Christmas, and tax time, are here

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Christmas, and tax time, are here

Saturday, December 21, 2024

Our Christmas traditions include hanging on our tree all the U.S. Capitol ornaments we collected during our years in the Washington,D.C., area. (Photo by Kay Bell)

Christmas is just days away. As long-time readers of the ol' blog know, I love this holiday. And like millions of others worldwide, the hubby and I enjoy our holiday traditions.

One of them is watching Christmas movies. A particular favorite is “A Christmas Carol.” It even has a passing reference to taxes.

A classic's tax reference: In the classic Charles Dickens' novella and subsequent cinematic representations, the infamous penny pincher Ebenezer Scrooge rebuffs a request to donate to charities that provide for the needy. Instead, Scrooge says the poor should go to the workhouses paid for by his tax dollars.

It’s no spoiler to say that after some supernatural Christmas Eve encounters, Scrooge becomes a changed man.

But the tax remark got me searching for other holiday-related references and levies. An internet search turned up several, but today’s Saturday Shout Out goes, fittingly given the Dickens’ inspiration, to a United Kingdom-based global tax technology firm, Innovate Tax.

Christmas' long-standing tax connections: In a post for Innovate Tax’s blog, Peter Nicholson writes, “The holiday season is a time of joy, celebration, and, interestingly enough, taxes. Throughout history, various taxes and laws have been associated with Christmas, reflecting the unique ways governments have interacted with this festive period.”

He provides details on some intriguing Christmas-related taxes and regulations in 5 Christmas taxes you never knew existed. Actually, he also examines four other notable tax mentions with Christmas connections.

Here's a quick preview. They include a tree tax, a couple of debt laws affected by the holiday's date, and seasonal travel taxes.

Check them out. And if you know of other Christmas/holiday taxes that should be added to the list, please let us know by leaving specifics as a comment.

Now, I’m off to watch some football, and later today, my favorite film version of “A Christmas Carol,” the one with George C. Scott as a booming, intimidating, and ultimately more compassionate Ebenezer Scrooge.

And like the eventually reformed Scrooge, I also will endeavor to keep his promise to “honor Christmas in my heart, and try to keep it all the year.”

You also might find these items of interest:

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Posted on Saturday, December 21, 2024 at 03:13 PM in Books, Business, Charity, Film Movies, Shout Out, Taxes, U.S. Holiday | Permalink | Comments (2)

Tags: A Christmas Carol, Christmas, Christmas taxes, holidays, taxes

Comments

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Elmer, great point! Anything with the Muppets rules. Kay

Posted by: Kay Bell | Thursday, December 26, 2024 at 02:32 PM

I also think the George C. Scott version is the best. However, for the younger set, the Muppet Christmas Carol is more entertaining yet keeps to the spirit of the Dickensʻ tale.

Posted by: Elmer Stoup | Wednesday, December 25, 2024 at 08:53 PM

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Today's Tax Tip

Questions to ask, and answer, before you tackle your 1040 — You’ve got all your tax statements, but don’t file just yet. You also need to ask yourself some basic tax questions. Your answers could help you submit a tax return that’s as complete and correct as possible. They also could mean you don’t overlook any tax breaks. (Jan. 21, 2025)
The 2025 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 Year 2025 Countdown

Happy New Tax Year! Are you ready to file your 2024 tax return? I know, too early to ask. But Tax Day 2025 will be here before we realize it. The Internal Revenue Service deadline to file and pay any tax we owe is the regular April 15 date this year. It’s also Tax Day for most of the states that collect income taxes from their residents, which is most of the states! If that seems too far away right now, don’t worry. As is the case every tax season, the ol' blog’s monthly tips and reminders a little farther down this column should help all of us meet our state and federal responsibilities. Procrastinators also will want to keep an eye on the countdown clock just below. It tracks how much time we have until April's Tax Day, just in case we put off our annual tax task until the absolutely final hours and decide we need to instead get an extension request into the Internal Revenue Service by that date.
Note: I'm in the Central Time Zone, so adjust accordingly for where you live.

Time for Tax Tasks

🎆 Happy 🎉 New 🥂 Year! 🎆

Hello 2025! Last year was challenging, and I’m sure you’ll find plenty of new ways to test us over the next 12 months, but we’re ready for it. We hope!

via GIPHY

At least we know it will be exciting on the tax front, with the Tax Cuts and Jobs Act’s individual tax provisions set to expire on Dec. 31. Congress will have its hands full either extending or revising the tax provisions. But don’t worry. The ol’ tax blog will be here throughout 2025, watching that process and keeping tabs on all the New Year’s tax-saving potential. So, let's get to it now, with the January tax moves below.
Jan. 1: Once more for the official monthly tax moves — Happy New Year! Some people are champing at the bit to get their taxes filed, mainly because they are expecting an Internal Revenue Service refund. But remember, you need to get all your tax documentation before you can accurately complete your Form 1040. And even if you send the form(s) early, the IRS won’t start processing them until later this month. So, take a deep breath. We’ve a ways to go yet.

Jan. 6: It's the first official work week of 2025, with folks who took long holiday breaks finally returning to the office. Once you get settled at your desk, you might want to take some time for a couple of tax-related tasks that could pay off, this year and after you’re done with the 9-to-5.

First, check your paycheck withholding and, if necessary, adjust it. That might be necessary if you’ve experienced a major life change.

Second, if your workplace has a 401(k) plan and you’re not using it, sign up as soon as possible. Then contribute as much as you can. This will give your retirement account more time to grow tax-deferred if it’s a traditional 401(k) or tax-free if it is a Roth version.

Jan. 10: Is your adjusted gross income (AGI) $84,000 or less, regardless of your filing status? Then you qualify to use Free File, which became available today. The same eight software companies that participated last year are back for the 2025 filing season.

If your income is too high, you still can file for free by using Free File's Fillable Forms option. That will be available on Jan. 27 when the full 2025 tax season kicks off and the IRS starts processing all returns that were filed before then and that have been in a holding pattern.

Jan. 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 December 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.

Jan. 15: Today is the due date for the final estimated tax tax payment for the 2024 tax year. This payment covers the earnings you got last October, November, and December that weren’t subject to withholding. You can pay your estimated amount electronically, or mail your check payment and voucher 1040-ES to the IRS in an envelope postmarked today.

Jan. 20: Today is Martin Luther King Jr. Day. Every year on this federal holiday, millions of people commit to a day of service.

Click image to find out ways
you can volunteer on MLK Day.
Taking time on the Rev. Dr. King's holiday to volunteer at a nonprofit isn't tax deductible, but some costs associated with volunteering could help reduce your tax bill if you itemize.

Jan. 20: Tonight also is title time. The 2025 NCAA College Football champion will be crowned this evening in Atlanta. It’s taken a while to get here. The championship playoff bowl games system was extended, with qualifying matchups starting on Dec. 21, 2024. It's been a fun run for college football fans and for those who bet on the games thanks to the Supreme Court's 2018 ruling that allowed states to accept legal sports wagers, including on college competitions. If you're one of those gamblers and your game picks pay off, remember that you'll owe taxes on your winnings when you file your 2025 return next year.

Jan. 27: Tax Season 2025 officially starts. That includes processing of tax returns filed earlier, whether via commercial software, tax preparers, IRS Free File, or IRS Direct File, the IRS’ own free online tax prep and e-filing program. In addition to more than double the Direct File participating states from last year, the IRS operated site will offer more options that apply to more taxpayers’ situations.

Jan. 31: Wow! The first month of 2025 is over? So soon? Time really does fly when you're having tax fun. We'll keep it going here in this new year with new Tax Moves to Make each month, which you also can find on their monthly tax tips pages. January’s tips page is already is filling up!

Small Business Tax Calendar: Important filing, deposit and record keeping dates throughout the year that your company needs to know. The IRS is updating the online version. Until that link is operational, you can get the full year's important business and individual tax dates in IRS Pub. 509.

State Tax Help

Don't forget your state taxes!
Forty-two states and D.C. collect personal income taxes. But even if you live in of the eight states without any 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 2025 page.

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I gotta tell ya ...

AKA Disclaimer:

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

January 2025

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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.

Don't Mess With Taxes

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