IRS Extends April 15 and Other Tax Deadlines for Texas and Oklahoma Residents
Victims of February's winter storms in Texas and Oklahoma can wait until June 15, 2021, to file their 2020 federal income tax return. This announcement from the IRS follows a disaster area declaration from the Federal Emergency Management Agency (FEMA) for those two states. Taxpayers in other states impacted by the storms…
IRS mails 260,000 failure-to-file notices, but admits many likely are wrong
What's worse than getting an Internal Revenue Service notice? Getting a wrong IRS notice. That just happened to potentially more than a quarter million taxpayers. The IRS last week acknowledged that it sent approximately 260,000 taxpayers notices that they had failed to file return for the 2019 tax year. Some, perhaps…
States with No Estate Taxes or Inheritance Taxes
New Mexico Getty Images Overall Rating for Taxes on Retirees: Not tax-friendly. Sales Tax: 5.125% state levy. Localities can add as much as 4.313%, and the average combined rate is 7.83%, according to the Tax Foundation. New Mexico's tax is a gross receipts tax that covers most services. Groceries: ExemptClothing: TaxableMotor Vehicles: Exempt from ordinary…
Can You Claim the Home Office Deduction on Your 2020 Tax Return?
People working from home because of the pandemic are wondering if they can get a tax deduction out of it. It depends on your employment status. Like millions of other Americans, you may have worked from home a lot last year because the coronavirus closed your office. Sure, you probably…
When Can You File Your Taxes This Year?
The sooner you file your tax return, the sooner you'll receive any refund due (and, this year, you might also boost your next stimulus check). That's why some people like to file their return as early as possible. But this year, the IRS won't start accepting 2020 tax returns until February…
Tax deductions, no itemizing required, on Schedule 1
I've always done my taxes. When the hubby and I married, I continued this annual task, now filing our joint return. The only change is that every tax season the hubby periodically peers over my shoulder as I work on our return and chants, "Deduct! Deduct! Deduct!" Although taxes aren't…
Scammers target tax preparers in new EFIN phishing email
The Internal Revenue Service won't start accepting and processing 2020 tax returns until Feb. 12. Tax professionals, however, have been working of their clients returns since the new year arrived. That means tax criminals also doing their so-called jobs. The Internal Revenue Service, state tax agencies and tax industry today announced that there's…
Save on Child Care Costs
The high price of child care is all too familiar to my family. The monthly cost of care for our toddler usually tops $1,000 and is second only to our mortgage payment. More than 70% of parents spend at least 10% of their income on child care, and more than…
Teachers Can Deduct COVID-Prevention Supplies on Their Returns
Teachers and other educators can now deduct out-of-pocket expenses for "COVID-19 protective items" on their tax return, thanks to the COVID-Related Tax Relief Act that was passed in December. And the IRS has just issued guidance to help educators determine what is or isn't deductible under the new law. Would…
President Biden’s Tax Plans for the Next Few Years
With control of both the House and Senate in Democratic hands, President Biden will be able to get more of his tax agenda through Congress. Here's what could happen in the next four years. by: Andre Falls January 25, 2021 President Joe Biden's tax plans were laid out for all to…
