August 2024 Tax Tips

January 2, 2024

Dog tired of hearing about taxes? Sorry, but these dog days of August are perfect for making some 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. A couple of those instances are discussed in my first post of the month, 4 tax moves to make in August. Yeah, that’s in the tips list below, too, but worth a second mention.

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.

Be open to new tricks: Finally, things change, especially in taxes. So be ready to react appropriately. Often, it’s because of new tax laws. But other times, things like major disasters necessitate some tax flexibility.

As usual, this August Tax Tips collection will keep you up to date, regardless of whether you’re still working to file your extended 2023 Form 1040, or are making moves to cut your 2024 tax bill. Let’s get it!

4 August tax moves to make — August has arrived, sneaking the Dog Days of summer into our lives as quietly as a hound on the hunt. If you’re searching for ways to save some tax dollars as this simmering season comes to an end, you’re in luck. The August Tax Tips kicks things off with a look at four tax moves to make this month. (Aug. 1, 2024)
15 state sales tax holidays in August — Shoppers in 15 states can get some tax-exempt bargains at August back-to-school sales tax holidays. Two of the tax-saving events, in Florida and Ohio, started in July and run into this month. The other 13 sales tax holidays start this month. They are in *Arkansas, Connecticut, *Iowa, Maryland, Massachusetts, *Missouri, New Jersey, *New Mexico, *Oklahoma, *South Carolina, Texas, *Virginia, and *West Virginia. The eight with a * happen this first weekend of August. (Aug. 2, 2024)
Time to get ready for Hurricane Debby — The North American hurricane season picks up in August. That’s evident in Hurricane Debby, which is strengthening as it takes aim at the Florida Gulf Coast. If you haven’t already prepared for this tropical season, get ready now. (Aug. 4, 2024)
16 states (so far) will offer Direct File in 2025 — The Treasury Department has announced that New Mexico and Pennsylvania are the latest states whose eligible taxpayers will be able to use the IRS’ Direct File program during the 2025 filing season. Earlier this summer, Oregon and New Jersey decided to participate in the IRS-created and directly operated free online tax preparation and e-filing program. That makes 16 states will offer Direct File to some of their taxpayers next year. (Aug. 5, 2024)
Upcoming tax holidays in TX, MA, and MD — Classes have resumed or soon will start in school districts across the United States. So, it’s no surprise that parents are shopping for supplies, especially in states holding back-to-school sales tax holidays. Two tax-exempt events that started in July, in Florida and Ohio, are wrapping up into this week. Three others begin this weekend. They are, in starting date order, in Texas from Friday, Aug. 9, though Sunday, Aug. 11; Massachusetts from Saturday, Aug. 10, through Sunday, Aug. 11; and Maryland, from Sunday, Aug. 11, through Saturday, Aug. 17. (Aug. 6, 2024)
Educators get a $300 tax deduction for classroom supplies — 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 use up to $300 of their qualifying out-of-pocket expenditures to claim the educator expenses tax deduction. (Aug. 8, 2024)
Marijuana rescheduling could cut cannabis businesses’ tax bills — The Justice Department is proceeding on the transfer of marijuana from Schedule I of the Controlled Substances Act (CSA) to Schedule III. When that happens (possibly this year), the change would not make cannabis legal nationally. It still will be a controlled substance under federal law. But the recategorization would provide state-legal cannabis businesses some banking access, and the ability to claim some tax breaks they currently are denied. (Aug. 11, 2024)
Some retirees owe income tax on their Social Security benefits — You saved for your post-work years, and now your financial savvy could cost you. If your savings et al provide you with enough income retirement income, some of your Social Security benefits will be taxed. Here’s how that works, as well as a look at the tax’s history, and a political proposal to end it. (Aug. 14, 2024)
Second IRS ERC voluntary disclosure program runs through Nov. 22 — The Internal Revenue Service if offering businesses that got improper Employee Retention Credit (ERC) money another chance to let the agency know, and pay it back at a discount. This second ERC Voluntary Disclosure Program (VDP) will be available through Nov. 22. Meanwhile, payments for around 50,000 valid ERC claims will be distributed in September. (Aug. 15, 2024)
Connecticut & North Carolina to join IRS Direct File in 2025 — State participation in the Internal Revenue Service’s Direct File program continues to slowly grow. Connecticut and North Carolina are the latest to join, bringing the participating Direct File state count to 18. During the 2025 tax filing season, eligible taxpayers from those states can use the IRS-created free online tax preparation and e-file program. (Aug. 18, 2024)
IRS adds new features to online business accounts — The Internal Revenue Service launched the business tax account, or BTA, option last fall as a way for companies to take care of tax tasks electronically. Now it’s enhanced the business account offerings, including the ability to pay Federal Tax Deposits, and check and pay a company’s full balance due. (Aug. 20, 2024)
Current electric vehicle tax credit amounts and eligible vehicles — Donald J. Trump has softened his critical view of electric vehicles, but says he still doesn’t like the tax credit provided buyers. If you want one and are worried election results might mean an end to the $4,000 or $7,500 tax credit, here’s the current EV credit law and how you can take advantage of it. (Aug. 21, 2024)
Claiming the Child Tax Credit on your 2024 taxes — One of the most popular tax breaks is the Child Tax Credit (CTC). Capitol Hill lawmakers have been trying to increase the family-friendly benefit, but for now those efforts have stalled. They could move after we elect a new president and Congress in November. Until then, here are rules for claiming the CTC on your 2024 taxes. (Aug. 22, 2024)
The 9 states that tax Social Security — You worked hard for your federal retirement benefits, then learn that Uncle Sam is taking a tax bite. But wait, it gets worse. You live in one of the nine states that also tax at least a portion of your federal Social Security payments. (Aug. 27, 2024)
Disasters mean a Feb. 3, 2025, tax deadline in 10 states, two territories — A mean Mother Nature this year means more disaster areas and related federal tax relief. The latest additions are in South Dakota, Puerto Rico, and the U.S. Virgin Islands. That state and two U.S. territories brings to a dozen the growing group of storm-struck areas in Florida, Georgia, Kentucky, Minnesota, Missouri, North and South Carolina, Vermont, and Texas with a new Feb. 3, 2025, deadline. (Aug. 29, 2024)
5 ways your pet might help cut your tax bill — Our pets are family members. Unfortunately, the Internal Revenue Service doesn’t recognize them as dependents for tax break purposes. However, there are some situations where a domestic animal could provide its owner some tax savings. So to fittingly wrap the Dog Days of August, here’s a look at five pet-related tax benefits. (Aug. 31, 2024)

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All the Tax Tip page links below are live. If, however, you click on a month later in the year, you’ll be greeted by a nay-saying guy’s GIF instead of Internal Revenue Service and Don’t Mess With Taxes tips. The tax info you’re seeking will replace this animated fellow when the months finally arrive. Until then, feel free to check out the prior month’s tips.

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