Tax reform Feed

Photo by Kumar's Edit via Flickr I've been married a long time. To the same guy. Marriage is not always easy and we don't even have a boss stirring up trouble between us. But we've made it through the tough times. And now as we patch things up when we do have our differences, we joke that we're staying together because it would be a bigger hassle to divorce. Sometimes, though, couples can't work through their troubles and decide to officially end their marriages. When that happens, among all the other issues, there are tax matters to consider. Here are... Read more →


College and its ever-increasing costs certainly have gotten a lot of attention. There's the group of Democrats seeking their party's 2020 presidential nomination. Obviously spurred by the enthusiastic supporters of Independent-turned-temporary-Democrat Sen. Bernie Sanders and his promise of free college, many other White House wannabes also are talking up educational assistance. Then there's this week's Operation Varsity Blues. You might not have caught the name, but let me drop two others to spur recognition: Felicity Huffman and Lori Loughlin. Yeah, that's the name federal investigators gave to their take down of a far-reaching college admissions scheme. Wealthy parents, elite school... Read more →


Lee County, Alabama, March 3 tornado damage. (Photo: Nicholas Baretto via Twitter) As expected, once the White House declared parts of Alabama a major disaster area, the Internal Revenue Service followed up by offering affected residents a variety of tax relief. Victims of the deadly tornadoes and severe storms that raked areas of the Yellowhammer State now have until July 31 to file some individual and business tax returns and make certain tax payments. "With the regular deadline just a few weeks away, we want storm victims to focus on their families and recovering, rather than worrying about the tax... Read more →


Part of today's International Women's Day celebrations are for the continuing employment advances by women. Our 21st century progress is due in large part to the pivotal roles of female employees in traditionally male jobs, like this woman machining parts for transport planes at the Consolidated Aircraft Corporation plant in Fort Worth, Texas, in 1942. (Photo via Wikimedia Commons) Back in 2017 when Congress was formulating the comprehensive tax law changes that would become the Tax Cuts and Jobs Act (TCJA), the #MeToo movement was in full force, shining a light on the prevalence of sexual assault. As the TCJA... Read more →


My mother and my furry little brother Willie having a conversation. While walking Willie last October, my mom fell and broke her leg, a common occurrence among older dog owners. That accident has prompted ongoing discussions (OK, fights) on possible more hands-on care options for my octogenarian mother. (Photo by Kay Bell) I'm a cat person. Fight me. Or don't. Like cats, I'm not really concerned about your pet opinion. For almost a decade, though, I've been dealing with a dog. Not mine. My mom's. She has a dog, Willie, and he's the most spoiled animal I have ever known.... Read more →


Some of the destruction from a tornado, preliminary estimated to be an EF-4 with winds reaching 170 mph, that touched down on March 3, 2019, in Lee County, Alabama. (Photo courtesy National Weather Service, Birmingham via Twitter) Mother Nature showed her extremely mean side this weekend, with tornadoes in Alabama, Georgia, South Carolina and the Florida panhandle leaving a path of death and destruction. I know that folks just now getting a good look at the havoc are not in a mood to think about taxes. That's especially true of those in who lost loved ones when a twister roared... Read more →


The King by Kevin Pluck via Flickr We thought we wanted you March, but your "in like lion" approach this year is way too fierce. Severe weather roared through the south today, with a rash of tornadoes claiming lives and destroying property. Meanwhile, a serious winter storm is heading to the northeast, making March's appearance more like a snow leopard than a lion. The only good thing about this early spate of destructive weather is that it reminds us all to be ready for natural disasters. They happen year-round. And under the new tax law, you can claim any damages... Read more →


It's taken a few weeks, four to be exact, but the 2019 tax season is finally catching up. The latest Internal Revenue Service filing season statistics show that while most categories that the agency tracks each filing season are still lagging 2018 figures, the differences are starting to shrink. And there's even better news for folks who are getting refunds. The average check amounts issued through Feb. 22 are dramatically larger than the week before. More notable, those average refund amounts have finally topped the averages of year ago. Unpleasant tax refund surprises: In case you haven't been following the... Read more →


Tax law change confusion and paycheck withholding miscalculations have led to a lot of grumbling by many filers about the size of their tax refund checks. But there are other reasons why refunds sometimes are not what filers expect. Here's what to do if you think your tax refund is wrong. The many changes of the Tax Cuts and Jobs Act (TCJA) have thrown a wrench into the 2019 tax filing season. Many folks who were expecting refunds are finding they are smaller than they anticipated or nonexistent. In a lot of cases, that's because of changes in withholding by... Read more →


There's better news for taxpayers this week. Internal Revenue Service data for the second week of the 2019 tax filing season shows a slightly larger refund amount. When the IRS released its first-week data, which covered 2018 tax returns filed by Feb. 1, the number of 1040s submitted and processed, as well as the number of refunds and average amount of those fewer checks, were dramatically lower than at the same time last year. That led to much grumbling by filers and arguments among supporters and opponents of the Tax Cuts and Jobs Act (TCJA) about how the major tax... Read more →


I never seem to be able to submit our joint Form 1040 early in the filing season, partly because I have to sort through all this material to fill out the forms! There are many reasons why millions of taxpayers procrastinate when it comes to submitting their annual returns. Much of the time, those excuses aren't good. But there are some times when you shouldn't rush to finish your Form 1040 early in the filing season, even if you're expecting a tax refund. Here are six reasons to wait a bit before filing: 1. To get your return right. Doing... Read more →


There was national anthem controversy at Super Bowl LIII, but it wasn't about what the players did during the song. It was about how long it took Gladys Knight to sing the Star-Spangled Banner and how it affected the associated prop bet. If you did come out on the winning side of the song, here's how to report that and other taxable gambling income. There's no disagreement that Gladys Knight's Star-Bangled Banner was magnificent. However, gamblers had some issue with how long the song lasted, which was one of the prop bets wagered on the game and its ancillary events.... Read more →


Hello, February! If we ever were in need of your hearts and flowers, it is now. January was tough tax-wise. We had to worry about whether the Internal Revenue Service actually would get filing season open as the longest federal government shutdown in U.S. history dragged on. It opened as promised on Jan. 28, but be patient. Plus, we're dealing with our first filing season under the many, many changes brought about by the Tax Cuts and Jobs Act (TCJA). Yep, we definitely need some tax love. And some tax guidance, whether we're earlier filers awaiting refunds or procrastinators taking... Read more →


Much of the mass media coverage of Tax Cuts and Jobs Act (TCJA) changes has focused on how they affect individual taxpayers. There are, after all, 150 million or so of us who, for the first time this filing season, are now dealing with the practical, real-life effects of the new law. But let's be honest. Business taxes were the impetus behind the biggest tax reform measure in more than 30 years. In this area, the 20 percent Section 199A tax deduction for certain small businesses has gotten the lion's share of coverage. It was added to the bill to... Read more →


Just like the Highlander character of film and television fame, the new Tax Cuts and Jobs Act under which we're now filing our 2018 tax returns says there can be only one. One Form 1040, that is. The Internal Revenue Service today begins processing millions, if you go by the agency's prior filing season data, of early-filed tax returns. IRS staff are going to face more than the usual filing season chaos since most of them are coming back to work after 35 days of being shutout. (Short story: Get ready for some delays.) Filers, too, are in for some... Read more →


The red light has changed to green for the IRS now that the longest federal government shutdown in U.S. history is over. (Photo by Kari Bluff via Flickr) The Internal Revenue Service should be fully staffed as we official start the 2019 tax filing season on Monday, Jan. 28. Holdover shutdown issues, however, still could cause delays, which many taxpayers and tax professionals already have experienced. Donald J. Trump signed into law late Friday, Jan. 25, a bill to end the longest federal government shutdown in U.S. history. That same day, the White House Office of Management and Budget notified... Read more →


Even if you've been filling out Form 1040 and any other associated forms and schedules for years, things will be different this filing season. This is the first year we taxpayers (and tax pros) will be filing under the extensive new Tax Cuts and Jobs Act (TCJA) changes. In addition to new tax rates and deduction amounts, there are a variety of other tax law tweaks that could affect what goes on — or now doesn't — your Form 1040, which itself is new. So before you start working with your tax preparer or open up your tax software, either... Read more →


Each year on this federal holiday honoring the Rev. Dr. Martin Luther King Jr., people across the United States volunteer at their favorite nonprofit services provider. Others opt to donate to charitable causes that support the goals of Dr. King and MLK Day. Here's a look at how recent tax law changes have shifted some of those donation choices and giving methods. Charities cheered when they were spared the limitations imposed by the Tax Cuts and Jobs Act (TCJA) on many popular itemized deductions. There even was celebration of a change that allows the charitably inclined, particularly the very wealthy,... Read more →


Most taxpayers every year end up getting refunds. But some folks are at the opposite end of the tax spectrum. They owe Uncle Sam at filing time. And some of those owing taxpayers end up in an even worse situation. Their tax bills are large enough that they also face added penalty charges. This filing season, though, those penalty-paying taxpayers could get a break. Tax underpayment penalty calculations: A tax penalty assessment usually occurs when wage earners don't have enough income tax withheld from paychecks or, if they have other income not subject to withholding, don't pay enough (or any)... Read more →


We're almost 13 months into the largest tax reform measure enacted in more than 30 years and one thing is clear. The Tax Cuts and Jobs Act (TCJA) is in no way tax simplification. In fact, taxpayers and the professionals they pay to help make filing less taxing in every sense of the word have been struggling with just what Congress meant in way too many of the tax bill's hastily drafted provisions. Big business bill, with small biz break and confusion: Although the TCJA contains many changes that will make filing returns this year interesting for individual taxpayers, it... Read more →