Woodlands Tax

The Tax Cuts and Jobs Act (TCJA) took effect on Jan. 1, 2018. The legislation was the largest overhaul of the tax code in three decades. The reform impacted taxpayers and business owners. Many of the tax reform benefits expire in 2025.

We will continue to update you on how you could be effected.

Taking the long view is as big a deal to Buffett as choosing the best stocks!

Summer Day Camp Expenses May Be Eligible for a Tax Credit – Did You Know?

Parents who paid for their children under the age of 13 to attend summer day camps may qualify to claim the Child and Dependent Care Credit on their 2024 tax returns. This credit provides assistance for parents who pay care expenses for a qualifying child so that they can work or seek work. You may also be able to claim the credit for day camp or other care costs for a dependent age 13 or older with a permanent disability. Note that expenses associated with sending children to overnight summer camps generally do NOT qualify for this credit.

To qualify for the Child and Dependent Care Credit, you must have earned income, and your adjusted gross income (AGI) must not exceed limits set by the IRS. Typically, the credit covers 20-35% of qualifying day camp or other childcare expenses, up to a maximum of $3,000 for one child or $6,000 for two or more children. Your exact credit amount may depend on factors such as your spouse's income and whether you received any reimbursement for childcare costs from a state agency or other source.

When claiming the Child and Dependent Care Credit, you generally must provide the name and taxpayer identification number (TIN) of the day camp or care provider on your tax return. In most cases, married taxpayers must file a joint return in order to get the credit, although exceptions exist for cases where spouses live apart. A tax professional can help you determine whether your summer day camp or other childcare expenses qualify for this valuable credit, and if so, help you maximize your credit amount.

If your children attend summer camps, day camps or childcare programs so that you can work, the Child and Dependent Care Credit may enable you to reclaim some of the cost.

We can help you determine whether you qualify for these or other tax-saving programs, and if so, help you properly document expenses to preserve your eligibility. Give us a call or visit our website to learn more, https://woodlandstaxadvisors.com/

As supporters of the arts and The Woodlands Arts Council, we want you to get involved too! ARTFEEL is an art appreciation show that spotlights a particular public artwork and asks area residents to share how it makes them feel – their artfeel.

Some people sing, some dance, some play instruments, some story-tell, read a literary excerpt or perform spoken-word poetry, some show-and-tell their own artwork in progress or share a sentimental object from home, and, some say just one word – the emotion the artwork has evoked in them. The rules are…there are no rules…and that is the fun!

The events are quarterly, and you can learn more on their website, https://bit.ly/3YozUeR

Bogus "Self Employment Tax Credit" – Did You Know?

Scammers have been spreading misinformation through ads and social media posts about a supposed Self Employment Tax Credit, which they claim people can use to get massive IRS refunds. In reality, no such credit even exists. The scammers charge fees to prepare tax returns, on which they actually file bogus claims for the specialized Credit for Sick and Family Leave, which was only available for 2020 and 2021.

In reality, only a small number of self-employed people who experienced very specific COVID-related circumstances qualify for the Credit for Sick and Family Leave. IRS personnel flag suspicious credit claims for investigation. In the end, people who get lured in by these scammers have to repay their tax refunds, with penalties and interest charges added. Meanwhile, the scammers disappear with the fees they collect to file false tax returns.

Remember, if a tax credit or tax refund claim sounds too good to be true, it usually is. A trusted tax professional can help you determine whether you missed any legitimate credits on your past tax returns, and if so, help you file amended returns to claim your refunds.

TODAY Woodforest National Bank and Community Assistance Center are partnering together for a lunch and learn about financial literacy.

Come learn financial basics to create better financial habits!

More details below 👇

Send a message to learn more

Examples of potentially qualifying improvements include Energy Star-rated windows and doors, solar-powered water heaters, and new central air conditioning units or ventilation systems. Learn more on our website, https://bit.ly/4cakrCq.

We hope all the students, faculty, staff, and parents had a great first week back to school!

The Social Security Act was signed into law by President Franklin D. Roosevelt on August 14, 1935. The Social Security program provides retired workers with a continuing income after age 65, as well as other provisions for general welfare.

August 14th is also known as National Financial Awareness Day! Use this as a time to look at your finances. Are you where you want to be?

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

If you are a teacher gearing up for the new school year, you may be able to reduce your tax bill by keeping records of your expenses. Classroom teachers and certain other school employees may qualify to deduct the cost of classroom supplies on their tax returns. The Educator Expense Deduction is an "above the line" deduction, which means that you may claim it even if you do not itemize deductions on your return.

Eligible teachers and classroom staff may deduct up to $300 in classroom expenses (up to $600 for joint filers who are both educators) for tax year 2024. Qualifying expenses may include the cost of typical school supplies like books, paper, writing utensils and rulers, along with athletic supplies for courses in health or physical education. You may also be able to deduct unreimbursed costs to participate in professional development workshops or courses.

You must maintain complete records of all deductible expenses, such as itemized receipts or invoices. A tax professional can help you determine whether you qualify for the Educator Expense Deduction, and if so, help you claim it on your tax return next spring.

If you're wondering where your tax refund is, look no further than irs.gov!

According to the website, your refund status will appear:
- 24 hours after you e-file a current-year return
- 3 or 4 days after you e-file a prior-year return
- 4 weeks after you file a paper return

Every month, we put together these tax deadlines to help ease your mind of upcoming tax deadlines! If you have questions, please give us a call at 281-214-2255.

Checking Eligibility Before Transferring Clean Vehicle Credit to a Dealer – Did You Know?

For the first time in 2024, people who purchase or lease vehicles that qualify for the Clean Vehicle Credit (CVC) may transfer the credit to a registered seller (usually a dealership). The transferred credit may be used as a down payment, or exchanged for a reduction in the vehicle price. However, you may only claim and transfer a CVC if you meet the eligibility requirements.

Most importantly, for at least one the years 2023 and 2024, your adjusted gross income (AGI) must not exceed the limit for your filing status. The current AGI limits are $300,000 for joint filers, $225,000 for head of household filers and $150,000 for all other filing statuses. In addition, you must use any vehicle you purchase using a transferred CVC predominantly for personal (not business) purposes.

People who transfer a CVC to a vehicle dealer in 2024 must report the credit amount and verify their credit eligibility on their 2024 tax returns. Those with AGIs above the limit will need to repay the credit and may face added IRS penalties. Note that an invalid CVC must be repaid directly to the IRS by the person who claimed and transferred the credit, not by the vehicle dealer. A tax professional can help you determine whether you qualify for the CVC, and if so, whether transferring your credit to a dealer makes sense for you.

Now you might ask how to find opportunities which offer a larger return than the average....?

Woodlands Tax Monthly Newsletter! - https://mailchi.mp/3e92ef23bd4e/woodlands-tax-monthly-newsletter-12706744

NEW BLOG POST!
Setbacks, whether financial or otherwise, are inevitable. However, they can be a catalyst for growth and prosperity, especially when viewed through the lens of income tax planning.

Read the full blog 👉 https://bit.ly/4d5EByQ

On Wednesday, July 24, 2024, at The Woodlands Township Board of Directors meeting, it was proclaimed that the week of August 4-10th will be Farmers Market Week! According to the article in Hello Woodlands, "Famers markets contribute $9 billion annually to the U.S. economy."

Read the full article, https://bit.ly/3YkrRjn

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Disaster Tax Relief Available – Did You Know?

People who live in areas affected by federally declared disasters like hurricanes, wildfires, flooding and severe storms may qualify for special tax relief programs. The most common forms of relief offered include extended deadlines to file and/or pay taxes, along with free access to copies of past returns for those who lost critical records.

There is typically no need to apply for these programs, as the relief is granted automatically to all eligible people. The IRS Disaster Relief webpage (link below) can help you determine whether you qualify for deadline extensions, or other benefits that make the road of recovery a little easier to navigate.

IRS Disaster Relief Page: https://www.irs.gov/newsroom/tax-relief-in-disaster-situations

Please join us in welcoming Ashanti Jones as our new Client Success Representative!

She’s a full-time student at Texas Southern University, studying Psychology and Sociology. She loves people, and she will be working with each of you to enhance your experience working with us.

Ashanti can help you understand our values, services, and workflows. She will be checking with you periodically to keep your deliverables moving forward. Even afterward, she’ll check with you to ensure we exceeded your expectations. I’m sure you’ll love her as much as we do!

Your Advisors, Your Accountants, and Your Advocates.

How can you ease the uncertainty of your future and bring peace of mind when it comes to your finances? Here's a light bulb moment for you: effective tax planning! While it doesn't sound very glamorous, tax planning can help you maximize savings, avoid unwanted surprises, and achieve long-term goals. Your financial future is yours to mold! Let us help by setting you up for success. Call us at 281-214-2255 to get started today!

DEADLINE APPROACHING!
Do you know the July tax deadlines that are due tomorrow? We are here to help in any way we can. Learn more on our website, https://bit.ly/3yqKyXR

Standard Mileage Rates for 2024 – Did You Know?

Below are the 2024 standard mileage rates for vehicle uses that qualify for a tax deduction. These rates apply for most passenger vehicles, including cars, vans, SUVs and pickup trucks.

- 67 cents per mile for business use of a vehicle (1.5 cents increase from 2023)
- 21 cents per mile for certain medical purposes or moving purposes for qualified active-duty Armed Forces members (1 cent decrease from 2023)
- 14 cents per mile for vehicle use for qualifying charitable work (unchanged)

In most cases, taxpayers who qualify to claim a vehicle expense deduction may either use the standard mileage rate or actual expenses to figure their deduction. However, if you use your car or truck for business, you generally must use the standard rate for the first year you put the vehicle in service if you want to preserve this option for future years.

A tax professional can help you determine whether the standard mileage rate or actual expenses will result in a larger deduction in your circumstances. Keep in mind that if you choose to deduct actual expenses, you will need to keep detailed records of all vehicle-related costs.

Tomorrow night, the sounds of one of the most famous vigilantes are coming to the Cynthia Woods Mitchell Pavilion...

To celebrate the 35th anniversary of the movie, the pavilion is hosting this FREE concert put on by the Houston Symphony! The gates will open at 7pm tomorrow night. As big fans of Batman, the local arts community, and the Houston Symphony, you just might see us there!

Regardless of income level, tax planning strategies, like contributing to retirement accounts or health savings accounts, provide long-term benefits by reducing taxable income now and ensuring financial security in the future. Start planning now to reap the benefits in the future, whether for your own retirement or your children or grandchildren's lives. Everyone benefits from effective tax planning!

Major life changes happen all the time! Marriage, divorce, having children, deaths in the family, medical accidents, retirement, and we could go on! Having a tax advisor that you trust can ease the stress of these situations because you know they'll have your best interests in mind. Don't wait until the next life event to find someone to guide you through the financial processes; contact Woodlands Tax now! Visit our website or give us a call at 281-214-2255.

Tax planning isn't just something for the ultra wealthy! It's beneficial for individuals and families across all tax brackets. Many tax deductions and credits are available to taxpayers across various income levels, such as the Earned Income Tax Credit, Child Tax Credit, and education-related deductions, which can significantly reduce tax liabilities.

Let's set you up for future financial success. Call Woodlands Tax at 281-214-2255 to get started on tax planning now!

Transferring a Clean Vehicle Credit May Increase Your Tax Benefit – Did You Know?

Beginning in 2024, people who qualify for the Clean Vehicle Credit may transfer the credit to a registered dealership as a down payment, or in exchange for a discounted vehicle price. Vehicles eligible for the CVC include many fully electric cars and trucks (EVs), plug-in hybrids (PHEVs) and vehicles powered by fuel cells. Transferring a CVC to the vehicle seller will enable you to receive an immediate benefit from the credit, instead of having to wait to claim the credit on your 2024 tax return.

Some people will also receive a larger credit amount by transferring their CVCs. Since the CVC is not refundable, you cannot claim a credit amount on your tax return greater than the tax you owe. However, this restriction generally does not apply to transferred CVCs. Therefore, transferring your CVC may help you receive the maximum credit amount available. A tax professional can help you determine whether transferring a CVC to the vehicle seller would work to your advantage.

Come 2025, a lot of tax laws will be changing! This uncertainty emphasizes the necessity for proactive tax planning and advisory services. The child tax credit is one of the expenditures that could be up for debate.

If you're a parent, YOU can capitalize on the current child tax credit and other tax benefits while also preparing for potential changes that could be coming soon if the Tax Cuts and Jobs Act expires. Give us a call for more info or visit the IRS website to learn more: https://bit.ly/3RGL5vg