2023-03-13 07:00
More “unfairness” in the US Tax Code. Gross gambling winnings, reported on Form W-2G, are generally reported in full as income on Line 8b of Form 1040 (or 1040-SR) Sch… Read More
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The Wandering Tax Pro Blog
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Up-to-the-minute advice, information, resources, and, on occasion, commentary on federal and New Jersey state income taxes, and the various New Jersey property tax rebate programs, and insights and observations on tax policy and professional tax practice, by 40-year veteran tax professional Robert D Flach.
2023-03-06 08:00
The US Tax Code is full of inequities and basic “unfairness”. One example of this “unfairness” is the method for taxing Social Security and Social Security equi… Read More
2023-02-26 12:02
Here are my thoughts on reform of the tax treatment of dividends and capital gains. There should no longer be a special lower tax rate on “qualified” dividends and long-term… Read More
2023-02-20 09:17
Happy Presidents Day – when we celebrate 45 of the 46 Presidents of the United States, and remember the damaging and potentially fatal mistake America made in 2016. Time for anoth… Read More
2023-02-13 08:00
I believe EVERY taxpayer should be taxed exactly the same – regardless of marital status – under one tax rate schedule. There should be neither a marriage tax penalty… Read More
2023-02-06 08:00
I very seriously and sincerely believe that the one and only purpose of the federal tax system is to raise the money necessary to fund the government. As a tax profess… Read More
2023-01-30 08:00
Last week I suggested the creation of an independent “National Institute of Certified Tax Return Preparers” to administer a voluntary Form 1040 (and 1040-SR) tax preparatio… Read More
2023-01-25 08:00
In my January 3rd post “The Future of Wandering Tax Pro” I explained – “Going forward THE WANDERING TAX PRO posts will be limited to a more detailed and co… Read More
2023-01-23 09:18
The regulation of paid tax preparers by the Internal Revenue Service is being discussed, and proposed, again. But do we really need the IRS to require federal “licensing&rd&hell…Read More
2023-01-19 11:27
At this past week-end’s NJ-NATP “Famous State Tax Seminar” I was reminiscing with long-time NJ-NATP members and Board members about the early days of the seminar – wh… Read More
2023-01-17 08:00
This past Saturday I was where I have usually been for most of the past 20+ years – in Iselin NJ at the APA Hotel (formerly Woodbridge Hilton) attending the NJ chapter of the National… Read More
2023-01-10 08:00
As you begin to prepare to prepare your 2022 federal income tax return here are ten “urban tax myths” that just ain’t true. 1. You only have to claim the income f… Read More
2023-01-06 11:27
In a recent post at DON’T MESS WITH TAXES Kay Bell listed “4 tax moves to make this January 2023”. Number 3 on her list is “Find and hire a tax professional&rdq&hell…Read More
2023-01-04 08:00
We recently learned, with the public release of his tax returns, that Donald T Rump paid no federal income tax in 2020. Trump claimed a $16 million loss from his real estate businesses… Read More
2023-01-03 08:00
I have been writing THE WANDERING TAX PRO blog consistently (except for an annual tax filing season hiatus) since the summer of 2001. I started THE WANDERING TAX PRO after learnin… Read More
2022-12-16 08:00
The 2022 New Jersey state income tax forms, schedules and instructions are now available at the NJ Division of Taxation website. Click here. There are a few changes that are effective… Read More
2022-12-08 09:00
The IRS has issued the final version of the series 1040 forms and schedules. To see the final forms go here and enter “Form 1040” at FIND. There have been several minor cha… Read More
2022-11-17 11:41
I was just told by Blogger (host/publisher of this blog) via an email -"Your post titled "WHAT’S THE BUZZ – TELL ME WHAT’S A HAPPENNIN’" was flagged to us for review… Read More
2022-11-10 08:21
There was good news to celebrate yesterday. Intelligence and patriotism won out over ignorance, racism and treason in my home state of Pennsylvania. January 6thinsurrection participant… Read More
2022-11-08 09:22
PLEASE BE SURE TO VOTE TODAY AGAINST - EVERY REPUBLICAN CANDIDATE - IN EVERYRACE - AT EVERYLEVEL.ALL DEMOCRATIC CANDIDATES IN EVERY STATE MUST WIN. THE FUTURE OF AM… Read More
2022-10-24 08:00
I have compiled a 20-page booklet of "taxbusters" - income tax saving strategies, techniques and deductions - taken from my 50 years of experience preparing 1040s.I will send you a print cop… Read More
2022-10-22 10:13
The IRS has released Notice 2022-55, which identifies the inflation-adjusted contribution limits for retirement accounts for tax year 2023. Here are the highlights -IRA = $… Read More
2022-10-21 08:42
The recent release of inflation and cost of living adjusted numbers for tax year 2023 by the Internal Revenue Service included the 2023 Individual Tax Rates and Income Brackets.Here they are… Read More
2022-10-19 09:04
The Internal Revenue Service has released the inflation-adjusted numbers for tax year 2023. Click here for the Revenue Proclamation.Here are some of the highlights. For 2023 -THE… Read More
2022-10-07 11:27
While unlike Nick Bottom I don’t hate Shakespeare, I do hate K-1s. Specifically, K-1s for limited partnership investments. First, they are never sent out to taxpayers until… Read More
2022-10-05 10:38
It’s that time of year again! Once the ball drops on One Time Square on New Year’s Eve and 2023 is rung in there is very little that you can do to reduce your 2022 tax liability… Read More
2022-10-03 10:32
FYI - here is a brief history of income taxes in the United States - 1643: The colony of New Plymouth, Massachusetts levies the first recorded income tax in America. 1861: Congress… Read More
2022-09-01 08:00
New Jersey has replaced the Homestead Benefit property tax relief program with ANCHOR – Affordable New Jersey Communities for Homeowners and Renters. The 2022 program is for NJ residen… Read More
2022-08-29 08:00
Sadly true to form, because the $80 Billion in additional funding for the Internal Revenue Service (from the Inflation Reduction Act of 2022) was in a bill introduced and supported by… Read More
2022-08-28 11:17
The cancellation of student loan debt will have absolutely no effect on your 2022 federal income tax return. The American Rescue Plan Act excluded student loan debt forgiveness from federal… Read More
2022-08-26 11:02
The Inflation Reduction Act of 2022 brought back the credit for energy-efficient purchases for and improvements to a personal residence, which had expired on December 31, 2021, renamed it th… Read More
2022-08-17 08:39
This is how history will remember Donald “The Man Who Would Be King” Trump. Donald J Trump was placed in the White House as 45th President of the United States by the Electoral C… Read More
2022-08-05 11:24
The Internal Revenue Service has released, early this year, the draft versions of the 2022 Form 1040 and accompanying schedules. Click here. The draft 2022 Form 1040-SR has not y… Read More
2022-08-04 11:25
FYI, here is what I believe the US Tax Code should look like - First and foremost -the one and only purpose of the Tax Code is to raise the money necessary to fund the government. … Read More
2022-07-16 10:48
A recently issued petition (click here) provided a well written explanation why true “traditional” Republicans are refusing to support and vote for Trump and his Republican suppo… Read More
2022-07-15 11:13
An FYI The temporary COVID-related expansion of the Child Tax Credit and the Child and Dependent Care Credit expired on December 31, 2021. For tax year 2022 these credits return to the… Read More
2022-07-13 10:29
If you and your spouse both work or if you are a working single parent the cost of sending your dependent child (under age 13) to a summer day camp is eligible for the Credit for Child and D… Read More
2022-07-04 16:49
How difficult is it to understand this? As history will acknowledge and report, no one single individual has ever done more damage to America, the American people, American freedom and… Read More
2022-06-27 08:00
Whatever you may think of the IRS – and thanks to the excessive 2020 shut-down in reaction to COVID the Service today is totally FU-ed – the website www.irs.gov remains an excell… Read More
2022-06-24 08:00
Here is a real-life tax situation I was recently asked about - A retired taxpayer lives in South Carolina and his adult son lives and works in California. The son wants to purchase a persona… Read More
2022-06-17 08:00
Have you filed your 2021 tax returns yet? If not (this does not work on an amended return) before doing so you should purchase and read my special report AVOID NEW JERSEY TAXES LEGALLY… Read More
2022-06-16 08:00
I realize this post has nothing to do with income taxes – but this must be acknowledged, understood and addressed. I have been voting for 50 years. Over the years I have voted fo… Read More
2022-06-13 08:00
Every few years I re-post my advice for those who are starting out in the tax preparation business – lessons I have learned from my many decades as a tax professional. My advice… Read More
2022-06-08 13:29
Congress has been obsessed with using refundable credits as a form of “negative income tax” in an attempt to redistribute income to lower earners. It began with the E… Read More
2022-05-11 08:00
BANNING ABORTION IS NOT A CONSERVATIVE ISSUE! IT IS CONTRARY TO TRUE CONSERVATIVE POLICY Read More
2022-05-05 08:30
So, how hard was it to gather together all of your 2021 tax “stuff” to give to your tax preparer? It is important that you have documentation for all of the income, deducti… Read More
2022-05-02 08:30
As I say at the beginning of a new special report I have just completed – AVOID NEW JERSEY TAXES LEGALLY – “I have been preparing NJ-1040s for as long as there has been a N… Read More
2022-04-15 09:37
If you haven’t prepared or submitted your 2021 federal tax return yet and think, or know, you will owe your Uncle Sam IT IS VITALLY IMPORTANT THAT YOU GET A FORM 4868 EXTENSION REQUEST… Read More
2022-03-31 08:45
Here are s few things to double-check before submitting your tax returns (electronic or paper) to avoid delays and errors – 1) There has been a new question on Page 1 of the fed… Read More
2022-03-14 08:00
Here is some important advice for parents, grandparents or others who give their children, grandchildren or others gifts of stock shares – advice that will save the recipient of the gi… Read More
2022-03-07 09:00
When a spouse passes away there are many things of a financial nature that the surviving partner needs to address. One important thing that the survivor needs to do is review and revis… Read More
2022-02-22 09:20
Clients who have received the IRS CP80 Notice telling them they have an outstanding credit for 2020 but they have not filed their 2020 return ask me, “How can the IRS say I haven… Read More
2022-02-18 10:53
The damage done to our country and our society by the Trump presidency is incalculable - and ongoing. I continue to say without fear of contradiction that in our history no one single… Read More
2022-02-14 09:00
Here is what you need to give to your tax preparer. * Full names, as they appear on the Social Security card, Social Security numbers and dates of birth for you, your spouse, and all depende… Read More
2022-02-10 11:48
Many tax professionals will send their clients a letter in January telling them what is new for the current year returns and specifically listing what forms, statements or information that t… Read More
2022-02-07 09:00
More proof that the IRS is totally FU-ed. Taxpayers had an overpayment of $782 on their 2020 Form 1040-SR. They requested, on Line 36, that $375 be applied to 2021 estimated taxes as t… Read More
2022-01-28 10:12
As most of you probably know, in my 50 years as a paid tax preparer I NEVER used flawed and expensive commercial tax preparation software to prepare or submit a federal income tax return (an… Read More
2022-01-27 16:26
Many of my clients have received notices from the Internal Revenue Service stating that they have an unidentified credit for tax year 2020 and that the Service had not received their 2020 in… Read More
2022-01-27 09:00
Generally, you do not have to file a federal 2021 Form 1040, or 1040-SR, unless your “gross income” is at least – FILING STATUS ON 12/31/19 YOU WERE GROSS… Read More
2022-01-25 17:07
The 2021 New York State income tax returns, forms, schedules, and instructions are finally available to download online on the website of the New York Department of Taxation and… Read More
2022-01-24 09:00
According to the IRS today, January 24th, is the first day the tax agency will begin accepting and processing 2021 tax year returns. But don’t be in such a hurry to file. You sho… Read More
2022-01-19 10:05
Most of the information returns you will need to properly prepare your 2021 Form 1040 (or 1040-SR) are in the mail. As you receive your 2021 information returns – W-2s, 1099s, 1098s, K… Read More
2022-01-10 09:00
This past Saturday I was where I have been the same time this year for the past 30+ years, with one or two exceptions. I was in the audience of the annual “Famous State Tax Semin… Read More
2022-01-07 11:38
The 2021 state income tax forms, schedules and instructions are now available to view and download at the NJ Division of Taxation website. Go here. The 2021 NJ-1040 appears to be exact… Read More
2021-12-30 09:00
The only other legislation with tax components passed in 2021 was the Infrastructure Investment and Jobs Act, signed into law on November 15th. However, the few tax aspects of this Act… Read More
2021-12-29 09:00
It is time again for my annual review of the year in taxes. The 2021 tax filing season – for filing 2020 returns – was my 50th! My first year preparing 1040s was 1972 &ndas&hell…Read More
2021-12-25 09:26
2021-12-17 16:13
The IRS, in Notice 2022-03, has announced the Standard Mileage Allowance rates for calendar year 2022. Beginning on Jan. 1, 2022, the standard mileage rates for the use of a car (also vans… Read More
2021-12-13 09:00
Here is a review of what is new on the 2021 Form 1040, 2021 Form 1040-SR and 2021 Schedules 1, 2 and 3 –FORM 1040 –For 2021 the non-itemizer charitable deduction is “below… Read More
2021-12-09 14:32
The excessive total shut-down of the IRS in 2020, in reaction to the COVID-19 pandemic, has resulted in substantial delays and backlogs in terms of processing 2019 and 2020 original and amen… Read More
2021-11-29 10:15
As it does each year at this time PNC has released its annual Christmas Price Index, which PNC describes as. – “A light-hearted take on the Bureau of Labor Statistics' (BLS) Con… Read More
2021-11-27 09:51
I was truly shocked and saddened when I rose this morning and received an email from a long-time friend, and fellow theatre lover, telling me Stephen Sondheim has passed away at age 91. &hell…Read More
2021-11-16 09:00
Taxpayers are required to keep good contemporaneous records and documentation of all items of income reported and all deductions and credits claimed on their income tax return in the manner… Read More
2021-11-15 10:16
As I say every year at this time - Once the ball drops on One Time Square on New Year’s Eve and the new year is rung in there is very little that you can do to reduce your tax liabilit… Read More
2021-11-12 09:01
The IRS has issued Revenue Procedure 2021-45, which reported the inflation-adjusted numbers for tax rates and many deductions and credits for tax year 2022. Here is some of what is new for 2… Read More
2021-11-05 17:32
The IRS has announced, in Notice 2021-61, the numbers for contributions to tax-deferred retirement savings accounts for 2022.Here are the 2022 contribution limits - ·  &hell…Read More
2021-10-22 10:58
Just so you know. The withholding of federal and state income tax from any source of income is an estimation of anticipated tax liability. It is not in any way, shape or form a payment… Read More
2021-10-06 08:00
Just a reminder. Regardless of the rate charged - corporations do not pay federal or state income tax. Income tax is a corporate expense – a part of overhead. Income taxes… Read More
2021-10-04 08:00
"If you're not part of the solution, you're part of the problem." "One of the penalties for refusing to participate in politics is that you end up being governed by your inferiors." … Read More
2021-09-27 08:00
Once again, the issue of tax preparer regulation is in the news. There has recently been talk of giving the IRS the authority to regulate all preparers via proposed economic and budget… Read More
2021-09-24 08:16
Kelly Phillips Erb, the internet’s TAXGIRL, recently posted “What You Need to Know About the Current Federal Tax Proposals” at her BLOOMBERG.COM blog. It is very important… Read More
2021-09-06 11:19
2021-08-24 07:54
Oi vey! And OOPS! The day has come and gone and I forgot to acknowledge it. The very first post of THE WANDERING TAX PRO was published on Sunday, July 22, 2001. So, I have… Read More
2021-08-12 08:44
* TAX MAMA Eva Rosenberg deals with a too-common question from taxpayers these days in her TAX QUIPS blog – “Where are your Refunds?”. Some good information and advice from… Read More
2021-08-11 09:38
I recently received the following email – “I moved to Georgia with my wife and daughter and we recently purchased a home! I am planning on rolling over some money from a 401(k) a… Read More
2021-08-06 08:00
There is no doubt in my mind that the biggest threat to America, American democracy and American values today is the Republican Party. By embracing Trump and his lies the Republican Party ha… Read More
2021-08-05 10:15
Do you use your car for business? Here are some things you should know. (1) Thanks to the GOP Tax Act, for tax years 2018 through 2025 employees can no longer deduct employe… Read More
2021-08-04 08:50
I had been holding these for a BUZZ installment – but there isn’t any other BUZZ to report. Kay Bell reports that the “IRS releases drafts of 2021 Form 1040 and schedules&r&hell…Read More
2021-07-29 09:12
The American Rescue Plan made changes to the Child and Dependent Care Credit for 2021. You may be able to claim this credit if you paid expenses for the care of a dependent child under… Read More
2021-07-21 08:00
In reaction/response to the COVID-19 pandemic the Internal Revenue totally closed down all operations and offices for many months in 2020. During this period, the IRS did notprocess ta… Read More
2021-07-04 09:00
America truly has a reason to celebrate this July 4th. Thankfully we now have a President with intelligence, integrity and humanity - something that was truly lacking on the past… Read More
2021-06-25 08:53
For tax year 2021, families claiming the Child Tax Credit will receive up to $3,000 for each qualifying child who is between the ages of 6 and 17 at the end of 2021. They will receive $3,600… Read More
2021-06-15 10:42
There is absolutely NOTHING I, or any tax professional, can do to expedite the processing of your 2020 federal or state income tax return or to find out why your anticipated federal or state… Read More
2021-06-07 08:00
I expect by now you have prepared and submitted your 2020 federal and state tax returns and are waiting, patiently, for your refunds. Did you find it difficult to compile all the necess… Read More
2021-06-02 08:00
Jim Gill’s Sip Avenue and Newark Avenue offices were both storefronts, so, while he had a large regular clientele, there was, especially at Sip Avenue, which was just a few blocks off… Read More
2021-05-31 08:00
My first encounter with income taxes came when I was a freshman in college. I had taken the first half of Accounting 101, but had not taken any tax classes. I had no experience w… Read More
2021-05-27 08:00
I recently completed my 50th tax filing season. I have been a paid preparer of 1040s since February of 1972. This is the first in a series of looking back over my 50 tax seasons as a t… Read More
2021-05-26 08:00
This past tax filing season I found that filing separate returns often put more money in the pockets of my married clients than in past years.While usually in most cases filing separately wo… Read More
2021-05-24 08:00
My 50thtax filing season, which, as it always does, began for me on February 1st, ended on May 17th. It actually ended on May 16th, as I never work the last day (click here to learn wh… Read More
2021-05-22 10:34
The biggest problem facing America today is not COVID-19. The biggest problem facing America today, and the biggest threat to the future of America, is the sad fact that about 74 Milli… Read More
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