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Weekly Tax Tips 2017
The tax road goes on forever and the tax party never ends

 

Welcome to 2017's post-tax party, where we're celebrating the end on April 18 of the main filing season. 

Tax_tip_icon_pencil_point2Wait. You say you're not done yet? That you got an extension to file your return?

Yeah, me too.

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

And now we have until Oct. 16 to meet our new filing deadline. Yes, you read that right. It's Oct. 16 instead of Oct 15 since the regular six-more-months due date is on a Sunday this year.

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

While we've got more time to finish our 2016 taxes, that new deadline will arrive before we realize. Trust me. I'm a filing extension veteran and I know of what I speak. And my best advice is not to procrastinate until the absolutely, positively last tax-filing moment.

And if you have already filed, good for you. Remember, though, that your 2017 tax tab has been running since Jan. 1.

Once-a-week tax advice: Sorry to be a tax party pooper, but that's something we need to thing about, too, even if we're still working on last year's return. And here at the ol' blog, I've got your back regardless of exactly where in the filing process you are with Weekly Tax Tips.

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 for the majority of taxpayers who are done with last year's taxes and are looking for ways to trim this year's tax bill. A few, though, will be aimed at helping those of us who've yet to file do so, especially as October nears.

Either way, the once-a-week tax tips will continue through Dec. 27, the last Wednesday of the year.

A stray weekly tip or two also might show up in the opening week/weeks of January 2018 before I transition to the New Year's tax filing season and the return of the 2018 Daily Tax Tips.

But wait. I'm getting a bit ahead of myself. Let's get back to this year and the 2017 Weekly Tax Tips.

  1. Tax issues for tippers and recipients — Whether you leave a tip for good service are the one who earns the gratuity, you could encounter some tax issues. (April 26, 2017)
  2. Tax record keeping tips — You're done with your taxes. Now it's time to store those key filing records. Why? Well, there are many reasons, but the key one is in case you're audited. So start sorting and saving! (May 3, 2017)
  3. Refund wrong. What now? — Your refund from Uncle Sam finally arrived, but it's not what you expected. Now what? Here's how to handle a tax check form the Internal Revenue Service that's too big (yay!) or too small (boo!). (May 10, 2017)
  4. Day camp counts toward child care tax credit — Whew! You got your kids into their favorite day camps. Now hold onto those receipts. Day camp costs count toward claiming the child and dependent care tax credit. (May 17, 2017)
  5. 7 property appraisal appeal tips — Homeowners want their homes to appreciate in value when they get ready to sell, but not so much when the tax appraiser comes around. That official value of your home could be too high, meaning your property tax bill also will be inflated. These steps, however, could help you appeal your appraisal and lower your real estate taxes. (May 24, 2017)
  6. 529 plans perks and pitfalls — Looking for a good gift for a high school graduate? Contribute to the soon to be college student's 529 plan. This tax-advantaged college savings account can help them cover many higher education costs. But beware of potential pitfalls, especially when withdrawing the money or applying for financial aid. (May 31, 2017)
  7. Education tax breaks overview — The high school diplomas have been handed out and mortar boards tossed in celebration. Now it's time to think about college and how to pay for it. Your Uncle Sam can help, thanks to a variety of tax-favored educational tax breaks. (June 7, 2017)
  8. The scoop on paying estimated taxes — The U.S. tax system is based on Uncle Sam getting his cut as you earn your money. Millions make sure that happens by paying estimated taxes four times a year. Here's the scoop on the estimated tax system, with an eye on the looming June 15 deadline. (June 14, 2017)
  9. 10 tax tips for newlyweds — After saying "I do," newly married couples face a list of tax to-do's, too. Here are 10 tax things couples who are planning their weddings or who have already exchanged vows should think about. (June 21, 2017)
  10. Deducting moving expenses — Americans have always been mobile. Our restlessness is even encouraged somewhat by the Internal Revenue Code, which offers a tax deduction for moving expenses. (June 28, 2017)
  11. Teens, summer jobs and taxes — Summer employment is a time-honored coming-of-age tradition for teenagers. It also could create tax consequences — and opportunities — for young workers. (July 5, 2017)
  12. Higher fees to set up tax installment plans — Taking a tip from tax-owing boxing champ Floyd Mayweather and looking to pay off your Internal Revenue Service bill over time? Take note of the new, and sometimes dramatically higher, IRS installment payment plan fee hikes that took effect this year. (July 12, 2017)
  13. Tax breaks can help cover adoption costs — If your family is growing via adoption, be sure you take advantage of the tax breaks — tax-free financial help from your employer and/or the adoption tax credit — that can help you cover the often high costs of this legal process. (July 19, 2017)
  14. Back-to-school tax holiday season in full swing — Tax holidays aren't good tax policy, but they're popular with shoppers. The 2017 back-to-school versions of these shopping events are underway. Find out if your state is one of the 16 this year with such events and if so, when you can shop and save. (July 26, 2017)
  15. Income, timing affect capital gains tax bill — Investors must weigh many factors, not just a surging stock market, when selling assets. A key consideration is tax ramifications. What you owe Uncle Sam in capital gains tax depends not only what to sell, but when you sell and your overall adjusted gross income. (Aug. 2, 2017)
  16. Hobby or business: Either way, income is taxable— Good news, you’re making a few bucks off your hobby. Bad news, that money is taxable income. And if you’re earning a lot on your avocation, maybe it’s time to consider turning it into a real business. You’ll still owe taxes, but you then can take advantage of expense deductions that could reduce the tax bite. (Aug. 9, 2017)
  17. The importance of taking a pre-disaster inventory — We’re about to head into the heart of the Atlantic hurricane season. That means it’s time to get ready, including taking a thorough inventory of your personal and business belonging. This information is critical if you must file insurance and subsequent tax loss claims related to a tropical storm or any other disaster. (Aug. 16, 2017)
  18. Why and how to adjust your withholding — Did you get a big refund this year? Or owed Uncle Sam more than you expected when you filed your Form 1040? Then it's time to adjust your payroll withholding. (Aug. 23, 2017)
  19. Getting tax help for disaster losses — Hurricane Harvey is still wreaking havoc, but some folks in hard-hit Texas are starting to dig out. The tax code can help by letting you claim some of your natural disaster losses. (Aug. 30, 2017)
  20. Recreating tax records — Records, tax and financial, are often among the property damaged or destroyed in a natural disaster. If you lost, or never kept, these documents, you'll need to recreate them to take advantage of tax-related storm relief. (Sept. 6, 2017)
  21. Digitize your tax records — Are your tax records out of control? Digitize them. Electronic records free up physical storage space and generally are easier to organize and retrieve. That could be important if you ever have to produce them to prove to the Internal Revenue Service that your filing was correct. (Sept. 13, 2017)
  22. Beware of charity scams in the wake of disasters — The train of tragedies just keeps rolling. In the United States alone this September, we've had back-to-back major hurricanes hit the mainland, not to mention another Cat 4 raking U.S. island territories and two deadly earthquakes in neighboring Mexico. The calls for help are coming nonstop and the good-hearted are still giving to relief efforts. Be careful, though, that you don't fall for fake charities. (Sept. 20, 2017)
  23. Tax deduction rules for international donations — Disasters are global. If you want to give to a charity based in another country to help victims there, good for you. But don't count on taking a tax deduction for your international gift. (Sept. 27, 2017)
  24. 5 tips for choosing workplace benefits — October is the start of open enrollment season at most U.S. companies. Here are some things to consider as you pick your employer-provided benefits, many of them with specific tax savings, for the coming year. (Oct. 4, 2017)
  25. 10 tax extension filing tips — Are you one of the millions of taxpayers who got a six-month extension to file last year's tax return? If so, your time is almost up. Your 1040 must be e-filed or postmarked by Oct. 16; that's a day later this year since Oct. 15 is on Sunday. These 10 last-minute filing tips could help you get the job done and save some tax dollars. (Oct. 11, 2017)
  26. 5 amended tax return filing tips — If you discover you made a mistake on a tax return, it's a good idea to file an amended one, even if it means your tax bill is a bit bigger. These tips can help you get your 1040X just right. (Oct. 18, 2017)
  27. 2018 income tax brackets — The 2017 tax year still has two months left, but every fall the Internal Revenue Service announces tax provisions for the next year that are affected by inflation. You can find those changes as blog posts in a 10-part tax inflation series. The first post, which contains links (or will as soon as they're posted) to the other nine, has details on 2018's tax rates and brackets. (Oct. 25, 2017)
  28. Avoiding estimated tax penalties — Paying estimated taxes is hassle enough, but if you mess up your quarterly amounts, you could face a penalty. Here are some ways to avoid owing the Internal Revenue Service more than what's due on your 1040-ES vouchers. (Nov. 1, 2017)
  29. Ways to cut your tax bill — Now that it looks like the GOP tax reform plan will take effect in 2018, it's time to look at ways to reduce your 2017 taxes. In addition to the end-of-year tax tips featured in my post for MoneyGeek, also check out some additional November tax moves to make. (Nov. 8, 2017)
  30. Tracking tax reform 2017 — With House passage on Nov. 16 of the Tax Cuts and Jobs Act, Congress seems to be closer than it's been in 31 years to making major changes to the Internal Revenue Code. But nothing's final until a bill is signed into law. Track the different tax bills and their legislative progress with this collection of tax reform blog posts. (Nov. 16, 2017)
  31. Do mom and dad need help? — A lot of adult children are seeing their parents for the first time in months (years?) over the Thanksgiving holiday. It's a good time to gauge whether they need some help dealing with financial and other responsibilities. Here are some areas to consider in assessing aging parents' needs. (Nov. 23, 2017)
  32. 4 tax tips for gig workers — Have you joined the gig economy, at least during the holidays to get a little extra cash for gifts? Then you have some new tax considerations as a self-employed contractor in the sharing economy. These tips will help you legally hold on to more of your side hustle cash and keep the IRS happy, too. (Nov. 29, 2017)
  33. 10 tax moves to make by Dec. 31 — December's arrival means that it's time to make some year-end tax moves. This year, several traditional tax-saving steps take on new urgency since they could soon be gone under tax reform legislation nearing enactment. (Dec. 6, 2017)
  34. 5 ways to spend FSA money — If you have a medical flexible spending account (FSA) with a Dec. 31 use-or-lose deadline, get to your pharmacy now! Here are 5 ways to spend your FSA money so that you don't waste it. (Dec. 13, 2017)
  35. Buy a car by Dec. 31 — If you claim state and local sales taxes as an itemized deduction, buying a car or other vehicle could boost that Schedule A tax write-off. But act soon. Thanks to just-passed tax legislation, many filers will find that 2017 is the last tax year for a while that this deduction will be worthwhile. (Dec. 20, 2017)
  36. An overview of the coming 2018 tax law — The bill formerly known as the Tax Cuts and Jobs Act is now law and will mostly affect 2018 taxes. But there are some provisions that could make a difference on 2017 returns. This index of recent tax reform posts gives you an idea of what's in the law and what the changes could mean for you now and next year. (Dec. 27, 2017)
  37. No need to re-do your W-4 — It's a new year with new tax laws. You might eventually need to adjust your withholding allowances to account for 2018's new tax rates and income brackets. For now, though, the IRS says workers' current W-4 data will work for calculating payroll withholding amounts under the new law. (Jan. 3, 2018)

That's it for the 2016 tax year and 2017 filing season, with a preview (thanks to tip #37) of 2018. We made it!

And for all y'all still working on needing to amend your your 2016 taxes, you can always get help by checking the 2017 Daily Tax Tips collected on their monthly pages: January, February, March and April.

Today's Tax Tip

  • Shopping tips for August's 16 back-to-school tax holidays — Is your state one of the 16 holding a sales tax holiday this month? Before you head out to make tax-saving purchases, check out these 6 shopping tips. They could help you make the most of your state's no-tax August event. (Aug. 5, 2022)
  • Tax Tip; click pencil for all tax tip links

  • The 2022 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!

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-… 2022
    You can find medical coronavirus resource links further down this column.

All About Kay

  • OK, some about Kay
    Open sign
    Kay Bell — Native Texan (the blog title totally makes sense now, right?). Professional journalist. Tax geek.

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Tick ... Tick ... Tick

  • Tax Season 2022 continues!

    Tax Day 2022 is finally over … unless you're one of the millions who have more time to file — looking at you taxpayers abroad and those in major disaster areas — or you got an extension to file your 2021 tax year return. That's fine. In fact, the Internal Revenue Service appreciates some of us spreading out our filings, especially when we and the agency still are dealing with all the complications of COVID-19 and taxes.

    That's why the ol' blog's focus now is on all y'all still working on returns. But I haven't forgotten my organized taxpayer readers, who are already looking for ways to reduce their 2022 tax year bills. Yep, that amount is adding up, but there are moves you can make. The monthly tips and reminders a little further down this column can help everyone, regardless of which tax year you're working on.

    Those on extension should keep a keen eye on the countdown clock below. It will help you track the days tick, tick, ticking off toward that absolutely final fall filing due date of Oct. 17. Yep, it's a few days later this year.
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.


Time for Tax Tasks


  • monthly tax moves


  • The Dog Days of Summer
    are here!

    For many of us, that means taking it easy like the pup below during these hot, sultry August days as summer winds down.

    via GIPHY


    But we can't dog it too much.
    Making some potentially money-saving tax moves this August can really pay off. So let's get to it!


    Aug. 1: School soon will be back in session. That means students need supplies. Good news for them and their parents: this month 15 states are holding back-to-school sales tax holidays. These no- or reduced-tax events are in Arkansas, Connecticut, Illinois, Iowa, Maryland, Massachusetts, Missouri, New Jersey, New Mexico, Ohio, Oklahoma, South Carolina, Texas, Virginia, and West Virginia.

    Aug. 5: The tax holidays will help ease the high cost of school supplies and other qualifying purchases a bit, especially in these inflationary times. But some taxpayers are agetting more help. Sixteen states are issuing inflation relief payments. If you're in one of them, make sure your state tax department has your correct information, since that's how most of the inflation aid money will delivered.

    Aug. 10: Restaurants are still recovering from the challenges of operating during a national health crisis, especially now that new COVID-19 variants are spreading. If your favorite eatery is now seating diners indoors, still take precautions, aka mask on until that meal arrives, please! If you're still doing take-out and deliveries, those business owners appreciate that support, too. And regardless of whether you're eating out or still getting food brought to your house, remember to tip your server or delivery person.

    restaurant check tip iStock
    If a tip isn't included in your food delivery charge, click the image above to calculate how much to tip the person who brought it to you.

    As for servers who now are back on the job, remember that your tips are taxable income. If you worked at least some of July at a job where you got gratuities, you need to account for them today if they came to at least $20 last month. Use Form 4070 to report your tips today to your employer.

    Aug. 17: Did you get an extension back in April to file your tax return this fall? Well, that new due date — Oct. 17 — is now just two months away. But you don't have to wait until that day is, well, just days away. You can get to work on your tax paperwork now and be done with it any time before then.

    Whenever you do get around to finishing your tax return, the IRS recommends you do so electronically. Check out ways to e-file at no cost, including via Free File, which is, as its name says, free. The official electronic filing webpage is Free File on IRS.gov is available to qualifying taxpayers until midnight, Eastern Time, on Oct. 17.

    IRS Free File; click image for details

    Free File this year is available for taxpayers whose adjusted gross income is $73,000 or less. That income level applies to all filing statuses. This year, 8 software programs are available to eligible filers. Spoiler: The two biggies, Intuit's TurboTax and H&R Block, are not among the choices. The two leading tax prep programs decided to end their participation in the program.

    Aug. 22: The early part of the 2022 Atlantic/Gulf of Mexico hurricane season was, thankfully, not that bad. But August is when things tend to literally start heating up. The National Oceanic and Atmospheric Administration's (NOAA) National Hurricane Center says that most tropical storm activity occurs between mid-August and mid-October. If you haven't yet prepared — physically, financially, and tax wise — it's time to do so

    Hurricane satellite image

    Uncle Sam's official forecasters at the NOAA Climate Prediction Center expect 2022 to bring as many as 21 named storms, with six to 10 possibly becoming hurricanes. Three to six of those could reach major status, which is category 3, 4 or 5 with winds of 111 mph or higher. Regardless of the count, it only takes one to wreak havoc. The countdown clock below can help you keep track of how many more days you have to worry about tracking any size or type of tropical storms.



    You also might want to check out the ol' blog's special Storm Warnings.
    These multi-page collections of posts offer tax advice on preparing for, recovering from and helping those who sustain damages from the many ways that that weather goes wild. That includes claiming uninsured losses from a major natural disaster as an itemized tax deduction.

    Aug. 26: The stock market has been up and down, then up and down, then … You get the idea. All the gyrations mean it's time to review your portfolio. Periodic rebalancing to meet your financial goals also could provide a tax break. If some of your taxable holdings have dropped in value, you can sell them and use the loss to offset other assets' gains. Remember, though that this tax loss harvesting strategy should be used only is you really want to sell the asset, not just use it to cut taxes. As the old (and apropos this month) saying goes, never let the tax tail wag the financial dog.

    Aug. 31: If you've already filed your 2020 taxes, were you surprised by either the size of your refund or how much you owed? If so, now's the time to make sure that doesn't happen next year. The IRS' online estimator can help you more accurately adjust your payroll withholding.

    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 Talking Tax Forms 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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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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