Leone Rouge Management Consultants, LLC

Upcoming Tax Due Dates
July 15
Employers: Deposit Social Security, Medicare, and Withheld income tax for June if the monthly deposit rule applies.

Employers: Deposit nonpayroll withhold income tax for June if the monthly deposit rule applies.

July 31
Employers: Report Social Security and Medicare taxes and income tax withholding for the second quarter of 2024 (Form 941) and pay any tax due if all of the associated taxes due weren’t deposited on time and in full.

Employer: File a 2023 calendar-year retirement plan report (Form 5500 or Form 5500-EZ) or request an extension.

August 12
Individuals: Report July tip income of $20 or more to employers (Form 4070).

Employers: Report Social Security and Medicare taxes and income tax withholding for the second quarter of 2024 (Form 941) if all associated taxes due were deposited on time and in full.

Valuable Tax Credit Available for Energy-Efficient Homes

Under the Inflation Reduction Act, construction contractors who build or rehab energy-efficient homes may be eligible for a federal tax credit of up to $5,000 per project. To claim the credit, builders must construct or substantially rehab a qualified home and own it during construction.

To be qualified, a home must be a U.S. single-family dwelling purchased or rented as a residence. It must also be certified to meet energy-saving requirements before it’s sold or leased.

The credit value is based on whether the contractor acquired the home before or after 2023 and the certification and standards the home meets following construction.

Please feel free to reach out to my office for more information.

Tip of the day:

Handle Your 401(k) Rollover With Care
Leaving a job? You may want to roll over funds in your former employer’s 401(k) plan to an IRA. But there’s a tax trap for the unwary. If you receive a 401(k) plan check that’s payable to you personally or if you have a distribution put into a personal account electronically, 20% of the taxable amount of the payout will be withheld for federal tax.

If that happens, you have 60 days to come up with the missing 20% and get it, along with the amount distributed into your IRA account. If you transfer to your IRA only the amount distributed to you by that deadline, you’ll owe income tax on the 20% withheld amount plus a 10% early withdrawal penalty if you’re under 59½. You can dodge this tax trap by arranging for a direct trustee-to-trustee transfer from the 401(k) plan to your IRA.

Please reach out to me to talk about it more.

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Tip the Day!

Your Independent Contractors: Classify Them Carefully

Many businesses use independent contractors to help keep costs down and provide flexibility for short-term needs. However, whether a worker is an employee or an independent contractor is complex. Do you know the rules to ensure you classify them correctly for federal and employment tax purposes? It can be an expensive mistake if the IRS reclassifies them as employees!