5 Cinco de Mayo tasty tax tips to complement your guacamole y cerveza

How do I celebrate each May 5th? With guacamole, cerveza y tax tips! That means here in our Texas casa, every day basically is Cinco de Mayo.

Yes, there really is a tax component to Cinco de Mayo beyond the use of my poco Español as a framework for this list.

That's why I feel justified in urging you — before you lift a glass, be it brimming with Dos XX or a margarita, to commemorate Mexico's victory over French troops at the Battle of Puebla on this day in 1862 — to check out these five tax-smart tax moves.

Uno: Get help.
If you put off filing thanks to an extension, that might be a good indication that you need tax prep and planning help. Now is a great time to find the perfect tax pro. The high tax season rush if over and many tax preparers, although dealing with existing clients who, like you (and, full disclosure, me!) needed extra time to fill out their forms, are again accepting new clients.

Since you've got time until the Oct. 16 absolutely final filing deadline, you can conduct a careful and considered search for a tax pro — the Internal Revenue Service wants to help with its tax preparer directory — and then check him or her out thoroughly to ensure they meet your tax needs.

Dos: Contribute to your retirement plan.
Thanks to the tax breaks of many retirement savings options, putting money into these accounts is a win-win. You could get an immediate tax break and save enough to have the type of retirement you want.

If you don't have an IRA, open one. If you do have an IRA, contribute to it. The sooner you put money in, the sooner the power of compounding goes to work.

Most younger people will benefit more from a Roth IRA; it won't provide an immediate tax break, but the money and all its earnings can eventually be withdrawn tax-free. Some folks, though, still find a traditional IRA, which might provide an above-the-line deduction on next year's taxes, works better for them. And if you have a 401(k) at work, be sure to contribute enough to get the maximum match from your employer.

Money put into any of these three nest egg options also could help you qualify for the Saver's Credit.

Tres: Rebalance your portfolio.
If in addition to your retirement savings you've invested in other assets, now's a good time to take a look at how they're doing. It might be time to unload some of your holdings, either because they're not doing as well as you had hoped or because they're at an all-time high. But remember that selling stock losers and winners both have tax implications.

Also note that while you do need to keep Uncle Sam's potential cut of your unearned income in mind, don't make investment moves solely for tax reasons.

Cuatro: Set up a record keeping system.
Was filing a total mess this year because you spent half your time tracking down forms and statements you needed to fill out your 1040? Don't go through that again.

Set up a record keeping system for collection of the tax information you've likely already started assembling, such as receipt for business meals or charitable gifts and a log of deductible miles you've driven, so that it's at your fingertips next filing season.

If you've already got a record keeping system you like, great! Just make sure you're using it.

And as this week's Weekly Tax Tip notes, you also need to spend some time on storing the material your used to file this and previous year's taxes. Many types of tax-related records should be kept for several years just in the case an IRS auditor ever has questions about your past filings.

Cinco: Create a bunching strategy.
Easy to access tax records will help you devise a tax-saving bunching strategy. This is just what it sounds like. You group tax breaks so that you can maximize them.

This is particularly important for tax expenditures, such as itemized claims for unreimbursed business expenses and medical costs that require you meet a threshold before you can claim them.

With medical expenses, for example, you must have allowable health-care related costs that are more than 10 percent of your adjusted gross income before you can claim them. Certain job related and miscellaneous expenses have to clear a 2 percent of AGI hurdle to be deductible.

If you start tracking those expenditures now instead of in December, you'll have a better chance of meeting the deduction threshold. Or you might realize you need to push some costs into the next tax year to get the most of them then.

Keep counting: If you want to keep counting beyond cinco and Cinco de Mayo, you can find more tax moves to make in my May 1 merry tax moves post, as well as in the obviously-named May Tax Moves feature in the ol' blog's right-hand column.

If you're a business owner, you'll want to note these five tax tips tailored for you.

And don't forget the previously mentioned weekly tips or daily ones if you're still working on your 2016 tax return.

After you check them out, then — or whenever 5 o'clock arrives in your somewhere — enjoy your Cinco de Mayo celebration.

Click on the tres avocados image for some tasty guacamole recipes.

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Why Peer Groups Are Important In Business

This past weekend I was recognized by the Virginia Council of CEOs. The Council announced the establishment of an annual VACEOs “Charles E. McCabe Leadership Award” in my name and made me the first recipient. The award recognizes those who make significant leadership contributions to the Council, and I am extremely honored to both have an award in my name and to be the first to receive it.

The Virginia Council of CEOs is a CEO peer-to-peer group to Richmond. A “safe haven for CEOs” where learning and growth are valued and where members can navigate their toughest business challenges with the help of a peer roundtable.

I was the sparkplug that started it all. I saw an opportunity and I seized it. With the help of other community leaders, an invaluable network of local CEOs was born. The acknowledgement has made me reflect on the group, how important it is, and how important having a peer group is for every CEO.

It has been said that one of the most overlooked business success factors is your peer group. CEO peer groups offer the chance to work through problems and get advice from others who have been there. They give you a safe space to talk about your business and to help other CEOs in your community. The alternative, isolation, can be detrimental.

The VACEOs is an important group to me. As a CEO, nobody really gets what you’re dealing with better than another CEO. The buck stops at you. You’re taking the risk. Your employees work for you. It’s not their money and it’s not their risk – your spouse doesn’t even fully get it. When you’re the CEO, you’re responsible for everything.

Our monthly CEO roundtables are so valuable because they provide you with much needed peer support. And the members of our group are here to stay. For example, our current group has been the same group for 8 or 9 years. We have confidentiality, we’ve built trust, and we truly know each other. We confide in one another for business and personal issues.

For tax business owners, I encourage you to seek out a group similar to the VACEOs. It can be an invaluable asset to your business and your sanity! A great place to start would be my LinkedIn Group, Tax Business Owners of America. You should also seek out a local group of CEOs who meet one on one and have programming designed for learning, growth, and support.

source http://www.theincometaxschool.com/blog/why-peer-groups-are-important-in-business/

High-deductible health plan and HSA inflation adjustments for 2018 announced by IRS

The House narrowly passed its Obamacare replacement measure this afternoon by a 217 to 213 vote. Now we await Senate action on the GOP bill.

That means there's plenty more debate to come before any flip from President Obama's Affordable Care Act (ACA) to the GOP's American Health Care Act (AHCA).

The House voted to repeal Obamacare this afternoon, but we will be waiting for a while before any final replacement of the Affordable Care Act. (Photo by Kay Bell)

But both Democrats and Republicans do agree on one thing. The Upper Chamber's action won't be any time soon

So for now, we're still operating under Affordable Care Act rules, meaning everyone is supposed to get some form of a minimally acceptable medical insurance policy.

High deductibles pros and cons: For many, that coverage is via a high deductible health plan, or HDHP.

As the name indicates, this type of health coverage has higher deductibles than many traditional medical insurance policies. But the monthly premiums are much lower.

An HDHP is one with a deductible, for the 2017 calendar year, of at least $1,300 for an individual or $2,600 for a family. The plan's total yearly out-of-pocket in-network expenses — this includes the deductible amount for which it's named, as well as co-payments and co-insurance — can't be more than $6,550 for an individual or $13,100 for a family.

Help from an HSA: To help cover those larger than usual deductible and other out-of-pocket costs, HDHP owners can set up a Health Savings Account, or HSA. These plans offer medical as well as tax savings.

The amount you can contribute to an HSA is set each year by the Internal Revenue Service based on inflation. For 2017, a single person with an HDHP can put up to $3,400 into an HSA. If you're age 55 or older, you can put an additional $1,000 into your HSA.

A family with a high-deductible policy can contribute a maximum of $6,750.

2018 HSA inflation adjustments: Today the IRS announced the inflation-adjusted HSA contributions limits for 2018.

Next year, you can put up to $3,450 into an HSA — that's an additional $50 from this year's limit — if you're the only person with HDHP coverage. The $1,000 add-on for 55 or older plan owners remains.

The HSA contribution limit in 2018 for families with a high-deductible policy increases a bit more (by $150) to $6,900.

Plan increases, too: The IRS-announced tweaks to HSA contribution limits next year also includes changes to the deductible amounts that define high-deductible plans.

In 2018, an HDHP is one with an annual deductible that of at least $1,350 for self-only coverage; that's $50 more than this year. Families with this type of coverage will face a deductible of at least $2,700; that's an increase of $100 over 2017.

The annual out-of-pocket expenses for owners of an HDHP in 2018 must not exceed $6,650 for self-only coverage or $13,300 for a family policy.

As with any medical coverage, regardless of what federal law might be in place, you should shop carefully for the policy that fits your and your family's medical needs, as well as your bank account.

And, of course, keep your eye on Congress for what eventually happens with ACA and AHCA.

You also might find these items of interest:

• 5 ways to use up your FSA balance
• 4 Obamacare taxes the GOP vows to end
• Comparing tax-favored HSA, HRA & FSA medical options

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source http://feedproxy.google.com/~r/DontMessWithTaxes/~3/5Q9LkF5Qsi8/high-deductible-health-plan-hsa-2018-inflation-limits.html

Trump tweets threaten future funding fight and possible 'good' government shutdown this fall

Whew! We dodged the government shutdown bullet. For now.

The House and Senate have agreed on an omnibus spending bill that will keep federal offices open through Sept. 30, the end of fiscal 2017. The House is scheduled to vote on the measure today, with a Senate vote expected before the short-term funding measure that's keeping Uncle Sam operating expires at midnight Friday, May 5.

The way Congress reaches consensus often is described as a legislative form of Japanese Kabuki theater. However, maybe Representatives and Senators should take a hint from the 45th president's latest challenge and joust to settle differences. (Photo by of Warwick Castle jousting by Martin Addison, geograph-org-uk-562430 via Wikipedia)

But not everyone is happy. Donald J. Trump has thrown down the gauntlet for the next fiscal year's federal funding fight.

Trump's "good" shutdown: The agreement contains what Congressional Democrats tout as victories for programs they support, but ignores many items <cough, no wall money, cough> championed by the White House.

Many media reports also characterized the GOP as losers in negotiating the spending package.

And we all know how Trump feels about losers.

That no doubt contributed to the pair of social media posts the prez sent around 9 a.m. EDT May 2 threatening a tougher battle in the coming months to keep Uncle Sam's doors open after Oct. 1. Specifically, Trump Tweeted:

The reason for the plan negotiated between the Republicans and Democrats is that we need 60 votes in the Senate which are not there! We either elect more Republican Senators in 2018 or change the rules now to 51%. Our country needs a good "shutdown" in September to fix mess!

Trump's tweets really aren't a surprise. He had seemed primed for a battle last week before backing off at the last minute on his demand that the fiscal funding bill contain money for his primary campaign promise, the "big, beautiful" literal wall on the Mexico-U.S. border.

Now it sounds like he's gearing up to take that fight to the extreme in the next round of appropriations.

Or maybe not.

Costly closure: The last government shutdown, a 16-day closure in October 2013, cost the country $24 billion, according to an estimate from Standard & Poor's. The financial services company said the shutdown also cut the country's fourth-quarter growth by 0.6 percent.

Those costs included:

• $3.1 billion in lost government services (per research firm HIS),
• $152 million per day in lost travel spending (from U.S. Travel Association data),
• $76 million per day lost when National Parks were closed (per the National Park Service) and
• $217 million per day in lost federal and contractor wages in the Washington D.C. metropolitan area alone.

In fact, many analysts determined that 2013's government shutdown was more expensive than it would have been to simply keep all federal offices open.

And the shutdown also exacted a political price. At the time, one public opinion poll found that cockroaches were more popular than members of Congress.

Some in GOP disagree: Some Republicans, perhaps remembering the beating their reputations took four years ago, have taken issue with their president's idea that another government shutdown would be wise.

"I don't think there's a good government shutdown," Sen. Bob Corker (R-Tennessee) told reporters. "Really, it shows our inability to solve our nation's problems in a normal way."

Sen. John Cornyn (R-Texas), the second-ranking Senate Republican, said a shutdown would be an "abdication of responsibility, particularly if you're in the majority. Our voters, the people who elected Republican majorities in both houses and elected this president, did not vote for us in order to shut down the government. They voted for us to govern, as hard as it is."

The parameters of the coming budget battle will be set later this month when the administration releases its fiscal 2018 spending proposal. That would give Capitol Hill around four months to cut the next deal after Trump makes his appropriations wishes known.

Don't delay your extended taxes: Who knows? Trump might get more of what he wants this next time. In that case, the prez's current "shutdown" threat would be moot.

But just in case, if you're still working on your extended 2016 tax return, you might want to get it to the Internal Revenue Service well before the Oct. 16 final deadline. That way, you'll know there will be workers there to process it.

These earlier posts — 4 moves to make now if you missed the tax-filing deadline and 10 last-minute tax-filing tips — can help.

No IRS budget cuts … yet: Speaking of the IRS' budget, the fiscal year 2017 budget deal keeps the agency's funding at $11.2 billion. That's the same as last year's level.

"This holds the agency’s budget to below the 2008 level, but provides sufficient resources to perform its core duties," said House Appropriations Committee Chairman Rep. Rodney Frelinghuysen (R-New Jersey) in the committee's summary of the bill.

But Republicans, who blame internal IRS politics for the Tea Party targeting scandal, were able to insert language in the agency's appropriations that would stop a proposed IRS regulations dealing with the political activities of tax-exempt organizations. The GOP has assailed the regulations as an undue burden on tax-exempt organizations' First Amendment rights, as well as being so broad that it would exclude nonpartisan voter engagement.

And Republicans haven't forgotten about the IRS' Star Trek and Gilligan's Island themed videos or conference costs. The fiscal 2017 funding restrictions also prohibit any use of the money for "the production of inappropriate videos and conferences."

You also might find these items of interest:

• Government shutdown could delay billions in tax refunds
• Government shuts down. Who, besides citizens, will pay?
• Government shutdown effects trickling down to real people

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Trump taking truckers' call for increased gas tax to heart

Donald Trump met with truckers outside the White House and got an up-close-and-personal look at their vehicles before the drivers and industry executives went inside to share their transportation policy thoughts with the president on March 23, 2017.  Click screen shot to view the full meeting on YouTube.

The long Memorial Day weekend is the unofficial start of summer vacations in the United States and most of those are family road trips.

For the last few years, gasoline prices haven't been that bad. But Donald J. Trump says he's amenable to adding a few more pennies to our gasoline gallons via an increase in the federal gasoline excise tax.

"It's something that I would certainly consider," Trump told Bloomberg News during an Oval Office interview yesterday, May 1.

However, Trump said his support of a hike in the federal gas tax, which has been stuck at 18.4 cents per gallon since 1993, would be only "if we earmarked money toward the highways."

The last replenishment of the national account for roads was in 2015's Fixing America's Surface Transportation Act and it did not include a gas tax hike.

Truckers drive home tax message: Apparently, however, Trump listened to the truckers and trucking industry executives he met with in March at the White House.

The transportation industry has long supported an increase in federal fuel taxes as a way to pay for maintenance and improvements to roads and other infrastructure projects they rely on to do their daily jobs.

The White House's one-page tax reform/tax cut outline/plan released April 26 didn't mention the gasoline tax. But then, it didn't mention a lot, or a lot of detail, on many tax provisions that are likely to come up when Representatives and Senators get around to tax reform specifics later this year.

White House Press Secretary Sean Spicer clarified his boss' Bloomberg comments later Monday, saying that Trump isn't specifically supporting an increase, but that the president is keeping an open mind about it "out of respect" for trucking-industry interests.

Upon hearing that news, I suspect at least a few truckers followed the prez's example and let out a few jubilant big rig horn blasts.

Targeted tax well-spent: Personally, I also support an increase in the federal gasoline tax, primarily because I spend a lot of time on the road to and from my mom's place. Those hours on the highway have convinced me that a few more dollars per fill-up could be well-spent.

A lot of the asphalt on the roads I regularly travel needs some work and some of it needs a lot of repair. When that maintenance is put off because there's not enough money for it, the roads will just continue to deteriorate.

I suspect other drivers, as well as truckers, who are behind the wheel for a living, can appreciate smoother roads with fewer potholes, roadways with fresh reflective paint and striping, highway interchanges capable of handling increasing traffic and better signage.

Plus, I want to make sure that the big bridge I use to cross the Pedernales River remains in good shape.

Gas tax foes: Others, however, are not convinced. 

"There is no need and no excuse for a tax hike," said anti-tax advocate Grover Norquist, founder of Americans for Tax Reform, following Trump's comments. "We can have more roads at lower prices if Congress repeals destructive laws and rules it itself established for sordid reasons."

Tax opponents also say a federal gas tax hike would disproportionately hit rural residents, many of whom use more fuel to traverse the distances in their sparsely populated areas. They also argue that the gas tax is regressive, placing a bigger burden on lower- and middle-income families.

And, say gas (and other) tax foes, infrastructure projects are best done at the state and local levels where residents can more readily see who their tax dollars are spent.

State gas taxes, too: Speaking of those other level of government, many states have found they've had to increase their fuel taxes and other transportation related fees in an effort to bulk up their local road and infrastructure project funds.

The American Petroleum Institute's (API) April 2017 report shows that the U.S. average tax on gasoline is 49.50 cents per gallon (cpg). That' an increase of 6 cents/gallon from the January 2017 study. That average includes the 18.4 cpg federal tax on gasoline.

This API map provides a colorful look at gas taxes nationwide. You can see more at API's interactive version.

At the state level, the average gasoline excise tax is 21.09. That's also a 6 cent per gallon increase from the start of this year.

Other fuel costs, such as state sales taxes, gross receipts taxes, oil inspection fees, county and local taxes, underground storage tank fees and other miscellaneous environmental fees, also were taken into account.

Adding all these taxes and fees to the state excise taxes, says API, results in a volume-weighted average state and local tax of 31.1 cpg.

Gas tax regional variances: Regionally, gasoline taxes were highest in my old MidAtlantic stomping grounds, with an average tax of 62.51 cents per gallon. Drivers in the west pay on average 55.21 cents per gallon in gas taxes.

The cheapest gasoline, at least from a tax standpoint, is in the South. That region's average gas tax was just 38.71.

Below is the API's complete look at regional gas taxes for the first quarter of 2017.

API's state-by-state examination shows that the 10 states that collected the most in combined federal and state gasoline taxes and fees between Jan. 1 and March 30 were:

1. Pennsylvania at 77.70 cpg
2. Washington at 67.80 cpg
3. Hawaii at 62.62 cpg
4. New York at 61.94 cpg
5. Michigan at 59.34 cpg
6. Connecticut at 58.55 cpg
7. California at 57.20 cpg
8. New Jersey at 55.50 cpg
9. Florida at 55.19 cpg
10. North Carolina at 52.95 cpg

Taxes were the smallest part of a gallon of gasoline's price last quarter in:

1. Alaska at 30.65 cpg
2. South Carolina at 35.15 cpg
3. Oklahoma at 35.40 cpg
4. Missouri at 35.70 cpg
5. Mississippi 37.19 cpg
6. New Mexico at 37.28 cpg
7. Arizona at 37.40 cpg
8. Texas at 38.40 cpg
9. Louisiana at 38.41 cpg
10. Tennessee at 39.80 cpg

Would you be willing to pay a big more each time you put fuel in your vehicle if it meant better roads and other transportation project funding? Or would any added auto cost be too much for your budget?

You also might find these items of interest:

• When did your state adopt its gasoline tax?
• New Jersey hikes gas tax by 23 cents per gallon
• Federal gasoline tax celebrates 20 years without an increase

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source http://feedproxy.google.com/~r/DontMessWithTaxes/~3/fOjKSECBk8g/trump-truckers-and-gasoline-road-taxes.html

Tax principles for the digital age

At the start of the 21st century, I was involved with a project with the AICPA on tax reform. An outcome of our task force work was a set of ten principle of good tax policy. The goal was for lawmakers to apply these to both existing tax rules and proposals for change to identify where they did and did not meet the principles. Where not met, hopefully improvement could be made.

Another AICPA task force 15 years later (I chaired both, as I've been talking about tax reform for a long time) reviewed the 2001 principles and updated them for a more global, technology-focused perspective.

Fellow AICPA members and professors Ellen Cook and Troy Lewis and I have an article about the 12 principles of good tax policy in the May Journal of Accountancy, which you can obtain for free here. The statement can be found here.

I hope you'll take a look and see how these factors could help shape current tax reform discussions. An example of the application of the principles is illustrated below using a proposal from Congressman Israel who left the Congress last year. I hope you'll consider using the principles if you're analyzing or commenting on tax proposals. Another benefit of using the principles is it can make discussions of tax reform more objective and focused.

What do you think?

++++++++++++++++++++++++

H.R.5381(114^th Congress)- College Preparation Tax Credit Act – This bill would add new Section 25E, Credit for college preparation expenses, to allow a credit of up to $500 for qualified college preparation expenses. The credit would be available via election for up to three years.

Criteria	Does the proposal satisfy the criteria? (explain)	+/-
Equity and Fairness	As credit, the benefit is the same regardless of income level. Thus, some vertical equity is achieved that would not exist if the benefit was instead a deduction that would provide a greater tax savings to higher tax bracket individuals. The credit is not refundable so provides no benefit to individuals who do not owe any tax although they may have a greater need for the assistance with college prep costs.	+/-
Certainty	The definition of college prep expenses might not always be clear. For example, might gymnastics coaching help if there is a scholarship prospect?
Convenience of payment	The benefit of the credit won’t be received until the taxpayer files their tax return. For individuals who need the subsidy provided by this credit in order to obtain the college prep service, the timing is not convenient.	-
Effective Tax Administration	The addition of a new rule requires the IRS to issue guidance and develop procedures to ensure proper compliance, such as new tax forms and verification.	-
Information Security	One possible compliance measure for administration of the credit could be that the taxpayer identification number of the provider of the college prep service must be reported by the taxpayer claiming the credit. This lead to an increase in identity theft as more people obtain another taxpayer’s TIN.	-
Simplicity	The credit will require guidance to define relevant terms, how to make the election and how to ensure the credit is only claimed for no more than three years.	-
Neutrality	The credit provides a preference for college prep costs relative to other post-secondary education needs such as occupational training and related applications. The credit might cause providers of college prep services to increase their fees.	-
Economic growth and efficiency	The proposal may increase the number of providers of college prep services. To the extent the credit results in greater spending in this area, spending in other areas (or savings) are reduced.	+/-
Transparency and Visibility	Taxpayers are likely to know about the credit as providers of college prep services will promote the credit.	+
Minimum tax gap	Without some type of verification, some individuals with high school age children might claim the credit beyond spending on college prep services.	-
Accountability to taxpayers	Is this legislation needed? What is the purpose? What data was reviewed? Why is it proposed to be part of the tax law rather than provided in another manner, such as via a needs-based grant or scholarship?
Appropriate government revenues	Sufficient data likely exists for a reliable estimate of the amount of reduced government revenues from the proposed credit.

source http://21stcenturytaxation.blogspot.com/2017/05/tax-principles-for-digital-age.html

These May tax moves can make you very merry

May flowers, like these Texas poppies, are one of the reasons it's such a merry month. Other reasons to be happy is that there are some tax moves you can make now to cut your 2017 IRS bill. (Photo by Kay Bell)

Welcome to the merry, merry month of May, which is particularly joyous for folks who've finished up their 2016 tax returns.

That's almost 136 million of us, with around 17 million of those 1040 forms arriving at Internal Revenue Service processing centers in the final days of this year's main filing season.

While the 2017 filing season got off to a slow start, the IRS says by the time it wrapped up on April 18, this year's figures ended up being about the same as those in 2016.

But that doesn't mean that it should be a lazy May for folks who filed. There are still plenty of tax moves you can make this month. Here are some key ones.

Pay yourself, not the tax man: Let's start with an easy one. Adjust your withholding. You'll want to do this by submitting a new W-4 to your payroll office regardless of whether you got a big tax refund this year or ended up owing Uncle Sam some money.

Ideally, you want to pay in through withholding (and estimated taxes for some of us) as close to your eventual bill as possible. That will mean you will have your money in your hands throughout the year, instead of having to wait for the U.S. Treasury to cut you a check or directly deposit the money.

For some folks this filing season, the wait was longer — and it will be that way in the future, too — thanks to a new law mandating the IRS take extra time before issuing refunds based on Earned Income Tax Credit or Additional Child Tax Credit claims. If you claim these credits, no matter how early you file the IRS can't issue your refund before Feb. 15.

So don't get stuck needing but not having access to your tax money next filing season. Adjust you payroll withholding now.

And if you're afraid you'll just spend the extra paycheck cash, set up a savings account and have the amount that was going to overpaid taxes deposited instead straight into your own savings where you can get whenever you need it.

Or if you have a 401(k) plan at work, when you adjust your withholding, also change your contribution amount to your workplace retirement plan. Shift the money that was going to the federal government in taxes to your personal nest egg. And those retirement plan contributions might help you claim the Saver's Credit next year. 

File ASAP: If you got an extension to file your 2016 return, this is a good month to take care of that. Just because you have until Oct. 16 (yes, it's a day late this year since the 15th is on Sunday) doesn't mean you have to keep procrastinating. The sooner you get this tax task off your plate, the more time you'll have to do other, probably more fun, things.

Be sure to check into using Free File. It's open for folks with adjusted gross incomes of $64,000 or less through the October extension deadline.

And if you totally missed the April 18 filing deadline, then file your now-delinquent 2016 tax return ASAP! This is the only way to stop the accruing of costly penalties and interest.

Make plans for kids' camp: School will be ending this month across much of the United States. That means parents are scrambling to get their youngsters enrolled in day camps to fill up the coming summer days.

While the Internal Revenue Service can't help you find the perfect camp for your kiddos, it can help cover some of the costs. Day camp expenses can be used to claim the child and dependent care tax credit.

Note, however, that overnight, sleep-away camps don't count here, so if the tax break is important to your camp decision, that requirement should help narrow your search.

More May tax moves: These are just a few May Tax Moves to make. You can find more in the feature of the same name over in the ol' blog's right column.

Just scroll down a bit and look for the red lettering under the countdown clock ticking off the remaining filing extension days and hours.

I know it's a busy month, what with transitioning from spring to full-blown summer and all the end-of-school and family vacation plans to be made. But try to take care of some tax tasks this May, too.

When you file your 2017 tax return next year, the savings from this May's moves could make you very, very merry then, too.

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source http://feedproxy.google.com/~r/DontMessWithTaxes/~3/k7dvG7LTLU0/welcome-to-the-merry-merry-month-of-may-which-is-particularly-joyous-for-folks-whove-finished-up-their-2016-tax-returns.html