Photo by Pixabay We’re heading into the home stretch, and playoff push, of the National Football League (NFL) season. It’s the most popular sport in the United States. Since the U.S. Supreme Court in 2018 okayed state-authorized sports betting, the NFL has gained new fans who are more interested in how the games can make them a few, or more, bucks. Currently, 38 states, along with the District of Columbia and Puerto Rico, have legalized some form of sports betting, though not all have implemented it. Now the National Council of Legislators from Gaming States (NCLGS) wants to help states... Read more →
Regardless of your age, you need to think about retirement savings. One consideration is whether to convert a traditional IRA to a Roth retirement account. (Photo by Dany Kurniawan) Retirement is supposed to be a time of leisure. But getting enough money to enjoy post-work years is not so easy. That’s definitely the case when trying to decide whether to convert a traditional IRA to a Roth IRA. It’s an easier question for younger savers. They have more time for the tax-free Roth funds to grow and to recoup the taxes they had to pay on the conversion. But if... Read more →
Photo by cottonbro studio Last week, the Internal Revenue Service Criminal Investigation unit released its fiscal year 2024 annual report that touted the success the agency’s law enforcement branch had in taking down tax criminals. Yes, Al Capone’s name was mentioned. This week it’s the overall IRS’ turn to brag. In its quarterly update on Dec. 12 to its Strategic Operating Plan, the IRS detailed accomplishments that have, among other things, allowed the IRS to recovered $4.7 billion in taxpayer dollars. More than $1.3 billion of that total comes from wealthy, high-income individuals who have not filed taxes or paid... Read more →
Donald J. Trump signed 220 executive orders (EOs) the last time he was president. Some GOP lawmakers want him to end the IRS Direct File program by signing another EO to that effect on the first day he's back in the Oval Office next year. (Photo by Sean Spicer, White House Press Secretary via Twitter/Wikimedia Commons) Republicans who oppose the Internal Revenue Service’s online tax return preparation and e-filing program are hoping that it will end next month before the 2025 filing season starts. Direct File, the free online program expected to be available to qualifying taxpayers in 24 states... 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 →
You’re 73. You have a traditional IRA or other tax-deferred retirement account. You’ve yet to take your required minimum distribution (RMD). You better get to it. The deadline for most who are subject to this tax rule is Dec. 31. Here’s a quick RMD to-do list to help ensure you complete the task. As a bonus, there also are some suggestions on how to use the retirement money. Take out the mandated amount. Your traditional IRA or affected retirement account trustee should have been bugging you about this. It’s time to take the nagging seriously and withdraw your RMD. The... 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 →
If you sold more than $5,000 in products or services through only apps and marketplaces, get ready to receive a tax form next year alerting you, and the Internal Revenue Service, of the potentially taxable income. The amount will be reported on IRS Form 1099-K. Changing 1099-K amounts: The fluid nature of the amount of earnings that trigger issuance of the reporting form has been a hassle for both taxpayers and the IRS since changes were made in the American Rescue Plan Act (ARPA) of 2021. Before ARPA’s enactment, third-party settlement organizations, or TPSOs, — think PayPal, Venmo, CashApp, eBay,... Read more →
What am I bid for the Internal Revenue Service top job? The IRS Commissioner seat isn’t actually on the auction block, but incoming president Donald J. Trump wants to oust the tax agency’s current leader and install an auctioneer. Billy Long, who also served from 2011 to 2023 as a Republican U.S. Representative for Missouri’s 7th district, never served on the tax-writing House Ways and Means Committee during his years in Congress. Long’s only apparent private sector tax background, per his X (formerly Twitter) @auctnr1 account biography, is as Certified Tax & Business Advisor in connection with the troubled COVID-era... Read more →
The holiday most associated with Al Capone is Valentine’s Day, but the Internal Revenue Service’s top law enforcement officer has invoked the legendary gangster in this most festive of seasons. “FY24 was one for the history books. For years, IRS-CI has been known as the agency that took down Al Capone, but this year, our cases hold their own place in U.S. history,” said IRS-CI Chief Guy Ficco in announcing the release of IRS Criminal Investigation’s (IRS CI’s) latest fiscal year (FY) report on Thursday, Dec. 5. “As with Al Capone, financial trails eventually lead to criminals’ downfall,” said Ficco.... Read more →
UPDATE, Thursday, Dec. 12, 2024: President Joe Biden today signed into law H.R. 5863, the Federal Disaster Tax Relief Act of 2023, which provides tax relief with respect to certain federal major disasters. Wildfires to the west, hurricanes to the east. An array of major disasters now are covered under a tax relief bill that, after more than a year, finally will be law. (Photo by Caleb Cook on Unsplash) A long-awaited disaster relief finally is headed to the White House, where President Joe Biden is expected to sign it into law and was signed into law by President Joe... Read more →
Photo by Pixabay I know it’s early December and you're already frazzled. Oh, wait. Maybe that’s just me. Even if you are a bit swamped like me, but still think you can make room for one more thing (I'm jealous!), the Internal Revenue Service wants to hear from you. Specifically, the tax agency is seeking new members for the Electronic Tax Administration Advisory Committee (ETAAC). And actually, you don’t have to decide right now. (Whew!) The IRS is accepting applications through Jan. 31, 2025. Even better for those who need to clear some items from their current to-do lists and/or... Read more →
Gift cards make great presents for family and friends. The cards, however, cannot be used to pay taxes during the holiday season or any time. (Gift card wreath via Pinterest) Gift cards are a great last-minute gift or a present for that hard-to-shop-for person in your life. That’s why they are so popular, particularly during the holiday season. The plastic presents also are popular with crooks. They tamper with easily accessible gift cards in store displays, obtain card barcodes and other information, then put them back on the rack. When a card is purchased and activated, the criminals use it... Read more →
The Internal Revenue Service today announced grants to groups that support volunteer tax preparation and tax-filing programs. (Photo by Liza Summer) It’s December, so you’re focusing, as you should, on holiday plans. But the arrival of the last month of the year also means that the 2025 tax-filing season is almost here. Lots of taxpayers already are planning to file as early as they can. And many do so by using free and personal tax preparation and filing help two nationwide programs, Volunteer Income Tax Assistance (VITA) and Tax Counseling for the Elderly (TCE). Today the Internal Revenue Service announced... Read more →
I love Santa Claus, but even the Jolly Old Elf isn’t magical enough to provide the tax solutions you asked for in your letter to him. You’re going to have to make some tax moves, like the 10 below, yourself. (Photo by Kaboompics.com) Ho, Ho, Holy Moly! December sure got here quickly! Thanks to the 2024 calendar, we (or at least I) haven't even had time to sufficiently recover from Thanksgiving. But time, and taxes, march on, meaning we’ll just have to deal with a compressed holiday schedule as best we can. I hate to be the Tax Grinch adding... 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 →
Five turkeys might not technically be enough to be classified a rafter or gang or death row of turkeys — and yes, all are among the many collective nouns for a gathering of this particular fowl — but these birds represent today's fifth and final Tax Turkey to Avoid. (Photo by Chris Henry on Unsplash) Are you enjoying your Thanksgiving break? Maybe time off from work this week has you thinking about when you can leave the 9-to-5 completely. Whenever that happens, you’ll want to have enough of a nest egg to enjoy your retirement. That will be possible if... Read more →
In addition to donating cash to your favorite charity, there are other ways to give. Here are three alternative charitable giving options. (Photo by Mark John Hilario) 🦃 Happy 🍗 Thanksgiving! 🦃 Millions of Americans gather today with family and friends to give thanks for all the good things in their lives. This November holiday also is a major fundraising time for charities. Donations to nonprofits that help those in need — shelters, food banks and other meal programs, support services for those needing special services — increase this time of year. Technically, these donations could provide donors a tax... 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 →