Don't Mess With Taxes

Black's, an iconic Central Texas barbecue chain, was caught improperly distributing tip money to managers, instead of the 270 employees to whom it should have been paid. Those restaurant workers now have their proper gratuities, which are taxable income. Being a restauranteur has always been a challenge. The same can be said for eatery staff. Then along came the COVID-19 pandemic, amped up the workplace issues both owners and employees face. So what else could complicate things? Tips. In one famed Central Texas BBQ joint, it was the way tips were collected and distributed among workers. The U.S. Department of... Read more →

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 →

Photo by Evelyn Giggles, Flickr CC Schools nationwide are open. That means lots of teachers' bank accounts are taking hits. Last year, the National School Supply and Equipment Association's (NSSEA) survey found that educators spent an average of $750 of their own money to ensure their students have what they need to learn. Another report by Expect that cost to increase this term — another report by My eLearning World sets this year's per-teacher cost at $820 — in part due to inflation. Some small tax savings for teachers: Inflation also helped out a bit with a of tax relief... Read more →

More companies are pushing to get employees to leave their home workspaces and return to the office. Until that happens fully, tax professionals are asking for updated tax guidance on dealing with hybrid and work from home arrangements. Summer's over. Schools are back in session. And more businesses are telling employees to return to the office. But many companies expect that at least some of their workers won't comply. And how will they handle these in-office holdouts? Office returns sought: Overall, more firms now are firmly nudging workers to return. A recent survey by business consulting firm Gartner, and reported... Read more →

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 →

Photo by Alexander Grey on Unsplash Millions of people whose student loan debt will be wiped out now face another financial question. What to do with a bit more disposable income. Financial advisers suggest they pay off other debt, such as high-interest credit card balances. That's a smart move. So is the recommendation that folks put their newly available former debt payments into an emergency fund. I'd like to also toss out there the option of saving for retirement. As an added bonus, most retirement account options offer some sort of tax benefit. Here are some tax-favored retirement-saving possibilities that... Read more →

Coming back from an appointment today, I saw school buses roaming my neighborhood. Classes for my local school district start Wednesday, so I guess the drivers were just on reconnaissance runs. Students, their parents, and of course teachers are making preparations, too, not just here in the Austin, Texas, area, but nationwide. Much has been written (or, in my case, blogged) about state sales tax holidays (a few are still on the horizon) and the savings on school-related items. In most cases, we tend to think of students and their families taking advantage of the no-tax events. However, teachers also... 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 →

Houston Astros' mascot Orbit generally stays in no-income-tax Texas in doing his job, so he doesn't have to worry about jock taxes. (Photo by Kay Bell) What are you doing this Fourth of July weekend? In addition to the traditional cookouts and fireworks, many folks across the United States head out to ballparks. I love the Independence Day break because it means more day baseball. I'm not going to any Major League Baseball (MLB) games in person this year, but you can be sure that I'll be watching them on television, starting this afternoon. MLB got a late start this... Read more →

Photo by Andrea Piacquadio I'm later than usual posting today because the hubby and I finally cleaned a room that we've ignored for way too long. That meant it took longer than if we'd just dusted a bit more regularly. That's why I'm thinking of hiring a cleaning person. OK, I probably won't. I do think about it every time we do some major cleaning job, since I find housekeeping a total drag. Just ask the hubby. But I'm not really one for people I don't really know being in my house. Plus, if we do hire cleaning help, we... Read more →

If you added cryptocurrency to your investment mix, things have not been as fun as they were when the digital asset first burst upon the scene. Sure, markets go up and down all the time. But crypto has, for the most part, crashed, if not totally burned. Crypto's volatility and unproven long-term track record is why many advisers have warned against putting it, or putting just a little, into portfolios. Some crypto fans, however, are willing and eager to own it. In fact, they want to go all in and add it to their retirement savings. That retirement plan possibility,... Read more →

Evening traffic on Pennybacker Bridge in Austin, Texas. (Photo by Manuel Garza via Flickr) The Internal Revenue Service today delivered a bit of good news to taxpayers who use their vehicles for medical and business purposes. The standard optional mileage rates used to calculate tax deductible amounts are going up on July 1. The increase of the rates, which last were adjusted in December as part of the IRS' annual review of transportation costs, comes as the nation's national average price for a gallon of regular gasoline nears $5. "The IRS is adjusting the standard mileage rates to better reflect... 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 →

Plus, a look at when Uncle Sam gets to tax some of the federal retirement payouts he distributes. The U.S. economy might be slowing down a bit, but people still are finding jobs. May's unemployment figures, released by the Bureau of Labor Statistics on June 3, showed a slight increase in jobs. That kept last month's unemployment rate at 3.6 percent, just above the lowest level since December 1969. Work data for last month also showed that the jobless rate, the federal government's employment count that includes those not looking for work and those holding part-time positions for economic reasons,... Read more →

Gasoline prices at a suburban Austin, Texas, gas station just before the Memorial Day weekend. (Photo by Kay Bell) Shortly before the Memorial Day holiday, gasoline prices surpassed $4 per gallon in every U.S. state for the first time. Transportation experts predict gas soon will exceed $5 per gallon nationally. Higher fuel prices didn't stop people from hitting the road during the Memorial Day break. But that was a special travel event. It was a three-day holiday after years of COVID pandemic suppressed transportation. Just a week later, people's lives are back to what passes for normal. More offices are... 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 →

This coming Memorial Day long weekend is the first in more than two years that millions of Americans are treating as more-or-less normal. (Remember that?) And people's pent-up travel wishes are pushing aside COVID-19 pandemic worries in a big way. AAA Memorial Day 2022 forecast AAA predicts 39.2 million people will travel 50 miles or more from home this Memorial Day three-day holiday. This is an increase of 8.3 percent over 2021, and brings travel volumes almost in line with those in 2017. But another year also comes to mind. Back in 2012, gasoline was $3.64 per gallon. When adjusted... Read more →

Unemployment benefits can help relieve some of the sting of losing your job. But there are downsides. The monthly amounts again are fully taxable. And during the COVID pandemic, criminals have had a field day getting fraudulent payments, and causing tax troubles for those individuals whose identities they stole. The COVID-19 pandemic and employment still are inextricably linked. When the coronavirus hit the United States in 2020, the concern was for the companies that had to shut down, and their employees who suddenly were without paychecks. Congress passed a series of COVID relief bills that provided relief options for companies... Read more →

Not in the Lone Star State? IRS also looking to add personnel in Ogden, Utah; Kansas City, Missouri; and Puerto Rico. Looking for a job with the Internal Revenue Service? Good news. The tax agency, which earlier announced plans to fill 10,000 staff positions, is hiring. And it's starting in my backyard. The IRS has more than 900 open slots at its Austin, Texas, processing center. To get folks at these jobs as soon as possible, the agency is holding an In-Person Direct Hiring Event, its version of a job fair, on Wednesday, May 11, and Thursday, May 12. Specifically,... Read more →

For more than 50 years, the U.S. Small Business Administration (SBA) has celebrated National Small Business Week, which recognizes the contributions of America’s entrepreneurs and small business owners. The theme for this year's week, which wraps up today, May 7, is Building a Better America Through Entrepreneurship. As part of the May 1 through 7 recognition of small businesses, SBA Administrator Guzman visited nine cities across the United States to participate in, along with SBA local office personnel and local elected officials, celebrations of the country's 32.5 million small businesses. Since taxes are a critical component of small businesses, the... Read more →