Photo by olia danilevich Millions will celebrate the end of 2023 on Sunday, Dec. 31. But the last day of the year isn't just for partying. Dec. 31 also is an important tax day. It's the deadline to take care of some tasks that could affect your 2023 tax bill. Other things that happen on the year's final day also have tax implications. Here are five common end-of-year situations that have Dec. 31 tax timing implications. 1. Getting married: If you say "I do" on 12/31, then the Internal Revenue Service considers you married for the whole year. That means... Read more →
Year-end money moves
There's still time to give for 2022 tax purposes, especially if you make an electronic donation. If you're among the minority of taxpayers who still itemize, year-end philanthropy is one of the easiest ways to boost your Schedule A deductions. And much of that giving his happening right now. Nonprofits Source, a digital marketing consultant for nonprofit groups, says an estimated 30 percent of annual giving occurs in December. Ten percent of those gifts are made in the last three days of the year. If you're part of this last-minute giving group, here are some tips on getting your potentially... Read more →
Merry Monday Holiday After Christmas on Sunday. Happy Boxing Day. Joyous End-of-Year Tax Tasks to Complete Week. Yep, the start of the last week of 2022 has a lot of identities. But it's that last designation that you need to pay close attention to, since the end of the tax year is critical when it comes to many tax moves. Here are eight you need to consider and, if they apply to you, complete by Dec. 31 — or actually by Friday, Dec. 30, in some cases since it's the last business day of 2022. 1. Take your required minimum... Read more →
Photo by olia danilevich via Pexels For the past two years, COVID-19 has wreaked havoc on tax deadlines. In 2021, Mother Nature joined in the chaos, with major disasters changing due dates in several states. But there's still a calendar tax constant. Dec. 31. That last day of the year remains the deadline to take care of some tasks that could affect your full year's taxes. Here are some common end-of-year tax timing situations. Getting married: If you say "I do" on 12/31, then the Internal Revenue Service considers you married for the whole year. That means when you file... Read more →
You made it through the hectic December holidays. Congratulations. But don't slow down now. You still have to accomplish a few final year-end tax tasks. I know, not how you want to spend the last few days of the year. But these 6 year-end tax moves could save you some money, either when you file your 2021 return next year or down the tax road. 1. Don't miss the RMD deadline. You're enjoying your well-deserved retirement thanks to all those years of savings. Don't mess things up now by missing your required minimum distribution (RMD). This withdrawal from tax-deferred retirement... Read more →
Photo by Charlotte May from Pexels Schooling has changed a lot during the COVID-19 pandemic. Remote learning is more common. Where students have returned to classrooms, they and their teachers must deal with physical re-arrangements. One thing, though, remains the same. Education costs continue to climb. That's particularly true for college expenses. But there is a popular way to save for your youngsters' secondly educations and get a potential tax break, too. As long as you act quickly. When you contribute to a child's 529 plan, many states allow you to claim a state tax deduction. And in many states,... Read more →
Yes, cash sometimes is called lettuce, but tax gain harvesting isn't just about more green for your wallet. It could help reduce taxes you sell on assets you sell in the future. Even if you're not among the wealthiest, if you have invested a bit, you probably keep an eye on the markets. And you probably took a long look yesterday, when the Dow topped 36,000 for the first time ever. Hey, I'm right there with you. I checked my holdings to see how much they were up at that point. We all like positive reinforcement. If you're investing for... 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 →
The countdown is on! In a few hours, 2019 will be outta here and we'll be celebrating a brand spanking New Year. But if you want to celebrate a less costly tax bill when you file your 2019 return in 2020, you've got to make some year-end moves now. Here's a collection of my latest posts on tax tasks with a Dec. 31 deadline. 10 year-end tax moves to make now — My first nag list of end of 2019 tax moves from Nov. 4 10 December tax presents for you instead of the IRS — Another nag reminder on... Read more →
I don't know who came up with all these holidays in quick succession at the end of each year, but that person needs to be fired. We, and by we I mean U.S. residents since Canadians are smarter about Thanksgiving's timing, have a lot of special days in the last calendar quarter. Holiday avalanche: It starts in mid-October with Columbus Day, still one of 10 federal holidays recognized by Uncle Sam, although many areas now celebrate that Monday as Indigenous Peoples' Day. At the end of the month, we have Halloween and, depending on your heritage or geography, Dia de... Read more →
Paying property tax bills by Dec. 31 used to be a surefire way for many filers to bump up their Schedule A deductions enough to make itemizing more advantageous than using the standard deduction. That's no longer the case thanks to the Tax Cuts and Jobs Act (TCJA). In addition to capping state and local real estate tax deductions at $10,000, the tax reform bill also nearly doubled prior tax law's standard amounts. So fewer folks are worrying about paying tax bills that may be due later, like the end of next January here in the Austin area, by year's... Read more →
Yes, I know I'm a nag when it comes to year-end tax moves. I've posted about individual steps to take by Dec. 31 both at the beginnings of November and December, as well as looked at business tax moves to make now. But as happens all the time in life and taxes, I've come up with a few more year-end tax moves that didn't make the earlier lists, or at least were mentioned just in passing. So here goes with five more tax moves to make by Dec. 31 1. Don't miss the RMD deadline. You followed all the financial... Read more →
The days left in 2019 are dwindling. Quickly. Don't just take my work for it. Check out the countdown clock over in the right column of the ol' blog literally clicking away the seconds left in this year. That means it's time to act to cut your taxes. You can check out my monthly tax moves (thank you!) for November and December for some possibilities. While I did mention in those earlier posts (the November one specifically) the Tax Cuts and Jobs Act's 20 percent tax break for small businesses that operate as passthrough entities, most of those earlier tips... Read more →
These carolers, dressed in Dickensian attire, are no doubt singing traditional Christmas tunes, not my reworked and tax-themed "O Tannenbaum." (Photo by Chris Waits via Flickr CC) O Tax Year-End (O Tax Year Moves) O Tax Year-End, O Tax Year-End, How are thy days so nearing! O Tax Year Moves, O Tax Year Moves, How are thy days so wearing! Not only in the wintertime, But even in young spring is thy prime. O Tax Year-End, O Tax Year Moves, How are thy days so nearing! Yes, that's my attempt at tax lyrics to the tune "O Tannenbaum," known here... Read more →
November is the place for perfectly roasted Thanksgiving bird, not the many tax turkeys that can gobble up your money. These monthly tax moves are a great garnish as you finalize your 2019 tax year menu. Turkey attack from South Park via GIPHY It's November. You know what that means. Year-end tax move time. Oh yeah, and holiday plans. I hear ya. It's that crazy hectic part of the year, whether you're the host/hostess with the most/mostest or planning to travel to your Thanksgiving festivities. But you also need to add taxes to the mix. Now. Before you get all... Read more →
Updated Friday, Dec. 13, 2019 'Tis the season for a lot of things, including good will toward all. For many folks, that good will is exhibited by giving to charities. The push is on for donation around this time every year. In the past, the solicitations were driven by the potential tax deduction that donors could claim. Recent tax law changes, however, have change the math. With substantially larger standard deductions, more people are avoiding Schedule A itemized deductions. That means they aren't able to claim their contributions to nonprofits as tax deductions. Some analysts say the new tax law... Read more →
Contributing to a 529 plan is one tax move you need to work into your hectic year-end holiday schedule since most states require you do so by Dec. 31 in order to claim associated state tax benefits on your next tax return. We're almost halfway through December. Are you feeling the holiday crunch? Sorry, but I'm here to add to it. As I've already nagged suggested back in November and earlier this month, you need to take care of some year-end tax tasks, too. One of those tax moves — contributing to a youngster's 529 plan — is worth another... Read more →
Truman the cat guarding presents under the Christmas tree. (Photo by Shawn Kinkade via Flickr CC) Ho, Ho, Ho, Happy Holidays! December is here. Time to decorate and, most importantly, get cracking on those gift lists. If you're not into frantic, crowd-fighting, last-minute shopping trips, here are five easy tax-related gifts for just about everyone on your nice list, including yourself. 1. Give to your favorite charities. You're probably already well aware of this option, since nonprofits have been sending out year-end donation solicitations since Halloween. Their urgency can be forgiven a bit more this year because of the tax... Read more →
Don't let tax turkeys gobble up your money. Make these tax moves, a couple of which are related to recent tax reform, this November and for sure by the end of 2018. South Park turkeys via Giphy It's November! The start of the holiday season. Time to get into the festive spirit with some year-end tax moves. "Whoa! Wait! What the what are you thinking?" you say. "I'm still adjusting to Standard Time and already have a huge to-do list to make sure my family has the perfect Thanksgiving. Then as soon as that's over, I've got to start with... Read more →
There's a tax bill, but there is no tax reform. There's still an estate tax. There are still (some) state and local itemized tax deductions. There's still an alternative minimum tax. And there are enough other tweaks to confuse filers and keep tax pros very busy over the next 12 (and more) months. Ways and Means Chairman Kevin Brady (R-Texas) presides over the lone public hearing Dec. 13 of the House-Senate conference committee on H.R. 1, the Tax Cuts and Jobs Act. Final House and Senate votes on the bill are planned for next week. Basically, the Republican tax bill... Read more →