Weekly Tax Tips 2016

Whew! Finally. Tax Day 2016, which was pushed to April 18 this year -- the 19th for you filers in Maine and Massachusetts -- has come and gone.

Wait. You say you're not done yet? That you got an extension to file your return?

Me, too.

But we're all OK because when we sent in our Form 4868, we paid any tax we guesstimated we owe. Right? Right.

And we also have a couple of more days to meet our new, six-months-later deadline. Since the regular Oct. 15 due date this year is on a Saturday, we have until Monday, Oct. 17, to complete our 1040 forms.

So take a breath. But not too deeply or for too long.

I've postponed my own filing until the very last minute before, but I don't recommend it. Just because you have until mid-October to file, you don't have to take all that time.

As soon as you're energized and ready to finally tackle your filing, the 2016 edition of Weekly Tax Tips is here to help.

As in previous years, a new piece of tax advice will be featured each Wednesday in the upper right corner of the ol' blog.

Many of the items will be aimed at helping those of us who've yet to file. Others focus on ways to reduce our already accruing 2016 tax bills. Either -- or both! -- ways, stick with the ol' blog. The tips will continue through Dec. 28, the last Wednesday of the year.

A stray weekly tip or two also might show up in the opening week/weeks of January 2017 before I transition to the New Year's tax filing season and the return of the 2017 Daily Tax Tips.

Sorry. Didn't mean to rush us through the next eight months. Let's get back to this year and the 2016 Weekly Tax Tips.

3 costly tax penalties -- Did you miss the April 18 (or the 19th if you live in Maine or Massachusetts) tax-filing deadline? If so, you could face one (or more!) of these tax penalties. (April 20, 2016)
Dealing with a wrong refund -- Your refund finally arrived, but it's not what you expected. Now what? If it's larger than you expected, you're probably fine spending it. If it's less than you calculated, the Internal Revenue Service should send you a notice detailing the adjustments. (April 27, 2016)
Tax record keeping tips -- You're done with your taxes for another year. Now it's time to get your tax records in order. (May 4, 2016)
Don't fear these 6 tax terrors -- Taxes can be scary, not just on the upcoming Friday the 13th, but every day. Here's how to take the fear out of six frightening tax situations. (May 11, 2016)
Getting tax credit for day camp costs -- School's out for the summer! Kids' joy, however, poses day care problems for mom and dad. Day camp could be a solution that makes everyone happy. Plus, the costs could be used to help you claim the child and dependent care tax credit. (May 18, 2016)
10 states with highest gas taxes -- Memorial Day weekend marks the start of the summer vacation season. If you'll be traveling by car, be ready for higher pump prices in these 10 states with the highest combined federal and state gasoline taxes. (May 26, 2016)
Tax help for disaster losses -- June 1 is the official start of hurricane season. If you sustain damages from a tropical system this summer or any other major natural disaster year-round, you might be eligible for special tax consideration. (June 01, 2016)
Reporting gambling winnings -- The Belmont Stakes is this weekend. The NBA and NHL championship games are under way. And let's not forget the still growing Mega Millions and Powerball jackpots. If you buy a lottery ticket (or two or …) or bet on sporting events, any winnings are taxable income. (June 08, 2016)
How to adjust your withholding -- If this filing season you end up owing the IRS a lot or getting a big refund, it might be time to adjust your payroll withholding. It's easy to do. (June 15, 2016)
9 tax tips for members of the military -- Members of the armed forces face many challenges, including filing taxes. These tips could help make the tax job easier. (June 22, 2016)
Tax breaks for life's big events -- Were you a June bride? Weddings, as well as babies, job changes and other major changes to your life usually have tax implications. (June 29, 2016)
Kids, summer jobs and taxes -- Summer employment is a time-honored coming-of-age tradition. It also could have tax consequences for young workers. (July 06, 2016)
10 money-saving midyear tax moves -- With the year half over, now's the perfect time to take some tax steps that could lower your 2016 IRS bill. (July 13, 2016)
Summer is sales tax holiday time -- This year, 17 sales tax holidays are scheduled, spanning anywhere from a couple of days to more than a week. Most are in August and hyped as back-to-school shopping events. But be careful, or you could pay more than you get in sales tax savings. (July 20, 2016)
Tax benefits of short-term rentals -- Planning to rent your vacation home or primary residence? Lots of folks become short-term landlords during special events, like music festivals or major sports matches. The rent you collect in these cases could be tax-free if you follow IRS rules. (July 27, 2016)
5 higher taxes for wealthy taxpayers -- It's not a good time to be rich when it comes to taxes. Wealthy taxpayers now face several higher taxes thanks to special tax law changes. (Aug. 3, 2016)
Sports, gambling and taxes -- Sports offer gamblers myriad ways to place bets, including the growing online fantasy sports games. But regardless of how you wager on athletic events, winnings count as taxable income. (Aug. 10, 2016)
A quick lesson on education tax breaks -- College costs increase every year, but your Uncle Sam can help you pay for some of those expenses with tax credits and deductions. Some education tax breaks even cover pre-college school costs. (Aug. 17, 2016)
Deducting moving expenses -- Uncle Sam will help pay some of your moving costs if you relocate for work and follow Internal Revenue Service rules. (Aug. 24, 2016)
Tax benefits of a Coverdell account -- This oldie-but-goodie tax break doesn't offer a lot of tax dollar savings, but it's one of the more flexible education tax breaks. (Aug. 31, 2016)
Child and additional child tax credits -- Your children can be a credit to you literally at tax-filing time. But this tax claim also could delay issuance of your refund in 2017. (Sept. 7, 2016)
Expect earned income tax credit refund delays -- Lower and middle income workers might be eligible for this refundable tax credit. But beginning with the 2017 filing season, EITC filers will have to wait longer for their money. (Sept. 14, 2016)
When it's OK to tap your IRA -- Sometimes you need to take money from a retirement account before you hit retirement age. Here are instances when the IRS will let you do so without paying an early distribution penalty. (Sept. 21, 2016)
Fix tax mistakes with amended return -- You filed your taxes months ago, but you just discovered a mistake on your return. You can fix it by filing Form 1040X. (Sept. 28, 2016)
Taxable Social Security benefits -- Many older Americans rely on federal retirement benefits. But if you have other income, some of your Social Security, like Vice President Joe Biden's benefits, might be taxed. (Oct. 5, 2016)
10 common tax mistakes -- The final 2015 tax return filing deadline is almost here; that's Oct. 17 for most procrastinating taxpayers, unless you're in some presidentially declared disaster areas. If you're pushing this deadline, be sure you don't make one of these errors. (Oct. 12, 2016)
How to get tax help for disaster losses -- Thousands are cleaning up after Hurricane Matthew. The tax code offers special help for them and others in major natural disaster areas. (Oct. 19, 2016)
Don't let candy taxes scare you -- Halloween is almost here. Do you have enough treats to fend off tricksters? Depending on where you live, you might need to budget a few more bucks to cover the sales tax on candy. (Oct. 26, 2016)
Seasonal work tax considerations -- The holiday shopping season is a good time to get a temporary job. It means extra cash to pay off debts or splurge on gifts. But it also can mean extra tax issues depending on whether you're hired as a contractor or employee. (Nov. 5, 2016)
Tax tips for members of the armed forces -- As we honor our former military members on this Veterans Day, here are some tax tips for the men and women still in uniform and on active duty. (Nov. 11, 2016)
12 year-end tax moves -- Another year is almost over, but there are still some tax tasks to take care of by Dec. 31. Here are a dozen that might help you save some money at filing time or before! (Nov. 16, 2016)
Tax help for helping an aging parent -- Take time over the Thanksgiving holiday to check on aging parents. If you discover mom and dad need assistance, there are some tax breaks that could help you help them. (Nov. 23, 2016)
Charitable donation, tax deduction rules -- After giving our personal thanks on Thanksgiving Day comes the season for sharing our bounties. With the holiday giving season now underway, be sure you know the current tax rules for giving and getting a deduction for your donations, and the possible changes ahead. (Nov. 30, 2016)
5 tax security tips -- The Internal Revenue Service and its Security Summit partners are hoping you can take a break from holiday shopping and celebrating for a week full of early tax season security tips. Plus, some of the ways highlighted during the inaugural National Tax Security Awareness Week to protect yourself from tax scammers and identity thieves also work for your online shopping security. (Dec. 8, 2016)
Comparing HRAs, HSAs and FSAs -- Some folks might soon be able to utilize a Health Reimbursement Arrangement, or HRA, thanks to the enactment of the 21st Century Cures Act. Here's a look at that health care account and how it compares to two other tax-related medical acronyms, the Health Savings Account, or HSA, and Flexible Spending Account, or FSA. (Dec. 15, 2016)
Avoid these 8 investment tax mistakes -- Annual evaluation and realignment of your portfolio is a good idea. But these eight tax mistakes could undermine your investment strategy and cost you earnings and taxes. (Dec. 21, 2016)
4 popular tax breaks end Dec. 31 -- There are fewer tax extenders, those temporary laws that Congress must renew (or extend, hence the name), this year. Many extenders were permanently put in the tax code last December. But some popular, and tax-saving, extenders for homeowners and students will expire this Dec. 31. Will they make it into expected 2017 tax reform or disappear forever? (Dec. 28, 2016)

Did you miss some tips posted earlier this year? No worries. You can find all the 2016 Daily Tax Tips on their monthly pages: January, February, March and April. They're also collected in handy weekly tip roundups.

And the new batch of Daily Tax Tips will return when the 2017 tax filing season arrives next January.

Today's Tax Tip

10 December tax moves — I love Santa Claus, but even the Jolly Old Elf isn’t magical enough provide the tax solutions you asked for in your letter to him. You’re going to have to make some tax moves this December yourself, like these 10 suggestions. (Dec. 1, 2024)
The 2024 Tax Tips offer ways to file your annual return, along with post-filing advice, important tax news and, of course, ways to cut your current tax year bill. You'll find the monthly assemblages on their own respective pages: January, February, March, April, May, June, July, August, September, October, November and December. Remember, tax tasks and tips don't stop after you file your annual return!

All About Kay

OK, some about Kay

Kay Bell — Native Texan
(the blog title totally makes sense now, right?). Professional journalist. Tax geek.
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Tax Season 2024 Final Push

It's over! The final 2023 tax year extended filing deadline has passed, unless you get more time because your filing due date was extended further by a natural disaster like the three hurricanes that have made landfall in Florida this fall.

For most of us, though, the passage of Oct. 15 means it's time to focus on the tax return we'll file next year. We have until Dec. 31 this year to make moves that will reduce our already accruing 2024 tax bill. The monthly tips and reminders a little further down this column suggest ways to do just that.

Finally, keep an eye on the countdown clock just below. It's keeping track of just how many days are left for us to make these tax moves.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

Ho 🎅 Ho 🎅 Ho!
December is here!
You better watch out. You better not cry. But you better make some year-end tax moves this December or next April 15 could turn out to be the tax equivalent of Santa Claus putting coal in your stocking.

Click image to hear a musical Santa message from The Boss, Bruce Springsteen.
OK, St. Nick can't deliver a festively wrapped, already prepared tax return for you (unless he's even more magical than I think!) to file next year, but he does have a tax connection.
Santa's tracking of naughty and nice boys and girls basically is the same method that the Internal Revenue Service uses. That's why we all need to be nice, especially to ourselves, in this final month of the year by making some important tax-saving moves. Let's get to it!
Dec. 1: It’s here. The last month of the year, meaning the last 31 days to make tax moves that could shave some off your 2024 tax bill, as well as set up 2025 as another saving, and easy, tax year. You could make things even easier on yourself if you opt next filing season to turn over your taxes to a professional. The key is picking the perfect tax pro for your filing (and more) needs. And you need to start your search now, as the good tax pros’ client lists fill up fast. If you can hire one soon, there’s a December bonus. You might get some year-end tax tips!

Dec. 4: In the meantime, check out these 10 tax moves to make in December. They could be the perfect tax present to give yourself.

Dec. 10: Do you work as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation? I hope you get all the tips you deserve for doing your job well. Remember, though, that those tips are taxable income.

Whether you're dining at your favorite eatery or getting food delivered to your home, if a tip isn't included on your restaurant or delivery bill, click the image above to calculate how much to tip the person who brought it to you.

And if you got at least $20 in gratuities in November for your extraordinary services as a food server or hair stylist or parking valet or whatever job where tipping is common, you must report that amount by today. Use Form 4070 to let your employer know the total tips you took in last month.

Dec. 13: It’s the holiday season, full of joy and peace and goodwill toward all. So what the heck is a Friday the 13thh doing in December? Don’t worry, as least not about tax fears and superstitions. Check out the tax truth about these 13 tax misperceptions. They’ll help get you through today and help you be a fearless taxpayer year-round.

Dec. 15: Christmas is just 10 days away! If you're still shopping for gifts, you're probably searching for the perfect present online. But beware and be wary. Internet crooks also are logged on, looking to steal your money and identity. Many of the holiday scams use the same techniques as tax scammers employ. Any personal information they get now can be used at tax time to file a fake return in your name and claim a fraudulent refund. So be careful out there, now and next filing season, and, well, unfortunately all the time.

Dec. 19: Are you taking on multiple gig jobs to make some extra holiday cash to pay for all those online orders? Those added side hustles mean you're an independent contractor. And that means you're responsible for paying income taxes due on the money, as well as any self-employment tax. In most cases, that means paying estimated tax on these end-of-year earnings by Jan. 15, 2025, to avoid a possible penalty for not paying as you earned the money.

Dec. 23: It's Christmas Week! That means holiday treats, final decorations — or first, if you wait until the very end to get a tree — and frantic last-minute shopping! Rather than worry about how you'll get the perfect gift under the tree on time, consider instead giving some easy tax-favored presents. Open a Roth IRA for your child or grandchild who earned some money this year. Or pay tuition by Dec. 31 for classes that will start in the first quarter of 2025.

Dec. 24: Christmas Eve!
No taxes tonight. It's early to bed for kiddies of all ages. Santa's on his way!

Click image to watch NORAD track Santa's Christmas Eve delivery route.

Dec. 25: Merry Christmas! My gift to you is another day without tax thoughts.
Just enjoy the holiday and your family and friends.

Dec. 26: Happy Boxing Day. This unofficial holiday on St. Stephen's Day is celebrated by additional giving.
If you donate to your favorite charity on this Boxing Day or any other day by Dec. 31, on your 2023 taxes you'll have to itemize your gifts on Schedule A to claim them. If you don’t have enough expenses to exceed your standard deduction amount this tax year, consider delaying your charitable contributions until early January as part of a tax deduction bunching strategy.

Dec. 31: This is it. The drop-dead deadline to make most 2024 tax moves. A quick and easy action today is to zero out your medical flexible spending account (FSA) by buying over-the-counter medications for which the funds can be used. This is especially important if your employer doesn't offer a grace period to use the money or let you roll some FSA money over into 2025. Without those alternatives, you'll lose any FSA funds you don't use.

Done? Great! Make sure the champagne is chilling and settle in for your New Year's Eve party or a cozy night at home with your friends and loved ones. Either way, cheers and Auld Lang Syne as the ball drops at midnight.

Small Business Tax Calendar: Important filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS' online calendar page and view the full year's important business and individual tax dates in IRS Pub. 509.

State Tax Help

Don't forget your state taxes!
Forty-three states and D.C. collect personal income taxes. But even if you live in of the seven states without an income levy, you still face other state (and local) taxes.

State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.

Tax Forms

Thanks to our increased use of tax preparers and computer software, many of us don't see our tax forms until we sign and file them. But knowing what's on these documents, either in paper or digital form, and why the IRS wants it is key to understanding our tax system. And knowledge definitely is power, especially when it comes to tax savings. Find this valuable information in the ol' blog's special Tax Forms 2024 page.

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I gotta tell ya ...

AKA Disclaimer:

I am a professional journalist who has been covering tax issues since 1999. I am not a professional tax preparer.

The content on Don't Mess With Taxes is my personal interpretation and opinion based on my study and understanding of tax laws, policies, and regulations. It is provided for your private, noncommercial, educational, and informational purposes only. While I work to ensure each post's accuracy, the items are not recommendations of any specific tax action(s) you should or should not take. Similarly, mentions of commercial tax products or services are not endorsements.

In other words, my ramblings on the ol' tax blog are free advice, and you know what they say about getting what you pay for. That's why when it is time for you to file your own taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent, or other reputable, qualified tax preparer who is familiar with your individual tax circumstances.

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COVID-19 & Taxes

Coronavirus has wreaked havoc
on the 2020 and 2021 tax seasons.
These five Coronavirus (COVID-19) and Taxes pages have details:
March-July 2020
August-December 2020
January-December 2021
January-December 2022
…and so it continues into 2023
…and, alas, into 2024
You can find medical coronavirus resource links in the next section.

COVID-19 Resources

Need help finding a coronavirus vaccine in the United States?
Call 1-800-232-0233
or TTY 1-888-720-7489.
More information and resources at:
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HHS Combat COVID
USA.Gov COVID Info

December 2024

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Tell it to the Hill

While it's easy to rail at the IRS, for the most part we can thank — or blame — Congress and the White House for our tax laws. So if you have an issue with tax legislation or want a tax bill passed, you need to let your federal legislators and the White House occupant know of your concerns. You can find out who in Washington, D.C., to contact (and how), as well as get information on your local lawmakers for matters, tax or otherwise, closer to home, at USA Gov.

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