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      Tax-Tip Tuesday, Individual, IRS Tax Tip

      These summer activities can affect next year’s tax returns. Here are some things taxpayers do during the summer along with tips they should consider now:

      Getting married

      Newlyweds should report any name change to the Social Security Administration. They should also report an address change to the United States Postal Service, their employers, and the IRS. This will help make sure they receive documents and other items they will need to file their taxes.

      Sending kids to summer day camp

      Unlike overnight camps, the cost of summer day camp may count towards the child and dependent care credit.

      Working part-time

      While summertime and part-time workers may not earn enough to owe federal income tax, they should remember to file a return. 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.

      If you have any questions on the above activities and their tax implications for you, contact us at 610-544-5900.

      Summer

       

      Tagged: Tax-Tip Tuesday, Individual, IRS Tax Tip

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