Weekly Tax Tips 2020 and, for now, 2021

Beyond Tax Day! Dealing with the filing extension deadline
and the tax tasks that are still ahead in 2020.

Happy New Tax Year 2021 Update: I'm a bit slow in getting the ol' blog's standing features switched over to reflect the brand spanking New Year. So until that happens (soon, I promise!), the Weekly Tax Tips in early January 2021 will be added to this list.

We did it! We made it through the delayed Tax Day 2020 of July 15. Now what?

Well, there is the Oct. 15 extension deadline, which thanks to the coronavirus tax postponements now is just three, instead of the usual six, months away.

Then there's the post-filing process.

If you filed, you need to gather up all the material you used to fill out your Form 1040 and file at least some of it away in your tax record keeping system.

If you got an extension, you need to keep all those tax statements handy so you can eventually file your return.

Bonus early tip #1: You don't have to wait until Oct. 15 to finish the job.

Bonus early tip #2: You still can find 2019 return filing tips on the ol' blog's Filing Season Tax Tips that are collected on their monthly pages: January, February, March, April, May, June and (whew!) July.

Other folks face another type of tax clean up. They need to file an amended tax return to fix some errors they discovered, maybe when sorting through all those aforementioned tax statements.

And, of course, there's tax planning for the 2020 tax year so that next year's filing process won't be as much of a hassle or as costly.

Once a week through 2020: Sorry if you're starting to freak out about taxes again, right after we've wrapped the main filing season. I didn't mean to alarm you. In fact, this page is where you'll find tips to help you get through the rest of 2020 and tax tasks you may still face.

As in previous years, a new piece of tax advice will be featured here each week, usually each Friday. I know, it's a perfect lead-in to weekend tax reading!

And again as n previous tax years, the tips collected on this special page also first will be featured in the upper right corner of the ol' blog.

Regardless of whether you're looking for some tax advice to help file your extended return or save on 2020 taxes, regularly check the top of the blog page and bookmark this one for help. The weekly tips will continue until the end of this year.

Since Christmas this year is on a Friday, and it's the last Friday of the year, I'm thinking, at least right now that the final Weekly Tax Tip of 2020 will be pushed to the following Monday, Dec. 28. That way you'll have a few business days left in 2020 to take care of what I suspect will be a reminder of year-end tax moves to make.

Also, don't be surprised if a stray weekly tip or two also shows up in the opening weeks of January 2021 before I transition to the New Year and the return of the 2021 Filing Season Tips.

But I'm getting way ahead of myself. There's lots of 2020 left. So back to now, the middle of July, and this year's Weekly Tax Tips!

Didn't file on Tax Day? Do this now — Did July 15, the COVID-19 delayed Tax Day 2020, slip by you? Don't panic. But do make these tax moves as soon as possible to stop or reduce any late-filing and non-payment penalties. (July 16, 2020)
16 states have scheduled sales tax holidays — The national debate over when and how schools will resume this fall continues as the coronavirus resurges across much of the country. Meanwhile, 16 states are counting on (hoping) things will be safe enough for shoppers to participate in their annual back-to-school sales tax holidays this summer. Alabama kicked off the tax holidays on July 17-19. Two more start the end of July, with the other 13 in August. Make your lists. Shop safely. (July 17, 2020)
Tax record keeping tips — Is all the material you used last week to file your 1040 still stacked up in a pile? Time to go through it and save the crucial tax documents. Here are some record keeping tips and what tax material to keep and for how long. (July 24, 2020)
Hurricane season heating up: Prepare now! — Hurricane season 2020 got off to an early start and as July arrives, it's picking up steam. Hurricane Isaias, the earliest "I" name since 2005, could affect Florida's east coast and then North Carolina. Time to prepare! (July 31, 2020)
Mid-August tax holiday flurry — The bulk of the 2020 sales tax holidays are the Aug. 7-9 weekend. If you head to stores in Florida, Iowa, Missouri, New Mexico, Ohio, Oklahoma, South Carolina, Texas and Virginia, be sure to follow coronavirus precautions. The same advice holds for Tennessee residents getting tax-free restaurant food and Marylanders who have a week (Aug. 9-15) for their back-to-sales tax holiday shopping. In addition to your health protection measures, safeguard your bank account with these tax holiday shopping tips. (Aug. 5, 2020 Bonus Tip)
Home office tax deduction rules — The coronavirus pandemic has meant millions of us now do our jobs from home. But that doesn't mean every new work from home (WFH) employee gets to claim the home office tax deduction. In fact, the Internal Revenue Service expressly says if you're getting a salary for your WFH efforts, you're not eligible for this tax break. Here are the other rules about who can and can't write off a home office. (Aug. 7, 2020)
Tax notice types and tips — It's rarely fun getting an Internal Revenue Service notice, but don't freak out. First, determine just what the IRS wants by looking at which type of tax notice you received. Then follow these 10 steps to deal with the tax agency's inquiry. (Aug. 16, 2020)
RMDs can be reversed by Aug. 31 — Among the COVID-19 consequences is the waiving of required minimum distributions (RMDs) for 2020. If you made a required retirement account withdrawal before this law took effect in late March, the IRS says you have until Aug. 31 to reverse that RMD. (Aug. 21, 2020)
Added COVID cash on way to some spouses and tax refund recipients — The coronavirus pandemic has royally messed up tax season 2020, but as the year winds down its effects are providing a bit more cash for some. Joint filers who filed injured spouse claims are getting catch-up COVID-19 payments. Plus, COVID-created tax refund interest payments are going to nearly 14 million filers. (Aug. 28, 2020)
Tax breaks that can help cover educational costs — If you or your parents are paying for upcoming semesters, it's time for some educational tax incentives homework. Uncle Sam's various tax-favored credits, deductions, savings options, scholarships and even employer assistance can help pay many school bills. (Sept. 4, 2020)
Tax value of your donated household goods — If you've spent at least a part of your COVID-19 self-isolation cleaning up and cleaning out your house, consider donating items you no longer want or need. They could help out your favorite charity, be welcomed by many thrift store shoppers and possibly give you a tax deduction at filing time. Just be sure to value your donated household goods accurately and fairly. (Sept. 11, 2020)
Inventory your property before disaster strikes — The historic 2020 Atlantic/Gulf of Mexico hurricane season started early and shows no signs yet of slowing, so don't let up on storm preparation. That process includes taking a pre-disaster inventory that can help when you file insurance and/or potential tax deduction claims. (Sept. 18, 2020)
Sept. 30 is dependent EIP deadline — Get government benefits? Have kids? You get one more chance to claim added COVID cash, but it expires on Sept. 30. (Sept. 23, 2020)
Small business get COVID-19 tax credit help — COVID-19 has hammered small businesses. But the coronavirus pandemic also prompted creation of the Employee Retention and Paid Sick and Family Leave tax credits that can help companies and self-employed individuals cope with the health crisis' unexpected costs. (Sept. 25, 2020)
Using medical account money to cope with COVID-19 — Does the coronavirus pandemic have you stressing? If you have a tax-favored medical savings option, such as a flexible spending account (FSA) or health savings account (HSA), those funds could help pay for ways to ease your anxiety. Here are 10 suggestions. (Oct. 2, 2020)
8 tax tips to meet the Oct. 15 filing deadline — If you got a federal tax filing extension earlier this year, your time is almost up. The due date for your tax year 2019 Form 1040 (and probably your extended state taxes, too) is Thursday, Oct. 15. Here are some tips to help you get it all done by this final deadline. (Oct. 9, 2020)
When Social Security is taxable — Good news if you're getting Social Security benefits. Your monthly payments will be a bit bigger in 2021. But if you still need to supplement your federal retirement benefits, be careful. In some cases, those added earnings could make part of your Social Security payments taxable. Check out when that happens and a couple of the tax forms that are involved. (Oct. 16, 2020)
7 tips for a safe and tax-smart benefits open enrollment season — We're in the midst of employee benefits enrollment time at most companies. It's the annual chance to make any changes to workplace enticements like tax-favored health insurance, child care and medical savings accounts and retirement plans. These tips can help you maneuver and maximize this employer-provided benefits enrollment period, especially in this time of COVID-19. (Oct. 23, 2020)
Don't overlook tax ballot initiatives — Yes, voting for president and your other government officials is important. But you also likely will see a ballot question or two when you cast your vote on Nov. 3. And several of them are tax-related. Here's a look at 2020's tax ballot measures. (Oct. 30, 2020)
Time to adjust your payroll withholding — With the year winding down, if you got a big refund or owed a lot at when you filed your taxes, now is the time to fine tune your Form W-4. With just two months left, you can adjust your payroll withholding to have more or less income taxes taken out each pay period. This paycheck checkup will help you get to the most accurate withholding amount, especially if you use the Internal Revenue Service's online withholding calculator. But do so soon, so that any withholding adjustments will be spread out over several paychecks and thereby not so dramatically noticeable. (Nov. 6, 2020)
IRS help for those facing COVID money & tax troubles — Are you struggling with your finances because of COVID-19? The IRS has a new coronavirus-inspired program, the Taxpayer Relief Initiative, that could make it less painful to pay any tax you owe. (Nov. 13, 2020)
Filling out the FAFSA — Education has been dramatically altered during the coronavirus pandemic. One thing hasn't changed, though, when it comes to higher education. College costs a lot. Financial aid can help cover those expenses. The FAFSA, as the Free Application for Federal Student Aid is popularly known, is the best way to find money to cover the costs. Here's how to get the tax information you need to fill out FAFSA. (Nov. 20, 2020)
10 December Tax Moves — Since you've probably got fewer (and by fewer, I mean no) holiday parties to attend due to COVID-19 pandemic precautions, you've got more time to make some potentially money-saving tax moves this month. Here are 10 tax tasks that you should consider before Dec. 31 arrives. (Dec. 5, 2020)
6 Unemployment Q&A — The number of people seeking unemployment benefits jumped this week. The money obviously helps when you've lost your job. But remember, it is considered taxable income. These 6 questions and answers look at that component and more regarding the federal out-of-work assistance. (Dec. 11, 2020)
WOTC benefits companies as well as workers — It's been a terrible year for companies and workers, but if you're able to hire new staff, consider doing so by year-end and adding an employee who can help you get a business tax break. Hiring workers who are in specific employee groups, including military veterans, could help you qualify for the Work Opportunity Tax Credit (WOTC). But you need to add to your staff soon, specifically by the end of the year. (Dec. 18, 2020)
Boxing Day tips, tax and otherwise — 2020 has been a tough year. If you're able to help out folks who are less fortunate than you on this Boxing Day or after, here are some ideas of how to do so. And if you make your charitable donations by Dec. 31, your gifts could turn into tax-deductible presents for you next return filing season. (Dec. 26, 2020)

Happy New Tax Year 2021!
The January 2021 Tax Tips are now live at their own page.
Tax rates and income brackets for 2020 & 2021 — Hello January, the month when tax years collide. We're getting ready to file our 2020 tax year returns, but we're also starting to make plans that, if implemented properly, will reduce our 2021 tax bills. Key information for both years includes the tax rates and income brackets they encompass. You can find 2020 and 2021 tax rates and brackets in the first of the ol' blog's 10-part annual inflation series. And at the end of that post, there's a directory to the nine other tax areas affected by annual inflation adjustments. (Jan. 1, 2021)
Reporting your winnings to the IRS — Uncle Sam apparently is Lady Luck's cousin. Your lottery jackpot, other gambling winnings and prizes, too, are taxable income. Here's how to report them to the Internal Revenue Service on Form 1040's Schedule 1. (Jan. 11, 2021)

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Today's Tax Tip

Tax benefit of volunteering on 911 Day and beyond — On this Patriot Day 2024, volunteer efforts honor those who died or were injured during the terrorist attacks in New York City, Pennsylvania, and Washington, D.C., on Sept. 11, 2001. The value of the time you give to a nonprofit, on 911 Day or any time, is not tax deductible, but some associated expenses might be. (Sept. 11, 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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Tick ... Tick ... Tick

Tax Season 2024 continues!

We made it. Tax Day 2024 is finally over. For most of us. An estimated 19 million taxpayers got an extension to file their 2023 tax year return. That's fine.
In fact, the Internal Revenue Service appreciates some of us spreading out our filings. It gives the agency time to process the surge of returns
that came in on April 15.

But enough about Uncle Sam's tax collector and its issues. The focus now is on all y'all who filed for extensions, giving you another six months to complete your return. Let's get started on meeting that new Oct. 15 deadline. It will be here before you know it.

The monthly tips and reminders a little further down this column can help you finish up your Form 1040. There also will be tax tidbits each month that make sure you meet other tax deadlines. And, of course, you'll find advice on ways to cut your still adding up 2024 tax bill.

Finally, keep an eye on the countdown clock below. It will help you track yet more days tick, tick, ticking off toward that absolutely final fall filing due date.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

🍁 Hello 🍁 September 🍁
🍂 Fall 🍂 is 🍂 here! 🍂

OK, fall’s not here yet, at least not here in Texas according to still quite-warm temperatures. But forecasters say cooler weather — like highs in the 80s; yes, everything, especially weather, is relative — is on its way, and that meteorological promise gives up hope.

via GIPHY

As we get ready for the promised bit of chill, September also is a great month to make some cool tax moves, like those listed below. So, grab a sweater (or not yet), and let's go!
Sept. 1: Today is Meteorological Fall, the three months from Sept. 1 through Nov. 30 when days get shorter and cooler, but not cold. It's also the start of the annual National Preparedness Month. This year’s theme is “Start a Conversation,” since it's important to talk with your loved ones about potential emergencies. It's also critical to be prepared, as the Atlantic and Gulf of Mexico hurricane season usually peaks in September.

We’ve already had three tropical systems do enough damage to prompt Federal Emergency Management Agency (FEMA) major disaster declarations. The 2024 tropical storm season’s second named storm, Hurricane Beryl, landed as “just” a category 1 on the Texas coast, but still took 38 souls and left Lone Star State residents facing an estimated $30 billion in damages.

Hurricane Debby made two U.S. landfalls, in the Big Bend area of Florida and then again in South Carolina before moving up the Eastern Seaboard, producing disaster declarations all the way up to Vermont. Tropical Storm Ernesto, followed, slamming the U.S. territories of Puerto Rico and the U.S. Virgin Islands, as well as spawning deadly rip tides along East Coast beaches as the storm moved toward Bermuda.

And, coinciding with Meteorological Fall, we’ve still got three months of the 2024 hurricane season to go!

That has coastal residents on edge, since Uncle Sam's official forecasters at the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center say we could get 17 to 25 total named storms, which are those with winds of 39 mph or higher. Of those, eight to 13 are forecast to become hurricanes, meaning winds of 74 mph or higher. Four to seven becoming major hurricanes; that’s category 3, 4 or 5, with winds of 111 mph or higher.

Regardless of the count, it only takes one to wreck your world. If you haven’t already, get ready for not just tropical systems, but whatever dangerous weather that’s common where you live. The countdown clock above 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 collection of special pages with posts offer tax advice on preparing for, recovering from, and helping those who sustain damages from the many ways that that weather goes wild.

Sept. 2: Happy Labor Day! This annual celebration of workers' contributions is a federal holiday and day off for many.

When you get back to work after this three day holiday, take a few minutes to check the federal tax amount that’s coming out of your paychecks. If you need to adjust your withholding so that you have the most accurate amount of taxes withheld, now is the time to do that. Submitting a new W-4 early this month will mean any changes are spread over the last four months of the year, making any impact less noticeable.

Sept. 3: If you live in Auglaize, Crawford, Darke, Delaware, Hancock, Licking, Logan, Mercer, Miami, Richland, or Union counties in Ohio, today is your Tax Day. The Internal Revenue Service granted individual and businesses in those counties tax relief since they were declared major disaster areas following a tornado outbreak in March.

Sept. 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 August 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.

Sept. 16: Today is the deadline to pay your third installment of estimated taxes. This tax is due on income that’s not subject to withholding, such as investment earnings or contract work. Most estimated tax filers make the payments four times a year. The September payment is for such earnings received in June, July, and August. It’s usually on the 15th, but since that was Sunday, the deadline is pushed to the next business day — today!

Sept. 23: Sept. 22: The Autumnal Equinox arrives today at 8:44 a.m. Eastern Daylight Time in the Northern Hemisphere, marking the first day of Fall for all us who don't follow the meteorological fall calendar. Adjust for your time zone, since the equinox occurs at the same moment worldwide. It's also a go-to day to think about home maintenance that will help you weather the coming colder weather. The Inflation Relief Act includes extension of older and addition of new energy-related tax breaks, including some for residential energy improvements.

Sept. 30: Wow! Where did September go? That’s a good question to ask if you got an extension to file your 2023 tax return earlier this year. The last day of this ninth month means that your absolutely final Oct. 15 due day is another month closer. So you might want to get to work on that Form 1040 now. The easiest way to do do is to use tax software and electronically file.

If your adjusted gross income is $79,000 or less, you should check into Free File, the no-cost online tax preparation and electronic filing program offered by the IRS and its Free File Alliance partners. It’s open through the Oct. 15 extension deadline. This year, eight tax software companies offer programs to qualifying taxpayers.

Note that the Free File $79,000 or less income threshold applies to all filing statuses. If your income is too high, you still can file for free by using Free File's Free Forms option.

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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Tax Reading Room
You also might enjoy these other tax tips from some of my tax-writing colleagues:
J.K. Lasser 2024 Taxes
Taxes for Dummies 2024
Tax Savvy for Small Business

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

September 2024

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Photo by Kay Bell
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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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