WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

* Yellow rose of taxes Kay Bell discusses an interesting issue in “His? Hers? Does the name listed first on a joint tax return define your marriage?” at DON’T MESS WITH TAXES -
 
“ . . . Internal Revenue Service return filing data shows that on 1040 forms filed jointly in 2020 by heterosexual couples, men are listed first on the form most of time. In fact, almost all the time. Numerically speaking, 88 percent of the time.”
 
There is nothing in the US Tax Code or the Form 1040 instructions that dictates which spouse – husband or wife - is entered first on the tax return.  While the husband’s name is traditionally entered on the first line there is no reason the name of the wife could be entered first.  The only thing the instructions say is –
 
“If you filed a joint return for 2021 and you are filing a joint return for 2022 with the same spouse, be sure to enter your names and SSNs in the same order as on your 2021”
 
I, and my “mentor” Jim Gill, always entered the name, and Social Security number, of the husband on the first line of a joint return – with one exception.  Many decades ago, a client of Jim had us enter his wife’s name on the first line and his name on the second line.  It was so long ago that I do not recall his reasoning.
 
At one time there was a reason to enter the wife’s name and Social Security number first – when the husband owed back taxes or outstanding child support from before his current marriage.  I had been told that when determining if a past debt is deducted from a current refund under the Treasury Offset Program only the first Social Security number on the return is checked.  I do not know if this still applies.  I do know that this was not the reason for Jim Gill’s client’s request.
 
* And Kay tells us “A home energy audit could produce lower utility bills and a tax credit” -
 
“The tax break for a qualifying home energy audit is a maximum of $150. That dollar figure is calculated as 30 percent of the cost, so you'd get the $150 tax break for a home energy audit that costs $500.”
 
* Kay Bell hits the trifecta with her warning to “Watch for these data theft red flags by tax and other financial crooks”.
 
* NERD WALLET lists this summer’s state sales tax holidays “Sales Tax Holiday: Here’s the Tax-Free Weekend in 2023 for Every State”.
 
Most states provide sales tax holidays on clothing, computers, school supplies and books as families prepare for children going back to school in September.  But despicable Mississippi also includes a sales tax holiday for firearms and ammunition – so children are sure to have new guns ready when school starts.
 
* Did you know the “IRS can't always tell the dead from the living”?  Michael Con explains at ACCOUNTING TODAY.
 
Several years ago, after filing his return a client received a letter from the IRS telling him his refund would not be issued because he was dead.  He had to go to his local Social Security office and have the SSA send a statement to the IRS that he was still among the living.
 
* Kay Bell makes it a “hambone” (per Dave Ryan) – a first for the BUZZ - with “A quick lesson on 8 education tax breaks”.
 
TTFN  

(Sorry - the blogger.com system is FU-ed again today and I cannot fix the all caps - RDF)