The COVID-19 pandemic ignited an explosion of side hustles, with many folks cobbling together multiple independent operations to replace traditional jobs lost to the virus. The U.S. economy has picked up, and many businesses are forcing bringing their former and work-from-home staff back into the office. But side hustles remain popular. Most side hustle for more than money: Even where they have wage-paying work, many Americans also have side jobs, according to a survey by Insuranks, a small business insurance marketplace. Ninety-three percent of the adults surveyed by Insuranks said they have an added job alongside their main employment positions.... Read more →
Withholding
Photo by Kay Bell So how was your summer? Yep, that season officially ended today with the start of Meteorological Fall, which runs from Sept. 1 to Nov. 30. Wait, you say. It's not sweater weather yet. You're not alone in still feeling the heat. First day of meteorological fall in USA doesn't look like fall at all in over 90% of the country,just the opposite: One of the hottest September weeks on records is starting with a flurry of 100F in Montana,North Dakota and Washington. Very hot also in Canadian Saskatchewan. pic.twitter.com/HXZXO2YpFL — Extreme Temperatures Around The World (@extremetemps)... Read more →
Summer's winding down, with schools opening their doors across much of the country in just a few weeks. So of course, you're thinking of one last getaway to escape the sweltering dog days. But before you head out to a beach retreat or cooler mountain cabin, take a few minutes for taxes. August is a good time to make some tax moves that could save you some dollars and future headaches. Here are four to consider. 1. Make your tax holiday shopping list: The return this fall of students to classrooms is most welcome by COVID-weary parents who saw much... Read more →
If you're a young person with a summer job, be aware of the tax implications. (Photo by Andrea Piacquadio) Your teenager has a summer job lined up, and you're thrilled. So is your youngster. But before the young worker heads off for the first day of gainful employment, it's a good idea to consider the tax implications. Here are five common tax issues that young workers, and their parents, face. 1. The teen likely will have to file some sort of tax return. The U.S. tax code is wonderfully egalitarian when it comes to filing. Anyone who makes a certain... Read more →
Photo by Jill Wellington Summer doesn't officially start until the solstice a bit later this month, but that doesn't stop us from celebrating the unofficial arrival of lazy, hazy days today, June 1. But before heading out to the beach, a cool mountain retreat, your favorite amusement park, or distant family members you haven't seen in ages, it's tax time. Yes, Tax Day was six weeks ago for most of us. But even if you got an extension to file your 2021 return, there still are some tax moves you should make or at least consider this month. I know... Read more →
Photo by cottonbro from Pexels It's been a week since Tax Day 2022. Those who submitted tax returns have been enjoying being done with the Internal Revenue Service for another year. But maybe it's time to give Uncle Sam's tax collector a little more thought. Here are 5 tax matters to consider so that you can completely clear your 2021 tax year decks. 1. Review your payroll withholding: The IRS reminds us every year that most taxpayers get refunds. That's because a lot of filers plan it that way. They overwithhold taxes from their paychecks as a forced savings account.... Read more →
Millions of taxpayers are facing their first tax payment for 2022 on Monday, April 18. No, I'm not talking about any tax due you sent along with the 2021 return you filed or are frantically working on this last week before Tax Day. That money counted toward last year's taxes. I'm talking about the taxpayers who will be paying a separate amount to cover their earnings during the first quarter of 2022. Yep, it's estimated tax time again. And yep, the first payment of the current tax year coincides with any tax due for the previous one, making Tax Day... Read more →
Tax Day 2022 is a month away. That means lot of us are finally getting serious about filling out our 2021 tax returns. A lot of us also are making a disturbing discovery. Our refunds aren't as big as we expected. Even worse, in some cases we owe tax. There are several reasons your refund could be smaller or you must send Uncle Sam a check. You can check them out in my previous post, 5 reasons your tax refund this year might be smaller. But here's a preview of one of the reasons. You didn't have enough withheld. Or,... Read more →
Pixabay via Pexels We're well into the 2022 tax filing season, meaning most of us have received the documents we need to file our tax returns. The main ones, our W-2 forms from employers and 1099s reporting other types of compensation, were supposed to be sent by the end of January. But sometimes that doesn't happen. Or the tax form you got was wrong. When then? Here are four steps to take now, along with some other missing tax document issues to consider. 1. Check your email: More of our lives go electronic every day. That includes tax-related matters. Lots... Read more →
The 2022 tax filing season is off to a strong start. In its first two weeks, from Jan. 24 to Feb. 4, the Internal Revenue Service received almost 16.7 million returns, and processed almost 13 million of them. The most important statistic for these millions of early filers is the refund numbers. Drum roll, please. So far, the IRS distributed more than 4.3 million refunds. The average refund very early this tax season is $2,201. That's the early average. Yours might be more. Or it might be less. In fact, many folks this filing season might find their refunds are... Read more →
The Social Security Administration (SSA) gave retirees and other recipients of the program's payments good news this week. Next year, they'll bet the biggest benefits bump in decades. Some higher earners, however, aren't so happy. That government benefits announcement also noted that the amount of income subject to payroll taxes also is going up in 2022. This amount, known as the Social Security wage base, is the maximum earnings, by both salaried workers and the self-employed, that are subject to that retirement portion of the Federal Insurance Contributions Act (FICA) tax. In 2021, the wage base is $142,800. On Jan.... Read more →
Many Social Security recipients are celebrating the announcement that their benefits will increase in 2022. But if you get other income to help you enjoy your retirement, you could owe tax on your government benefits. There's some good news for the around 72 million people who receive Social Security benefits, either as retirees or Supplemental Security Income (SSI) recipients (or both). The Social Security Administration announced* on Wednesday, Oct. 13, that they will see a 5.9 percent increase in their benefit checks in 2022. It's the largest increase to the government benefits, which primarily go to retirees, in nearly four... Read more →
Did you discover when you filed your taxes, either earlier this year or this week to get in under the Oct. 15 extended deadline, that you were due a refund? Or, yikes, that you owed Uncle Sam? Either way, now is a good time to review your tax withholding. With 2021's third quarter just under way, you have plenty of time to deal with the differences either way. And there is enough time left in the year to spread the changes over several pay periods so they don't produce a major shock either way to your budget. Rationalizing over-withholding: Around... Read more →
via GIPHY On a visceral financial level, we all hate paying taxes. But what we hate almost as much is that the tax laws often seem overly complicated or just plain goofy. Take estimated taxes. These are four extra payments that the Internal Revenue Service and many states require taxpayers to make to cover the taxes due on earnings that aren't subject to paycheck tax withholding. Straightforward enough, right? Until it comes to payment deadlines. Even though there are, in most cases, four of them and they're called quarterly estimated tax payments, the IRS uses a calendar that's a bit... Read more →
With the financial situation of Uncle Sam's retirement benefits program getting more dire, a recurring suggestion — raise the Social Security payroll tax wage base — is getting some traction this year. Labor Day typically marks the end, at least unofficially, of summer. After the early September long weekend, most schools are back in session, albeit still in remote/real classroom combos due to the Delta COVID-19 variant. Workers, many also still in hybrid coronavirus cubicle/Zoom formats, tend to focus on their jobs. Those jobs are critical not just to the employees, but the economy as a whole and to two... Read more →
So how was your summer? Yep, it's over, or will be officially a bit later in this brand new month of September. In addition to bringing some cooler temperatures (eventually, or so promise my local weathermen and women), the ninth month of the year also marks the opening of schools (at least in part, depending on COVID-19 Delta outbreaks), and football seasons (American, not Ted Lasso's version). Tax tasks also are on this month's agenda. Yeah, taxes aren't as fun as football (either U.S. or global leagues) or as welcome as a break from the heat or the kiddos going... Read more →
It's fitting that I just learned today, late in the day, that Aug. 10 is National Lazy Day. I definitely will note this date on next year's calendar, if I can muster the energy, so I make the most of it in 2022. National Day Calendar, which keeps track of the myriad special designations for our 365 (plus one in a Leap Year), doesn't have much information on National Lazy Day. That would require some work, which is antithetical to the day's commemoration. But it does say that Aug. 10 is the day where we are given permission to relax... Read more →
Photo by Min An from Pexels Among the many welcome events that are returning as we continue to move beyond complete COVID-19 lockdown are weddings. Congratulations and best wishes to all the brides and grooms out there who finally are enjoying their long-planned celebrations. My gift to all y'all newlyweds is a few words of marital tax advice. With apologies for the spare gift wrapping, here are some tax tasks you need to take care of now, or at least as soon as you get back from your honeymoon. 1. Make sure everyone knows your new name. After marriage, some... Read more →
June's arrival, especially now that many coronavirus limits are being lifted, means the start of summertime fun. But it's also a good month to make some key tax moves before heading off to your favorite recreational pursuits. We did it! Survived Tax Day 2021 … unless you're among the millions who got an extension to file or live in a state where the deadline to submit 2020 tax returns was even further delayed. In that case, one of the things you need to take care of this month is filing your taxes. Here more on that and four other tax... Read more →
Including some amended filing considerations that are affected this year by COVID-19 law changes. Photo by Ann H from Pexels It's been a week since Tax Day 2021. Those of us who submitted our tax returns have just been enjoying being done with the Internal Revenue Service for another year. But maybe we should give Uncle Sam's tax collector a little more thought before we finally wrap up this tax season. Here are 5 tax matters you need to consider so that you can completely clear your 2020 tax year decks. 1. Check your refund status: This is the biggie... Read more →