Delivery jobs are a popular summer gig for many looking to make extra money during this traditional time to take some time off from work. (Photo by Kampus Production) Summer is in full swing, meaning that most of us will be taking some time off work to enjoy the warmer weather. Some people, however, see this traditional vacation period as a way to add to their income. That’s true. But the added earnings also could have tax implications. Student jobs: Some young people spend their summers working. Whether the earnings go to pay for college classes or a purchase they... Read more →
Paying taxes
Electronically paying bills, both due private accounts and public ones like tax agencies, has become a no-brainer for millions of us. But as the saying goes, technology is great until it isn’t. That not so great situation recently reared its frustrating head. Personally, an automatic electronic payment I’ve had in place for years went haywire this week. But my payment problem was minor compared to other e-pay devotees across the country. They recently found themselves dealing with another, more distressing and potentially more costly governmental glitch. The Internal Revenue Service has been having problems with some taxpayers’ e-payments, prompting these... Read more →
Tax Day was back in mid-April, but some people missed it. In many instances, individuals avoided filing their tax return because they owed. That was not a good idea back then. It’s become a worse idea as time has passed. When the calendar page flipped to April 16, the Internal Revenue Service began assessing non-filing and non-payment penalties, plus interest. And those added costs just keep piling up. You best move is to at least file a Form 1040. Submitting your return electronically is the fasted way option. Once Uncle Sam gets your filing, the non-payment portion of the charges... Read more →
Photo by Belle Co We made it. Tax Day 2025 is finally over for most of the country’s 140 million or so individual tax return filers. Now what? First, take a minute or more to celebrate being done with this annual tax obligation. Then, start thinking about taxes again. Wait! Come back! You did click over here, after all. And to reward your post-Tax Day curiosity, here are seven tasks you should consider. I promise they aren’t that difficult. 1. Adjust your paycheck withholding. Your tax goal each year should be for your paycheck withholding to cover as closely as... Read more →
If you've put off your tax filing until the very last minute, don't panic. But get to work on that return or filing extension request. Tax Day is almost here. If you’re a last-minute filer, you’re painfully aware of the dwindling filing time frame. I don’t want to interrupt your work, but if you are looking for some suggestions on how to get the job done, here are six tips to help you finish by tomorrow, April 15. 1. Get an extension. Your wisest move at this point, even if you are close to finishing your Form 1040 and accompanying... 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 →
Next Tuesday is April 15. If you haven’t filed your 2024 tax return, then you know you have some work to do. You are not alone. Every year, millions of individuals put off their filing until the last minute. If that’s you, and you are committed to finishing your Form 1040 by April 15, here are some tips to make sure it’s not a lost tax weekend. The first tip is get more time. That’s right. Don’t rush to finish by April 15. You’ve gone this long without filing your tax return, so why push yourself into an urgent panic?... Read more →
April 15 is double Tax Day for those of us who must pay estimated taxes. It’s the end of the prior tax year, with returns (and payment) due for those earnings. It’s also the start of tax filing (and paying) for this year. The payment for money made, but not subject to withholding, in the first quarter of 2026 is due on April 15. Extra payments for certain income: The U.S. tax system is pay as earn. For the most part, that's taken care via tax withholding from employees’ paychecks. But even if you have a job where income (federal... Read more →
Hanging on for more time to file your taxes? Get more by filing Form 4868. (Harold Lloyd in 1923 film Safety Last!) Tax returns are due in just over a week. A lot of taxpayers, however, don’t seem in that big of a hurry. Last year, more than 163 million taxpayers filed returns. With the 2025 filing deadline looming, the Internal Revenue Service reports that has received just more than 89.5 million returns. Sure, millions will get their 1040 forms filled out and to the IRS by Tuesday, April 15. But based on past filing numbers, a sizeable group won't.... Read more →
Photo by Ahsanjaya Have you been putting off filing your return because you’re having trouble coming up with the money to cover your tax bill? You might want to check out the Internal Revenue Service’s extended payment options File, even if you can’t pay: First things first. Even if you can’t pay all or even any of what you owe, file a tax return. That will at least prevent the penalty for not-filing. Yes, the nonfiling penalty is a separate one from the nonpayment penalty. And the assessments for not sending in a return are actually are stiffer than those... Read more →
Ah, April. Your spring showers and the flowers they bring are just one reason we’re thrilled you’re finally here. (Photo by Stefan Stefancik) Hello, April! You’re a month we love to see arrive. You’re also a month we dread. On the positive side, we welcome the consistent warmth you bring most of us. We’re more than ready to stow our winter, or even winter-adjacent, apparel for a while. And, of course, baseball is back in full force! But then, April, your arrival brings a dreaded task. Millions of us must confront the filing of our annual federal — and in... Read more →
Photo by Pixabay The Internal Revenue Service says that most taxpayers get refunds. Good for them. But those of us who end up owing Uncle Sam after we run our Form 1040 numbers have to come up with a way to pay. The easiest way, both for taxpayers and the tax collector, is electronic. Here's a quick review of six e-payment options available this 2025 tax filing, and paying, season. 1. Credit or Debit Card or Digital Wallet: Paying by plastic is one of the oldest and most popular tax e-pay methods, so Uncle Sam happily accepts our credit or... Read more →
Fortune cookie tax filing wisdom (Photo by Kay Bell) We’re into the second official day of the 2025 tax season and millions of taxpayers have already filed their returns. This post is not for you. It’s for folks who haven’t yet even thought about their 2024 tax year returns. That’s okay. We all work at our own pace. But there actually are some good reasons to get to your annual tax filing task sooner rather than later. Here are 10. 1. To get your federal tax refund sooner. This is the main reason early filers get their 1040 forms to... Read more →
Don’t forget to pay your final 2024 tax year estimated tax amount by tomorrow, Jan. 15. I know. I’m cutting it close with my reminder. But if your life is as hectic as mine is right now and this tax task has crept up on you, then better late than never. Electronic options: Since time is of the essence, the fastest and easiest way to pay is electronically. Those options include — Debit or credit card or digital wallet. This is fast, easy, and familiar to most of us. The two Internal Revenue Service-approved vendors Pay1040 and ACI Payments, Inc.... 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 →
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 →
This showy Texas turkey, not to be confused with music icon Bob Wills' Turkey, Texas, hometown, is a spectacular representation of the ol’ blog’s first tax turkey to avoid this holiday season, or any time of year. It’s Thanksgiving week. Most Americans are looking forward to the upcoming fourth Thursday in November, when they’ll gather to share food and fun with family and friends. A turkey will be the featured food on most tables, a tradition dating from the turn of the 19th century. But turkey also is disparaging slang for loser. Tax turkeys, in addition to being unwanted, can... Read more →
Missing a deadline can be frustrating. Missing a tax deadline also can be costly, thanks to penalty and interest charges. (Photo by Anton Malanin on Unsplash) In most cases, if you missed the Oct. 15 tax extension deadline and didn’t owe any tax, then you don’t have to worry about penalty and interest charges. Those are calculated based on the amount of tax due. The late payment penalty is 0.5 percent of your unpaid balance per month or partial month, capped at 25 percent. The failure-to-file penalty is even steeper. It’s 5 percent of unpaid taxes per month or partial... Read more →
Photo by Francisco De Legarreta C. on Unsplash Owing a big tax bill is a terrible feeling. The only thing worse is not being able to come up with the money to pay Uncle Sam. The Internal Revenue Service offers some solutions. You can pay over time by setting up an installment plan with the tax agency. Sometimes, even spreading out payments isn’t enough. Dealing with a huge tax bill: If your tax debt is so large that you know you’ll never be able to pay it all, you can turn to an Offer in Compromise, or OIC. By submitting... Read more →
Unsplash+ in collaboration with Getty Images Congressional proposals to exempt gratuities from income pop up periodically, usually in election years. It’s happening again in 2024. Republican presidential nominee Donald J. Trump suggested tax-free tips during a June campaign stop in Nevada, where workers in tourist meccas like Las Vegas depend on the added income. Vice President Kamala Harris, the Democratic counterpart hoping to hold the White House for the party, endorsed easing taxes on tips in August. So, of course, lawmakers on Capitol Hill got in on the tax-free pledge. So far, bills to exempt tip income have been introduced... Read more →