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☆ Lawmakers scrutinize free IRS filing options. “The whole process needs to be improved,” commissioner says
▼ + stars: | 2023-04-20 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

IRS Commissioner Danny Werfel on Wednesday fielded questions from the Senate Finance Committee about the agency's spending priorities, including research on the IRS direct e-file program. However, he admitted there are issues with the current IRS Free File program. A public-private partnership between the IRS and the Free File Alliance, IRS Free File offers free online guided tax prep software to taxpayers with an adjusted gross income of $73,000 or less for 2022. Warren said private companies "sabotaged the program" by making it harder for users to find free filing options to "keep raking in money." IRS free filing raises 'conflicts of interest'Throughout Inflation Reduction Act negotiations, many Republicans have been skeptical about the IRS creating its own free filing program, as well as the $15 million allocated for the study.

☆ This free online paycheck withholdings tool may help you avoid a tax bill for 2023, IRS says
▼ + stars: | 2023-04-20 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

Sergey Mironov | Moment | Getty ImagesIf you had a surprise tax bill this season or your refund was smaller than expected, it may be a good time to review your paycheck withholdings. The IRS collects taxes throughout the year, typically through paycheck withholdings for W-2 employees or quarterly estimated tax payments for self-employed workers. You can expect a refund if you've overpaid or a tax bill for not paying enough. One way to help avoid a 2023 tax bill is by using the IRS paycheck withholding estimator, according to Sheneya Wilson, a certified public accountant and founder of Fola Financial in New York. The free calculator shows how your current withholding affects your take-home pay, next year's refund or tax bill.

☆ Tax Day: Here's what you need to know if you haven't filed your return yet — and even if you have
▼ + stars: | 2023-04-18 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +10 min

New York CNN —It’s April 18, the official deadline to file your federal and state income tax returns for 2022. Whether you have already filed your tax return or still need to, the good news is this tax filing season has gone much more smoothly than the past three, which were hurt by the pandemic. But you may want to anyway if you think you are eligible for a refund thanks to, for instance, refundable tax credits such as the Earned Income Tax Credit. If you’ve already filed your return, you’re probably glad to have it in the rear view mirror. But one thing is common for the vast majority of US tax filers: Audit rates are exceedingly low.

☆ If you need more time for your tax return, do this today or 'miss the opportunity,' pro warns
▼ + stars: | 2023-04-18 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Getty ImagesThe federal tax deadline for most Americans is April 18, and there's still time to file for an extension. How to file a federal tax extensionThere are several ways to file a federal tax extension if you can't make the April 18 deadline. You can file Form 4868 electronically via IRS Free File, which provides free guided tax prep software. If you file Form 4868, it's very clear that you know exactly what you're doing. "If you file Form 4868, it's very clear that you know exactly what you're doing," said John Loyd, a CFP and owner at The Wealth Planner in Fort Worth, Texas.

☆ Trying to fund an individual retirement account ahead of the Tax Day deadline? Here's what you need to know
▼ + stars: | 2023-04-18 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

The deadline to make IRA contributions generally coincides with Tax Day. Some residents of eight states have federal tax deadline postponements until May, July or October due to natural disasters, according to the IRS. Roth IRA contributions, on the other hand, consist of post-tax contributions. You may be able to get around these restrictions through a Roth conversion, where traditional IRA funds are moved to a Roth IRA. While funding a Roth IRA may not immediately affect your tax circumstances now, experts say it may be the better pick in the long run.

☆ 6 things to do with your tax refund other than spend it right away
▼ + stars: | 2023-04-18 | by ( Mike Winters | ) www.cnbc.com time to read: +4 min

That's what many tax filers have been considering this tax season, which ends today, April 18, for most filers. As of April 7, the average 2022 tax refund is $2,878, slightly lower than 2021's $3,175, according to the Internal Revenue Service. Of course, an IRS refund is merely a zero-interest reimbursement for overpayment on taxes throughout the year. To get you started, here are six smart things to do with your tax refund other than spend it right away. "If your tax refund can make a dent to lower the balance or possibly pay off your credit card, do it," says Nycole Freer, a certified financial planner in California.

☆ There's another April 18 tax deadline that many forget about, pro says. Here's how to avoid a penalty
▼ + stars: | 2023-04-17 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

ozgurcankayaIf you're scrambling to file your taxes, it's easy to miss another key deadline on April 18: the due date for 2023 first-quarter estimated tax payments. Income taxes are pay-as-you-go, meaning you must remit taxes throughout the year. The first estimated tax deadline is April 18, which applies to self-employed or gig economy workers, investors and other filers who expect to owe $1,000 or more in 2023. However, some filers affected by natural disasters have more time for estimated tax payments, such as eligible filers in Alabama, California and Georgia, according to the agency. The late payment penalty is 0.5% of your unpaid balance per month, up to 25%, plus interest.

☆ Did you buy alternative investments and big-yielding assets last year? Your tax return could get a little messy
▼ + stars: | 2023-04-16 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

Tax Day is upon us – but investors who have complicated tax returns may find themselves asking for an extension. April 18 is the filing deadline for your 2022 return, and on that day, you must pay any federal income taxes you owe. Last year, an estimated 19 million taxpayers asked for an extension to turn in their 2021 tax return, according to the IRS. That's because while the MLPs themselves aren't subject to federal income taxes, the limited partners who receive income distributions are responsible for taxes. You need this form in order to file your income tax return, but partnerships may not send these details until mid-March, which could lead to investors going on extension.

☆ This free tax tool may find 'overlooked' credits or refunds for those who don't need to file, IRS says
▼ + stars: | 2023-04-14 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

Most taxpayers, including this group, qualify for IRS Free File, which offers free online guided tax prep for federal returns and some state filings, to possibly claim "overlooked tax credits or refunds," according to the IRS. You can use IRS Free File if your 2022 adjusted gross income was $73,000 or less, and taxpayers at any income level can use it to file an extension. Roughly 70% of taxpayers qualify for Free File, but only 2% used it during the 2022 filing season, according to the National Taxpayer Advocate. However, they may still qualify for "refundable" tax credits, which can be claimed without a balance, such as the earned income tax credit for low- to moderate-income workers. How to use IRS Free FileTo get started with Free File, you'll need personal information like your Social Security number, dependent and spouse details, last year's adjusted gross income for verification and the necessary tax forms.

☆ Last-minute tax-filing tips
▼ + stars: | 2023-04-13 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +7 min

New York CNN —So far this tax season, the IRS has received more than 90 million income tax returns for 2022. If yours is among them, here are some last-minute tax-filing tips to keep in mind as the Tuesday, April 18 deadline approaches. But you may want to anyway if you think you are eligible for a refund thanks to, for instance, refundable tax credits such as the Earned Income Tax Credit. Proofread your return before submitting it: Do this whether you’re using tax software or working with a professional tax preparer. Note, however, that an extension to file is not an extension to pay.

☆ Just get your tax refund? 7 smart ways to use it
▼ + stars: | 2023-04-07 | by ( Holly Johnson | ) edition.cnn.com time to read: +8 min

If you’re looking for a way to use your tax refund for maximum impact, here are some of the best options to consider in 2023 and beyond. Pay down high-interest debtPutting your tax refund toward paying down credit card debt could save you thousands of dollars in interest charges. If you can’t pay down all of your credit card debt at once, you can use your tax refund to cover a portion of it. Bulk up your emergency fundConsider putting your tax refund toward your emergency fund to prepare for surprise expenses. Invest in yourselfInvest in yourself by using your tax refund to improve your health or further your education.

☆ Used U.S. electric vehicle sales jump as prices fall -group
▼ + stars: | 2023-04-07 | by ( David Shepardson | ) www.reuters.com time to read: +2 min

WASHINGTON, April 7 (Reuters) - Used electric vehicle sales in the United States rose 32% in the first three months of 2023 as prices fell, data provider Cox Automotive said on Friday. The group said used EV prices were probably cut due to aggressive price reductions by Tesla (TSLA.O) for new vehicles. "As the market leader pushes down prices for new EVs, used-vehicle prices follow suit," Cox said. On Thursday, Tesla cut prices in the United States between 2% and nearly 6%, the fifth such cut this year. Used EV buyers adjusted gross income may not exceed $75,000 for individuals or $150,000 for joint filers.

☆ The IRS released its $80 billion funding plan. Here's what it means for taxpayers
▼ + stars: | 2023-04-07 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +2 min

IRS Commissioner Daniel Werfel testifies before a Senate Finance Committee hearing on Feb. 15, 2023. Kevin Lamarque | ReutersThe IRS on Thursday released a plan for the nearly $80 billion in agency funding enacted through the Inflation Reduction Act in August — including expected boosts for customer service, technology and enforcement. "Now that we have long-term funding, the IRS has an opportunity to transform our operations and provide the service that people deserve," IRS Commissioner Danny Werfel told reporters on a press call. IRS tools will help taxpayers identify their mistakes before filing returns, and upgrades may help resolve filers' errors more quickly. "That's a departure from the organization's traditions," said Mark Everson, a former IRS commissioner and current vice chairman at Alliantgroup.

Because I got a tax extension, I was able to work more closely with my CPA and go over all my questions. Those extra months to save made a difference, and I was able to shore up funds to pay for both my corporate and individual tax returns. And since I work with a tax professional, they usually require that I submit all my financial statements and tax documents well before the mid-April deadline. In fact, I usually need to pay quarterly estimated tax returns, plus I usually owe state and federal returns each year. While I don't recommend doing anything last-minute or late, filing my tax returns in mid-October last year did have some unexpected perks.

☆ Mitt Romney calls new bike lanes 'the height of stupidity' as bicyclists press Congress to make roads safer and e-bikes cheaper
▼ + stars: | 2023-04-03 | by ( Eliza Relman | ) www.businessinsider.com time to read: +5 min

Sen. Mitt Romney said making room for bike lanes is "the height of stupidity" and opposes e-bike credits. "Removing automobile lanes to put in bike lanes is, in my opinion, the height of stupidity, it means more cars backing up, creating more emissions." "There is a widespread suspicion on the right today that liberals want to take away their way of life," Carney told Insider. That is in the background of the mind of every conservative, and so when they hear more bike lanes, they think, 'Okay, what is that code for?'" Carney told attendees at the annual National Bike Summit in Washington last week to frame their efforts as building safer and more interconnected communities.

When it comes to filing taxes, people "can get caught in a thought loop and often overthink in these situations," Dr. Moss says. Others are stressed about the strict deadline for filing taxes. Tax stress can spill out into the rest of your lifeKol explains that this stress often makes late filers "want to stay far away from taxes." The stress of filing late can spill over into other parts of life. "At the end of the day, filing taxes is emotional for some people, and that's something that I have an understanding of from working with my clients," she says.

☆ Taxes and adulting: What to know about filing taxes on your own for the first time
▼ + stars: | 2023-04-03 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +9 min

Taxes are genuinely confusingIf you’re confounded by filing your taxes, you may think it’s because you’re young and inexperienced. Organize everything before filling out anythingYour tax return is a financial snapshot of your life over a 12-month period, in this case 2022. Above those levels, the child tax credit starts to get reduced. Deadlines matterYour federal tax return is due on April 18. That is the day by which you must have filed your 2022 individual tax return and paid any remaining federal income taxes owed for last year.

☆ How You Can Grab a 0% Tax Rate
▼ + stars: | 2023-03-31 | by ( Laura Saunders | ) www.wsj.com time to read: 1 min

Zero, zip, zilch: The U.S. tax code has a 0% rate on investment income, even for Americans with significant assets. The waning days of this tax-filing season are a good time to think about how to use it in the future. The zero rate isn’t a secret. It has been in effect since 2008, and nearly 11 million filers—about 7%—qualified for it in 2020, according to the latest Internal Revenue Service data. That total included about 34,000 filers earning $1 million or more.

☆ 4 red flags for an IRS tax audit — including what one tax pro calls a 'dead giveaway'
▼ + stars: | 2023-03-29 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +3 min

While the IRS plans to hire more workers, including enforcement agents, experts say there's no need to worry — as long as you keep proper documentation. Still, certain red flags are more likely to trigger an IRS audit, experts say. "Round numbers are a dead giveaway," said Preeti Shah, a certified financial planner at Enlight Financial in Hamilton, New Jersey. Earned income tax creditThe IRS has also examined refundable credits, which can provide a refund even when the credit value exceeds taxes owed. While audits have declined overall, the drop has been lower for filers claiming the earned income tax credit, or EITC, targeted at low- to middle-income workers.

Bill Oxford | E+ | Getty ImagesWith the tax deadline approaching, the IRS has issued roughly 54 million refunds worth about $158 billion as of March 17, the agency reported Friday. Indeed, the average refund payment was $2,933 compared to $3,305 at the same point last year. For example, many families got relief in 2021 from the enhanced child tax credit, worth up to $3,600 per child, and the child and dependent care tax credit of up to $4,000 per dependent. For 2022, the child tax credit returned to a maximum of $2,000 per child, and the child and dependent care tax credit was $1,050 per dependent. As of March 19, 2021, the average refund was $2,929, only $4 less from the numbers reported Friday.

☆ Democrats want to make electric bikes much cheaper by giving you up to $1,500 to buy one
▼ + stars: | 2023-03-27 | by ( Eliza Relman | ) www.businessinsider.com time to read: +5 min

A new bill would give Americans up to $1,500 off the purchase of an electric bicycle. The Senate cut this legislation out of the 2022 Inflation Reduction Act, but included subsidies for electric cars and SUVs. Biking advocates argue that electric bikes should be subsidized just as electric cars have been for years. Electric bikes have boomed in popularity in the US over the last several years. E-bike tax credits introduced by cities and states around the country have become hugely popular in recent years.

This is partly because of a higher standard deduction, expiration of the enhanced child tax credit, and the end of pandemic-era charitable deduction rules. However, a big tax refund isn't necessarily a good thing — it means you overpaid the government. Taxpayers are not getting an additional stimulus payment, and there are a few other tax changes that might make your refund smaller this year:1. Remember: The goal is not to get a big tax refund. A tax refund means you gave the government an interest-free loan for a year.

☆ You may owe taxes on your crypto investments — here are 3 things to know
▼ + stars: | 2023-03-25 | by ( Cheyenne Devon | ) www.cnbc.com time to read: +3 min

Since 2014, the IRS has treated virtual currency as property for federal income tax purposes, according to the agency's website. Similar to stocks, crypto is subject to IRS rules surrounding capital gains and losses. That means that if you earned a profit by selling your crypto for more than what you purchased it for, you'll owe capital gains tax on the difference. The IRS allows investors to use capital losses to offset taxable capital gains. Additionally, capital losses can be used to reduce your regular taxable income by up to $3,000 per year if your capital losses exceed your annual capital gains.

☆ Here’s how the IRS says you should handle 1099-K tax reporting mistakes on your return
▼ + stars: | 2023-03-24 | by ( Kate Dore | Cfp | ) www.cnbc.com time to read: +1 min

The 2022 threshold for Form 1099-K, which reports third-party business payments to the IRS, is still more than 200 transactions worth an aggregate above $20,000. That's slated to change for next tax season when the 2023 threshold drops to $600 for even a single transaction. In the meantime, you still need to report business income, regardless of whether you receive Form 1099-K, the IRS said in a news release on Thursday. "In effect, the IRS compares the information it receives from third parties to the information included on a tax return," he said. watch nowHow to handle 1099-K reporting errors

☆ How to Fill Out a Form 1040
▼ + stars: | 2023-03-20 | by ( ) www.wsj.com time to read: +15 min

Form 1040 contains every figure the IRS needs to calculate your tax bill or refund. The form is identical to Form 1040, but with larger text that makes the form easier to read.) Filing status and personal informationAt the top of Form 1040, you’ll indicate your filing status and provide your basic personal information. If you make estimated tax payments throughout the year, you might want some of your overpayment applied to your estimated tax payments for the following year. Signatures on Form 8879 can be electronic or physical, and once the form is signed you can submit your return for e-filing.

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