Summer Activities can affect next year’s tax return!!! Here’s how.
A lot can happen over the summer! Vacations, exploring, overall new opportunities! Did you know that some of the activities you partake in over the summer can affect your tax return?
Things like getting married, sending your child to summer camp and picking up a part-time gig can all affect your tax return and any liabilities owed or refunds received. Of course there are several other things that can factor into any tax return change, but these are just a few.
Curious as to how these tasks can cause change? Keep reading...
From the IRS (Tax Tip 2019-107):
Summertime activities often affect the tax returns people file the following year. 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. They’ll need to file early next year to get a refund for taxes withheld from their checks this year.
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.
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