Tax Tip 2022-76: School is out for the summer, but tax planning is year-round
Internal Revenue Service (IRS) sent this bulletin at 05/17/2022 08:17 AM EDT
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Issue Number: Tax Tip 2022-76___________________________________________________________ School is out for the summer, but tax planning is year-round Now that the April filing deadline has passed, most people are spending more time thinking about summer vacations than taxes. However, summer is a great time to review withholding and see if summer plans will affect next year’s tax return. Below are some common summertime tax situations and tips to help taxpayers figure out if they apply to their tax situation. Getting married Sending kids to summer day camp Working part-time Gig economy work Normally, employees receive a Form W-2, Wage and Tax Statement, from their employer to account for the summer's work. They'll use this to prepare their tax return. They should receive the W-2 by January 31 next year. Employees will get a W-2 even if they no longer work for the summertime employer. Summertime workers can avoid higher tax bills and lost benefits if they know their correct status. Employers will determine whether the people who work for them are employees or independent contractors. Independent contractors aren't subject to withholding, making them responsible for paying their own income taxes plus Social Security and Medicare taxes. Remember to file their tax return if they got an extension Adjust withholding now to avoid tax surprises next year Share this tip on social media -- #IRSTaxTip: School is out for the summer, but tax planning is year-round https://go.usa.gov/xu6NY
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