Tax Tip Feed

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 →


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 →


UPDATE, Oct. 15: Additional areas in Florida, Georgia, North Carolina, South Carolina and Virginia now receive tax relief in connection with Hurricanes Florence and Michael. Details below. Monday, Oct. 15 is a big tax day for millions. The Internal Revenue Service says more than 14 million taxpayers requested added time to complete their 2017 tax returns. While not all of them put off that tax task until the very last minute, it's a safe bet that a lot did. If' you're among that group of uber-procrastinators, I wish you well in getting the job done by tomorrow. The tax and... Read more →


Did you get an extension back in April to wait until Oct. 15 to file your 2017 tax return? Guess what? That's Monday. Like this coming Monday. Like three days from now! Sorry. That means no weekend fun for you. You need to spend your weekend, or at least part of it, working on your 2017 Form 1040. I feel for all y'all ultimate procrastinators. I've been there, but not this year, thank goodness. The hubby and I still got an extension, joining more than 14 million other taxpayers who sidestepped the April 18 deadline, but we filed our return... 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 →


Manhattan businessmen meet over lunch. (Photo by Phillip Capper via Flickr Creative Commons) The way to a business contract is through a client's stomach. That revised adage underscores what every business person, whether they run a major corporation or a mom-and-pop company, knows: that personal relationships are key to success. And much of the time, those relationships are cemented over business meals. Business meals still tax deductible: The Internal Revenue Service this week gave business a break — or really left a tax break in place — when it comes to deducting the cost of business meals. The tax agency... 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 →


If you're looking for a job to boost your holiday spending budget, the Internal Revenue Service might be able to help. I got the postcard shown above in today's mail. No, even though I write about taxes, I'm not special in the IRS' eyes — and that's fine with me. The taxman doesn't have to pay me any extra attention at all, ever! The postcard was addressed to "Resident" so all my neighbors got one. Probably most Austin area folks did, too. Seasonal hiring ritual: There's an IRS facility in the Texas capital and almost every year as the holidays... Read more →


Each year, the Internal Revenue Service assesses estimated tax penalties against millions of taxpayers. This added money typically is due the IRS when a taxpayer pays too little total tax during the year. The last time the IRS released complete estimated tax penalty data was three years ago. The federal tax agency said back then that the average estimated tax penalty, which is based on the interest rate charged by the IRS on unpaid tax, was about $130. Back in September 2015, the IRS said it was seeing more taxpayers run into the estimated tax penalty. The number jumped about... Read more →


Trees in September will see their first fall color. (Photo by Jonathan Bloy courtesy Bloy.net) Hello, September. It's nice to have you back. You are a month that offers mostly-welcome transitions. There are beginnings, as students start a new school year. Parents nationwide say "thank you!" There are endings, as summer gives way to fall's cooler temps and foliage changes. Those of us tired of heat waves want to know what took you so long!?! There are expectations, as the end of the year and its many holidays approach. It's never too early to start planning for these. My Christmas... Read more →


Summer is winding down, but someone needs to tell the thermometers. Across much of country, it feels like the mercury is about to burst and everyone is doing everything they can to stay cool. Sorry, I can't help you beat the heat. But I do have eight tax moves you can make in this eighth month of 2018 — which, with all those 8s, makes that this week's By the Numbers figure — that might be able to help lower the heat you're feeling when it comes to taxes. 1. Adjust your withholding. I know. I nag remind y'all of... Read more →


If you're superstitious or suffer from paraskevidekatriaphobia, today is not a good day. In case you haven't checked your calendar, it's Friday the 13th. Even scarier is the reality that any day can be unlucky if you happen to fall for a tax scam. It's true that most tax crooks use scams to steal your identity and then file fake returns to get fraudulent refunds in your name. It's also true, though, that these scammers work year-round. That's why Friday the 13th is a good day to look at 13 scary tax scams that have appeared so far this year.... Read more →


Fathers Day Happy Fathers Day GIF from Fathersday GIFs Happiest of days to all the dads out there. And thank you Sonora Dodd. Dodd was raised by her father after her mother's death during childbirth. While listening to a sermon at church on Mother's Day, Dodd thought about all her father had done for her and her siblings and decided fathers should have a day, too. Because Dodd's father was born in June, she encouraged churches in Spokane, Washington, where she was living, to honor fathers that month. The first Father's Day was celebrated in Spokane in on June 19,... Read more →


It's June! That means summer is here, both temperature-wise (more like mid-summer here in Texas!) and officially later this month. The arrival of the Summer Solstice — it's June 21 this year — is just one of the many special days in this sixth month of the year. There's Father's Day, Flag Day, D-Day, Juneteenth and, of course, the beginning of the Atlantic hurricane season. Then we have (or had) Doughnut Day (that was last Friday, June 1), Chocolate Ice Cream Day, International Yoga Day and for pet lovers, separate cat (today, June 4, is Hug Your Cat Day) and... Read more →


Losing your job. It's one of the worst things that can happen, especially when it comes as a total surprise. That's what folks who worked on Roseanne are dealing with after ABC pulled the plug on the rebooted sitcom. Being out of work is not so high-profile for most of us. But we all share the panic, anger and helplessness of suddenly losing the reason we get up every morning. To help you get through being let go, here are six steps you can take. And, of course, there are tax implications (nine total) for each of these post-job moves.... Read more →


@bublywater via Giphy.com If you missed this year's doubly extended tax filing deadline simply because you procrastinated, or actually over-procrastinated, then you're out of luck. If you owe tax for the 2017 tax year, interest and penalties already are piling up. If this is you — no judging here, just some advice — at least get a belated extension request into the Internal Revenue Service ASAP, along with the money you owe, to stop that costly process from getting worse. The first Weekly Tax Tip of 2018 offers some guidance on moves to make if your missed the Tax Day... Read more →


The Internal Revenue Service had issues with some of its online systems on Tuesday, April 17, the day that was supposed to be the filing deadline for our 2017 tax returns. Those problems notwithstanding, e-fling and electronically paying any tax that's due today, Wednesday, April 18 — yes, today, the new filing deadline provided by the IRS to make up for its online inconveniences yesterday — is still the best move for many filers. The agency for years has been encouraging, and in some cases forcing, electronic filing and paying of taxes. The reasons are that it's easier (definitely for... Read more →


It's been years since U.S. Post Office branches in Austin have stayed open for Tax Day. I suspect that's the case across much of the United States. Most of us e-file our 1040s. Through April 6, the Internal Revenue Service had received almost 96 million electronically filed returns. It's expecting millions more electronically delivered returns as we rush to make today's filing deadline. So the mail service isn't swamped like in olden days when some offices had special pre-midnight festivities for taxpayers to drop off their returns. This shift means that if you're still committed to mailing a paper Form... Read more →


Source: CafePress tax jigsaw puzzle Still trying to put the pieces of your Form 1040 (or 1040A or even 1040EZ) together? Time's running out. Tax Day is almost here. Since the tax filing deadline is April 17 this year, here are 17 tax tips. Not only do they earn this week's By the Numbers honor, some could help you put together a return to send to Uncle Sam on time and at the least possible tax cost to you. 1. File on time. Yes, this first tip is obvious, but a lot of people let the filing date slip by... Read more →