June 2024

Between BBQs, fireworks and baseball games, you should take some time this summer to consider tax planning moves that could lower your tax obligations for 2024. Proactive midyear planning can help avoid a year-end scramble to implement tax saving strategies before December 31. When it comes to tax planning, procrastination can be a costly mistake.

Now is the time to get up to speed on 2024 SECURE 2.0 changes. Here are several to consider.

Under current tax law, many people pay no federal income tax on net long-term capital gains and qualified dividends earned in their taxable accounts. Here's an overview of the income levels that qualify for the 0% rate, along with tax-smart moves that could allow higher-income taxpayers to pass on wealth to younger generations, while capitalizing on this favorable tax rate.

A new final rule from the U.S. Department of Labor (DOL) is slated to expand the number of workers who are eligible for overtime pay under the federal Fair Labor Standards Act. It's scheduled to take effect on July 1, 2024, but it's likely to face legal challenges. Here are steps for employers to consider taking to remain in compliance.

1. Tax Credits to Help the Disabled and Your Business 2. Fighting Business Fraud 3. Score a Tax Credit for Historic Renovation 4. Seeking to Improve Compliance 5. New Controls to Thwart Fraud Schemes

1. Got a Letter from the IRS? 2. Summer Travel: Beware of the New Fees! 3. What to Do if Your Offer in Compromise is Rejected 4. Moving to a New Home? 5. Don't Overlook Paying Tax on Gig Economy Income

Small business owners may be able to hire their minor children this summer and get tax breaks and other nontax benefits. While eligible owners can save on payroll taxes and lower some costs, their kids also benefit. They gain on-the-job experience, develop practical skills and learn how to manage money. A sidebar notes that earned income can also help young workers get an early start on funding a retirement plan.

With age comes wisdom and potentially some valuable federal income tax breaks that aren't available to younger taxpayers. Specifically, people over age 50 might consider making deductible catch-up contributions to their retirement accounts. And they might itemize deductions, rather than claim the standard deduction, if their medical bills are over the income-based threshold. Here are the details.