Tax news and guidance for individual taxpayers — filing tips, deductions, refunds, and everything else that hits your personal return.
The Internal Revenue Service (IRS) has issued its 2023 standard mileage rates. Beginning on January 1, 2023, the standard mileage rates for the use of a car, van, pickup, or panel truck will be: Note that these rates apply to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles. You can find the official rates…
Taxpayer asks: Can I reduce or eliminate taxes from civil suit and punitive damages winnings by immediately investing in a home? Taxgirl says: Unfortunately, no. You can’t reduce or eliminate taxes from the proceeds of a lawsuit by investing it in real estate—or any other kind of asset. I think you might be thinking about…
Earlier this month, the IRS announced that it would put a temporary hold on automated collection notices, unfiled tax return notices, and balance due notices that it sends to taxpayers. The IRS said the stop would last until the existing backlog is “worked through.” However, the timing of that happening is anyone’s guess since, as…
The pandemic has brought on many changes in the last few years, and these changes have impacted the tax season in 2022. What challenges and updates should people be aware of this tax season? On today’s episode of the Taxgirl podcast, Kelly is joined by Amber Gray-Fenner to talk about challenges impacting taxpayers and tax…
Next week, hopeful taxpayers will begin checking bank accounts for tax refunds. Tax season opened Jan. 24, 2022, and the IRS says most taxpayers who file a tax return with no issues should expect a refund within 21 days if they file electronically and choose direct deposit. But with backlogs and bad information, some taxpayers…
In September, there were still about 17.6 million tax returns awaiting processing, and the IRS anticipates receiving over 4 million more returns in October. The delay has resulted in a lot of frustrated taxpayers, especially those grappling with error notices and being charged penalties and interest for alleged mistakes. Those penalties add up. For the…
Over the past year, the IRS has been slow to process tax returns but has appeared to continue to issue notices – especially math error notices. While the IRS made 628,997 math error corrections last year through July 15, 2020, the IRS made about 9 million math error corrections on returns filed by taxpayers in…
The IRS estimates that around 85% of taxes are paid voluntarily and on time. But the tax gap, the difference between the taxes paid on time and those still owed, means hundreds of billions of dollars are missing every year. While politicians often look to increase or decrease taxes as a part of their platform,…
The coronavirus pandemic has impacted everyone in different ways. While it has been difficult over the last year, filing your taxes could prove to be yet another hurdle in this pandemic. For those that have been telecommuting, there are likely going to be working from home tax complications. Potential working from home tax problems On…
Tax fraud is serious business and the IRS is looking for help to crack down on it. Paying IRS whistleblowers a reward is one of the tools the government uses to find and prosecute those cheating on their taxes. And it can be a lucrative business for both the IRS and the whistleblowers as they…
