Taxpayers can now respond to 9 IRS notices online

Hoxton/Sam Edwards | Getty Images After kicking off tax season with customer service and technology upgrades, the IRS this week unveiled a new option allowing taxpayers to respond more easily to certa...

Here’s what we learned from the IRS Commissioner hearing

Senate Finance Committee Chairman Ron Wyden, D-Ore., questions IRS Commissioner Charles Rettig at a Senate Finance Committee hearing. Tom Williams | Pool | Reuters President Joe Biden‘s nominee ...

Here’s how much you can make in 2023 and pay 0% capital gains taxes

vitapix | E+ | Getty Images Planning to sell some investments this year? It’s less likely to affect your 2023 tax bill, experts say. Here’s why: The IRS made dozens of inflation adjustment...

Here’s the average tax refund through Feb. 3, according to the IRS

Bill Oxford | E+ | Getty Images Tax season is underway, and the IRS has issued nearly 8 million refunds worth about $15.7 billion as of Feb. 3, the agency reported. The average refund amount was $1,96...

What to know about $10,000 deduction limit for state and local taxes

Rep. Bill Pascrell, D-N.J., speaks at a news conference announcing the state and local taxes caucus outside the Capitol on April 15, 2021. Sarah Silbiger | Bloomberg | Getty Images A group of bipartis...

How to decide between pre-tax and Roth 401(k) contributions

Prathanchorruangsak | Istock | Getty Images Whether you’re starting a new job or updating retirement savings goals, you may need to choose between pre-tax or Roth 401(k) contributions — and the ...

Don’t risk an audit. Here are four reasons the IRS may flag your return

dmphoto | E+ | Getty Images Tax season is underway and there’s been increased scrutiny of the IRS as the agency starts deploying part of the nearly $80 billion approved by Congress in August.  W...

IRS more likely to audit Black Americans’ taxes, study finds

Jeffrey Coolidge | Photodisc | Getty Images Black Americans are roughly three to five times more likely to face an IRS audit than other taxpayers, according to a new study. While there isn’t evi...

How to handle cryptocurrency losses on your 2022 tax return

A worsening macroeconomic climate and the collapse of industry giants like FTX and Terra have weighed on bitcoin’s price this year. STR | Nurphoto via Getty Images Crypto losses can offset inves...

What to know about the Republican plan

John Miller | iStock | Getty Images A group of House Republicans is revisiting the Fair Tax Act, which would replace certain federal levies with a national sales tax and decentralize the IRS. While th...

Here’s why your tax refund may be smaller this year

Bill Oxford | E+ | Getty Images If you’re banking on a tax refund, it may be “somewhat lower” than last year’s payment, according to the IRS. Typically, you can expect a federa...

Tax season kicks off as IRS begins to deploy $80 billion in funding

kate_sept2004 | E+ | Getty Images Tax season kicked off for individual filers Monday with a bigger IRS customer service team and enhanced technology as the agency begins to deploy its nearly $80 billi...

Here’s how to report Roth IRA conversions on your taxes

If you made a Roth individual retirement account conversion in 2022, you may have a more complicated tax return this season, experts say.  The strategy, which transfers pretax or non-deductible IRA fu...

Jan. 17 is the deadline for 2022 fourth-quarter estimated tax payments

Constantine Johnny | Moment | Getty Images There’s still time to avoid a penalty if you didn’t pay enough taxes in 2022 — but the clock is ticking. If you are self-employed or receive inco...

Mega Millions jackpot is $1.35 billion. 3 tips for navigating a win

Fatih Aktas | Anadolu Agency | Getty Images There’s a chance a Mega Millions player is on the verge of joining a very short list: winners who snag a jackpot worth more than $1 billion. The grand...

Here’s how to get a faster tax refund during the 2023 filing season

Bill Oxford | E+ | Getty Images Despite falling inflation, many Americans are still struggling financially and will need their annual tax refund to help cover the basics.  Some 30% of Americans overal...

Tax season opens for individual filers on Jan. 23

It’s official: The tax season kicks off for individual filers on Jan. 23, the IRS announced Thursday. For most taxpayers, you must file your federal return and pay your balance by April 18 this ...

Here are 3 moves to make before the 2023 tax filing season opens

mediaphotos | E+ | Getty Images Enlist tax prep help One of the first things to consider: Will you be filing your own taxes this year or tapping an expert to file a return on your behalf? If you’...

House Republicans have voted to cut IRS funding

New U.S. Speaker of the House Kevin McCarthy, R-Calif., speaks with reporters in Washington, Jan. 7, 2023. Jon Cherry | Reuters House Republicans on Monday night voted to slash funding for the IRS, fo...

5 tax, investment changes that could boost your finances in 2023

1. Bigger contribution limits on retirement accounts If you’re eager to boost your retirement savings, there’s good news for 2023: higher contribution limits for your 401(k) and individual...

How to use a required minimum distribution for unpaid quarterly taxes

Sdi Productions | E+ | Getty Images If you’re retired and skipped your 2022 tax payments, you can still avoid late penalties with an under-the-radar year-end strategy, experts say. Since taxes a...

You can still reduce your 2022 tax bill with some last-minute moves

‘Take lemons and make lemonade’ with tax-loss harvesting With the S&P 500 Index down nearly 20% for 2022 as of midday Dec. 19, it may be a good time for tax-loss harvesting, which allo...

When to submit your tax return in 2023 to avoid missing forms

If you’re eager to file your 2022 tax return in January or early February, the IRS has a warning: You’ll need to wait for “key documents” before filing in 2023. In a release la...

How to prepare for a 1099-K for online payments and reduce your taxes

Charday Penn | E+ | Getty Images If you’ve accepted payments via apps such as Venmo or PayPal in 2022, you may receive Form 1099-K, which reports income from third-party networks, in early 2023....

The biggest tax changes to know before filing your 2022 return

Tom Werner | DigitalVision | Getty Images Certain tax credits have been reduced  One possible reason for a smaller tax refund is the child tax credit and the child and dependent care tax credit have b...

Here’s why your tax refund may be smaller in 2023, the IRS says

If you’re expecting a tax refund in 2023, it may be smaller than this year’s payment, according to the IRS.  Typically, you get a federal refund when you’ve overpaid yearly taxes or ...

Lesser-known ways to reduce your 2022 tax bill or boost your refund

Charles Taylor | Getty Images 1. If your income is higher in 2022, defer your bonus into 2023 If you’ve had a strong year and expect lower earnings in 2023, you may try to defer a holiday bonus ...

President Biden decides on nomination for IRS Commissioner

The Internal Revenue Service building in Washington. SAUL LOEB/AFP via Getty Images New role a ‘challenging assignment,’ former IRS commissioner says Biden’s nomination comes at a cr...

Winning ticket for Powerball $2.04 billion jackpot sold in California

Anadolu Agency | Anadolu Agency | Getty Images California does not tax lottery winnings While the IRS will scrape 24% — or $239.4 million — off the top for federal tax withholding, California does not...

What 5 key personal finance issues mean for you

As Americans head to the polls, several key personal finance issues are weighing on voters’ minds and wallets. This week, the Federal Reserve enacted its fourth consecutive 0.75 percentage point...

Powerball jackpot hits $1 billion. If you win, here’s the tax bill

The jackpot for Powerball’s Monday night drawing is a whopping $1 billion. Sort of, anyway. The advertised number represents the pretax amount you’d get if you were to receive your windfal...

What ‘millionaire tax’ plans on California, Massachusetts ballots mean for taxpayers

How states plan to spend ‘millionaire tax’ revenue While the proposed taxes sound similar, there are differences in how each state plans to use the revenue.  In Massachusetts, assuming vot...