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)

~~~~~~~~~~~~~~~

Today's Tax Tip

Bunch your itemized expenses — There's not a bunch of time left in 2023, but enough to look into bunching itemized tax-deductible expenses. This deduction strategy essentially means alternating each year between your standard or itemized deduction amount. To get a Schedule A total that's larger than your allowable standard deduction, you'll have to pull your itemized expenses into one tax year, or push them into the next, aka bunch them! It takes some planning, calculating, and guesstimating, but when it works, it maximizes all those itemized amounts (and receipts) that are too often lost because they're just not quite enough to claim. (Dec. 8, 2023)
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

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

My Other Accounts

Tick ... Tick ... Tick

It's the final
2023 tax countdown!

It's over! We cleared 2023's extended filing deadline, unless you get more time because your filing was affected by a major natural disaster, military service, or some other Internal Revenue Service recognized special situation. If that's you, be sure to check out all the ol' blog's earlier Tax Tips, listed by month just under the old-school No. 2 yellow pencil tip atop this column.

For most of us, though, the passage of Oct. 16 means it's time to focus on the Form 1040 that we'll file next year. In most cases, we have until Dec. 31 to make moves that will reduce our still accruing 2023 tax bill.

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 of in each of these final 2½ months of 2023.
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 Bruce Springsteen.
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: This last filing season was more-or-less back to pre-COVID-19 pandemic normal, but if your own personal filing circumstances remained a mess, it's time to act. Maybe you realized you need professional tax help. If so, now is the time to find a tax preparer who can help ensure your return filing next year goes more smoothly. You have lots of options.There's also a December bonus. If you hire a tax pro this month, you might get some year-end tax tips!

Dec. 4: Are you taking on a variety of gig work to make some extra holiday cash? Those added jobs 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. Now is the time to start gathering those records and tallying this taxable income so you're not surprised at filing time.

Dec. 11: If your job, over the holidays or full-time, is as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation, I hope you get extra seasonal financial thanks this month for doing your job well. Remember, though, that those tips are taxable income

Whether you're dining at your favorite eatery, or during the coronavirus pandemic discovered you really like 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. 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, using many of the techniques they employ in tax scams. 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. 18: Many of us are trying to concentrate this final work week before Christmas. As far as taxes go, it's a good time to revisit your estimated tax situation, especially if you got some money from those previously mentioned gigs. Since these amounts typically aren't subject to withholding, you'll need account for the December earnings in your January 2024 final 1040-ES amount for 2023.
Better to know that amount now, than on Jan. 16's due date.

Dec. 22: It's Christmas Weekend! 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 some easy tax-favored gifts. Open a Roth IRA for your child or grandchild who earned some money this year. Or pay tuition for classes that will start in the first quarter of 2024 by Dec. 31. Those college costs then can be used to claim the American Opportunity Tax Credit.

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
Santa's delivery route as tracked by NORAD.

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. The option to claim a limited amount directly on your Form 1040 expired at the end of 2021. What didn't expire is the IRS' tax donation deduction rules.

Dec. 31: This is it. The drop-dead deadline to make most 2022 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 it over into 2024. 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 2023 page.

What are you looking for?

Looking for something in particular? Start with the Table of Contents.
Or check out the Archives, where you can review posts by month and category. Or enter specific keywords in the box below to search
Don't Mess With Taxes.

Search

Subscribe:
E-mail, RSS or both!

Enter your Email

Powered by FeedBlitz
RSS

Privacy Policy

Wondering what happens to your information once you subscribe? Don't worry. Don't Mess With Taxes respects your wish not to be a mere data source. Check the ol' blog's privacy policy at the Table of Contents page, as well as on the separate Privacy Policy page.

Affiliate Books

The Truth
About Paying Fewer Taxes
Are you a tax geek? Got tax geek friends? Do you or they just want to make sure you don't overpay the IRS? Then my book, "The Truth About Paying Fewer Taxes," is for all y'all.

Look for it on bookstore shelves
or order a copy (or two!) from
Amazon or Barnes & Noble.
Find out more about my book and excerpted chapters at the FT Press
Truth About Paying
Fewer Taxes Web page.
You can read more
of Kay's tax insights in ...

Kay Bell helps you build
a solid tax foundation in
"Personal Finance: An Encyclopedia
of Modern Money Management"

Kay Bell breaks down taxes and
estate planning for millennials in
"Future Millionaires' Guidebook"

A collection of Kay Bell stories
is included in
"The Gambler's Guide to Taxes:
How to Keep More
of What You Win"

Tax Reading Room
You also might enjoy these other tax tips from some of my tax-writing colleagues:
JK Lasser 2023 taxes
Dealing With the IRS
JK Lasser 1001 Deductions
~~~~~~~
Don't Mess With Taxes
is an Amazon Affiliate.
If you click on the product links above and/or buy the items,
I will be compensated.

0, 1, 2, 3, 4, 5, 6, 7, 8, 9 ...

Taxes are all about the numbers.
Check out these (mostly) weekly
By the Numbers figures.

Kudos Et Cetera

National Association
for Women in Communications
Winner, Best Personal Blog
2012, 2014 & 2017
Plutus Financial Bloggers Awards
Celebrating the Best
in Personal Finance
Winner, Best Tax Blog
2011 and 2013
Lifetime Achievement Nominee 2020

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.

©©©©© & ®®®®®

Don't Mess With Taxes®
is a registered trademark
of S. Kay Bell.

All content on this site is
© 2005-2023 S. Kay Bell
dba Write Here, a division of
SKB Editorial Services, LLC
And a bit of housekeeping.
Note 1: Some of the links on this site
are affiliate links. That means that
if you click through from
a Don't Mess With Taxes link
and then buy the product,
I receive a commission.

Note 2: Links to outside content
might become inactive due to changes
at the copy's originating website.
If you discover dead links, please e-mail me the details. Thanks.

Note 3: The banner art for the ol' blog
is courtesy Pictures of Money
via Flickr Creative Commons.

Blog powered by Typepad
Member since 11/2005

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
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

December 2023

..................................................

Photo by Isaac Martin on Unsplash

.................................................................

Tell it to the Hill

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.

Sun	Mon	Tue	Wed	Thu	Fri	Sat
					1	2
3	4	5	6	7	8	9
10	11	12	13	14	15	16
17	18	19	20	21	22	23
24	25	26	27	28	29	30
31