National Guard troops have been deployed to help states meet COVID-19 needs, ranging from personal protective equipment training, support of medical testing facilities and healthcare professionals and assisting with disinfecting and cleaning common public spaces. (Photo courtesy U.S. Department of Defense) Taxes have been in the public spotlight this week, not because right about now we normally would be nearing the annual filing deadline, but because of how the coronavirus pandemic has thrown normal, including our tax obligations, out the window. By now you know that April 15 is not Tax Day this year. Instead, it's been pushed to July... Read more →
State/Local
We're in what during normal times would be the annual tax season's big push to the end (or an extension). But these are not normal times. Instead, it feels more and more like we're living in a tax version of Bill Murray's classic "Groundhog Day." That's because for the second time in three days the Treasury Department and Internal Revenue Service have moved the deadlines for filing and paying taxes. Friday, March 20, morning Treasury Secretary Steve Mnuchin decided that an earlier decision that split the usual April 15 deadline for tax filing and paying should be changed. So he... Read more →
The Senate also addresses this year's tax filing and payment deadline, as well as those for 2020 estimated tax payments, in its coronavirus relief bill. Keep reading for more on this latest change and check out this Q&A for elaboration from the IRS on some specific tax considerations under the new mid-July deadlines. 2019 tax year returns and any due payments now will be due on July 15, 2020, according to a Treasury Department announcement this morning. And yes, I drew that sloppy circle and scribbled the info on my own calendar. I should have had a cup of coffee... Read more →
Unemployment claims are skyrocketing across the United States as more businesses close as a precaution to stem the spread of the coronavirus. The latest on claims for unemployment benefits was released today by the U.S. Department of Labor. For the week ending on March 14, around 281,000 Americans filed first-time claims for the benefits. That's up 33 percent from the 211,000 benefits claims the week before. Percentage wise, the increase was among the largest one-week spikes on record. Here in the Lone Star State, the Texas Workforce Commission reports that from March 8 to March 14 it received 16,038 unemployment... Read more →
UPDATE, 2:15 p.m. CDT, Wednesday, March 18, 2020: The Treasury and Internal Revenue Service have issued an official statement about the April 15 tax payment grace period. The portions that answer some of the questions raised earlier in this post are now added as yellow highlighted sections within the original post with any additional notations by me in red. Our world has been upended by the coronavirus pandemic, but we're still trying to hold on to some semblance of normal life. One of those life constants this time of year is taxes. Yesterday, March 17, Treasury Secretary Steve Mnuchin joined... Read more →
States also are coping with COVID-19 and tax return timing, with a handful already delaying some returns. UPDATE, March 21, 2020: Tax Day 2020 has changed again. Now taxpayers have until July 15 to file their 2019 returns and pay any due tax. This latest change was announced March 20 and the IRS issued some guidance on the changes on March 21. This window's timely admonition usually is good advice as April 15 nears. This year, however, Tax Day may be pushed back due to the spreading coronavirus. (Painted window in Harlingen, Texas, 1939, by Lee Russell; New York Public... Read more →
This is what I paid for a gallon of gas four years ago. It's not quite that cheap right now, but fuel prices here and nationwide are heading down again. Life is full of trade-offs. That includes our tax lives. If you have money in the stock market, the continued declines of asset values are, at best, disconcerting. Uncertainty about the coronavirus, both how quickly it's spreading and questions on how to contain it, have been a major factor in the market's losses. But another factor came into play with today's dive. The biggest oil price crash in decades sent... Read more →
(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 eligible forces are: United States Army (including Army Reserve and Army National... Read more →
Texas doesn't have a personal income tax, but there are plenty of other levies we Lone Star State residents must pay. Most U.S. taxpayers also must file a state return every spring. Only those of us who live in one of the seven states — Alaska, Florida, Nevada, South Dakota, Washington, Wyoming and my home Texas — don't have to mess with state income tax forms. Some more local jurisdictions, generally large cities, also levy income taxes. And most of those other 43 states (and cities et al) plus the District of Columbia also follow the federal April 15 deadline.... Read more →
Today technically is George Washington's Birthday, but we've come to call it Presidents Day in honor of all our commanders in chief, like these four greats on Mount Rushmore National Memorial. (Image courtesy Mount Rushmore Facebook page) Happy Washington's Birthday. I know, most of us, including all the retailers offering us sales savings, tend to call today President's (or Presidents'; the apostrophe is mobile) Day. But officially on the federal level, the third Monday in February is Uncle Sam's day to honor the birth of the Father of Our Country. George's actual birthday is Feb. 22, 1731. We've celebrated it... Read more →
Newark On Reddit via Twitter The Academy Awards is tonight and although I'm a big film fan, I'll probably skip it. The early awards shows have already spoiled it for me. Sorry, ABC. If Antonio Banderas somehow takes the Oscars statuette from Joaquin Phoenix, which is what I'd love to see, then I'll catch the replay on YouTube tomorrow. Some folks in New Jersey, however, will be closely watching this year's ceremony and pulling for the "Joker" actor. The street where Phoenix's disturbed Arthur Fleck character gets jumped early in the movie is in Newark. Tax breaks, of course, played... Read more →
Thanks to a 2018 Supreme Court ruling, many other states have joined Nevada in accepting bets on sporting events. But casino operations like this one in Las Vegas still get plenty of action on days like Super Bowl Sunday. Happy Tuesday to everyone who skipped work yesterday. I hope you've fully recovered from your Super Bowl hangover. I also hope that at least some of your prop bets on the NFL championship game also paid off. So does the Internal Revenue Service. All your Super Bowl LIV winnings, as well as any other gambling proceeds are taxable income. Yes, even... Read more →
Are you having some trouble getting fired up for Super Bowl LIV? I feel ya. It's hard when your team isn't one of the competitors. But as a lifelong Dallas Cowboys fan, I've learned over the last 24 years — yes, that's how long it's been since Them Cowboys were in the National Football League championship game — creative ways to pique my interest in the annual match-up. This year, for example, it's pretty easy to find a reason to watch. Kansas City Chief's star quarterback Patrick Mahomes is not only a native Texan like the hubby and me, but... Read more →
Yes, I bought a ticket for the Jan. 29 Powerball. I always do when the jackpot of that and the other national lottery, Mega Millions, gets into the, well, mega million-dollar range. No, I didn't win. Again. Last night's Powerball payout, which had climbed to $396.9 million, is going to the lucky person who bought the winning ticket in Florida. Yes, I am contacting my Sunshine State friends and relatives! In addition to the one big winner, three other Powerball tickets worth $1 million each went to ticket holders in Ohio, Virginia and, again, Florida. If you're one of the... Read more →
If past years are any indication, when the 2020 tax filing season officially opens on Monday, Jan. 27, millions of taxpayers will hit the send button to electronically deliver their annual returns to the Internal Revenue Service. But millions more of us have to wait to file. We're still waiting on at least one tax statement that has information we need to finish filling out our Form 1040. Form deadline is Jan. 31: Technically, most of these tax documents aren't even required to be on their way to us until Jan. 31. Employers and other businesses that issue wage and/or... Read more →
If you live in one of the 43 states or the nation's capital, then in addition to filing your federal tax return you probably also must send a form (or two) to your state's tax collector. In most cases, states use at least some federal tax return information as the basis for their returns. So if you do your taxes yourself, you're probably looking for a tax software option that can handle both. The Internal Revenue Service and Free File Inc. say that their joint tax prep and e-filing venture Free File has some tax software company participants that can... Read more →
Before you can file your taxes, you need some tax statements. The key among them for most of us is the W-2. Here's a look at all — and there's a lot — that's on this document. Taxes are all about the numbers. That includes the numerical names of tax documents. For wage earning taxpayers, the most important form is the W-2 they get early (hopefully!) each year. Officially titled Wage and Tax Statement, it has (true to its name) the details on earnings and taxes paid throughout the past tax year. This form is starting point in figuring any... Read more →
Millions are watching NFL playoffs today. But millions of other esports fans enjoy competitions like this match between Dallas Fuel and New York Excelsior at the Blizzard Arena in Los Angeles last June, the second season of the Overwatch League. Among those also watching esports closely are state tax collectors. (Image by Dallas Fuel via Wikipedia Commons CC BY 3.0) Tonight, we'll know which two National Football League (NFL) teams will be in South Florida next month to play in Super Bowl LIV. While you can never predict who'll win any game — just ask the previously heavily favored Baltimore... Read more →
You just read my post on tax filing requirements (thanks!) and discovered you don't have to file a Form 1040 this year. So, as fictional television attorney (though not a tax specialist) Jimmy McGill might say, "'S'all good, man." Right? Not necessarily. Sometimes even if you don't have to file a federal tax return, it's to your benefit to do so. Here are 10 situations when you should send the Internal Revenue Service a return: You're due a refund. This often is the case if you had federal income tax withheld. The only way to get any of that prepaid... Read more →
The 2020 filing season starts on Jan. 27 and millions of taxpayers already are ready to send their 1040s to the Internal Revenue Service on that day. Most of these folks are expecting refunds. But that's just one reason to file your taxes early. Here are six reasons to finish up your Form 1040 and get it to the IRS ASAP. 1. To get your refund sooner. Yes, a tax refund is always the top reason to file your taxes as early as you can. I could go on (and on and on) about how it's better to adjust your... Read more →