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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. 

Tax_tip_icon_pencil_point2Wait. 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.

  1. 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)
  2. 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)
  3. 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)
  4. 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)
  5. 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)
  6. 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)
  7. 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)
  8. 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)
  9. 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)
  10. 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)
  11. 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)
  12. 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)
  13. 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)
  14. 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)
  15. 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)
  16. 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)
  17. 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)
  18. 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)
  19. 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)
  20. 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)
  21. 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)
  22. 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)
  23. 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)
  24. 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)
  25. 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)
  26. 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)
  27. 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)
  28. 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)
  29. 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)
  30. 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)
  31. 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)
  32. 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)
  33. 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)
  34. 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)
  35. 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)
  36. 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)
  37. 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

  • Tax moves to make in February 2023 — February is the month when most of us focus on, or at least begin thinking about, our annual tax filing responsibility. Here are some tax moves to help with the completion of your Form 1040 in this shortest month of the year. (Feb. 5, 2023)

  • Tax Tip; click pencil for all tax tip links

  • The 2023 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
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    Kay Bell — Native Texan
    (the blog title totally makes sense now, right?). Professional journalist. Tax geek.

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Tick ... Tick ... Tick

  • Tax Year 2023 Countdown!

    Happy New Tax Year! Are you ready to file your 2022 tax return? Me neither. But at least this year we're getting some extra time to file and pay any tax we owe. Even better, it's not COVID-19 pandemic related. Tax Day 2023 is Tuesday, April 18. This later date is because April 15, 2023, is on Saturday, and the next business day, Monday, April 17, is Emancipation Day.
    When this Washington, D.C., holiday falls on the day our federal taxes are due, it bumps Tax Day nationwide to the next business day. So this year, we have until Tuesday, April 18, to finish our federal forms and, if we find we owe, come up with the money for Uncle Sam. The states that follow the federal tax calendar, which is most of them, also tend to abide by this date change.

    The countdown clock below should help us from missing out on making important tax-saving moves the rest of this year. Plus, the Tax Moves below the counter will list some timely tasks to take care this first month of 2023, and each of the remaining 11 when they arrive. They'll speed by quickly when you're having tax fun!
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.


Time for Tax Tasks


  • monthly tax moves


  • Hello February, and ❤ to our new 2023 Valentine, the Internal Revenue Service. OK, maybe love for the IRS is a little much, but we at least want to make nice with Uncle Sam's tax collector this month as it goes into the first full, albeit short, month of the tax season. That means some taxpayers will be getting their refunds in February!

    via GIPHY

    With just 28 days, it will mean some full days for both IRS employees, some of whom are still trying to catch up on that lingering COVID-19 pandemic backlog, and all of us who'll file this month. So let's not waste anymore time, and get to some tax tasks for this shortest month of the year!

    Feb. 1: Employers and other third-party payers were to have issued us our W-2 and associated 1099 forms by Jan. 31. If you're still waiting, be patient and give them a tad more time. And don't forget to check your email, as many issuers sent out electronic notices of the online availability forms and other statements you need to file your taxes instead of relying on the U.S. Postal Service.

    Feb. 2: Happy Groundhog Day!

    Fat Groundhog; click image for Groundhog Day details

    The main reason to wait for the correct tax statements is to avoid getting caught in a Bill Murray kind of tax loop, where you have to file an amended tax return because you entered wrong info on your original 1040.

    Feb. 7: Black History Month is celebrated every day this month, commemorating the achievements by black Americans and recognizing the role of African Americans in U.S. history.

    The National Association for the Advancement of Colored People (NAACP), the nation's oldest and largest grassroots-based civil rights organization, was founded on this month, specifically on Feb. 12, 1909, the centennial anniversary of the birth of Abraham Lincoln, who issued the Emancipation Proclamation twice.

    One of the NAACP's key divisions is its Legal Defense and Educational Fund.
    If you want to support the Fund's work, during Black History Month or any day of the year, you can donate to it and, since it is a 501(c)(3) organization, claim your gift as a charitable tax deduction if you itemize. Sorry, filling out Schedule A is your only option this filing season, since Congress didn't renew the option to claim cash gifts of up to $300 for single filers or $600 for married filing jointly couples directly on Form 1040.

    Feb. 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 got lots of financial thanks for doing your job well, but remember that those tips are taxable income.

    restaurant check tip iStock
    Whether you're dining in or, still COVID leery and 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.

    If you got at least $20 in gratuities in January, you must account for the tips today by using Form 4070 to report last month's tips total to your employer.

    Feb. 12: Are your ready Chiefs, Eagles, and special television commercial fans? It's finally Super Bowl Sunday! Not only will today's 57th Super Bowl decide American professional football's champion, it's also the biggest single betting day of the year. The NFL, like the other professional U.S. sports leagues, have embraced betting. Just remember, if any of your wagers pay off, you owe tax on your winnings. Note, too, that even if your winnings are part of a fantasy sports bet, the associated taxes are very real.

    Feb. 14: Happy Valentine's Day! Do you and your better half file a joint return? Most married couples do. Remember to look over the 1040 carefully before you sign it. When both spouses sign their jointly filed 1040, each is jointly and severally liable for the entire tax amount due. I don't want to spoil your Heart Day celebration, but this means the IRS can come after either spouse for payment of a tax bill, even the husband or wife who is in more dire financial circumstances.

    Feb. 15: Today is the day that the Internal Revenue Service finally can issue refunds to filers who claimed the Earned Income Tax Credit (EITC) or additional Child Tax Credit. But don't spend the money just yet. Even if you're getting your tax refund directly deposited, the IRS' general processing time plus protocols of financial institutions receiving the refunds you’re your tax cash probably won't actually show up in your account until the end of this month.

    Feb. 20: Today is one of the reasons for tax refund delays. It's the Washington Birthday federal holiday, officially honoring George Washington, the Father of Our Country. Over the years, however, this federal (three-day, yay!) holiday has come to commemorate the contributions of all our Commanders in Chief, and is popularly known as Presidents' Day. That means we've got to give another shout out to Abraham Lincoln, who essentially was father of our income tax system, signing into law a tax on earnings to help pay Civil War costs.

    Feb. 24: You're ready to work on your tax return, but you're on a budget. No worries. The IRS and its Free File Alliance partners again offer no-cost online tax preparation and electronic filing to eligible taxpayers at the IRS' special Free File web page. This year, seven tax software companies are participating.

    IRS Free File; click image for details

    The Free File income threshold this year remains at adjusted gross income (AGI) of $73,000 or less, regardless of your filing status.

    Feb. 28: Wow! February really did speed by, especially since we were having so much tax fun. Or maybe you weren't having any fun at all trying to do your taxes yourself, even with software's prompts, and have decided to turn to professional tax help. That's a smart move, and here are some tips on how to find the perfect tax professional for your filing and planning needs. Note, though, that at this point in the filing season, you're likely to be placed at the end of that tax pro's very long client queue, as reputable tax preparers' calendars fill up fast. So again, be patient. You're at least now in tax filing line.

    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

  • 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 2023 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 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. It is not a recommendation of any specific tax action(s) you should or should not take. Similarly, mentions of products or services are not endorsements. In other words, my ramblings on the ol' blog are free advice and you know what they say about getting what you pay for. That's why when it comes to filing your taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent or other qualified tax preparer who is familiar with your individual tax circumstances.

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COVID-19 & Taxes

  • COVID-19
    Coronavirus has wreaked havoc
    on the 2020 and 2021 tax seasons.
    These three Coronavirus (COVID-19) and Taxes pages have details:
    March-July 2020,
    August-December 2020,
    January-December 2021, and
    January-December 2022
    You can find medical coronavirus resource links in the next section.

COVID-19 Resources

  • COVID-19
    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:
    CDC Vaccines
    CDC Booster Shots
    HHS Combat COVID
    USA.Gov COVID Info

February 2023

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Tell it to the Hill

  • DMWT Politics Posts
  • While it's easy to rail at the IRS, for the most part we can thank — or blame — our tax laws on Congress and the White House. 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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