Don't Mess With Taxes

It's the most wonderful time of the tax year. The end of it!

December is here. Already. I'm not sure I've had enough fun this year for it have flown by so quickly. But here we are. In December. Already.

Not that I'm complaining (that much). Christmas is my favorite holiday, and the final month of the year is a wonderful, but hectic time. There are the seasonal traditions to prepare for and enjoy.

The winter season also is finally making its way into Central Texas. It's time to prepare for and curse Mother Nature if you're not a fan of cold (both mitten-clad hands 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 enough with the explanations.

I hear you. So, without further ado — except maybe for an adieu to 2024 as Dec. 31 nears (sorry, not sorry for the homophonic pun) — here goes!

1. Thanksgiving tax leftovers: 5 Tax Turkeys to Avoid — Yes, you're at the right monthly tax tips page. It is Dec. 1. But the calendar this year pushed Thanksgiving right to the edge of the next month, so we're still dealing with leftovers, both the dinner table and tax types. As you prepare for yet another family gathering and festivities in less than a month, you need to work in some tax tasks. These 5 Tax Turkeys to Avoid from Thanksgiving week, boxed like all the holiday’s leftovers, make for easy access and consumption. (Dec. 1, 2024)
2. 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. 2, 2024)
3. 6 tax donation deduction tips for Giving Tuesday — Whether you give to your favorite charity on Giving Tuesday — that’s the Tuesday after Thanksgiving in case it slipped by you — or any other time of the year, these tax donation deduction tips could come in handy. They could make your charitable gift pay off for you at tax-filing time. (Dec. 3, 2024)
4. Gift cards: great as holiday gifts, not as tax payments — Do buy gift cards as holiday gifts for family and friends. Do NOT buy them when a tax scammer instructs you to do so to pay a fake Internal Revenue Service bill. Don't fall for it or other scams and identity theft schemes that involve taxes at any time of the year. (Dec. 4, 2024)
5. Biden expected to sign signs long-awaited disaster relief bill — After more than a year since being introduced, and a push via a little-used parliamentary procedure, a bill to provide tax relief to major disaster victims across the country finally made it to within a presidential pen stroke away from law. President Joe Biden officially affixed that anticipated signature on Dec. 12, 2024. (original tip Dec. 5, 2024; updated Dec. 12, 2024)
6. $5,000+ is earnings trigger for issuance of 2024 tax year 1099-K forms — Do you sell goods or services via an app or marketplace? If you made more than $5,000 this year on those transactions, expect to get a Form 1099-K in January 2025. This third-party information form will help you report, and the Internal Revenue Service check, your correct income amount when you file your taxes. (Dec. 8, 2024)
7. An RMD to-do list, including ways to use the money — The end-of-year gets hectic, so don’t overlook taking your required minimum distribution (RMD) from a tax-deferred retirement account by Dec. 31. Here’s an RMD to-do list to help, along with some suggestions on what to do with the money. (Dec. 10, 2024)
8. 5 gift ideas from Tax Santa — Stumped when it comes to some Christmas presents? It can happen to even the most experienced gift giver. Here are some tax-related gift suggestions that might help you be a good Tax Santa this year. (Dec. 11, 2024)
9. Don't fear, or fall for, tax misinformation on Friday the 13th … or any day — A holiday season Friday the 13th? Yes! But don't let tax fears and superstitions affect your seasonal celebrations. Check out the tax truth about these 13 tax misperceptions. They’ll help get you through today and make you a fearless taxpayer year-round. (Dec. 13, 2024)
10. Political and tax issues complicate Roth IRA conversion decision — Whether you’re young or young-at-heart, you need to think about retirement savings. One consideration is whether to convert a traditional IRA to a Roth retirement account. But many factors, including taxes and politics, can complicate the decision. (Dec. 14, 2024)
11. The cost of 12 Days of Christmas gifts in 2024 — Inflation has eased a bit, but the tab this year’s 12 gifts of Christmas to a True Love could be a budget buster. PNC Bank’s 41st annual Christmas Price Index tabulation of the costs of the dozen (or more) presents in the lyrical shopping list tops $49,000 thanks to price increases in some sectors. (Dec. 16, 2024)
12. Ways to spend your FSA money — 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 money in time. For many accounts, that deadline is the last day of the calendar year. Here are some ways to use so you don't lose your FSA funds. (Dec. 18, 2024)
13. 3 more tax strategies to consider by Dec. 31 — Dec. 31 is almost here, meaning time is short to explore some more end-of-year tax year strategies and moves. Here are three, ranging from an advance look at your tax bracket to determining the best deduction method to adding to a special savings account that can be for more than medical expenses. (Dec. 19, 2024)
14. Tax deductible per-mile business rate goes up 3 cents in 2025 — The tax deductible per-mile rate in 2025 will go up for qualifying business trips, to 70 cents per mile. However, the other three rates — for medical, moving, and charitable trips — remain unchanged. And with this Internal Revenue Service announcement, the 10-part 2025 tax inflation series is complete. (Dec. 20, 2024)
15. Pets as presents and potential tax deductions — Pets can add a lot to your life, but getting one as a Christmas present, especially for someone else, might not be the best move. If you are pet shopping, beware scams. And if you have or get a pet, check out the possible tax breaks. (Dec. 23, 2024)
16. 6 ways to keep the giving going on Boxing Day and beyond — Boxing Day, the day after Christmas, is not a formal or generally celebrated holiday in the United States. But you can use this otherwise global tradition that keeps the holiday giving going today, and beyond. If any of these six giving suggestions appeal to you, as the giver you also might qualify for some tax benefits. (Dec. 26, 2024)
17. Report your gig earnings even if you don’t get a 1099 — If you get gig earnings, be sure to report all the money on your tax return even if you don’t get a third-party 1099 form detailing the amount. You don’t want to end up like some online experts. The Internal Revenue Service suspects some who for years did on-demand work on a California-based digital answers-from-experts platform might not have reported all their income. So, the federal tax agency got a John Doe summons this week to help it investigate. (Dec. 27, 2024)
18. Low-Income Taxpayer Clinic program marks 25 years of helping taxpayers — Sometimes you need help beyond just filing your 1040. If you can’t afford to hire professional assistance to deal with a tax problem, a Low-Income Taxpayer Clinic (LITC) might be able to help. The program, supported by Taxpayer Advocate Service grants, has been helping eligible taxpayers for 25 years. (Dec. 29, 2024)
19. Tax matters that matter on Dec. 31 — 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 where Dec. 31 can affect your taxes. (Dec. 30, 2024)
20. Odometer readings and ways to deduct business miles — If you use your car for business and are finished making work visits, note your final odometer reading on this last day of 2024. Or the starting mileage for the New Year tomorrow. Or both. Tracking those work-related miles and how you claim them could make a significant tax difference at filing time. (Dec. 31, 2024)

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Finally! All the Tax Tip monthly links below go to pages filled with tax advice. Enjoy!

And some taxpayers might still need the information posted earlier in 2024 as they are in areas that were struck by major natural disasters. In those unfortunate cases, the IRS provides tax relief, including later deadlines to meet a variety of tax deadlines.

January	July
February	August
March	September
April	October
May	November
June	December

 

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