Tax planning Feed

The tax filing season clock is ticking, but will the alarm go off on April 15 as usual? That's the IRS plan for now, but some in Congress and the tax community would like Uncle Sam to extend the 2021 Tax Day deadline like happened last year. The Internal Revenue Service is insistent that despite a later than normal opening of the 2021 tax filing season, it will end as usual on April 15. Some lawmakers and members of the tax community, however, think this filing season needs to follow the 2020 example and be extended beyond the usual mid-April... Read more →


You got your first Advance Child Tax Credit (AdvCTC) this month. The added $300 for each of your kiddos age 5 or younger or $250 per child if your youngsters are age 6 through 17 is nice. But your 2021 financial situation has changed, and you've done the math. The calculations show that this COVID-19 relief money, authorized by the American Rescue Plan Act and which the Internal Revenue Service is sending based on your 2020 tax year filing data, no longer applies. In fact, since you're making a bit more money this year, if you keep getting the AdvCTC... Read more →


One of the severe storms that hit Michigan on June 26. In the wake of a major disaster declaration, the IRS is giving some of the state's taxpayers until Nov. 1 to take care of tax tasks. (Photo by Ben Kessler via the National Weather Service) The 2021 Atlantic hurricane season got off to an early start. Since then, though, it's been a slow tropical season. Thank you, Saharan dust (and Deb Fox)! However, other major natural disasters have made up for it. So far in 21, there have been 14 instances of tax relief provided by the Internal Revenue... Read more →


Everybody needs some help now and then. On Friday, July 23, and Saturday, July 24, the Internal Revenue Service is providing assistance to those in 16 metropolitan areas who need to file a 2020 tax return so they can get various COVID-19 relief payments. The first of six scheduled Advance Child Tax Credit (AdvCTC) payments hit bank accounts and U.S. Postal Service boxes last week. The bulk of these initial payments — the Internal Revenue Service says it sent out $15 billion to about 35 million families — were dispersed automatically. The recipients, who had previously filed returns or used... Read more →


Your youngster might not have enjoyed the Fourth of July fireworks (I'm right there with you, kiddo, when it come to the noise!), but your son or daughter could make you eligible for Advance Child Tax Credit payments starting this month. Hello, July! Yeah, I know my welcome to the first full month of summer is a bit late. But admit it. You don't really focus on the month either until after July 4th. Since it's the midpoint of the tax year, July usually is a great time to look into some tax saving tasks (more on this a bit... Read more →


It's the Fourth of July weekend. The 2021 celebration is getting added attention, since last year most of America's birthday parties were canceled due to the COVID-19 pandemic. But July 1 is another date of note. The year's midpoint is the first day of the fiscal year for most states and, according to The Tax Foundation, 13 have notable tax changes that took effect last week. There are individual income tax changes in Idaho and Illinois, corporate adjustments in Indiana and Montana, inheritance tax alterations in Iowa, and revisions of sales, use and gross receipts taxes in Florida, Kansas, New... Read more →


Need help filing a 2020 tax return so you can get Advance Child Tax Credit payments? The IRS and community groups in 12 metro areas are holding events to help you do just that. In a few weeks, the Internal Revenue Service will start sending out advance payments of the Child Tax Credit. The early credit amounts will go out automatically to taxpayers who, based on their 2019 or 2020 tax filing data in the IRS system, qualify for the family-friendly tax break. But not everyone who's eligible for the Child Tax Credit, which generally will be $300 a month... Read more →


Advance payments this year of some of 2021's Child Tax Credit amounts can be a nice helping hand for some families. But the early distributions aren't for everyone. Those who want to wait to claim the tax break when they file in 2022 can go online to let the IRS know they'd rather wait. (Photo by Juan Pablo Serrano Arenas via Pexels) The Internal Revenue Service is finalizing distribution of advance payments for the last half of 2021 to families that qualify for the newly enhanced Child Tax Credit. The Advance Child Tax Credit (AdvCTC) payments of $250 or $300... Read more →


Almost 40 million U.S. families could get monthly Child Tax Credit payments this year. The extra money no doubt would be a big help, but some might discover they have to pay back the advanced amounts when they file their 2021 tax returns. (Photo by August de Richelieu via Pexels) You're fully vaccinated. Your company is open again, with everyone returning to the office. You got your kiddos, who also got jabbed, into a summer day camp. Hello, sort of normal summer! Even better, you're about to get some added monthly cash from Uncle Sam thanks to early Child Tax... Read more →


Being a parent is tough when there are two adults to share the responsibilities. Child rearing sometimes is darn nigh impossible when there's just a single parent in charge. Most single-parent families are headed by mothers. But there's a substantial number of dads facing these challenges, too. U.S. Census Bureau data show that of the 35 million fathers of minor children, 1.7 million, or roughly 2 percent, are single fathers living with at least one child younger than 18. On Father's Day 2021, we salute all you nearly 2 million dads who are doing your best to take care on... Read more →


Juneteenth, which first began in Texas, is the oldest nationally celebrated commemoration of the ending of slavery in the United States. But today's Juneteenth celebrations are especially notable. This commemoration of June 19, 1865, the day when slaves in Texas got the official word that they were free. It's been a state holiday here since 1980. Now it's a national holiday. Officially, it's now known as Juneteenth National Independence Day. That name change happened when President Joe Biden, flanked by Vice President Kamala Harris and luminaries like 94-year-old Opal Lee, the Texan who had worked for decades to get to... Read more →


June 15 — yep, this coming Tuesday — is Tax Day for all Louisianans (and Texans and Oklahomans) who endured mid-February's historic freeze. But some Pelican State taxpayers now get even longer to finish up their 2020 tax year returns. The Internal Revenue Service says victims of severe storms and flooding in parts of Louisiana that began May 17 now have until Aug. 16 to file various individual and business tax returns and make tax payments. The affected filers live in or have businesses in Ascension, Calcasieu, East Baton Rouge, Iberville, and Lafayette Parishes. These parishes were designated as disaster... Read more →


Photo by Min An from Pexels Among the many welcome events that are returning as we continue to move beyond complete COVID-19 lockdown are weddings. Congratulations and best wishes to all the brides and grooms out there who finally are enjoying their long-planned celebrations. My gift to all y'all newlyweds is a few words of marital tax advice. With apologies for the spare gift wrapping, here are some tax tasks you need to take care of now, or at least as soon as you get back from your honeymoon. 1. Make sure everyone knows your new name. After marriage, some... Read more →


A letter from the Internal Revenue Service can be scary. But for 36 million families who soon will find such correspondence in their mail boxes, the news could be good. Very good. The document will have information on the Child Tax Credit (CTC), which was expanded under American Rescue Plan Act (ARPA) provisions that became law back in March. The $2,000 tax break was hiked for the 2021 tax year to $3,600 for each child age 5 and younger and to $3,000 each for those between ages 6 and 17. Even better, the entire credit is fully refundable for 2021.... 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 →


It's a good summer for young people looking for jobs. (Photo by Andrea Piacquadio from Pexels) Before COVID-19, one of the traditional rites of passage for young people was getting a summer job. After literally being locked out last summer due to business pandemic precautions, young workers are returning. In fact, for American teenagers looking for work, this may be the best summer in years. The share of teenagers working is above pre-pandemic levels. The staffing firm Challenger, Gray & Christmas projects teens will add about 2 million jobs to the economy this summer. Still, despite all that economic and... Read more →


June's arrival, especially now that many coronavirus limits are being lifted, means the start of summertime fun. But it's also a good month to make some key tax moves before heading off to your favorite recreational pursuits. We did it! Survived Tax Day 2021 … unless you're among the millions who got an extension to file or live in a state where the deadline to submit 2020 tax returns was even further delayed. In that case, one of the things you need to take care of this month is filing your taxes. Here more on that and four other tax... Read more →


Joe Biden's campaign slogan "Build Back Better" now is part of his presidency's agenda. Many promises he made in 2020 now are part of the Biden Administration's first federal budget proposal. President Joe Biden's first federal budget proposal, which is for the 2022 fiscal year that starts Oct. 1, comes in at $6 trillion, detailed in more than 1,700 pages. The White House projects its changes will bring $3.6 trillion to the Treasury over the next decade. It also projects a $1.84 trillion deficit. That's a substantial number, up from 2019's $984 billion deficit, but a sharp decrease from the... Read more →


Happy College Savings Day! Or to be more tax specific, Happy National 529 Day! May 29, or 5/29 if you go the numerical route, is the day to celebrate 529 plans, even though the tax-favored educational savings plans get their name from the Internal Revenue Code section under which they were created, not the calendar. Provenance aside, these educational savings accounts grow tax-free as long as you eventually use the money to pay for qualifying school-related expenses. In addition to the usual classroom fees, books, supplies and equipment, the Tax Cuts and Jobs Act of 2017 expanded 529 funds usage.... Read more →


When it comes to funding a comfortable retirement, most of us look at every possible revenue stream. For some, however, the searching is more difficult. They are the owners of unclaimed retirement savings accounts. When enough time passes, the accounts essentially are lost. And it's a substantial amount that's sitting around waiting to be claimed. Recent studies published by the University of Wisconsin-Madison's Center for Financial Security found that in 2016, there were an estimated 70,000 unclaimed retirement accounts across the United States. These accounts totaled $38 million. Those numbers jibe with other analyses of lost retirement accounts. Investment manager... Read more →


Including some amended filing considerations that are affected this year by COVID-19 law changes. Photo by Ann H from Pexels It's been a week since Tax Day 2021. Those of us who submitted our tax returns have just been enjoying being done with the Internal Revenue Service for another year. But maybe we should give Uncle Sam's tax collector a little more thought before we finally wrap up this tax season. Here are 5 tax matters you need to consider so that you can completely clear your 2020 tax year decks. 1. Check your refund status: This is the biggie... Read more →