January 2024 Tax Tips

Happy New 2024 Tax Year!
Yes, you heard this upbeat welcome before, like just last year. But things in the tax world finally seem to be getting back to normal, such as that was, is, or will be.

Welcome to a brand, spanking new year. In 2023, the Internal Revenue Service finally got even more of its operations back on track. Now, with additional funding, hopes are high that 2024 will be a turning point filing season.

More good news: there are no, end-of-year tax laws to deal with.

The bad news: Congress let some tax provisions that many were pushing for expire.

See, back to more-or-less SNAFU (situation normal, all fouled up) circumstances for the IRS and us taxpayers.

Still, I'm going to cling to my high hopes (wishes? dreams?) of a tax filing season that goes smoothly.

And as long-time readers of the ol' blog know, the monthly tax tips are part of that more positive perspective.

Still not necessarily daily: As has been the case for the last few years, the tax tips again will appear first in the upper right corner of the ol' blog's homepage (and other pages you click on), just beneath the old-school yellow No. 2 pencil tip image. The highlighted tips then will be added to the monthly tax tip pages.

There's no firm posting schedule, but I'm aiming for at least one tip a week. During high filing season of January through Tax Day on April 15, I'll likely post more frequent tips.

Year-round tip time: Most of the tax advice tidbits through Tax Day will focus on getting our 2023 Form 1040 and schedules filled out and to the IRS on time. But taxes are a perpetual motion machine.

Some people file their tax returns in January. Others aim for the mid-April due date. Some — OK, millions of procrastinators — push their filing back to October by getting an extension (to file the forms, not an extension to pay any tax you owe).

On top of that, we're already in a new tax year, meaning our 2024 tax liability is now accruing.

Then Mother Nature sometimes throws destructive fits, with major disasters affecting and delaying tax tasks for those in the paths of tornados, flooding, hurricanes, blizzards, and more types of natural catastrophes.

And, of course, there's unforeseen circumstances, like a global health crisis and pandemic. Let's hope that doesn't happen again, in 2024 or ever, but….

That's why you'll get a mix of traditional filing tips, alerts about changes, and future tax planning.

Since you're reading this, you know the January 2024 page is live, and you're raring to get started on your taxes. Me, too. OK, not so much raring for me, but I with you go-getters in spirit!

So with our hopes high for a good 2024 tax filing season, let's get this new year's tax tips party started!

6 tax & financial tips for lottery winners — Sure, the odds of winning the lottery are 1 in 292.2 million. But that doesn't stop folks who dream of becoming rich via the game's bouncing ping pong balls. That happened to the person who bought the lone winning Powerball ticket on Jan. 1, 2024. The winner, who's yet to be identified, likely will take the $842.4 million jackpot's one-time cash payment of $425.2 million. If you ever get such a windfall, check out these tips to help you cope with being a sudden millionaire. (Jan. 1, 2024)
New Year's tax and financial resolutions — Happy New Year! If you're into new year's resolutions, here are seven tax and financial moves to make, or at least start, in January 2024. (Jan. 2, 2024)
Florida kicks off 2024 with a sales tax holiday — The start of a new year means another sales tax holiday for Floridians. The Sunshine State's two-week Back-to-School no-tax event runs Monday, Jan. 1, 2024, through Sunday, Jan. 14, 2024. The sales-tax-free items include the usual classroom items, as well as clothes and computers. (Jan. 3, 2024)
Odometer check time and other business mileage tax basics — 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, including taking an end-of-year/start of the new year photo of your auto's odometer. (Jan. 4, 2024)
Tax rates and income brackets for 2023 & 2024 — January is the month when tax years collide. We're getting ready to file our 2023 tax year returns, but we're also starting to make plans that, if implemented properly, will reduce our 2024 tax bills. Key information for both years includes how much tax we owe on our earnings in both years. You can find 2023 and 2024 tax rates and income brackets in the first of the ol' blog's 10-part annual inflation series. At the end of that post, there's a directory to the nine other tax areas affected by annual inflation adjustments. Expect to see those other 9 posts as separate tax tips through this filing season and tax year. (Jan. 5, 2024)
ERC voluntary disclosure program open — Last year's rash of errant Employee Retention Credit (ERC) claims, many pushed by aggressive (and sometimes scam) promoters, led to the Internal Revenue Service efforts to stem the false claims. The agency's latest move is 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. (Jan. 6, 2023)
Tennessee twister victims get tax relief, new June filing deadline — Tornado season is year-round. Just ask Tennesseans who were in the path of a deadly twister outbreak last December. The Internal Revenue Service has granted tax relief to individuals and business owners in four Volunteer State counties. It includes delaying the April 15, 2024, filing deadline to June 17, 2024. (Jan. 7, 2024)
Choosing between standard or itemized deduction — Standard vs. itemized deduction: You get to choose the deduction method, standard or itemized, every filing season. You want to select the own that gives you the best tax result. Most taxpayers take the standard deduction, but don't just opt for ease. Check out the 2023 amounts, and if your itemized expenses exceed the amount for your filing status, then take itemizing tax route. (Jan. 8, 2024)
When will you get your federal tax refund? It depends. — When will you get your federal tax refund? It depends. The Internal Revenue Service aims for a 21-day turnaround, from the time it gets your return and processes it until the day you have your refund in hand. But that's not a rule. Rather, to borrow from Capt. Barbossa in the original "Pirates of the Caribbean" movie, it's more of a guideline. (Jan. 9, 2024)
Jan. 29 is the start of 2024 tax season; Free File opens Jan. 12 — The opening of tax season 2024 is official. The Internal Revenue Service will start processing 2023 tax year returns on Monday, Jan. 29. You also can file using Free File, if your income last year was $79,000 or less, starting Friday, Jan. 12. And the IRS will accept e-filed business returns on Tuesday, Jan. 16, the first business day after the Dr. Martin Luther King, Jr. holiday. (Jan. 10, 2024)
It's estimated tax time again — If you must make estimated tax payments, your final amount for tax year 2023 is due soon. Like next week soon. Specifically, that 1040-ES amount is due on Tuesday, Jan. 16. Here's a look at this additional tax system many filers face and how to pay what you owe on time. (Jan. 12, 2024)
IRS delays processing of some business tax forms — The 2024 tax filing season is underway, with businesses getting in on the act on Tuesday, Jan. 16. But take note. The Internal Revenue Service says it won't accept certain business forms until the full filing season opens on Monday, Jan. 29. (Jan. 14, 2024)
10 most serious taxpayer problems — What infuriates you the most in filing your taxes or dealing with the IRS? The National Taxpayer Advocate has listed what she sees as the 10 most serious taxpayer problems in her latest annual report to Congress. Check them out and see if you agree. (Jan. 16, 2024)
Statements you need to file your tax return — The focus of every tax filing season is Form 1040. But to fill out that form completely and accurately, you need other documents. Here's a look at the myriad tax statements with specifics on last year's income and possibly deductible expenses that you should receive, in most cases, by Jan. 31. (Jan. 17, 2024)
Do you have to file a tax return? Probably — Not much is out of the Internal Revenue Service's reach, which is why most of us must file a Form 1040. But in some cases, Uncle Sam lets folks off the tax-filing hook. Here's a look at the factors that go into determining whether you must file a tax return. (Jan. 18, 2024)
Beware tax scams as filing season starts — Tax season means tax scam season ramps up. This year, a perennial con — the new-client scam aimed at tax professionals — is joined by a new scheme that's taking advantage of the new beneficial ownership information reporting rule. Be on the lookout for both schemes. (Jan. 20, 2024)
Digital assets question now on more tax return forms — The Internal Revenue Service is offering some guidance on how to answer the digital assets question. The query now applies to even more filers, as this 2024 tax season it appears on four additional tax return forms. (Jan. 22, 2024)
FTC slams TurboTax for deceptive free filing offers — Free isn't always free. That's not just a cynical motto. It's also what the Federal Trade Commission found in its investigation into Intuit TurboTax's advertising. The FTC now has ordered the most popular tax preparation software company to be more open about just who qualifies for totally free tax return help. (Jan. 23, 2024)
IRS redesigning tax notices to make them easier to read and understand — Getting an IRS notice is unnerving enough. But trying to decipher it often is even worse. The IRS hopes to change that with its Simple Notice Initiative, which will simplify & clarify hundreds of the tax letters it sends annually to millions of taxpayers. (Jan. 24, 2024)
10 tips on dealing with a tax notice — You filed your tax return. Now the Internal Revenue Service has questions about it. While receiving a tax notice (even a new, easier to read one) is always a little unnerving, it doesn't necessarily have to be a big deal. In many cases, any issues the IRS has with your 1040 can be quickly resolved. These 10 tips can help you deal efficiently and effectively with an IRS notice. (Jan. 25, 2024)
Tax pre-filing checklist questions — You've got all your tax statements, but don't file just yet. Review this checklist of some basic tax questions. Your answers could help you submit a 1040 that's as complete and correct as possible. They also could mean you don't overlook any tax breaks. (Jan. 27, 2024)
Key 2024 federal tax deadlines — Tax season 2024 officially starts tomorrow, Jan. 29. But that's just one of the many tax deadlines we'll face this year. This tax calendar will help you track the key individual tax due dates for the rest of this year. (Jan. 28, 2024)
9 ways to make tax filing easier — Tax season 2024 is officially underway, and that has lots of people freaking out. Not to worry. These nine tips can help make your annual tax-filing tax a bit easier. (Jan. 29, 2024)
8 reasons to file your tax return early — Taxpayers expecting tax refunds typically file their annual returns as soon as they can. But there are some other reasons you might want to file your Form 1040 sooner than later. Check out these eight reasons to get to work on your 2023 tax return now. (Jan. 30, 2024)
7 reasons to wait to file your tax return — Tax filing procrastination is not unusual. Every year, millions put off sending in their returns until Tax Day…or later. You'll get no judging here. In fact, sometimes it is a good idea to take your time to finish your Form 1040. Here are seven reasons why you should wait to file your tax return. (Jan. 31, 2024)

*****

As I mentioned earlier on this inaugural 2024 tax tips page, as soon as January wraps and all this month's tips are listed here, I'll move on to the separate February through December pages.

You can, however, find links at the bottom of every monthly tax tips page that will take you to each page's collection of tax advice. That's them below.

Technically, all are live, meaning you can click now on the February through December links below. But since we're not there yet, instead of tax tips you'll be greeted by an animated fellow making good use of one of my favorite Texas sayings, "Whoa up there, cowboy."

OK, he doesn't look like a cowboy. And I typed those words preceding the GIF image. But you get the idea.

That idiomatic admonishment will be replaced by usable tax information as the year's months arrive.

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

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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Kay Bell helps you build
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A collection of Kay Bell stories
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Tax Reading Room
You also might enjoy these other tax tips from some of my tax-writing colleagues:
J.K. Lasser 2024 Taxes
Taxes for Dummies 2024
Tax Savvy for Small Business

~~~~~~~
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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:
CDC Vaccines
CDC Booster Shots
HHS Combat COVID
USA.Gov COVID Info

December 2024

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Photo by Isaac Martin on Unsplash

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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