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 →
Withholding
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 →
UPDATE, Friday, April 9, 2021: Rep. Lloyd Smucker (R-Pennsylvania) has introduced H.R. 2437, a bill that would postpone the due date for first-quarter 2021 estimated tax payments to May 17, 2021. Thanks to the San Diego CPA firm GPW for the tip via Twitter, along with the observation that if Smucker's bill does pass, it likely will be very close to the filing wire. The Internal Revenue Service has dashed hopes that it would true-up 2021's annual tax filing deadline and the year's first estimated tax payment. Many in the tax community had been hoping (and lobbying and complaining and... Read more →
Photo: RODNAE Productions via Pexels April 7 is National No Housework Day. I didn't realize that until #TaxTwitter pal Joe Kristan noted it at the end of his Eide Bailly LLP tax roundup blog post today. In my defense, I overlooked No Housework Day because that's basically every day for me. Oh, I do some household chores, but grudgingly. And I'm lucky. The hubby is a more diligent cleaner than I. That means we don't (so far) have a paid housekeeper. But some folks do. And depending on the arrangement, those who hire household help have some tax tasks to... Read more →
Princess Bride impatience via Giphy.com You're due a tax refund. Plus, your 2020 tax situation means you can claim the rest of the COVID-19 related Recovery Rebate Credit that you didn't automatically get last year. So, of course, you filed on Feb. 12, as soon as the Internal Revenue Service started accepted returns. Now you're wondering, why the heck you haven't yet received your refund. Unusual overload: The bad news is that the IRS is still dealing with backlogs, primarily of mailed correspondence, created when it had to shut down its offices last year as part of coronavirus precautions. The... Read more →
Photo by Kay Bell The 2021 filing season won't start until Feb. 12 this year. That's frustrating for the millions of taxpayers who traditionally are early return filers. It's more frustrating for those taxpayers who, because of COVID-19 complications (which also created this year's filing delay), are really counting on their tax refunds to cover expenses. This year's later than usual filing start means it is even more important to get those 1040 forms into the Internal Revenue Service as soon as the agency will take them. If you're still debating about when to file your taxes, here are seven... Read more →
Millions of taxpayers are facing a deadline at the end of this week. No, unfortunately I am not talking about the Jan. 15 mark that the Internal Revenue Service is required by law to meet in distributing the second round of COVID-19 economic relief payments. I'm talking about paying Uncle Sam instead of getting money from him. The final estimated tax payment for tax year 2020 is due on Friday, Jan. 15. Taking care of taxes yourself: Around 22 million individuals file these extra tax payments, which total four if you make them for the full tax year. They are... Read more →
Photo by Olya Kobruseva via Pexels Happy New Year! Oh, sorry. Was I typing too loud? I'm glad you were able to festively, and I hope safely, ring in 2021. Now that it's here, it also brings a new tax filing season. The Internal Revenue Service's delivery of the second round of COVID-19 relief money shouldn't hamper its handling of 2020 returns, which should officially start later this month. So if the IRS can be ready, so can we. So here are a few tax things to think about and take care of, after, of course, you're fully recovered from... Read more →
Christmas at the computer. (Photo by Nataliya Vaitkevich from Pexels) You've adjusted to working from home during the coronavirus pandemic. Now are you ready for the virtual office holiday party? That's the route some companies are taking as they try to hang on to some semblance of seasonal traditions. Fewer parties, some virtual: Plans for any type of office holiday party are, not surprisingly, down dramatically from last year. In 2019, nearly 76 percent of companies planned year-end events. This year, just 23 percent of businesses are planning parties, with almost three-quarters of the 2020 festivities expected to be virtual,... Read more →
The Social Security Administration (SSA) just gave retirees and other recipients of the program's payments some good news with the announcement of a small hike in their benefits year. Some higher earners, however, aren't so happy. In the same benefits raise announcement, the SSA noted that the amount of income subject to the Social Security payroll withholding also is going up in 2021. This amount, known as the Social Security wage base, is the maximum of earnings, by both salaried workers and the self-employed, that are subject to that portion of the Federal Insurance Contributions Act (FICA) tax. For the... Read more →
A quick Social Security note about for folks not yet at or near the benefits age about taxes on that pre-retirement income. More of it, known as the wage base, will be subject to the Social Security payroll tax. Details are in this post. Retirees checking on their investments. The income could make their Social Security benefits taxable. Today's a good day for millions of Social Security recipients. The Social Security Administration (SSA) has announced that benefits will increase a bit next year. Older folks who get regular monthly Social Security payments, along with those who receive Supplemental Security Income... Read more →
Millions of U.S. government employees in federal buildings across the country, like this one Sacramento, California, are being forced to participate in the Trump Administration's partial payroll tax deferral. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are continuing their efforts to cobble together a second round of COVID-19 stimulus payments. Some people, however, don't want the ostensible financial relief they're already getting. They are among the federal workers and military members who've had the Social Security portion of their Federal Insurance Contributions Act (FICA) payroll taxes automatically suspended. Forty-three Representatives say they've heard from these constituents who are... Read more →
Hello, October! You're always welcome at my house. I love your cooler temperatures that let me open windows and doors and put an end to exorbitant air conditioning costs. I love the color changes of trees and shrubs. And I love the candy that I accidentally (really!) over-buy in preparation for the young ghouls and goblins that knock on our front door each Oct. 31. I suspect I'm not alone in appreciating the arrival of autumn. But amid all these annual fall festivities, we need to make at least a few tax moves that could help out our upcoming tax... Read more →
Couple waiting to get married at San Francisco City Hall. (Photo by Brian Kusler via Flickr) One good thing has come of my self-imposed pandemic lock down. Seeking a distraction from the news channels I usually watch, I'm finally getting more of my money's worth from our cable account. I've been exploring the many channels the hubby and I typically tend to click right past. For the last week or so, I've tuned in to WEtv because of its run of CSI: Miami episodes. No judging, please! Actually, the TV is more like a talking lamp (really!). The dramatic intonations... Read more →
If you get money that's not subject to income tax withholding, then this weekend's Saturday Shout Out posts are for you. Tuesday, Sept. 15* is the due date for the third quarter payment of estimated taxes. Our tax system is pay-as-you-earn. That's typically done by withholding from wages. But when there's no per-paycheck tax collection mechanism in place, the payment responsibility falls on the person getting the money. And the way it's done is through estimate tax payments. The type of earnings that typically trigger are full-time self-employment or occasional gig work income, investment earnings, rental income, certain alimony payments,... Read more →
Representatives also introduce legislation to overturn executive payroll action, which also affects members of the military. Internal Revenue Service workers are among the federal employees who will see their upcoming paychecks reflect Donald Trump's payroll tax deferral order. Some lawmakers say workers should get to make the final decision on their withholding. (Photo by David Boeke via Flickr) Maryland and Virginia, the two states that border the District of Columbia, are home to hundreds of thousands of federal employees. So it's no surprise that the four U.S. Senators representing those states — and workers who get checks from Uncle Sam... Read more →