August is prime sales tax holiday time

New report predicts $4.7 trillion in global tax avoidance and evasion losses over next decade

5 tax moves to make this August

August is prime sales tax holiday time

Monday, July 31, 2023

Get ready Arkansas, Connecticut, Iowa, Maryland, Massachusetts, Missouri, New Jersey, New Mexico, Ohio, Oklahoma, South Carolina, Texas, and West Virginia shoppers. Your back-to-school tax holidays are coming up in August. And yes, Floridians, your event wraps up this week.

School supplies at HEB_Texas Sales Tax holiday items

Many school supplies, like these at my local grocery store, will be sales-tax-free in Texas later this summer. (Photo by Kay Bell)

With August just one day away, it's definitely time for parents and youngsters alike to get ready for the reopening of classrooms.

Yes, those two groups likely will celebrate (or not) differently. But there's one thing they can share, shopping for school clothes and supplies.

That's why August is the big month for back-to-school sales tax holidays. Of the 17 scheduled this year, 14 are in August, including Florida's summer tax-free shopping event. It kicked off July 24 and wraps up Sunday, Aug. 6.

The rest of August will see sales tax holidays in Arkansas, Connecticut, Iowa, Maryland, Massachusetts, Missouri, New Jersey, New Mexico, Ohio, Oklahoma, South Carolina, Texas, and West Virginia.

Most of these special tax-exempt shopping days will be this coming weekend. Some will start on Friday, Aug. 4, with a few beginning Saturday. And most will end on Sunday, Aug. 6. But not all.

The precise starting and ending dates for August's sales tax holidays are listed alphabetically by state in the table below. The information comes from the various state tax departments, as well as the Sales Tax Institute and Federation of Tax Administrators.

2023 State Sales Taxes Holidays
State & Sales Tax Rate Local sales taxes also may be waived	Holiday Days & Dates	Tax-Free Products & Per-Item Price Limits
Arkansas 6.5%	Saturday, Aug. 5 through Sunday, Aug. 6	Clothing $100 or less Accessories $50 or less No dollar limit on school art supplies, school instructional materials, school supplies, and school-related products such as electronic devices, which includes computers, commonly used by a student in a course of study.
Connecticut 6.35%	Sunday, Aug. 20 through Saturday, Aug. 26	Clothing and footwear $100 or less Accessories and protective or athletic clothing is still taxed.
Florida 6%	Monday, July 24 through Sunday, Aug. 6	Clothing $100 or less School supplies $50 or less Learning aids and jigsaw puzzles selling for $30 or less Computers, certain accessories $1,500 or less More on tax-exempt items during the 2023 Back-to-School Sales Tax Holiday can be found in TIP No. 23A01-06.
Iowa 6%	Friday, Aug. 4 through Saturday, Aug. 5	Clothing and footwear priced at less than $100
Maryland 6%	Sunday, Aug. 13 through Saturday, Aug. 19	Clothing and footwear $100 or less First $40 of a backpack or bookbag sale
Massachusetts 6.25%	Saturday, Aug. 12 through Sunday, Aug. 13	Almost every personal item priced at $2,500 or less
Missouri 4.225%	Friday, Aug. 4 through Sunday, Aug. 6	Clothing $100 or less School supplies $50 or less Computer software $350 or less Graphing calculators $150 or less Personal computers & peripheral devices $1,500 or less Find more on the tax-exempt items in the state's Back-to-School Sales Tax Holiday FAQs.
New Jersey 6.625%	Saturday, Aug. 26 through Monday, Sept. 4	Computers less than $3,000 School computer supplies less than $1,000 No price limit on school supplies, school art supplies, school instructional materials, and sport or recreational equipment Details on the tax-exempt items can be found at the state's special online sales tax holiday page.
New Mexico 5%	Friday, Aug. 4 through Sunday, Aug. 6	Clothing or shoes $100 or less Computers $1,000 or less Computer hardware $500 or less There is no price limit on school supplies that "students normally use in a standard classroom for educational purposes." FYI-203, Gross Receipts Tax Holiday, contains more information on the exempted sales.
Ohio 5.75%	Friday, Aug. 4 through Sunday, Aug. 6	Clothing $75 or less School instructional materials & school supplies at $20 or less
Oklahoma 4.5%	Friday, Aug. 4 through Sunday, Aug. 6	Clothing, footwear $100 or less
South Carolina 6%	Friday, Aug. 4 through Sunday, Aug. 6	No purchase price limit on clothing accessories & footwear; school supplies; computers, printers & printer supplies, computer software; & bed linens & bath furnishings
Texas 6.25%	Friday, Aug. 11 through Sunday, Aug. 13	Clothing, footwear, backpacks priced at less than $100 Cloth and disposable fabric face masks meet the definition of an article of clothing and therefore are tax exempt during this weekend. School supplies at less than $100
West Virginia 6%	Friday, Aug. 4 through Monday, Aug. 7	Clothing, footwear $125 or less School supplies ($50 or less) School instruction material ($20 or less) Sports equipment ($150 or less) Laptop and tablet computers ($500 or less) More on tax-exempt items can be found on the state's Sales Tax Holiday Questions and Answers page.

Shop wisely: As noted in my earlier post on the full summer 2023 schedule of state sales tax holidays, most of these special shopping days are billed as back-to-school events. That's why most feature items youngsters need for class.

But even those with that moniker also tend to be more inclusive. They're not limited to children's clothing. And you don't have to prove that the computer you buy is only going to be used by the young students' homework.

So pay attention to what is tax-exempt (or not). The links in the table will take you to official lists of eligible items.

Knowing what's tax-free is one of the 6 shopping tips to maximize sales tax holiday savings. Check that post out, then make your list, which also is of the tax holiday shopping suggestions.

Addendum: My tumblr blog Tumbling Taxes' related post has Macklemore's video "Thrift Shop" for your tax holiday shopping playlist.

You also might find these items of interest:

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Today's Tax Tip

10 December tax moves — I love Santa Claus, but even the Jolly Old Elf isn’t magical enough provide the tax solutions you asked for in your letter to him. You’re going to have to make some tax moves this December yourself, like these 10 suggestions. (Dec. 1, 2024)
The 2024 Tax Tips offer ways to file your annual return, along with post-filing advice, important tax news and, of course, ways to cut your current tax year bill. You'll find the monthly assemblages on their own respective pages: January, February, March, April, May, June, July, August, September, October, November and December. Remember, tax tasks and tips don't stop after you file your annual return!

All About Kay

OK, some about Kay

Kay Bell — Native Texan
(the blog title totally makes sense now, right?). Professional journalist. Tax geek.
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Tax Season 2024 Final Push

It's over! The final 2023 tax year extended filing deadline has passed, unless you get more time because your filing due date was extended further by a natural disaster like the three hurricanes that have made landfall in Florida this fall.

For most of us, though, the passage of Oct. 15 means it's time to focus on the tax return we'll file next year. We have until Dec. 31 this year to make moves that will reduce our already accruing 2024 tax bill. The monthly tips and reminders a little further down this column suggest ways to do just that.

Finally, keep an eye on the countdown clock just below. It's keeping track of just how many days are left for us to make these tax moves.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

Ho 🎅 Ho 🎅 Ho!
December is here!
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 The Boss, 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. Let's get to it!
Dec. 1: It’s here. The last month of the year, meaning the last 31 days to make tax moves that could shave some off your 2024 tax bill, as well as set up 2025 as another saving, and easy, tax year. You could make things even easier on yourself if you opt next filing season to turn over your taxes to a professional. The key is picking the perfect tax pro for your filing (and more) needs. And you need to start your search now, as the good tax pros’ client lists fill up fast. If you can hire one soon, there’s a December bonus. You might get some year-end tax tips!

Dec. 4: In the meantime, check out these 10 tax moves to make in December. They could be the perfect tax present to give yourself.

Dec. 10: Do you work as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation? I hope you get all the tips you deserve for doing your job well. Remember, though, that those tips are taxable income.

Whether you're dining at your favorite eatery or getting food delivered to your home, if a tip isn't included on your restaurant or delivery bill, click the image above to calculate how much to tip the person who brought it to you.

And if you got at least $20 in gratuities in November for your extraordinary services as a food server or hair stylist or parking valet or whatever job where tipping is common, you must report that amount by today. Use Form 4070 to let your employer know the total tips you took in last month.

Dec. 13: It’s the holiday season, full of joy and peace and goodwill toward all. So what the heck is a Friday the 13thh doing in December? Don’t worry, as least not about tax fears and superstitions. Check out the tax truth about these 13 tax misperceptions. They’ll help get you through today and help you be a fearless taxpayer year-round.

Dec. 15: Christmas is just 10 days away! If you're still shopping for gifts, you're probably searching for the perfect present online. But beware and be wary. Internet crooks also are logged on, looking to steal your money and identity. Many of the holiday scams use the same techniques as tax scammers employ. Any personal information they get now can be used at tax time to file a fake return in your name and claim a fraudulent refund. So be careful out there, now and next filing season, and, well, unfortunately all the time.

Dec. 19: Are you taking on multiple gig jobs to make some extra holiday cash to pay for all those online orders? Those added side hustles mean you're an independent contractor. And that means you're responsible for paying income taxes due on the money, as well as any self-employment tax. In most cases, that means paying estimated tax on these end-of-year earnings by Jan. 15, 2025, to avoid a possible penalty for not paying as you earned the money.

Dec. 23: 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! Rather than worry about how you'll get the perfect gift under the tree on time, consider instead giving some easy tax-favored presents. Open a Roth IRA for your child or grandchild who earned some money this year. Or pay tuition by Dec. 31 for classes that will start in the first quarter of 2025.

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 NORAD track Santa's Christmas Eve delivery route.

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, on your 2023 taxes you'll have to itemize your gifts on Schedule A to claim them. If you don’t have enough expenses to exceed your standard deduction amount this tax year, consider delaying your charitable contributions until early January as part of a tax deduction bunching strategy.

Dec. 31: This is it. The drop-dead deadline to make most 2024 tax moves. A quick and easy action today is to zero out your medical flexible spending account (FSA) by buying over-the-counter medications for which the funds can be used. This is especially important if your employer doesn't offer a grace period to use the money or let you roll some FSA money over into 2025. Without those alternatives, you'll lose any FSA funds you don't use.

Done? Great! Make sure the champagne is chilling and settle in for your New Year's Eve party or a cozy night at home with your friends and loved ones. 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 Pub. 509.

State Tax Help

Don't forget your state taxes!
Forty-three states and D.C. collect personal income taxes. But even if you live in of the seven states without an income levy, you still face other state (and local) taxes.

State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.

Tax Forms

Thanks to our increased use of tax preparers and computer software, many of us don't see our tax forms until we sign and file them. But knowing what's on these documents, either in paper or digital form, and why the IRS wants it is key to understanding our tax system. And knowledge definitely is power, especially when it comes to tax savings. Find this valuable information in the ol' blog's special Tax Forms 2024 page.

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I am a professional journalist who has been covering tax issues since 1999. I am not a professional tax preparer.

The content on Don't Mess With Taxes is my personal interpretation and opinion based on my study and understanding of tax laws, policies, and regulations. It is provided for your private, noncommercial, educational, and informational purposes only. While I work to ensure each post's accuracy, the items are not recommendations of any specific tax action(s) you should or should not take. Similarly, mentions of commercial tax products or services are not endorsements.

In other words, my ramblings on the ol' tax blog are free advice, and you know what they say about getting what you pay for. That's why when it is time for you to file your own taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent, or other reputable, qualified tax preparer who is familiar with your individual tax circumstances.

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COVID-19 & Taxes

Coronavirus has wreaked havoc
on the 2020 and 2021 tax seasons.
These five Coronavirus (COVID-19) and Taxes pages have details:
March-July 2020
August-December 2020
January-December 2021
January-December 2022
…and so it continues into 2023
…and, alas, into 2024
You can find medical coronavirus resource links in the next section.

COVID-19 Resources

Need help finding a coronavirus vaccine in the United States?
Call 1-800-232-0233
or TTY 1-888-720-7489.
More information and resources at:
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HHS Combat COVID
USA.Gov COVID Info

December 2024

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Tell it to the Hill

While it's easy to rail at the IRS, for the most part we can thank — or blame — Congress and the White House for our tax laws. So if you have an issue with tax legislation or want a tax bill passed, you need to let your federal legislators and the White House occupant know of your concerns. You can find out who in Washington, D.C., to contact (and how), as well as get information on your local lawmakers for matters, tax or otherwise, closer to home, at USA Gov.

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