavirus relief amounts to older individuals has been... Read more →
Even though we definitely are more than ready for 2020 to end, the celebration of its official departure in a few hours — that's for us here in the United States; Happy New 2021 to all y'all on the other side of the International Date Line — likely will be subdued. Thanks, no thanks, COVID-19. May you, too, be gone soon in the coming 12 months. But even if the ringing in the New Year will be in smaller, pandemic-precautioned pods, some adult beverages will be raised as the clock strikes midnight. And among those celebrating the most will be... Read more →
Photo by Wyatt via Pexels.com When the clock struck 11 a.m. on Nov. 11, 1918, it marked the armistice between World War I's Allied forces and Germany, ending the fighting on the Western Front. The commemoration to honor the 4.7 million Americans who served — and the 116,500 who died — in what then was called the Great War originally was celebrated as Armistice Day. That name and the annual ceremonies continued in the United States until 1954. That year the Nov. 11 commemoration was to Veterans Day and its scope widened to honor veterans from all eras. But even... Read more →
Hello, October! You're always welcome at my house. I love your cooler temperatures that let me open windows and doors and put an end to exorbitant air conditioning costs. I love the color changes of trees and shrubs. And I love the candy that I accidentally (really!) over-buy in preparation for the young ghouls and goblins that knock on our front door each Oct. 31. I suspect I'm not alone in appreciating the arrival of autumn. But amid all these annual fall festivities, we need to make at least a few tax moves that could help out our upcoming tax... Read more →
Representatives also introduce legislation to overturn executive payroll action, which also affects members of the military. Internal Revenue Service workers are among the federal employees who will see their upcoming paychecks reflect Donald Trump's payroll tax deferral order. Some lawmakers say workers should get to make the final decision on their withholding. (Photo by David Boeke via Flickr) Maryland and Virginia, the two states that border the District of Columbia, are home to hundreds of thousands of federal employees. So it's no surprise that the four U.S. Senators representing those states — and workers who get checks from Uncle Sam... Read more →
Donald J. Trump's payroll tax deferral for employees technically took effect this week. But most employees shouldn't expect to see a minimal raise in their next paychecks. The reason is that few businesses jumped right in there on Sept. 1, the effective date of Trump's Aug. 8 White House memo, to stop withholding their workers' 6.2 percent portion of pay that goes toward the Social Security trust fund. Employers' reluctant choice: Yes, the decision to temporarily stop this segment of payroll withholding is voluntary on the part of companies. Employees, however, don't have the choice of opting in or, if... Read more →
Photo by Suzanne Walker from Pexels Memorial Day 2020 has an added poignancy. This solemn day to commemorate those who gave their lives in military service to the United States is overshadowed by the coronavirus. Almost 100,000 COVID-19 deaths have been recorded, with reporters often referring to military casualty numbers to put the pandemic's human cost in perspective. The Memorial Day events that we are used to seeing or participating in have been altered by COVID-19. Rather than community gatherings to share our sorrow and thanks, most now are limiting attendees or are being done virtually. There is so much,... Read more →
A revised version of this post was published on Jan. 27, 2021. (Pixabay via Pexels) When you're in the military, taxes are likely far down on your list of concerns. Members of the military, however, bear the same tax responsibility as do all U.S. citizens. The one bit of good tax news here is that the tax code and Internal Revenue Service take into account the special circumstances that armed services personnel face. Here are some tax highlights for military taxpayers. Affected armed forces: Military tax benefits typically apply to active duty or reserve members of the armed forces. The... Read more →
Even before the Tax Cuts and Jobs Act (TCJA) greatly increased the standard deduction amounts, most people opted to claim the standard deduction amount. But one thing that the latest tax reform law didn't change is the ability for many to get some added deductions without itemizing. These used to be called, at least by the tax community, above-the-line deductions because. They got that moniker because pre-TCJA they appeared in the last section of the old long Form 1040, just above the last line of that form's first page where your adjusted gross income (AGI) was entered. (A handful also... Read more →
Congress played Santa this week, averting a government shutdown and approving a wide variety of anticipated tax breaks. Merry Christmas U.S. taxpayers. H.R. 1865, the Further Consolidated Appropriations Act, 2020, is now law. In a surprise move earlier this month, House and Senate negotiators cobbled together a massive bill that not only, as the name indicates, assures that the federal government stays open, but which also included some long-awaited (at least by those who will benefit) expired tax provisions. In addition, lawmakers corrected — and by corrected, I mean repealed — some obvious — and by obvious, I mean universally... Read more →
The Tax Cuts and Jobs Act (TCJA) is the first major tax reform enacted since 1986. And while it cuts tax rates for most, one of its provisions has caused some military heroes' families to face higher tax bills. That's about to change. The fiscal year 2020 National Defense Authorization Act (NDAA), approved today by the House, repeals what is known as the widow's tax. The Senate is expected to soon OK the bill. Once that happens, the new NDAA should in turn should resolve the kiddie tax issues that the TCJA caused for children of service members who died... Read more →
UPDATE: The Work Opportunity Tax Credit was extended through the 2020 tax year as part of the comprehensive appropriations (and tax extenders) act signed into law on Dec. 20, 2019. Companies could qualify for a tax break if they help former military members, as well as other specific groups of job seekers, transition to civilian workforces. But the hiring businesses need to act quickly. Hiring extra employees during the holiday season — which we're smack dab in the middle of it in case you've missed the touting of Thanksgiving specials, early Black Friday deals and, yes, Christmas decorations already —... Read more →
It's that time of year again. Actually, that time was at 2 a.m. today (Sunday, Nov. 3, 2019). That's when most of us said goodbye to Daylight Saving Time and hello to the return of Standard Time. As we deal with the timepiece trickery, a lot of us (me!) suffer a sort of jet lag as our body clocks adjust to the new time and impending earlier arrival of sunsets. But the fall back to Standard Time also is a good reminder that standard is a good thing for millions of taxpayers. A couple of tax standards, the standard deduction... Read more →
You've now got one week, until next Tuesday, Oct. 15, to file your 2018 Form 1040 that you extended earlier this year. During these next seven days, you need to at least get a start on that return. The deadline will be here before you know it. And this time, there's no more time. Here are 9 tips and reminders to help you get that 1040 on its way to the IRS by next week. 1. Gather all your tax material. By now you should have every document you need to file your taxes. Double check. Now. There's no give... Read more →
Image courtesy U.S. Coast Guard via Twitter Today is the birthday of one of America's earliest tax collectors, the U.S. Coast Guard (USCG). That's right. The force that we know as the coastal defense and maritime law enforcement branch of the United States Armed Forces had its beginnings as Revenue Marine. It was created by Alexander Hamilton on this day 229 years ago. Its job was to collect taxes at U.S. seaports. Lin-Manuel Miranda did drop a few tax references into his smash Broadway musical, but unfortunately for us tax and seafaring geeks, he didn't elaborate on our first Treasury... Read more →