Tax planning Feed

Contributing to a 529 plan is one tax move you need to work into your hectic year-end holiday schedule since most states require you do so by Dec. 31 in order to claim associated state tax benefits on your next tax return. We're almost halfway through December. Are you feeling the holiday crunch? Sorry, but I'm here to add to it. As I've already nagged suggested back in November and earlier this month, you need to take care of some year-end tax tasks, too. One of those tax moves — contributing to a youngster's 529 plan — is worth another... Read more →


If you have a medical flexible spending account, or FSA, one of the key year-end tasks you need to take care of this month is ensuring that you don't lose any of this tax-free money. Yes, some employers give workers a 2½-month grace period, until March 15, to use the prior year's FSA funds. Others let their workers roll over up to $500 left in their medical accounts. Both of those options are at the discretion of the companies offering the tax-favored benefit. A lot of companies, however, still just take advantage of the use it or lose it rule.... Read more →


Welcome to Part 8 of the ol' blog's 2019 series on tax inflation adjustments. Today we look at considerations of U.S. taxpayers living and working abroad. You can find links to all 2019 inflation posts in the series' first item: income tax brackets and rates. Note: The 2019 figures apply to 2019 returns that are due in April 2020. For comparison purposes, you'll also find 2018 amounts to be used in filing this year's 2018 tax return due April 15, 2019. Where's the best place for the world's estimated 57 million expatriates? InterNation's latest annual Expat Insider Survey says it's... Read more →


Truman the cat guarding presents under the Christmas tree. (Photo by Shawn Kinkade via Flickr CC) Ho, Ho, Ho, Happy Holidays! December is here. Time to decorate and, most importantly, get cracking on those gift lists. If you're not into frantic, crowd-fighting, last-minute shopping trips, here are five easy tax-related gifts for just about everyone on your nice list, including yourself. 1. Give to your favorite charities. You're probably already well aware of this option, since nonprofits have been sending out year-end donation solicitations since Halloween. Their urgency can be forgiven a bit more this year because of the tax... Read more →


It's Dec. 1. That means we have to wait just 24 days until we can unwrap our presents, or 23 if you rip 'em open on Christmas Eve. It's also the first day in six months that we haven't been counting down the annual Atlantic/Gulf of Mexico hurricane season. The National Oceanic and Atmospheric Administration (NOAA) compiled the above video that compresses Geostationary Operational Environmental Satellite (GOES) East satellite imagery of the entire six-plus-month season (yes, it started early again this year) into one minute. NOAA's YouTube presentation also gets this week's special video Saturday Shout Out. A secondary shout... Read more →


Welcome to Part 6 of the ol' blog's 2019 series on tax inflation adjustments. Today we look at changes to estate, gift and kiddie tax provisions. You can find links to all 2019 inflation posts in the series' first item: income tax brackets and rates. Note: The 2019 figures apply to 2019 returns that are due in April 2020. For comparison purposes, you'll also find 2018 amounts to be used in filing this year's 2018 tax return due April 15, 2019. The rich, per the apparently apocryphal F. Scott Fitzgerald characterization, really are different from the rest of us. And... Read more →


Welcome to Part 5 of the ol' blog's 2019 series on tax inflation adjustments. Today we look at changes to some medical tax provisions. You can find links to all 2019 inflation posts in the series' first item: income tax brackets and rates. Note: The 2019 figures apply to 2019 returns that are due in April 2020. For comparison purposes, you'll also find 2018 amounts to be used in filing this year's 2018 tax return due April 15, 2019. Why yes, I am milking this medical situation for all it's worth, both personally (the hubby is such a great nurse!)... Read more →


Welcome to Part 4 of the ol' blog's 2019 series on tax inflation adjustments. We started on Nov. 15 with a look at next year's income tax brackets and rates. Today we look at changes to credit and deduction amounts. Note: The 2019 figures apply to 2019 returns to be filed in 2020. For comparison purposes, you'll also find 2018 amounts to be used in filing 2018 returns due April 15, 2019. Taxpayers depend each year on tax deductions and tax credits to cut their annual tax bills. The biggies are, of course, the use of standard or itemized deductions... Read more →


Welcome to Part 2 of the ol' blog's 2019 series on tax inflation adjustments. We started on Nov. 15 with a look at next year's income tax brackets and rates. Today we look at standard and itemized deductions, personal exemptions and limitations on these tax situations that apply to some taxpayers. Note: The 2019 figures apply to 2019 returns to be filed in 2020. For comparison purposes, you'll also find 2018 amounts to be used in filing 2018 returns due April 15, 2019. Internal Revenue Service data show that year after year, around 70 percent of filers claim the standard... Read more →


This is the first in a 10-part series on the upcoming 2019 tax year inflation adjustments. Links to additional tax-related inflation changes for next tax year are at this end of this article. It's the most wonderful time of the year. And while, confession time, I have been watching a lot of Hallmark holiday movies, I'm talking today about the overlap of one tax year and the approaching one. As the annual count of days winds down, we taxpayers must pay attention to ways to cut our current tax year's bill as well as make some initial plans to keep... Read more →


Don't let tax turkeys gobble up your money. Make these tax moves, a couple of which are related to recent tax reform, this November and for sure by the end of 2018. South Park turkeys via Giphy It's November! The start of the holiday season. Time to get into the festive spirit with some year-end tax moves. "Whoa! Wait! What the what are you thinking?" you say. "I'm still adjusting to Standard Time and already have a huge to-do list to make sure my family has the perfect Thanksgiving. Then as soon as that's over, I've got to start with... Read more →


Today was one of those days where personal stuff took precedence over work and tax matters. As a freelancer, I'm usually able to plan things so the I can do both without too much trouble. Not today. Personal issues won. That meant I missed out on a #TaxBuzzChat. This is a regular Twitter conversation among online tax folks on various, topical tax matters. Today a bunch of my Twitter pals — including, but not limited to @beanna_whitlock, @BrettNealCPA, @bstonercpa, @cbriancpa, @DebFoxFinancial, @MelindaNCPA, @RobergTax and @ShaunHunley — discussed year-end tax planning in light of the changes wrought by the Tax Cuts... Read more →


Texas, according to veteran Lone Star State meteorologists, is the land of perennial drought, broken by the occasional devastating flood. Such flooding occurred today, opening up the possibility that parts of the Texas Hill Country could be deemed major disaster areas. If that happens, affected property owners can claim their losses on their tax returns. Mansfield dam image Excessive rainfall has produced devastating flooding in Central Texas, forcing area officials to open floodgates at local dams. The amount of water flowing into area rivers and lakes is so heavy that even Mansfield Dam in Austin, the structure that holds back... Read more →


Some of my retirement money is in stock funds. They've been going gangbusters. Until this week. I'm fighting the urge to look at what's happened with these plans' value. Did they tank along with the broader market a few days ago? Or are they edging back up with today's sort-of recovery? I'm curious, but I don't need that money right now. And I believe my investment choices are sound. So I'm going to ignore the current market gyrations and just let things ride. That's the advice most financial gurus are offering now. This week's downward trend is just an overdue... Read more →


Today is a great day for my mother. The Social Security Administration announced that she and her fellow Social Security recipients will get a get a 2.8 percent cost-of-living adjustment (COLA) in 2019. The 2019 COLA — the largest since the 3.6 percent bump in 2011 — means the average single retiree's federal retirement benefit will be $1,461 or $39 more a month than this year. My mom is thrilled. Those 30+ bucks will cover her monthly phone bill. Still stretching each month: Unfortunately, the upcoming benefits adjustment won't be enough to make up for more than a decade of... Read more →


IRAs come in two forms, traditional and Roth. You can convert a traditional individual retirement arrangement to a Roth account, but reversing that hits a roadblock under the new tax law. There are lots of good reasons to convert a traditional IRA to a Roth retirement account. There also are lots of good reasons to change your mind about that IRA conversion and switch the account back to its traditional form. But time to recharacterize your Roth IRA, as the reversal is known, is running out. And it will be gone forever, or at least through 2025 under the new... Read more →


Another lingering tax deduction concern created by the Tax Cuts and Jobs Act (TCJA) is finally clearer. The Internal Revenue Service says that half the cost of business meals is still tax deductible as an allowable work-related expense. That's what the pre-TCJA tax law said. But because the Republican tax reform bill was cobbled together so hurriedly at the end of 2017, its legislative language left many confused. And the new law's interpretation created a division among tax professionals (and semantics geeks) as to what exactly is entertainment. Meals or entertainment vs. meals and entertainment: A great number of tax... Read more →


October's here! In addition to making some general fourth quarter tax moves, this month is when many employees get to reassess and choose coming-year workplace benefits, many of which also offer tax advantages. And tax-free help paying off student debt could soon be part of those packages. Millennials have overtaken Baby Boomers as the largest generation in the U.S. labor force. That's why today's employers are trying to figure out exactly what these younger workers want. The traditional worker wishes still apply. All employees want decent pay, regular raises and promotion possibilities. But today's twenty- and mid-thirty-somethings want more, and... Read more →


The Powerball and Mega Millions jackpots already are close to a combined $600 million. As the drawing times near, more people will play, creating even larger eventual jackpots. Of course, the chances of winning both drawings — roughly 1 in 75 quadrillion (that's 15 zeros) by one estimate — is even more minuscule than the general winnings odds of either alone. Still, millions of us will buy lottery tickets. Full disclosure: I'm one of them. Don't judge me. But don't call me either if I win! In fact, whoever wins Mega Millions major jackpot on Tuesday (Oct. 2), which as... Read more →


Do you have thoughts about the Internal Revenue Service's plan to stymie state efforts to work around the new $10,000 federal deduction limit on state and local taxes? You are not alone. On Aug. 23, the IRS issued a proposed rule designed to rein in state efforts to give their residents a way to get a tax write-off for all of their state and local taxes, commonly referred to in the tax world as SALT. In that same announcement, the IRS also said it will hold a Nov. 5 public hearing on its proposal regulation and, leading up to that... Read more →