How Taxing Crypto Got Changed by Biden’s Infrastructure Law
Embedded in the infrastructure spending package signed into law by U.S. President Joe Biden was language increasing the tax reporting requirements for cryptocurrency transactions. That change was heavily opposed by the digital currency industry, which has in its corner a bipartisan group of senators that still hopes to amend the law. Regardless, more struggles are ahead as Washington grapples with how Bitcoin and other cryptocurrencies should be regulated and taxed.washingtonpost.com
Advance child tax credit payments from IRS might not be available for parents of kids who were born in 2021
Another round of child tax credit payments from the Internal Revenue Service is set to hit accounts of qualifying families on Monday but for people who had a baby in 2021, there might not be any advance payments at all.
Democrats retreat on spending after failing to get votes for huge tax hikes
President Joe Biden and progressive Democrats have failed to get the votes for a proposed major overhaul of the tax code and are now being forced to cut the size and scope of their planned infrastructure and social welfare legislative package as well.news.yahoo.com
Child care industry struggles to recruit workers as unemployment rises
Applications for unemployment benefits rose for a third straight week even as employers are desperate for workers. Some parents are unable to go back to work because child care centers are understaffed. Washington Post economic correspondent Heather Long joins CBSN "Red and Blue" anchor Elaine Quijano with more.news.yahoo.com
Leak of billionaires' tax data draws GOP outcry over privacy
Republicans in Congress are alarmed by the leak of confidential IRS data to ProPublica that has enabled the investigative news organization to reveal that famous billionaires including Warren Buffett, Bill Gates and Mark Zuckerberg paid little in U.S. income tax at times.
Need some extra time to file your taxes? You got it
The Internal Revenue Service says it’s delaying the traditional tax filing deadline from April 15 until May 17. The new deadline does not apply to estimated tax payments that are due on April 15; those remain due by that day. The pandemic hit in the middle of last year’s tax filing season, setting the agency back in terms of processing. A number of lawmakers and professionals from the tax community have urged the tax filing season be extended to accommodate for these pressures. Rettig is expected to speak to the committee tomorrow about how the IRS is managing this filing season and the need for this extension.
Before you file taxes online, here’s how to do it securely
SAN ANTONIO – Like most Americans, Matthew Starcez is filing his tax return online. “We’ve been doing our taxes online for the last seven years,” he said. Even if someone steals your password, multi-factor or two-factor authentication could still stop them from getting into your account. But before you even file, security experts say it’s a good idea to make sure your sensitive online financial accounts and router are secure with strong passwords. It’s also available for Mac and Windows computers, but you may need to enable it in the security settings.
From Homer Simpson to Al Bundy, how TV has had fun with tax season
Who says tax season can’t have a fun component to it? Plenty of TV shows have certainly had fun with tax season and produced some memorable episodes as a result. “I paid my taxes over a year ago.”Homer is then reminded by daughter Lisa that you have to pay taxes EVERY year, sending him into a panic. Al Bundy vs. the IRSWho would have thought the legendary character on the sitcom “Married with Children” would have problems during tax season? Do you have any other favorite moments of television shows portraying tax season?
How do I file taxes if I’m working remotely in another state that’s not my residence?
A common aspect of the COVID-19 pandemic over the past year or so has been more employees working remotely, but that doesn’t necessarily mean all those people were working from their homes. Whether it’s been employees from the north who have migrated to residences in the south during the winter, or people choosing to work remotely from what are normally vacation homes, many have taken the opportunity to work remotely in a separate state from where they reside. Each state has its own set of laws and rules in terms of remote workers filing taxes. If your employer knows where you are working, they could send tax forms in that temporary state. So, what are the best solutions to avoid such tax headaches if you’ve been working remotely in another state for a temporary period of time?
Millions of taxpayers still waiting for 2019 refunds to arrive, report says
As people get ready to either file their tax returns or receive refunds from returns already filed for 2020, the IRS is still dealing with a big problem. In mid-February and based on data through Jan. 30, the IRS said it hadn’t yet processed 6.7 million individual income tax returns for 2019. The issue is so serious that the House Ways and Means Committee is asking the IRS to return the deadline for 2020 returns beyond April 15. AdIt remains unclear how much longer those anticipating their refunds from 2019 will have to wait, or if this year’s deadline will be extended. But for the IRS, it could be difficult to focus completely on 2020 in the coming months with millions of 2019 returns still not processed.
You’ve filed your taxes -- now, what should you do with those documents?
The IRS can request documents pertaining to previously filed taxes for years after you’ve thrown or tucked them all away. Here are some tips for retaining your tax documents and storing them safely. If you are still unsure of how long to keep your tax documents, check with your CPA or tax preparer. If you already have a cloud storage account, placing your tax documents there can be a smart move. If you plan to store your tax documents locally on your hard drive, use an encrypted folder and a strong password.
Texan taxpayers affected by winter storms have two extra months to file their returns this year, IRS says
SAN ANTONIO – The Internal Revenue Service is extending tax season deadlines for Texans affected by last week’s winter storms. Individuals and businesses included in the Federal Emergency Management Agency’s recent disaster declaration now have until June 15, 2021, to file their tax returns and pay anything they owe to the IRS. For example, individual tax returns and quarterly estimated income tax payments -- typically due on April 15 -- are now due on June 15. Affected taxpayers can deduct personal property losses not covered by their insurance or through other reimbursements, according to the IRS. For more information on the IRS’s changes for those affected by the winter storms, click here.
Eligible educators can deduct out-of-pocket expenses for COVID-19 protective items used in classroom, IRS says
SAN ANTONIO – If you’re an educator filing a tax return this year, you may be eligible to deduct unreimbursed expenses for COVID-19 protective items used in the classroom. The educator expense deduction applies to eligible educators for unreimbursed expenses paid or incurred after March 12, 2020, for the COVID-19 protective items. The IRS says eligible educators include any individual who is a kindergarten through 12th grade teacher, instructor, counselor, principal or aide in a school for at least 900 hours during a school year. The IRS will allow educators to deduct up to $250 of qualifying expenses per year. AdThe IRS says the deduction applies to expenses paid or incurred only during the tax year.
Working from home? Don’t expect a tax break
“Unfortunately, if you are an employee only, that is not something you can deduct,” said Jose Garcia, CPA and owner of Mission Tax and Financial. The Tax Cuts and Jobs Act eliminated home office deductions and replaced them with a fatter standard deduction. But some people can write off their home office expenses. Those who are self-employed, independent contractors or working in the gig economy can deduct qualified expenses. “What I suggest is try to negotiate something with your employer and see what options they provide to you,” Garcia said.
Filing a tax return? Here’s what you need to know this year.
SAN ANTONIO – Tax season is right around the corner, and you’ll want to be prepared for some of the changes coming this year before you file. The IRS will use the time before tax season to test its systems due to some tax law changes last year. IRS Free File opened on Jan. 15, so you’re able to begin filing your return now if you have all the documents you need. The IRS says tax preparation software should help you determine what you’re due if you are eligible. RELATED STORIES:San Antonio tax services preparing for season amid pandemicDo you have to pay taxes on unemployment compensation?
Do you have to pay taxes on unemployment compensation? Yes, you do.
All unemployment compensation received in 2019 must be reported on 2020 federal tax returns. Haywood also told KSAT that people who received unemployment benefits will not be eligible for the child credit. “Your state will send you Form 1099-G, which will show the amount of unemployment compensation paid to you during the year. If you repaid a portion of the benefits received, you can reduce the benefits received by the amount repaid,” according to H&R Block. While unemployment income is subject to federal and state taxes, Texas is one of 15 states that does not tax unemployment income because Texas does not have a state income tax.
IRS gets more relief payments out after delays
The IRS said that after initial problems, it is getting more of the second round of relief payments to taxpayers. (AP Photo/Eric Gay)The IRS said that after initial problems, it is getting more of the second round of relief payments to taxpayers. A number of tax preparation companies said that they were able to resolve the issues. The IRS said Tuesday that it worked over the weekend to help a smaller set of impacted taxpayers and is reissuing payments for eligible taxpayers whose accounts may have been closed. No action is needed for most eligible taxpayers to get the payment.
Stimulus checks on the way for TurboTax customers after snafu that sent money to wrong bank accounts
A number of taxpayers who use tax preparation services, such as H&R Block and TurboTax, say their second relief payments were sent to the incorrect bank account. The IRS and the Treasury Department began issuing the Economic Impact Payments last week of Jan. 1, 2021. The delay in the direct deposits came after a number of taxpayers who used TurboTax said their second relief payments were sent to the incorrect bank account. You could be eligible to receive a Recovery Rebate Credit on your 2020 taxes if you did not receive the full amount of the economic stimulus payments. Read also: Didn’t get your relief payment yet?
Didn't get your relief payment yet? You aren't alone
The U.S. Treasury and IRS have sent out the bulk of the second economic impact payments, which are intended to provide some relief to Americans. However, frustration is high among millions of people who did not receive payments yet and must wait for the mail or file their taxes before they receive it. If you are eligible, check the IRS Get My Payment tool on its website to find out the status of you payment. However, some people may find that they get their payment in a different form this time than last. If you get the “Payment Status #2 – Not Available” message, then you will not receive the payment and instead need to claim it on your tax return.
Some taxpayers find relief payments sent to wrong account
A number of taxpayers who use tax preparation services, such as H&R Block and TurboTax, say their second relief payments were sent to the incorrect bank account. The IRS and the Treasury Department began issuing the Economic Impact Payments last week of Jan. 1, 2021. (AP Photo/Eric Gay, File)A number of taxpayers who use tax preparation services, such as H&R Block and TurboTax, say their second relief payments were sent to the incorrect bank account, forcing them to wait longer for their money. However, many people said that they checked the IRS site and found their payments were sent to an account they did not recognize. The IRS has said that there is no action required by eligible individuals to receive this second payment.
Are your unemployment benefits or stimulus checks taxable income?
SAN ANTONIO - – The coronavirus pandemic has triggered record unemployment levels, meaning many people are receiving government assistance for the first time. Several KSAT viewers have sent in questions recently, asking if unemployment benefits and stimulus checks are taxed. He wants people to know unemployment benefits are taxable income. The good news is that the government stimulus checks and direct deposits will not be taxed. Rucker is pointing people to the IRS website, where they can find information about those tax credit programs and incentives.
New stimulus plan: Who will get a second payment and when will it be received?
Treasury Secretary Steven Mnuchin said $600 payments were expected to be deposited as early as Tuesday night. The agreement includes a second round of stimulus payments and will provide financial assistance to those that are unemployed and businesses, schools, and more that are affected by the coronavirus pandemic. Exact income criteria and timing for the second stimulus package, as well as other details of the plan, have yet to be released as of noon on Dec. 21. Stimulus checks were sent to people based on federal tax returns from 2018 or 2019. Similar to the first round of stimulus checks, payments are expected to start phasing out for individuals who earn more than $75,000 annually.
Like everything else 2020, taxes will be like no other year
It’s worth noting that unemployment benefits are all subject to federal taxes but not all states tax it. As such, people who did not receive their payment or only got a partial payment can resolve this issue on their 2020 taxes when they file. Another big issue is for those who relocated or moved during the pandemic, which could complicate where they need to report and pay state taxes, Pyron said. Workers may need to file taxes in multiple states. The IRS continues to urge taxpayers to file their taxes online and use other online tools whenever possible.
The IRS has made changes to the tax bracket -- here’s what it will mean for you
Earlier this week, the IRS announced the 2021 tax year annual inflation adjustments for more than 60 tax previsions. Those include tax rate schedules and other tax changes. The following are the 2021 tax rates, which will be used when filing taxes in 2022 for the previous year of income. Taxpayers with lower incomes with have lower federal tax rates. Click or tap here to learn about more changes that have come with tax inflation adjustments for tax year 2021.
Audit likely gave congressional staff glimpse of Trump taxes
When JCT staffers disagree with the IRS on a decision, the review is typically kept open until the matter is resolved. Even acknowledging that Trump's taxes were before the panel is verboten. Representatives for the Trump Organization did not respond to messages seeking comment and confirmation that the Joint Tax Committee had reviewed Trump's taxes. Former JCT staffers would not comment on whether they remembered the dispute with Trump, citing confidentiality rules. Neal, the lead force behind a Democratic lawsuit to expose Trump’s taxes, said the Times’ reporting is proof that the documents should be given to Congress.
US judge: IRS can't keep coronavirus money from inmates
A federal judge says the IRS can't keep withholding coronavirus relief payments from incarcerated people, potentially clearing the way for at least 80,000 checks totaling more than $100 million to be sent to people behind bars across the United States. The legislation passed in March that authorized the payments of up to $1,200 per person during the pandemic doesn't specifically exclude jail or prison inmates. Still, that's exactly the claim that the IRS made a couple of weeks after the coronavirus rescue package passed. Prison officials in Maryland and California are working to notify all lock-up facilities. Some inmates may be reluctant to apply even if they hear about the ruling in time, Dermody said.
Trump business deductions: sketchy, normal or in-between?
A key question is whether those deductions reported by The New York Times were excessive and possibly illegal; they enabled Trump to avoid millions of dollars in taxes. It would be up to the IRS, which is auditing some of Trump’s returns, to decide whether the deductions are legitimate. The agency defines an ordinary expense as one that’s common and accepted in a company’s trade or type of business. According to the Times, Trump has treated some of his residences as businesses, in the process deducting millions of dollars. Moreover, under the tax legislation Trump signed into law in 2017, he would have been limited to $10,000 a year in property tax deductions for 2018.
Watchdog: Millions in danger of missing virus relief payouts
(Graeme Jennings/Pool via AP)WASHINGTON – Millions of Americans are in danger of missing coronavirus relief payments of up to $1,200 per individual because of incomplete government records, a government watchdog said in a report issued Monday. But GAO said Treasury and the IRS have still failed to update information on how many eligible recipients have yet to receive funds. The lack of "such information could hinder outreach efforts and place potentially millions of individuals at risk of missing their payment,” the GAO said in its report. The IRS then reported as of July 31 that 5.3 million individuals had used an online IRS tool for nonfilers to help them receive payments. In addition to the problem of missing individuals eligible for the payments, an earlier GAO report found that nearly 1.1 million in coronavirus relief payments totaling some $1.6 billion went to dead people.
Finished your taxes? Take these steps to get ahead for next year
When all that hard work is finished and your return is finally filed, the last thing you want to think about is your taxes. Keep in mind that your big tax refund was actually a year-long interest-free loan to the government. Boost your 401(k) contributionTax filing season is the perfect time to revisit your 401(k) contribution, especially if you have not done so for a while. Invest your tax refund in an IRAIf you are in line for a big tax refund, why not make it work as hard as you do? If you already adjusted your 401(k) contribution, you will be that much closer to the new limit.
No more delays: What to know about the July 15 deadline
As the coronavirus pandemic took hold this spring, the federal government postponed the traditional April 15 filing deadline until July 15. In most cases, you must file and pay your taxes by July 15. Those were originally due on April 15 and June 15 respectively. One worth noting is that July 15 is also the deadline to claim a refund for 2016 tax returns. An estimated $1.5 billion refunds for 2016 are sitting unclaimed because people failed to file tax returns.
US inmates got virus relief checks, and IRS wants them back
The legislation authorizing the payments during the pandemic doesnt specifically exclude jail or prison inmates, and the IRS has refused to say exactly what legal authority it has to retrieve the money. While the IRS says checks sent to jail inmates also should be returned, the sheer number of jails and detention centers across the U.S. makes it difficult to tell if many are following those instructions. She says prison officials are accustomed to intercepting tax documents to screen for potential scams, priming them to follow this request. Intercepting relief checks may also have a disproportionate impact on Black and Hispanic inmates, who are incarcerated at a higher rate than white Americans. Prison officials nationwide have been trying to intercept the checks, with varying results.
Your stimulus check could come in a debit card
The debit card was real. “It ended up being the stimulus money,” Williamson said. The IRS said some payments may be sent on a prepaid debit card known as the Economic Impact Payment Card. Some things you can check on in the meantimeThe card will arrive in a plain envelope from Money Network Cardholder Services. Meza said because the debit card is new, it can open the door for scammers.
Still haven’t gotten your stimulus check? Some things you can check on in the meantime
Important question: Have you gotten your stimulus check yet? In fact, most people don’t need to take any action, and will automatically receive the payment. Let’s talk through the tools available to investigate what might be holding up your check, prepaid debit card or direct deposit. You’re eligible for the Economic Impact Payment, right? Here’s a detailed list you should triple-check just to make sure you’re eligible for the payment, and see how much you should receive.
H-E-B customers can cash stimulus checks in stores for free, officials say
SAN ANTONIO – If you’re still looking to cash in your stimulus check from the federal government and don’t have a traditional bank account, H-E-B has got you covered. H-E-B stores are now offering free in-store check cashing of stimulus checks. H-E-B has also waived the card purchase fee and 60 days of monthly plan fees for H-E-B Prepaid cards that are purchased between April 1 and May 31, store officials announced on the store’s website on Thursday. To learn more about how to set up direct deposit for economic impact payments, visit the IRS website here. Stimulus payments sent to dead people must be returned, IRS saysCOVID-19, the respiratory disease caused by the new virus, stands for coronavirus disease 2019.
Stimulus payments sent to dead people must be returned, IRS says
(CNN) -- Federal stimulus payments sent to people who have died must be returned, the Internal Revenue Service said in new guidance released Wednesday. The IRS has to cross-check with another federal agency to get a list of the deceased. In that case only the portion of the payment belonging to the deceased needs to be returned, the agency said. The IRS started by sending money to those who had already filed a 2018 or 2019 tax return. The IRS has sent more than 122 million payments, for a total of $207 billion, since April 11.
‘Payment status not available:’ Here’s how to decode the IRS stimulus check tool
It also lets people update bank account information so that the IRS can send a direct deposit rather than a check, speeding up the payment process. Here's how to decode the different status messages you might receive:'Payment status not available'There are several reasons you might be getting this vague message. At this time, those who see a "Payment status not available" message are not able to input bank account information to help speed up the process. But the IRS does not have your bank account information on file and the tool will prompt you to input that information. This might happen if you recently uploaded your bank account information to the IRS site.
Your stimulus payment questions answered
Q: The IRS sent my stimulus payment to an old bank account that is now closed. The letter will provide information on how the Payment was made and how to report any failure to receive the Payment. Q: If my son is over 18 and I claimed him as a dependent, will he get a stimulus payment, or will I? A: Anyone over the age of 17 years old who is claimed by someone else as a dependent will not receive a stimulus payment. Will he still get a stimulus payment?
IRS says stimulus payments sent to dead people have to be returned
SAN ANTONIO – The IRS sent $1,200 checks to millions of Americans as part of a stimulus relief package to help people impacted by the coronavirus pandemic but while some people are still waiting on their money, some dead people are getting paid. “A Payment made to someone who died before receipt of the Payment should be returned to the IRS,” according to IRS.gov. The IRS website also lists instructions on what to do if you need to send money back. Nina Olson, former head of the Taxpayer Advocate Service, told Market Watch on April 18 that the “CARES Act stimulus bill contained no 'clawback’ provisions for stimulus checks sent to a dead person, meaning the agency can’t retrieve the money after it’s been handed out.”“This has been a tremendous success. *Editor’s Note: This story was edited with the update that the IRS says the checks need to be returnedMORE CORONAVIRUS COVERAGE FROM KSAT:
Trust Index: No, you don’t have to repay stimulus check
Several videos circulating on social media claim that you’ll eventually have to pay it back next year. KSAT’s Trust Index verification team reviewed the claim and determined this is not true. Trust Index: Not TrueYou will not have to pay back the stimulus check. The Associated Press confirmed with the IRS and Department of Treasury you do not have to repay the stimulus check. Share it with our Trust Index team and we’ll review.
Millions of Americans could lose stimulus payments to debt collectors
The $2.2 trillion congressional coronavirus relief plan passed in March did not shield the stimulus payments from certain private debt collectors, though it specifically protected the money from being taken to cover unpaid taxes or federal student loan payments. Some states and local governments -- including Massachusetts, Ohio, Illinois and Washington, DC -- have issued their own orders to shield the stimulus payments from private debt collectors. The stimulus payments are meant to provide emergency assistance during the coronavirus outbreak. She said many Americans may not know their bank account is at risk of seizure because they have not been served properly in a collection lawsuit. The stimulus payment should be deposited in the same bank account where you received your tax refund in either 2018 or 2019.