April 15 is double Tax Day for those of us who must pay estimated taxes. It’s the end of the prior tax year, with returns (and payment) due for those earnings. It’s also the start of tax filing (and paying) for this year. The payment for money made, but not subject to withholding, in the first quarter of 2026 is due on April 15. Extra payments for certain income: The U.S. tax system is pay as earn. For the most part, that's taken care via tax withholding from employees’ paychecks. But even if you have a job where income (federal... Read more →
Tax Tip
Source: Statista A week ago, Donald J. Trump kicked off a series of tariffs on the United States’ global trade partners. He’s told us to “hang tough,” but the markets don’t seem to be listening. If you’re trying to stay positive while watching the markets’ continued dive eat into your nest egg, here’s an idea. The lower value of a traditional IRA could make this a great time to convert it to a Roth version. Roth conversion opportunity: A Roth IRA is a great option for many. Its biggest tax appeal is that you pay taxes on the money you... Read more →
Updated Monday, April 14, 2025: All taxpayers in Tennessee and Arkansas now now have until Nov. 3, 2025, to file their tax returns. The Internal Revenue Service announced this latest major disaster related tax relief in connection with disastrous weather in those states that began on April 2, 2025. The Volunteer State was hit by severe storms, straight-line winds, tornadoes, and flooding. The Natural State was struck by severe storms, tornadoes, and flooding. U.S. service members posted abroad, as well as civilian taxpayers living and working overseas, don't have to file their tax returns in April. Neither do taxpayers in... Read more →
Hanging on for more time to file your taxes? Get more by filing Form 4868. (Harold Lloyd in 1923 film Safety Last!) Tax returns are due in just over a week. A lot of taxpayers, however, don’t seem in that big of a hurry. Last year, more than 163 million taxpayers filed returns. With the 2025 filing deadline looming, the Internal Revenue Service reports that has received just more than 89.5 million returns. Sure, millions will get their 1040 forms filled out and to the IRS by Tuesday, April 15. But based on past filing numbers, a sizeable group won't.... Read more →
Has your tax filing frustration got you thinking about getting, shall we say, creative when you fill in your return? Don't. Even with the current chaos, the Internal Revenue Service still has ways to track down tax cheats. (Photo by Nataliya Vaitkevich) Tax Day is almost here, and millions of Americans are working on their 1040s. Generally, late filers tend to owe taxes. They want to put off the inevitable for as long as possible. Some of these still-to-file owing taxpayers are still searching for ways to trim this year’s tax bill. There are a few options available, such as... Read more →
Photo by Ahsanjaya Have you been putting off filing your return because you’re having trouble coming up with the money to cover your tax bill? You might want to check out the Internal Revenue Service’s extended payment options File, even if you can’t pay: First things first. Even if you can’t pay all or even any of what you owe, file a tax return. That will at least prevent the penalty for not-filing. Yes, the nonfiling penalty is a separate one from the nonpayment penalty. And the assessments for not sending in a return are actually are stiffer than those... Read more →
Donald Trump's touted tariff Liberation Day turned into a dark day after for U.S. investors. (Autopilot via Wikimedia) How are my fellow investors doing this day after Liberation Day? Yeah, I thought so. When the markets opened today, we got to see the real time reaction to Donald Trump’s expansive round of tariffs he announced late Monday, April 2, afternoon. It wasn’t pretty. The global trade move sparked a Wall Street dive to its worst day in five years. That prior low also was under a Trump presidency, as we were starting to feel the initial economic effects of the... Read more →
Photo by D. Myles Cullen via Wikimedia CC Every year, millions count down the April days until their tax return is due. But there’s another sizeable group paying close attention to another date this month. It’s the day (well, actually the evening) when the college basketball champion is crowned. Two of the Final Four teams — Auburn, Duke, Florida, and Houston — will meet in that game on Monday, April 7. All involved obviously are focused on achieving the dream of becoming the champs. But excelling at a college sport these days literally pays off in other ways. Several NCAA... Read more →
Ah, April. Your spring showers and the flowers they bring are just one reason we’re thrilled you’re finally here. (Photo by Stefan Stefancik) Hello, April! You’re a month we love to see arrive. You’re also a month we dread. On the positive side, we welcome the consistent warmth you bring most of us. We’re more than ready to stow our winter, or even winter-adjacent, apparel for a while. And, of course, baseball is back in full force! But then, April, your arrival brings a dreaded task. Millions of us must confront the filing of our annual federal — and in... Read more →
By the end of last week (March 21), the Internal Revenue Service had sent out just more than 55.7 million refunds. The average check amount was $3,221. The latest refund amount is slightly less — $50 smaller — than the amount I noted on Monday in my post about how to spend your tax refund. But even with a small drop, a lump sum payout from Uncle Sam of more than three grand is welcome. That’s especially the case for many who participated in a recent Intuit Credit Karma survey. Almost half (49 percent) of the survey respondents said they... Read more →
This month, we hit the five-year mark since the COVID-19 global pandemic was declared. Here in the United States, the medical situation has stabilized or gotten better in most states. Internal Revenue Service law enforcement agents, however, are still dealing with the coronavirus’ tax aftermath. The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to help Americans cope with the pandemic’s economic impact. Donald J. Trump signed the $2.2 trillion economic stimulus bill into law on March 27, 2020. The CARES Act was known primarily for the first round of cash payments sent to individuals and families during... Read more →
Or, consider postponing your filing by asking the IRS for more time. Tax Day is fast approaching, but you’re still waiting for a key tax statement. Most of these documents — notably W-2 and/or myriad 1099 forms — were required to be issued by Jan. 31. Even given issues with the U.S. Postal Service, it’s well past time for the material to have arrived. So, what now? Call you’re the issuer: Yes, time is running out, but if you haven’t already, contact your employer about your W-2 or the company that issued the 1099. If you have already reached out,... Read more →
Most of these birthday celebrants at an Austin-area senior citizens' center are enjoying the shared festivities. Maybe the man on the right is worried about his upcoming RMD. (Photo by Kay Bell) Did you celebrate your 73rd birthday last year? Congratulations and belated best wishes. The Internal Revenue Service also applauds your milestone, but partly for selfish reasons. Individuals who have certain tax-deferred retirement plans must start withdrawing some of those funds and pay tax due on the amounts once they turn 73. These required minimum distributions (RMDs) are annual. But you can delay your first withdrawal until April 1... Read more →
Feeling flush thanks to your tax refund? If you’re looking for ways to spend it, here are some suggestions. (Photo by Karolina Grabowska) By mid-March, the Internal Revenue Service had sent out almost $163 billion in tax refunds. The average refund amount was $3,271. That's a nice chunk of change. Even if your refund isn't quite that large, or is more, when the money arrives comes the decision on how to use it. Most people already have ideas of what to do with their cash back from Uncle Sam. Some have already put those plans into action. But just in... Read more →
Photo by Polina Tankilevitch Special needs individuals and those who work with them are understandable concerned about many of the changes being made or proposed by the Trump administration and its Department of Government Efficiency (DOGE) henchmen partners. But the Internal Revenue Service, even though it is dealing with its own DOGE issues, is reminding people with disabilities of how an Achieving a Better Life Experience, or ABLE, account can help. The accounts were created in 2014 by the eponymous Achieving a Better Life Experience (ABLE) Act, a federal law that allows states to create tax-advantaged savings programs for eligible... Read more →
Photo by Kay Bell Spring has sprung, with the accompanying seasonal focus is on spring cleaning. One of our neighbors is focusing on sprucing up their yard. The pile of dirt in the street, shown in the photo topping this post, is now being transferred to flowerbeds. So, of course, it got me thinking about taxes. While this household and other people on our block pay crews to mow their lawns even in the dead of winter (go figure), landscaping generally is seasonal work. These companies tend to make most of their income during the warmer months of the year.... Read more →
Photo by Philipp Deus Every taxpayer and tax circumstance is unique. However, there are some things that trigger trained Internal Revenue Service examiners. As you’re finishing up your 2024 tax return, take another look to see if any of the 10 situations items show up on your Form 1040. They don’t guarantee that your return will be pulled for further attention and possibly a full-blown audit. But they could cause the IRS to conduct a correspondence audit, which is sending you a notice asking for clarification about a questionable item on your return. 1. You have income other than basic... Read more →
Some victims report losing more than $10,000 to more sophisticated tax cons. Photo by Nataliya Vaitkevich With Tax Day less than a month away, taxpayers are getting busy. So are the scammers who are hoping that they can intercept some of the money or personal data that filers meant to send to the Internal Revenue Service. Such deceptive activity isn’t anything new. What is different this tax season is that tax crooks are taking advantage of artificial intelligence (AI) to create even more convincing schemes. AI upping tax scammers' games: Sure, some tax crooks on a budget still send out... Read more →
Instead of my usual weekend watching of sports, I’m glued to the Weather Channel. There’s a dangerous and already deadly tornado outbreak rumbling across the south this afternoon. This year is turning out to be awful as far as severe weather and other disasters. We had Southern California’s wildfires in January. In February, a severe winter storm wreaked havoc and left parts of Kentucky and West Virginia deemed major disaster areas. Now, with spring officially here, the severe thunderstorm/tornado season is off to an unfortunately robust start. Billion-dollar disasters in 2024: All this is happening on the heels of a... Read more →
Major flooding in Hazard, Kentucky, in February led to Perry County being declared a major disaster area. It’s just one of the counties in the Bluegrass State where residents are now eligible for tax relief. You can watch the video from which the screenshot above was taken at Live Storms Media's YouTube channel. We’re just more than a month away from the April 15 filing deadline, but some taxpayers will have until Nov. 3 to finish their 2024 returns. They live in areas of Kentucky and West Virginia that were pummeled in mid-February by a severe winter storm that move... Read more →