My wife and I weren’t able to file a joint federal tax return for the first 18 years we were married because, as a same-sex couple, the IRS didn’t recognise our marriage. Now we file as a married couple filing jointly. That means we pay less income tax and our […]
In general, the IRS recommends keeping copies of your tax returns and tax-related documents for at least three years and up to seven years. The time periods represent the statute of limitations for IRS auditing, though that shouldn’t be cause for worry for the vast majority of taxpayers. You typically […]
The IRS will be accepting 2019 tax returns beginning Monday, January 27. Whether you file taxes electronically or by paper, the fastest and safest way to receive your refund is to request direct deposit. The IRS issues 90% of tax refunds within 21 days of filing, but it could take […]
Tax Day 2020 is Wednesday, April 15, when taxes are due for income earned in 2019. The Saver’s Credit is a little-known tax credit that can reduce, or even eliminate, your tax bill if you saved for retirement in 2019. Tax credits are subtracted directly from the amount you owe […]
Tax Day 2020, when your tax return is due for income earned in 2019, is Wednesday, April 15. You can file your taxes as soon as you receive your W-2 form from your employer, or 1099 forms if you’re a freelancer, which must be filed and postmarked on or before […]
If you e-file your taxes with TaxAct on Tax Day 2020, you’ll choose from four plans: Free, Deluxe+, Premier+, and Self-Employed+. Active military members can file federal and state taxes for free, regardless of which plan they choose. TaxAct is less expensive than big-name competitors, like TurboTax and H&R Block, […]
The Urban-Brookings Tax Policy Centre estimates that nearly 76 million Americans won’t owe federal income tax on tax day 2020. Some Americans don’t owe taxes on their income because it is too low; the deductions and credits available to them wipe out their tax liability. If you’re under age 65 […]
The earned income credit is a refundable tax credit – i.e. a lump sum of money “refunded” to taxpayers by the IRS – for those earning a low-to-moderate income. It’s available for the 2020 tax season. The minimum earned income credit is $US529 and the max you can receive is […]
Most states have extended their tax deadlines in response to the coronavirus pandemic. Most of the states have new due dates in July to line up with the new federal tax deadline. A few states have due dates in June; Mississippi’s new deadline is May 15. States tax income at […]
For years I did my own federal and state taxes using TurboTax – but that’s changing for Tax Day 2020. Last year, I was hit with a much higher tax bill, but figured it was because my income had increased. When I spoke to a CPA about this year’s taxes, […]
How much you pay in federal income taxes depends, in part, on what tax bracket you fall into. There are seven tax brackets with tax rates ranging from 10% to 37%, and the thresholds are updated every year for inflation. Your tax bracket applies to only the amount you earn […]
High-yield savings accounts and CDs are great tools for growing your savings while keeping the money safe from market risk. A CD or high-yield savings account with an annual percentage rate (APY) of 2% would net about $US200 in interest on a $US10,000 balance over a 12-month period. If you […]
Every year, the IRS warns taxpayers to beware of a long list of tax scams, including robo-calls and phishing attempts. I receive scam calls regularly during tax season. Often they allege “fraud and misconduct” associated with my taxes and urge me to return the call “immediately.” As we approach the […]
