August 2025 Tax Tips

January 1, 2025

Dog tired of hearing about taxes? Sorry, but these dog days of August are the time to make some beneficial late summer tax moves.

Technically, the Dog Days of Summer take up more of July than August. But July is so identified as America’s birthday month, I’m sure it doesn’t mind the following 31 days being more popularly associated with the canine descriptor.

So, I’m sticking with that take, and relying on some canine terms to talk about August tax tasks.

Fetch the info you’ll need. This, in the tax world, means getting a handle on tax documents that will help you file and get the most tax savings possible.

Obey the rules: This is a given. You need to know, and heed, the tax laws. As with prior months’ tax tips, you’ll find reminders in August’s tip collection, like the ones in my 6 tax moves to make in August post that could help you save some tax cash. Yeah, that’s it at #5 in the tips list below, but worth a preview mention.

Be open to new tricks: Finally, things change, especially in taxes, and especially this year with the enactment of the One Big Beautiful Bill on July 4. That gigantic tax and more law included some new provisions that could come into play on your 2025 tax return.

Yep, that was another preview. You can check out the new and newly effective tax laws in tip #4 below so you’ll be ready to take advantage on of them on your return next year.

There also are some changes to older tax laws that might apply to you. And be ready for more tax code tweaks as this year progresses.

As usual, this August Tax Tips collection will keep you up to date, regardless of whether you’re still working to file your extended 2024 Form 1040, or are making moves to cut your 2025 tax bill. So no more dogging it! Let’s get on with the tips!

13 state sales tax holidays in August — Shoppers in 13 states can get some tax-exempt bargains at back-to-school sales tax holidays this August. But be quick! Nine of those events are this first weekend of the month. The states kicking off the tax-free days are, listed alphabetically, Arkansas, Florida, Iowa, Missouri, Ohio, Oklahoma, South Carolina, Virginia, and West Virginia. The remaining four events later in August are in Connecticut, Maryland, Massachusetts, and Texas. (Aug. 1, 2025)
6 tips for back-to-school tax holiday shoppers — When- and wherever you do your sales-tax-free bargain hunting this month, shop wisely. These 6 tax holiday shopping tips could help you make the most of your state’s no-tax event. (Aug. 1, 2025)
Prepare for the heating up hurricane season — It’s been a relatively quiet hurricane season (thank goodness!) so far this year, but don’t count on that calm lasting. The annual North American hurricane season traditionally heats up in August. The good news is that you if you haven’t already prepared for the 2025 tropical season, you have time to get ready now. (Aug. 2, 2025)
One Big Beautiful Bill tax breaks taking effect in 2025 — Even when tax reform benefits you, there’s the matter of determining the specifics to claiming the tax breaks, plus checking on when they take effect. Here’s a look at some of the major tax changes in the One Big Beautiful Bill that kick in for 2025, meaning they could come into play when filing 1040s next year. (Aug. 3, 2025)
Tax moves to make in August as the world spins faster — No, it is not your imagination. August arrived on an accelerated timetable, and Aug. 5 will be one of the shortest days on record. But there’s still time to make some potentially tax-saving tax moves this month. Here are six suggestions. (Aug. 4, 2025)
OBBB’s threat to Social Security solvency — The One Big Beautiful Bill (OBBB) Act’s tax cuts will mean less money for the trust fund that pays federal retirement benefits. And that is likely to mean benefit payments to Social Security recipients will be reduced as soon as the end of 2032, according to new calculations by the Social Security Administration’s chief actuary. (Aug. 6, 2025)
Teachers’ supplies for classrooms could provide tax savings — Parents aren’t the only ones shopping for their youngsters’ school supplies. Teachers also regularly spend their own money to make sure that their students have a positive educational experience. But teachers also can get some of those expenditures back if they claim the educator expenses tax deduction. (Aug. 7, 2025)
Billy Long long gone as IRS commissioner — What a not-long but strange tenure it’s been for now former IRS Commissioner Billy Long. Long was finally confirmed to lead Uncle Sam’s tax agency on June 12, and now, less than two months later, he’s been removed from the post. It marks the shortest service time of a Senate-confirmed commissioner in the agency’s 163-year history. The Treasury Secretary will serve as IRS interim chief until a replacement commissioner is installed. (Aug. 8, 2025)
No changes to 2025 tax year forms or tables affected by OBBB — The IRS isn’t making any immediate revisions to certain information returns or withholding tables in connection with 2025 tax law changes in the One Big Beautiful Bill (OBBB) Act. That means taxpayers affected by the changes likely will see larger refunds when they file returns next year, which also just happens to be midterm Congressional election year. (Aug. 10, 2025)
Proposed new Social Security COLA CPI, wage base cap phaseout — Government economic figures get lots of attention, especially from older Americans who rely on cost-of-living data that determines annual adjustments to Social Security benefits. Two Hawaiian members of Congress have introduced legislation in the House and Senate to change the consumer price index used for those revisions, as well as make wealthier workers pay Social Security payroll taxes. (Aug. 12, 2025)
IRS needs a comprehensive adoption tax credit outreach plan — The adoption tax credit can be a great benefit for families. However, the Internal Revenue Service has not done a good job of getting word about the tax break out to taxpayers who could use it, according to a recent Government Accountability Office (GAO) report. The government watchdog says the IRS needs to create an educational outreach plan, especially now that the tax break has been changed in the One Big Beautiful Bill Act. (Aug. 14, 2025)
$3,752 is the average national one big bill tax cut — With the One Big Beautiful Bill’s provisions now law, everyone is trying to determine just how it will affect them at tax filing time. The Tax Foundation has some good news. Its analysis found that the national average tax cut per taxpayer in 2026 will be $3,752. (Aug. 17, 2025)
Lax IRS authentication efforts led to business filing fraud — Individual taxpayers are popular tax scam targets, but businesses aren’t immune. Last year, the Treasury Inspector General for Tax Administration (TIGTA) discovered that the Internal Revenue Service didn’t adequately verify the identity of callers to two of its special tax hotlines. That failure led to the unauthorized disclosure of tax information, the fraudulent filing of Forms 941, and the issuance of more than $93 million in fraudulent tax refund checks. (Aug. 18, 2025)
A lesson plan for maximizing 8 education tax breaks — Figuring out how to pay school costs often can be as (or more) challenging than the classes themselves. Uncle Sam can help, with his variety of educational tax breaks to help cover school expenses. (Aug. 19, 2025)
What a $100,000 salary comes to after taxes in your state — Making more money means paying more taxes. But where you live affects just how large of a salary/tax tradeoff you face. If you make a $100,000 salary, here are the states where the tax bites are the worst and least. (Aug. 20, 2025)
6 tax and other money tips for the next lottery millionaire — Sure, the odds of winning the lottery are 1 in 292 million. But that doesn’t stop folks (including me!) who dream of becoming rich via the game’s bouncing ping pong balls from buying tickets. Powerball’s jackpot this weekend is $700 million, or $316.3 million if you take the payout as a cash lump sum. If you get to make that choice, tips can help you cope with becoming a sudden lottery millionaire. (Aug. 21, 2025)
Treasury and IRS want your thoughts on digital assets and Direct File — If you’ve ever wanted to tell the IRS what you think, now’s your chance. The tax agency, and the Treasury Department, are looking for public input on a couple of issues. First, per the recently enacted GENIUS Act, Uncle Sam is looking for ideas on how to fight digital asset fraud. Then there’s the one big bill’s requirement that the IRS file a report on free tax prep and e-filing options. If you have ideas on either or both issues, speak up! (Aug. 23, 2025)
Draft 2026 Form W-2 incorporates no tax on tips or overtime income — The Internal Revenue Service is getting a head start on the 2026 tax year, specifically when it come to income reporting changes under the One Big Beautiful Bill (OBBB) Act. The tax agency has released a draft 2026 Form W-2 that employees will get in early 2027, and which will show their tip income and overtime pay amounts. Those W-2 entries will be used by eligible taxpayers to claim their tax deductions on a portion these types of compensation. (Aug. 24, 2025)
IRS provides leeway on EV tax credit’s Sept. 30 ending date — The electric vehicle (EV) tax credit is slated, per the One Big Beautiful Bill (OBBB) Act, to end on Sept. 30, 2025. New Internal Revenue Service guidance, however, is offering EV buyers some leeway with its interpretation of acquiring a qualifying vehicle. You’re considered to have acquired a qualifying EV for the tax credit’s purposes if you sign a contract and make a down payment on the auto by that date. (Aug. 25, 2025)
ID theft protection tips in wake of whistleblower’s DOGE Social Security report — When Department of Government Efficiency (DOGE) staff started poking around IRS and Social Security Administration (SSA) files, some of us were worried. SSA’s chief data officer says we had good reason for concern. His whistleblower report says DOGE’s duplication of data to the cloud could be disastrous if it is breached. Here are some steps to take if that happens, or if you just want to pre-emptively protect your personal data. (Aug. 26, 2025)
Dealing with CP59 and other IRS notices — It’s always disconcerting to see an envelope with the Internal Revenue Service return address in your mailbox. That’s happening now to some folks who are receiving IRS Notices CP59R, CP59SN, and CP59. But don’t panic. Here’s the latest notice scoop via the National Taxpayer Advocate, as well as how to handle any IRS letters you might get. (Aug. 27, 2025)
Ending multilingual IRS services could be costly — Cutting IRS multilingual services could be costly. That’s the word from Democratic members of Congress who are pushing back on the Trump administration’s English-only effort when it comes to taxes. (Aug. 28, 2025)
A Labor Day look at self-employment tax considerations — Working for yourself has advantages. It also means lots more tasks, including tax responsibilities. Here’s a look this Labor Day holiday at some self-employment tax considerations. (Aug. 30, 2025)

*****

I can’t tell you how thrilled I am that you want to spend the end of summer checking out more tax tips. Rest assured, as the season’s (and year’s) remaining months arrive, all the pages listed and linked below will be filled with timely tax information.

And yes, you can go ahead and click on the yet-to-come September through December links. Those tax tips pages are live in the sense that like this August page, the links will open instead of going to my 404 page. You just won’t find any tax tips on them. Yet.

Instead, you’ll just find an energetic guy telling you to whoa up. When those 2025 dates do arrive, the corresponding tips will be added. But do feel free to check out the January through July advice, especially if you’re still working on your 2025 tax return.

Again, I appreciate your wanting more tax tips, and your patience on waiting for them to be posted.

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