Ho, Ho, Ho! You better watch out.
You better not cry. But you better make some year-end tax moves this December or next April 15 could turn out to be the tax equivalent of Santa Claus putting coal in your stocking!
Click image to hear a musical Santa message from Bruce Springsteen.OK, St. Nick can't deliver a festively wrapped, already prepared tax return for you (unless he's even more magical than I think!) to file next year, but he does have a tax connection.
Santa's tracking of naughty and nice boys and girls basically is the same method that the Internal Revenue Service uses. That's why we all need to be nice, especially to ourselves, in this final month of the year by making some important tax-saving moves.
Dec. 1: Did you struggle through 2021's yet-again
COVID-19 delayed and complicated return filing on your own? If so, you've likely realized that getting some professional tax help generally is a good idea, pandemic or no pandemic. Now is the time to
find a tax preparer who can help ensure your return filing next year goes more smoothly. By
picking the perfect tax professional before the coming filing season rush, your adviser can help make next year go more smoothly. There's also a December bonus. If you hire her or him this month, you can get some personal year-end tax tips!
Dec. 6: Did you get a part-time
seasonal job this year to earn extra cash for the holidays? Or maybe took on a variety of
gig work to help make up for income lost due to pandemic precaution? Any or all of that work as a
contractor instead of as an employee means you're responsible for paying income taxes due on the money, as well as any
self-employment tax. The same tax considerations also apply to any
unemployment benefits. Now is the time to start gathering those records and tallying this taxable income.
Dec. 10: Many
restaurants are welcoming patrons back to their dining rooms. Other eateries are sticking with curbside pickups and delivered meals. Whether you're able to dine in or still getting food brought to your house, remember to tip your server or home-delivery person.
If a tip isn't included in your food delivery charge, click the image above to calculate how much to tip the person who brought it to you.
As for servers who now are back on the job, remember that your
tips are taxable income. If you worked at least some of October at a job where you got gratuities, you need to account for them today if they came to at least $20 last month. Use
Form 4070 to report your tips today to your employer.
Dec. 15: Christmas is just 10 days away! Are you still shopping for gifts? This year, you're probably doing more search for the perfect present online. Be careful! Crooks are looking to steal your money and identity, with many using COVID-themed and/or
disaster relief scams to lure in their prey. By stealing your personal information now, the ID thieves also can use I at tax time to file a fake return in your name and claim a fraudulent refund. The IRS and its Security Summit have some
online security tips for this holiday season and beyond.
Dec. 20: It's Christmas Week! That means holiday treats, final decorations — or first, if you wait until the very end to get a tree — and frantic last-minute shopping! Crowds are smaller due to continuing COVID concerns (thanks, no thanks, Omicron variant). The pandemic also has cemented online shopping's place in our lives. But rather than worry about the perfect gift, regardless of how you buy it, consider giving instead some easy tax-favored gifts. You can open a
Roth IRA for your child or grandchild who earned some money this year. Or
pay tuition for 2022 classes that will start in the first quarter of next year by Dec. 31, then use those costs to claim the
American Opportunity Tax Credit.
Dec. 24: Christmas Eve!
No taxes tonight. It's early to bed for kiddies of all ages. Santa's on his way!
Click image to watch
Santa's delivery route as tracked by NORAD.Dec. 25: Merry Christmas! My gift to you is another day without tax thoughts.
Just enjoy the holiday and your family and friends.
Dec. 26: Happy
Boxing Day. This unofficial holiday on
St. Stephen's Day is celebrated by additional giving. If you donate to your favorite charity on this Boxing Day or any other day by Dec. 31, you have choice on how to claim a tax deduction for your generosity. If you itemize, include your gift(s) on your Schedule A at filing time. If you claim the standard deduction, for the 2021 tax year you can claim up to
$300 in donations, or $600 if you're married and file jointly, directly on your Form 1040. Regardless of which tax deduction method you use, make sure your follow the IRS
donation tax rules.
Dec. 31: This is it. The drop-dead deadline to make most 2021 tax moves. A quick and easy move to make today is to zero out your
medical flexible spending account (FSA). This is especially important if your employer doesn't offer a
grace period to use the money or let you
roll it over into 2022.
Done? Great! Make sure the champagne is chilling and settle in for your New Year's Eve party, either as a vaccinated reveler or, if you're still a bit leery (again, thanks NOT, Omicron variant) via Zoom. Either way, cheers and
Auld Lang Syne as the ball drops at midnight.
Small Business Tax Calendar: Important
filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS'
online calendar page and view the full year's important business and individual tax dates in
IRS Publication 509.
Hi there. Keep it up for a good job.You really have a lot of nice blog here. Lots of information. I have read and passed on this info to my friends as well.
Posted by: Mike | Tuesday, November 03, 2009 at 05:35 AM
KB-
As I "tweeted" - I would rather have the extra hour during the tax season!
I wish we would spring back and fall forward!
BTW - thanks for mentioning the BUZZ!
TWTP
Posted by: Robert D Flach | Sunday, November 01, 2009 at 09:16 AM