Tax reform Feed

My desk in my home office which I deduct when I file my taxes. Not that I'm paranoid, but sometimes it seems like unseen others somehow know what's going on in my life. The latest example is tax related. Earlier this week, a #TaxTwitter pal asked that social media group about home office tax deductions. Granted, this is not an unusual question since the coronavirus pandemic has meant many of us have been working from home, a lot of us for the very first time. Today, the Internal Revenue Service issued a tax tip on what taxpayers need to know... Read more →


Tax season 2020 is over. That means the focus of most Americans returns to the same thing we've been fixating on (besides taxes) for the last few months: COVID-19. The coronavirus is still here. It's getting worse in some — OK, a lot of — states. Even in the areas where it seems to be under better control, people are still worrying about what it means to their lives and, of course, their livelihoods. Although some jobs returned earlier this summer, that partial economic recovery is not expected to last after coronavirus cases reemerged following state re-openings. So folks are... Read more →


Former Vice President Joe Biden meeting supporters in Iowa last year in the early days of his campaign. Now he's the Democratic presidential nominee. His and opponent Donald Trump's tax plans will be a part of the election discussions. (Photo by Gage Skidmore via Flickr) It's a done deal. Former Vice President Joe Biden will be the Democrat challenging Donald J. Trump this November for the White House. Biden secured enough delegates last week to formally become the Democratic nominee on the first ballot at the party's convention. That official imprimatur will come in August at the Democrats' combined in-person... Read more →


We're heading, finally, into the heart of tax return filing season 2020. Even if you fill out and submit your Form 1040 electronically, as most of us do, you still need the documents that provide the figures you transfer to your return. One area of interest to millions every filing season is interest. In some cases, the interest you pay on certain loans can provide a tax break. In another, it could mean you owe Uncle Sam a bit more. This week's Tax Form Tuesday looks at three common interest-related tax documents. (Quick note: the forms' names below are linked... Read more →


Image: National Day Calendar It's a rare day on the internet. Dogs are getting more attention than cat videos. Actually, it's baby dogs who are the focus, since today, March 23, is National Puppy Day. Personally, I'm a cat, not dog, person. But I know that regardless of your pet preference, animals bring a lot of good to our lives. And in some very specific cases, they also might be able to help you reduce your federal tax bill. Here are 5 potential ways that Fluffy, Fido or whatever you call your fur (or other) baby can provide their human... Read more →


Ah, March. The days get longer. The weather gets warmer. And we've got about six weeks before our tax returns are due. I know it feels like these 31 days of March is plenty of time to take care of all the tax tasks still on your to-do list this filing season. But it's easy to get distracted by the charms of early spring. To keep you at least partially on tax track, here are six March tax moves you can make. Most are easy, so you can soon be back to less taxing activities. 1. Contribute to your 2019... Read more →


For folks with money in the stock market, the coronavirus' effect on their holdings is more terrifying than Michael Myers, the persistent slasher of "Halloween" horror movie fame. I confess. I've been glued to cable TV financial channels this week. They're showing, for owners of stocks, a real-life horror movie. The evil and infectious COVID-19 monster is maniacally slashing investment gains. Who or what can show up (soon, please!) to stop this crazed killer of our planned comfortable retirement? OK, I might be taking this sequel — and that's what it is; market corrections and recessions have happened before —... Read more →


Millions of us file taxes every year. And millions of us, even those who get refunds, dread it. Why? We worry that we'll make a mistake. That's a legitimate concern. Despite lawmakers' perpetual promises to make our tax lives easier, they somehow seem to screw up that political pledge. Yes, I am looking at you Tax Cuts and Jobs Act (TCJA), with your new forms and confusing tax breaks even when they provide some relief. Thanks, Congress! But sometimes, we filers have to bear some of the blame. We make things worse by making easily avoidable mistakes when we fill... Read more →


Treasury was one of only five departments or major agencies — the others are Defense, Veterans Affairs, National Aeronautics and Space Administration (NASA) and Homeland Security — that got budget bumps in the Trump Administration's Fiscal Year 2021 budget request. (Screen shot of CQ/Roll Call video of delivery of budget books to Capitol Hill) The annual presidential wish list, formally known as the administration's fiscal year (FY) budget, is public. Bottom line, and it's a big one, is the FY 2021 proposals top out at $4.8 trillion. When it comes to this funding exercise, regardless of which president or party... 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 →


The shortest month of the year is a little longer in 2020. It's a Leap Year. What will we do with that extra day, Feb. 29? Of course, we're going to devote those additional 24 hours to our taxes. OK, maybe not. For many, this first full week of February is getting off to a slow part, thanks to the annual Super Bowl Sunday hangover. Others simply aren't ready to think taxes yet. It's not their fault. They, and that includes me, are still waiting for necessary tax-filing statements. And some eager and on-the-ball taxpayers don't want to think about... Read more →


Even before the Tax Cuts and Jobs Act (TCJA) greatly increased the standard deduction amounts, most people opted to claim the standard deduction amount. But one thing that the latest tax reform law didn't change is the ability for many to get some added deductions without itemizing. These used to be called, at least by the tax community, above-the-line deductions because. They got that moniker because pre-TCJA they appeared in the last section of the old long Form 1040, just above the last line of that form's first page where your adjusted gross income (AGI) was entered. (A handful also... Read more →


The first day of tax filing season essentially is the tax version of Black Friday, with taxpayers — mostly those expecting refunds — rushing the Internal Revenue Service's digital doors. (Screenshot of eager Black Friday shoppers from Jerry Bailey's YouTube video) Today is the first day of the 2020 tax filing season and already folks are wanting to know when they're get their refunds. That question is totally understandable. Despite last year's refund confusion caused by the Tax Cuts and Jobs Act (TCJA) changes, the average federal income tax refund was in 2019 was $2,869 based on returns processed through... 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 →


Yes, that's a photo of my filing season mess, er, process, which explains why I never seem to be able to submit our joint Form 1040 early in the filing season. Getting your tax stuff together is just one of the reasons to not file early. The Internal Revenue Service will start accepting 2019 tax year returns next Monday, Jan. 27. A lot of folks already have filled out their 1040s and put them in the queue for IRS processing next week. Good for them. Their annual tax task is done. But there also are some reasons why you might... Read more →


The birth of the Rev. Dr. Martin Luther King, Jr. has been officially celebrated as a federal holiday on the third Monday of January for more than three decades. For 25 of those years, it's also been a Day of Service, during which we're all challenged to transform the King Holiday into a day of citizen action volunteer service in honor of the slain civil rights leader. There are various ways to honor Dr. King on his holiday. One recommended by the Corporation for National and Community Service is to volunteer on #MLKDay and beyond as a tutor or mentor... Read more →


Taxpayers got their first experience with new filing forms with last year's 2018 returns. There are more changes to the 1040 for 2019 taxes, too, but the revisions actually could be helpful. Tax season is about to start in a less than two weeks. Jan. 27, in case you forgot. Many of us are already working on our 2019 returns, either by working with a tax preparer or filling out our forms on our own. Doing taxes has never been a fun job for most folks. But filing under the Tax Cuts and Jobs Act (TCJA) has made that job... Read more →


Click image for a large, clearer view. Ready to do your 2019 taxes? The Internal Revenue Service says it will be on Jan. 7. Yep, that's tomorrow. But whoa up there, cowpokes. This starting date is just for IRS acceptance of business returns. On the Modernized e-File (MeF) Operational Status page noting the Jan. 7 starting date for business returns, the IRS also says, "Individual tax returns will begin at a date to be determined in early 2020." Still, it's a good sign that Uncle Sam's tax collector is looking at any return processing date in early January. Business returns... Read more →


How Texans see the United States. Each new year brings hope. A flip of the calendar pages, and the suddenly clean slate, at least metaphorically, means better things ahead are possible for us personally, professionally, financially and, of course, on the tax front (taxically, which spellcheck wants to change to toxically…). When it comes to taxes, the goal every year is to pay less. While we're still working under the Tax Cuts and Jobs Act (TCJA) changes at the federal level, we still see some changes in 2020. Notably, especially when it comes to our always hoped for lower tax... Read more →


via GIPHY If you used your car for business purposes last year, you probably did the same thing I did on New Year's Eve. You took a quick look at your auto's odometer and jotted down the miles. Keeping track of your annual miles driven and those specifically attributable to business travel can help you reduce taxes on your self-employment income. There are a couple of ways you can track this travel, either by keeping good records of your actual business-related auto usage (more on this in a minute) or by claiming the optional standard mileage amount. That standard amount... Read more →