Woodlands Tax

‼️ Beware of this scam going around ‼️

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.

If you have questions, please call us at 281-214-2255.

We are excited to be at the Texas Association of Business Brokers annual conference today as it's being held in our town, The Woodlands!

Many Americans May Qualify for Higher Education Tax Credits – Did You Know? (2/2)

If you pay higher education expenses like college or trade school tuition for yourself, your spouse or your dependent, then you may qualify for a tax credit in 2024.

The Lifetime Learning Credit (LLC) is available for an eligible student in your household at any stage of postsecondary education, including taking one or more courses to improve job skills. If you meet the eligibility requirements, which include income limits, you may claim a credit of up to $2,000 for tuition and school fees. Unlike the American Opportunity Tax Credit (AOTC), the LLC is nonrefundable, so if your credit amount exceeds the tax you owe, you cannot receive the excess credit as a refund.

To claim either the LLC or AOTC, you must obtain Form 1098-T (Tuition Statement) from a qualifying educational institution. A tax professional can help you determine whether you qualify for higher education tax benefits, and if so, help you claim them on your tax return next spring.

The Woodlands Symphony hosts some spectacular FREE shows for the whole family! "Once Upon A Symphony" is a celebration of fantastic fiction that will lift spirits with uplifting, amplifying music! Travel to far-away lands with the Woodlands Symphony as they lead you on a journey you’ll never forget. Fight dragons, find friends, experience wonder – and then come home to tell the tale around a warm fire.

This event is this week on Wednesday, 9/18, at the Cynthia Woodlands Mitchell Pavilion. For more information, visit https://bit.ly/3SvBo3s

Woodlands Tax Monthly Newsletter! - https://mailchi.mp/80b02a62dabd/woodlands-tax-monthly-newsletter-12717056

For business owners, taxes are your biggest expense! We work with you to minimize your tax liability and maximize cash flow!

https://youtu.be/6POtz6B2KYs

Taxes are your biggest expense! As business owners, we know that taxes are you biggest expense. However, we at Woodlands Tax will work with you to minimize your tax liability and maximize y...

We will never forget! 🇺🇸

Many Americans May Qualify for Higher Education Tax Credits – Did You Know? (1/2)

If you pay higher education expenses like college or trade school tuition for yourself, your spouse or your dependent, then you may qualify for a tax credit in 2024.

The American Opportunity Tax Credit (AOTC) is available for students who are pursuing a degree or similar credential, and have not completed four years of postsecondary education. If you meet the eligibility requirements, which include income limits, you may claim a credit of up to $2,500 per eligible student in your household for tuition and school fees. The credit is partially refundable, so if your credit amount exceeds the tax you owe, you could receive up to 40% of the excess credit as an IRS refund.

In order to claim the credit, you must obtain Form 1098-T (Tuition Statement) from an eligible education institution. A tax professional can help you determine whether you qualify for the AOTC or other benefits for higher education costs, and if so, help you claim them next spring.

Thanks, Rodrigo for the 5-star review! ⭐⭐⭐⭐⭐

We would love to earn your business too! If you filed an extension on your taxes and need a professional to ease the process for you, give us a call! 281-214-2255

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.

September had some important tax deadlines! If you have questions, please don't hesitate to reach out and ask. We are your advisors, accountants, and your advocates!

Call us now 📲 281-214-2255

Late Summer Tax Checkup – Did You Know?

Every year, millions of Americans face the disappointment of an unexpectedly large tax bill in the spring. Often, those bills occur because people did not adequately plan for the tax impacts of their activities the previous summer. A late summer or early fall tax checkup can help you stay up to date with your payments, protecting you from disheartening April surprises.

Here are some key questions to consider when reviewing your tax situation:
- Did you take on a seasonal or part-time job for the summer?
- Did you earn summer income as a gig worker, freelancer or independent contractor?
- Did you receive other income not subject to tax withholding, such as interest or dividends?
- Did you sell valuable assets like antiques, cryptocurrency, artwork, jewelry, collectibles, stocks or musical instruments at a gain?
- Did your tax filing status change (for example, because you got married)?

Any of these circumstances could result in your regular paycheck withholding being insufficient to cover your tax obligations. You can use the IRS Withholding Estimator tool (link below) to check whether your payments are staying on track. If not, you may need to submit a new Form W-4 to your employer to request extra withholding, or make quarterly estimated tax payments. A tax professional can help you analyze your tax circumstances now, so you can make the right moves to bring about a favorable outcome later.

IRS Withholding Estimator: https://www.irs.gov/individuals/tax-withholding-estimator

The deadline for those who filed an extension on their taxes is approaching!! If you are needing help, do not wait! Call us now! 281-214-2255

Beat the Heat and Boost Your Savings! This August, the average high temperature in The Woodlands, Texas was around 94°F (34°C). Whether you’re new to the Houston area or acclimated to the summer heat, September utility bills tell the story of your home energy efficiency. Between now and the end of 2025, you can get a little help from Uncle Sam with home energy improvements.

Read our latest blog post about how home energy credits can transform your home. https://bit.ly/3MMq4N7

Home energy credits offer a fantastic opportunity for American families to reduce their energy consumption, lower their utility bills, and contribute to a healthier planet. These government incentives can provide significant financial benefits while also making your home more comfortable and sustainable.

Happy Labor Day! We hope you enjoy the holiday. Please note our office will be closed today, Monday, September 2, 2024, in observance of the holiday. We will resume normal working hours tomorrow.

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.