It's the most wonderful time of the tax year. The end of it!
December. Already. It seems like the ol' blog's monthly tax tip pages just started last week, not 11 months ago.
But that's December, a wonderful but hectic time. There are the holidays to prepare for and enjoy. And weather changes, to prepare for and curse if you're not a fan of cold (hand raised here!).
And, of course, there are tax moves to make.
I know. Tax matters didn't make it into your letter to Santa Claus. It's probably just as well. I love the Big Guy, but unless he's even more magical than I think, there's no way St. Nick can deliver a festively wrapped, already prepared tax return for you on Dec. 25.
But there are some potential tax-saving moves that must be made by Dec. 31. As Santa's unofficial, self-appointed tax elf, I'm here with December's tax tips.
Year-end, New Year tips meet: Most of the tips obviously will focus on what must be done by year-end. But you'll also find some ideas on how to deal with Internal Revenue Service responsibilities you'll likely face in the upcoming New Year.
And since December is about holiday traditions, we continue our tax tip practice of adding the advice to this page as soon as it's been highlighted in the upper right corner of the ol' blog. That way you don't have to worry if you miss one on its featured day. You can check all of them out via their links below.
OK, I hear you. You've been reading the ol' blog and checked tax tips on their monthly pages all year. You know the drill, and you've got a lot to do so you're ready to get to the December tips.
I hear you. So, without further ado — except maybe for an adieu to 2023 as we near Dec. 31 (sorry, not sorry for the homophonic pun) — here goes!
- Security missteps during the holidays could lead to tax ID theft next year — Don't let down your guard during the holiday season, especially when it comes to online shopping. As we head to our computers to find the perfect gifts, so do criminals with ploys to steal our financial and personal information. Many crooks use that data at tax filing time to submit fake tax returns created to get fraudulent refunds. So shop online safely! (Dec. 1, 2023)
- Ways to avoid local and global charity scams — Your gifts to charitable groups are welcome, especially during this traditional giving season. But make sure your donations go to legitimate nonprofits. Be on the lookout for crooks who use disasters and tragedies to con generous givers to steal money meant to help others … and possibly commit tax fraud during filing season. (Dec. 3, 2023)
- Tax moves to make this December — Ho, ho, here's an early tax Christmas present: 7 tax moves to make this December! If If you take the tax steps that are relevant to your personal financial and tax situation sooner in the month, you'll not only save tax dollars (now and in the future), but also free up time for more traditional holiday festivities. (Dec. 4, 2023)
- Bunch your itemized expenses — There's not a bunch of time left in 2023, but enough to look into bunching itemized tax-deductible expenses. This deduction strategy essentially means alternating each year between your standard or itemized deduction amount. To get a Schedule A total that's larger than your allowable standard deduction, you'll have to pull your itemized expenses into one tax year, or push them into the next, aka bunch them! It takes some planning, calculating, and guesstimating, but when it works, it maximizes all those itemized amounts (and receipts) that are too often lost because they're just not quite enough to claim. (Dec. 8, 2023)
- ACA's premium tax credit helps pay for health care coverage — The deadline to get or change your marketplace ACA coverage is Dec. 15. The Premium Tax Credit plays a key role in most people's health care choice. Make sure you get the best policy, and maximum PTC, this year since the expected Republican presidential nominee is again talking about Obamacare repeal and replace. (Dec. 12, 2023)
- Ways to use, so you don't lose, your FSA funds — Medical flexible spending accounts, usually referred to by their FSA acronym, are a great tax-advantaged way to pay for out-of-pocket medical costs. But they can literally be worthless if you don't use the funds in time, which for many accounts is the end of the year. Any money left in an FSA gets returned to your employer. Here are some ways to use so you don't lose your FSA money. (Dec. 16, 2023)
- Mutual fund taxes require December attention — Official tax statements won't arrive until January, but in December mutual fund investors will get an idea of what they'll owe when they file their returns next year. This month's fund distributions are taxable income, even if reinvested. (Dec. 17, 2023)
- 3 welcome, and tax-advantaged, holiday gifts — If you're stumped about what to get some folks on your holiday gift list, check out these financial gifts. They also come with some tax advantages for the giver or the recipient. (Dec. 18, 2023)
- 12 Days of Christmas Gifts 2023 — If you decided to go all out this holiday season and give your true love the gifts lyrically listed in "The 12 Days of Christmas" carol, inflation has pushed the overall price up by 2.7 percent, according to the 40th annual PNC Christmas Price Index (CPI). (Dec. 20, 2023)
- Last-minute RMD tips — Are you facing a required minimum distribution (RMD) on a tax-deferred retirement account? Don't let all your holiday festivities distract you from meeting the annual RMD Dec. 31 deadline, which this year actually is, in most cases, Friday, Dec. 29, since it's the last business day of 2023. If you don't take your RMD, you'll face a tax penalty that, although halved by SECURE 2.0, is still pretty steep. (Dec. 21, 2023)
- Withdrawing an improper ERC claim — If you're a business owner who, at the urging of a pushy Employee Retention Credit (ERC) promoter, filed a claim for this COVID relief tax credit and now are rethinking the move, the Internal Revenue Service has good news. The tax agency says if you haven't received a refund yet, or your claim is among those that the IRS has put on processing hold, withdraw your questionable ERC claim. You have until at least the end of the year to request a withdrawal. (Dec. 23, 2023)
- ERC voluntary disclosure program open — The recent rash of errant Employee Retention Credit (ERC) claims, many pushed by aggressive (and sometimes scam) promoters, has led to the IRS' latest effort to stem the false claims. It has opened an ERC voluntary disclosure program that lets those 'fessing up escape additional penalties if they pay back 80 percent of their wrongly-received tax credit amount. (Dec. 24, 2023)
- Boxing Day & beyond donation (and tax-saving!) tips — Boxing Day, the day after Christmas, is not a formal or generally celebrated holiday in the United States. But you can follow this otherwise global tradition and keep the holiday giving going by donating to your favorite charities. Here are six ways to help others and possibly get a tax deduction next filing season. (Dec. 26, 2023)
- When Dec. 31 tax timing really matters — Dec. 31 gets most attention as the big end-of-year party day. But there are tax situations where the last day of the year really matters. Here are five. (Dec. 29, 2023)
- Business mileage deduction methods — If you use your car for business, how you deduct those work-related miles could make a significant tax difference. Here's a look at some mileage deduction basics, starting with recording your vehicle's odometer reading on the last day of the tax year. (Dec. 31, 2023)
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Hallelujah! We made it! 2023 and its tax concerns finally are over. Or are they?
Sometimes deadlines slip. Sometimes they're extended because of things like major natural disasters. If you're still facing some filing tasks, check out December's and the other 2023 filing season tips already posted in the preceding 11 months.
Don't worry. The New Year and its tax tips will be here before you know it, and for many of us, before we're ready to file our 1040s by April 15, 2024! Time really does fly when you're having tax fun.
January | July |
February | August |
March | September |
April | October |
May | November |
June | December |
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