NOVEMBER 2024

IRS Issues Warning About Hurricane Relief Charity Scams

Natural disasters like Hurricanes Helene and Milton bring out generosity, but also scammers attempting to steal donations and personal information. The IRS warns taxpayers to verify charities before donating. If contacted via phone, text, or email by someone claiming to represent a relief charity, verify the organization’s legitimacy. Request the official name, mailing address, and website, as scammers often use names similar to real charities. The IRS Tax Exempt Organization Search tool (TEOS) can verify if a charity is authorized to receive tax-deductible donations. If the organization is not in the database or refuses to answer questions, do not donate. Additionally, legitimate charities accept multiple payment forms, while scammers often request wire transfers or gift cards. TEOS tool: Search for Tax-Exempt Organizations.

NOVEMBER 2024

MSRP Limitations Apply for the Clean Vehicle Credit

For the first time in 2024, people who qualify for the Clean Vehicle Credit (CVC) may transfer the credit to a registered dealership as a down payment or in exchange for a discounted vehicle price. Vehicles eligible for the credit include many fully electric, plug-in hybrid, and fuel cell vehicles assembled in North America. To qualify, a new vehicle must have a manufacturer’s suggested retail price (MSRP) not exceeding $80,000 for vans, pickups, and SUVs, or $55,000 for all other passenger cars. This restriction is based solely on MSRP, not on the actual purchase price. The IRS recently reclassified some cars as SUVs, making them eligible for the CVC due to the higher MSRP limit. If you recently purchased an electric or plug-in hybrid vehicle but could not claim the CVC due to MSRP restrictions, check the updated list of eligible vehicles. If your vehicle now qualifies, you may be able to claim the credit on your 2024 tax return by obtaining a vehicle eligibility report from the dealer. Updated Qualifying Vehicles List: FuelEconomy.gov.

OCTOBER 2024

Upcoming Tax Deadlines

October 10: Employees who received $20 or more in tips during September must report them to employers. October 15: Nonpayroll withholding and payroll tax deposits due for September payments. Corporations and individuals who requested a 6-month extension must file their 2023 tax returns and pay any remaining balance. October 31: Employers must file Form 941 for the third quarter of 2024 and deposit any unpaid payroll taxes.

OCTOBER 2024

October 15 Is the Deadline to File Under a 6-month Extension

The October 15 deadline applies to taxpayers who requested a 6-month extension to file their 2023 tax return. The IRS encourages filers to submit their returns as soon as possible to avoid penalties. If you are owed a refund, filing sooner means receiving your money faster. If you owe taxes, remember that the extension only applies to filing the return—not to paying taxes owed. Interest charges accrue daily on unpaid balances after the April deadline. If you cannot pay in full, you should still file promptly to minimize penalties. Disaster Tax Relief Eligibility: IRS Disaster Relief.

OCTOBER 2024

A Late Summer Tax Checkup Helps Prevent IRS Surprises

Many Americans face large unexpected tax bills in the spring due to insufficient planning. A late summer or early fall tax checkup can help avoid IRS penalties. Key questions to ask include: Did you take on a seasonal job? Earn freelance or gig income? Receive other untaxed income, such as interest or dividends? Sell valuable assets like stocks or cryptocurrency? Experience a filing status change (e.g., marriage)? If any of these apply, your tax withholding may not be enough. Use the IRS Withholding Estimator to check if adjustments are needed. IRS Withholding Estimator: Check Your Withholding.

SEPTEMBER 2024

Upcoming Tax Deadlines

September 10: Employees who earned $20 or more in tips in August must report them to employers. September 16: Corporations must pay their third estimated tax installment for 2024. S-Corporations and partnerships that requested a 6-month extension must file their 2023 tax returns. Individuals who don’t have enough withheld from their paycheck should make an estimated tax payment using Form 1040-ES.

SEPTEMBER 2024

Teachers: Make Sure to Save Receipts for Classroom Supplies to Get a Tax Benefit

Teachers and classroom staff may qualify for the Educator Expense Deduction, which allows them to deduct up to $300 in classroom-related expenses ($600 for joint filers if both are educators). Eligible expenses include books, paper, writing utensils, and supplies for health or physical education classes. Unreimbursed costs for professional development workshops may also qualify. The deduction is above the line, meaning educators can claim it even if they don’t itemize deductions. Keeping receipts and records is essential for claiming this tax benefit.

SEPTEMBER 2024

Summer Day Camp Expenses May Be Eligible for a Tax Credit

Parents who paid for their children under 13 to attend summer day camps may qualify for the Child and Dependent Care Credit on their 2024 tax return. This credit helps parents who incur care expenses to work or seek work. The credit may also apply to care costs for dependents 13 or older with a permanent disability. Overnight camps do not qualify. The credit covers 20-35% of eligible expenses, up to $3,000 for one child or $6,000 for two or more children. To claim the credit, parents must report the provider’s name and taxpayer identification number (TIN) on their return. Married taxpayers generally must file jointly unless they qualify for an exception.

AUGUST 2024

Upcoming Tax Deadlines

August 12: Employers must file Form 941 for Q2 payroll taxes if deposits were made on time. August 12: Employees who earned $20 or more in tips in June must report them. August 15: Payroll tax and nonpayroll withholding deposits for July are due. September deadlines include estimated tax payments for individuals and corporate tax deposits.

AUGUST 2024

Transferring a Clean Vehicle Credit May Increase Your Tax Benefit

Starting in 2024, eligible taxpayers can transfer their Clean Vehicle Credit (CVC) to a dealership, using it as a down payment or in exchange for a discounted purchase price. This applies to many electric vehicles (EVs), plug-in hybrids (PHEVs), and fuel cell vehicles. The transfer option may provide a larger benefit because CVCs are non-refundable—meaning that if your tax liability is lower than the credit amount, you don’t receive the full benefit. Transferring the credit to a dealer can ensure maximum savings. A tax professional can help determine if this option is right for you.

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