Tax planning Feed

Taxpayers and tax professionals alike are breathing a sigh this week. The final tax extension Oct. 15 filing deadline has come and gone. Sure, there's some cleanup left. The storing of files. The adjusting of withholding where tax bills were larger or smaller than expected. And, yes, the waiting for refunds by procrastinating filers who weren't in a hurry to get their tax cash. It does happen. Chances are, however, that the Internal Revenue Service isn't sending out many refunds this month. I'm not just saying that because most October filers don't get refunds. I'm basing my expectation on recently... Read more →


It's open season at workplaces across the United States this month. Nope, I'm not talking about team building hunting trips. I'm talking about hunting for the best employer-provided benefits for you and your family. Last year, the big new benefit that bosses were offering was a tax-favored ways to pay off student loan debt. That's still a big draw, with more companies eyeing this option to attract and keep workers, especially younger ones with huge college debt loads. But we're always looking for the new and shiny. This year, emergency funds are attracting employer and employee attention. The reason for... Read more →


It's Columbus Day. Stop. Before you start with the emails, yes, I know this second Monday in October is a controversial holiday. In recent years, many jurisdictions beyond the federal government have opted to spend today commemorating the original inhabitants of our country. That's why you'll read and hear about Indigenous Peoples' Day events today. pic.twitter.com/l2LymtmS2J — Bobby (@Bobbyobbo) October 14, 2019 But, like it or not, today still is officially Columbus Day, a celebration of Christopher Columbus' accidental discovery of North America. And it's still a federal holiday in the United States. Holiday tax effects: A federal holiday can... Read more →


We've yet to see autumn leaves here in Central Texas. It's still too hot and dry. But the arrival of October does bring another seasonal certainty: the Oct. 15 tax deadline. October is here and I've got to say that although it's still early, the month so far is disappointing. Here in Central Texas, by now we're usually enjoying daytime temperatures in the 80s, with overnight lows dropping into the 60s. That typically means our windows are open 24/7 to get full enjoyment of autumn weather. Not in 2019. We're at least 10 degrees higher both days and nights. One... Read more →


No, that's not me. I would be the person face down on my exercise mat next to this woman. (Photo by Stefano Montagner via Flickr) My exercise class instructors are trying to kill me. OK, not exactly and not me specifically, but for all practical purposes I'm on their hit list. My fitness club's new teachers are real feel-the-burn, you-can-do-it types. Plus, due to some recent pressing personal matters, I haven't made it to my regular classes for a while. Now that I'm attending again, my out-of-practice aging body is having a harder time keeping up with the reps. I'm... Read more →


The wealth-tax proposal advocated by Sen. Elizabeth Warren includes a hefty marriage penalty, according to one leading economist's analysis. (Photo courtesy Warren's Facebook page) It's another weekend, so that means it's time for another look at wealth tax proposals. Yeah, I know it seems like I'm in a bit of a rut, having posted about proposals from Democratic presidential hopefuls in recent weekends (on Aug. 18, Sept. 14 and a Monday, Sept. 16). But the suggested ways to get more money from the rich are still getting attention. Wealth tax roadblocks: Personally, I don't think any of these sweeping measures... Read more →


September usually is a welcome month. The summer's hot temperatures finally moderate as the official start of fall nears. Parents and children get their routines back as school is in session. Then there's the reason why usually comes into play as far as September's arrival. It's traditionally the most active month of the annual hurricane season. Nobody wants to see that. We'll have to wait a few more weeks to see if that holds for 2019, but September's start is ominous. Hurricane Dorian, which already has smashed all sorts of intensity records, is stalking Florida as I type. If forecasts... Read more →


The market is still volatile, dropping a bit today because … heck, who really knows exactly why this time? It's likely to keep bouncing a bit until the current and threatened trade wars and associated tariffs are resolved. I definitely am not a financial adviser, but even I know that you shouldn't try to time the stock market. Just when you think you've hit the bottom and cashed out, it drops more. Or it recovers and you miss a run back up that would have replaced (or more) your assets' losses. But if, after careful consideration and consultation with your... Read more →


With markets down, it could be time to harvest tax losses or perhaps convert a traditional IRA to a Roth retirement account. What's scarier than Superman, the 415-foot tower roller coaster at Six Flags Magic Mountain in Valencia, California, that hits triple digit speeds? Some investors might say the recent stock market gyrations. (Photo courtesy Six Flags) Is the recent stock market drop freaking you out? How about the roller coaster ride back up, at least for a while, today? Yeah, it's worse than many stomach-churning amusement park rides and I'm right there, holding a barf bag, with you. But... Read more →


The Internal Revenue Service is continuing to tweak tax forms, releasing yet another version of the document workers use to figure out their paycheck withholding. The new draft of Form W-4, updated as of Aug. 8 and shown below, incorporated suggestions that Treasury and the IRS got on the version it made public at the end of May. The changes are being made (again) to ensure that taxpayers adjust their withholding to most accurately reflect the tax code changes made by the Tax Cuts and Jobs Act (TCJA). Click image to see the full Aug. 8, 2019, draft 2020 Form... Read more →


Oops! Someone at Topps was thinking about someone else when Shane, not Justin, Bieber's baseball card was produced. Did your mom throw out your baseball card collection when you went off to college? If so, you can start anew today, National Baseball Card Day, by picking up some brand spanking new cards. The Topps Company, the official trading card partner of Major League Baseball, is celebrating today by giving out free specially-made cards at MLB stadiums across the country, local hobby shops and a couple of major retailers. The new packs feature MLB stars and up-and-coming rookies. Lucky fans also... Read more →


Many things, like family considerations, prompt people to go into business for themselves. Whatever your reason for being your own boss, here are some tax matters to consider. The millions of taxpayers who hold wage-paying jobs where income taxes are withheld from their checks obviously will benefit from the Internal Revenue Service new tax withholding estimator. But what if you don't have a job where there's withholding? That's the case for millions of individuals who are self-employed See Also: 5 things to consider if you're thinking about becoming an independent contractor The work freedom of being your own boss comes... Read more →


UPDATE Aug. 21, 2019: In a stark reversal of yesterday's further tax cut considerations, Donald J. Trump today said he is no longer considering any such proposals. UPDATE Aug. 20, 2019: This proposal has bubbled back to the top of simmering economic stimulus ideas. As reports, predictions and fears of an impending recession increased, today Donald J. Trump again said he was considering indexing capital gains, which would give investors a big tax cut and primarily benefit the rich, and that he believed he could do it without approval from Congress. Members of the Upper Chamber of Congress are relying... Read more →


Paycheck withholding is most Americans' introduction to taxes. But even though millions of us have been seeing income taxes come out of our checks for years, the system still is confusing for many. It became a bigger mess this filing season, when folks filed their first tax returns under the Tax Cuts and Jobs Act (TCJA) changes. A lot of them were not amused. The unexpected price of wrong withholding: They discovered that they weren't getting the same big tax refunds they had in prior years. These annual spring payouts had served as distributions from their withholding tax deposits to... Read more →


It's been a summer of change for my neighborhood. Several of our neighbors have moved, including our next-door neighbors that I really liked. My former suburban Austinites are heading off to new jobs, other subdivisions they've discovered or to be closer to families across the state or country. A few also decided it was time to cash in on the rising property values of our neighborhood. I must admit, that's crossed my mind, but then I think moving and … Summer is prime moving time regardless of the reasons. Things tend to slow down at workplaces, giving you more time... Read more →


August is here, but few of us have put out the welcome mat. The eighth month of the year tends to be one of the hottest of the year. Most of the summer's fun events have come and gone. And school is about to start. OK, that last point is a positive for many parents who are running out of patience with the kids being underfoot all the time. Those moms, dads and all other shoppers in 13 states at least will get some state sales tax holidays to make this muggy month a bit more tolerable. Those tax-free events... Read more →


If the changes to Form 1040 this filing season frustrated you, there's some good news and some bad news. The good news is that the Internal Revenue Service is revising the Form 1040 to be used for 2019 tax filings. No, it's still not quite a postcard. But there will be fewer schedules to file — three instead of six — if your taxes are a bit more complicated. The bad news is that many of us still have to fill out those schedules (and the accompanying forms for additional tax break claims that remained) instead of having things on... Read more →


Washington, D.C., subway car awaiting Red Line passengers. (Photo by Washington Metropolitan Area Transit Authority) Moving from West Texas to Washington, D.C., was a revelation for many reasons. One of the key differences was transportation. The hubby and I came from a part of the country where cars (OK, trucks) were, and still are, the predominant way to get around. Suddenly, as the "On the Town" opening song goes, we were riding in a hole in the ground. We quickly fell in love with the D.C. Metro, even though when we arrived there in 1981, its routes were somewhat limited.... Read more →


Hello, July! The heat is definitely on, but there are plenty of ways to chill out, both personally and to put your 2019 tax bill on ice. Yes, I know you want to head to the pool or beach or catch up on neglected novels or just be generally lazy. I'm right there with you. But you'll enjoy those recreational pursuits a lot more once you've taken some steps, like the seven listed below, to lower your 2019 tax bill. Let's get to 'em! 1. Get weather ready. A low pressure trough moved overnight from Georgia to the Florida panhandle... Read more →


Backup withholding basically is the tax collector's knuckleball mitt. The over-sized baseball glove helps a catcher handle, he hopes, the hard to predict (and hold onto!) pitches. The IRS uses backup withholding to catch potentially errant income amounts. (Baltimore Orioles' Gus Triandos showed how the mitt at left, which he used when Hall of Fame knuckleballer Hoyt Wilhelm was on the mound, compared to his regular one. Photo courtesy Tom's Old Days via Twitter) In most income earning instances, the Internal Revenue Service finds out how much we make and owe taxes on thanks to reports from those who pay... Read more →