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July 2022 Tax Tips

Tax pyrotechnic time!

Tax tip pencilThe first full month of summer is supposed to be a time to chill, literally if you can from the increasingly hot temperatures.

But July, which starts with a July 4th bang celebrating the birth of the United States, keeps throwing up tax flares throughout the month.

There are tax holidays, many of them kicking off on July 1 and running until the start of school as summer winds down.

There are new state tax laws across much of the country.

Plus, we'll keep an eye on the tropics and the tax implications of major disasters.

Taxes now and in the future: And, of course, there are federal tax matters to take care of between your summer breaks.

Millions of folks extended their 2021 tax return filings, giving them until Oct. 17 to get their 1040 forms to the Internal Revenue Service. But Uncle Sam's tax collector will gladly accept those returns early if you feel compelled to be tax productive this July.

Then there's some planning to do and moves to make, regardless of whether you're finished with 2021, to ensure your already accruing 2022 tax bill is as small as possible.

These dualities also apply to taxes this month. There will be pieces of filing advice, along with tax planning moves for the current year. 

I know, you'd rather be enjoying the summer, but I promise not to take up too much of your time. So let's get to July tax tips now!

  1. 2022 summer sales tax holiday season begins — It's time again for the annual batch of state sales tax holidays. They're bad tax policy, and really don't provide that much savings, but shoppers love them, so state officials keep renewing and adding to them. 18 states are offering shoppers holidays this summer, but Florida is king. Starting today, the Sunshine State has nine no- or reduced-tax events on its summer/early fall calendar. (July 1, 2022)
  2. 6 tax holiday shopping tips — Is your state one of the 18 holding a sales tax holiday this summer? Before you head out to make tax-saving purchases, check out these 6 shopping tips. They could help you make the most of your state's no or reduced-rate tax event. (July 2, 2022)
  3. Deductible mileage rates increased on July 1 — This year's historic inflation has increased the cost of almost every living expense. It even prompted the Internal Revenue Service to implement a mid-year bump up of the annual optional standard mileage rates for tax-deductible driving. The 4-cent hikes for allowable business, medical, and relocation miles driven took effect on July 1, and will last through Dec. 31. (July 3, 2022)
  4. Don't wave any of these audit red flags — Sure, IRS audit rates have dropped in recent years, but do you really want to take a chance on attracting the tax agency's attention? To stay off the IRS radar, don't fly any of these 8 tax audit red flags. (July 8, 2022)
  5. 4 back-to-school tax holidays in July — School is still out for the summer, but classes will start before you — OK, before your children — are ready. That's why four states, starting with Alabama this weekend, are holding back-to-school sales tax holidays in July. The others later this month are in Florida, Mississippi, and Tennessee. But wait, there's more. Longer, more diverse no-tax days already are underway this month in a couple of other states, too. (July 14, 2022)
  6. 5 states with no sales tax — Most states don't tax ice cream you buy during a grocery shopping trip. But if you buy a cone or sundae or some other ice cream treat at a retailer, you'll pay tax on the frozen delight. That's true even today, July 17, which is 2022's National Ice Cream Day. Unless you live in one of these five states without a sales tax. (July 17, 2022)
  7. Tax considerations for young workers — Summer jobs are rites of passage for many teenagers. The temporary work allows them to put aside some money for college or buy something from a wish list. The jobs also provide real life lessons on taxes for young workers. (July 18, 2022)
  8. 6 tax & financial tips for lottery winners — Tonight's Mega Millions jackpot will be at least $660 million, making it the United States' third-largest lottery jackpot ever. If your numbers come up, congratulations. Also, check out these tax and financial tips once you recover from the realization of being a sudden millionaire, since you'll likely take the immediate cash payout of $388 million. (July 22, 2022)
  9. 6 tax & financial tips for lottery winners — Yes, you are reading, again, this tip correctly. It gets another run since Powerball has joined Mega Millions in offering very attractive multi-million dollar jackpots. If your numbers come up in either, or both of the national lottery games, congratulations. Also, check out these tax and financial tips once you recover from the realization of being a sudden multi-millionaire. (July 24, 2022)
  10. End-of-July sales tax holidays in FL, MS & TN — Summer's winding down, meaning kiddos soon will be going back to school. But before they head to their classrooms, they'll need a few things. Three Southern states are focusing on families with such shopping lists. Florida, Mississippi, and Tennessee are closing out July with back-to-school tax holidays. If you don't live in one of these states, don't worry. Your state could be among the 15 that will be hold similar tax-saving shopping periods in August. (July 28, 2022)

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Most of us revert to our childhood selves and want summer to last forever. But if you are looking ahead, yes, you can click on the August through December links below.

I must warn you, though, that you'll just be greeted (again) by that nay-saying guy's GIF telling you you'll have to wait until those months arrive for additional Internal Revenue Service information, tax law changes, and tax code tips.

You can, however, go back. Check out the 2022 filing season tips already posted in the first six months of the year for which we've turned calendar pages.

January July
February August
March September
April October
May November
June December

 

 

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Today's Tax Tip

  • IRS TACs holding special Saturday hours for walk-ins — To help taxpayers who can't make a weekday appointment at an Internal Revenue Service Taxpayer Assistance Center (TAC), the tax agency will open some of them across the country on four upcoming Saturdays nationwide. The first Saturday TAC sessions will be this weekend, Feb. 11. The other special openings will be on March 11, April 8, and May 13. Best of all, no appointments needed at any of the TAC Saturdays. (Feb. 8, 2023)

  • Tax Tip; click pencil for all tax tip links

  • The 2023 Tax Tips offer ways to file your annual return, along with post-filing advice, important tax news and, of course, ways to cut your current tax year bill. You'll find the monthly assemblages on their own respective pages: January, February, March, April, May, June, July, August, September, October, November and December. Remember, tax tasks and tips don't stop after you file your annual return!

All About Kay

  • OK, some about Kay
    Open sign
    Kay Bell — Native Texan
    (the blog title totally makes sense now, right?). Professional journalist. Tax geek.

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Tick ... Tick ... Tick

  • Tax Year 2023 Countdown!

    Happy New Tax Year! Are you ready to file your 2022 tax return? Me neither. But at least this year we're getting some extra time to file and pay any tax we owe. Even better, it's not COVID-19 pandemic related. Tax Day 2023 is Tuesday, April 18. This later date is because April 15, 2023, is on Saturday, and the next business day, Monday, April 17, is Emancipation Day.
    When this Washington, D.C., holiday falls on the day our federal taxes are due, it bumps Tax Day nationwide to the next business day. So this year, we have until Tuesday, April 18, to finish our federal forms and, if we find we owe, come up with the money for Uncle Sam. The states that follow the federal tax calendar, which is most of them, also tend to abide by this date change.

    The countdown clock below should help us from missing out on making important tax-saving moves the rest of this year. Plus, the Tax Moves below the counter will list some timely tasks to take care this first month of 2023, and each of the remaining 11 when they arrive. They'll speed by quickly when you're having tax fun!
    Note: I'm in the Central Time Zone, so adjust accordingly for where you live.


Time for Tax Tasks


  • monthly tax moves


  • Hello February, and ❤ to our new 2023 Valentine, the Internal Revenue Service. OK, maybe love for the IRS is a little much, but we at least want to make nice with Uncle Sam's tax collector this month as it goes into the first full, albeit short, month of the tax season. That means some taxpayers will be getting their refunds in February!

    via GIPHY

    With just 28 days, it will mean some full days for both IRS employees, some of whom are still trying to catch up on that lingering COVID-19 pandemic backlog, and all of us who'll file this month. So let's not waste anymore time, and get to some tax tasks for this shortest month of the year!

    Feb. 1: Employers and other third-party payers were to have issued us our W-2 and associated 1099 forms by Jan. 31. If you're still waiting, be patient and give them a tad more time. And don't forget to check your email, as many issuers sent out electronic notices of the online availability forms and other statements you need to file your taxes instead of relying on the U.S. Postal Service.

    Feb. 2: Happy Groundhog Day!

    Fat Groundhog; click image for Groundhog Day details

    The main reason to wait for the correct tax statements is to avoid getting caught in a Bill Murray kind of tax loop, where you have to file an amended tax return because you entered wrong info on your original 1040.

    Feb. 7: Black History Month is celebrated every day this month, commemorating the achievements by black Americans and recognizing the role of African Americans in U.S. history.

    The National Association for the Advancement of Colored People (NAACP), the nation's oldest and largest grassroots-based civil rights organization, was founded on this month, specifically on Feb. 12, 1909, the centennial anniversary of the birth of Abraham Lincoln, who issued the Emancipation Proclamation twice.

    One of the NAACP's key divisions is its Legal Defense and Educational Fund.
    If you want to support the Fund's work, during Black History Month or any day of the year, you can donate to it and, since it is a 501(c)(3) organization, claim your gift as a charitable tax deduction if you itemize. Sorry, filling out Schedule A is your only option this filing season, since Congress didn't renew the option to claim cash gifts of up to $300 for single filers or $600 for married filing jointly couples directly on Form 1040.

    Feb. 10: Do you work as a server at a restaurant or at any other establishment where gratuities from customers are part of your compensation? I hope you got lots of financial thanks for doing your job well, but remember that those tips are taxable income.

    restaurant check tip iStock
    Whether you're dining in or, still COVID leery and getting food delivered to your home, if a tip isn't included on your restaurant or delivery bill, click the image above to calculate how much to tip the person who brought it to you.

    If you got at least $20 in gratuities in January, you must account for the tips today by using Form 4070 to report last month's tips total to your employer.

    Feb. 12: Are your ready Chiefs, Eagles, and special television commercial fans? It's finally Super Bowl Sunday! Not only will today's 57th Super Bowl decide American professional football's champion, it's also the biggest single betting day of the year. The NFL, like the other professional U.S. sports leagues, have embraced betting. Just remember, if any of your wagers pay off, you owe tax on your winnings. Note, too, that even if your winnings are part of a fantasy sports bet, the associated taxes are very real.

    Feb. 14: Happy Valentine's Day! Do you and your better half file a joint return? Most married couples do. Remember to look over the 1040 carefully before you sign it. When both spouses sign their jointly filed 1040, each is jointly and severally liable for the entire tax amount due. I don't want to spoil your Heart Day celebration, but this means the IRS can come after either spouse for payment of a tax bill, even the husband or wife who is in more dire financial circumstances.

    Feb. 15: Today is the day that the Internal Revenue Service finally can issue refunds to filers who claimed the Earned Income Tax Credit (EITC) or additional Child Tax Credit. But don't spend the money just yet. Even if you're getting your tax refund directly deposited, the IRS' general processing time plus protocols of financial institutions receiving the refunds you’re your tax cash probably won't actually show up in your account until the end of this month.

    Feb. 20: Today is one of the reasons for tax refund delays. It's the Washington Birthday federal holiday, officially honoring George Washington, the Father of Our Country. Over the years, however, this federal (three-day, yay!) holiday has come to commemorate the contributions of all our Commanders in Chief, and is popularly known as Presidents' Day. That means we've got to give another shout out to Abraham Lincoln, who essentially was father of our income tax system, signing into law a tax on earnings to help pay Civil War costs.

    Feb. 24: You're ready to work on your tax return, but you're on a budget. No worries. The IRS and its Free File Alliance partners again offer no-cost online tax preparation and electronic filing to eligible taxpayers at the IRS' special Free File web page. This year, seven tax software companies are participating.

    IRS Free File; click image for details

    The Free File income threshold this year remains at adjusted gross income (AGI) of $73,000 or less, regardless of your filing status.

    Feb. 28: Wow! February really did speed by, especially since we were having so much tax fun. Or maybe you weren't having any fun at all trying to do your taxes yourself, even with software's prompts, and have decided to turn to professional tax help. That's a smart move, and here are some tips on how to find the perfect tax professional for your filing and planning needs. Note, though, that at this point in the filing season, you're likely to be placed at the end of that tax pro's very long client queue, as reputable tax preparers' calendars fill up fast. So again, be patient. You're at least now in tax filing line.

    Small Business Tax Calendar: Important filing, deposit and record keeping dates throughout the year that your company needs to know. You can get more tax calendar information at the IRS' online calendar page and view the full year's important business and individual tax dates in IRS Pub. 509.

State Tax Help

  • Don't forget your state taxes!
    Forty-three states and D.C. collect personal income taxes. But even if you live in of the seven states without an income levy, you still face other state (and local) taxes.

    State Tax Departments provides links to your state's Web page. The companion page, Tax Tidbits, is the compilation of blurbs about each state's tax laws. And for more state tax news, check out all our state tax bloggings.

Tax Forms

  • Tax Forms
    Thanks to our increased use of tax preparers and computer software, many of us don't see our tax forms until we sign and file them. But knowing what's on these documents, either in paper or digital form, and why the IRS wants it is key to understanding our tax system. And knowledge definitely is power, especially when it comes to tax savings. Find this valuable information in the ol' blog's special Tax Forms 2023 page.

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I gotta tell ya ...

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    I am not a professional tax preparer.
    The content on Don't Mess With Taxes is my personal opinion based on my study and understanding of tax laws, policies and regulations. It is provided for your private, noncommercial, educational and informational purposes only. It is not a recommendation of any specific tax action(s) you should or should not take. Similarly, mentions of products or services are not endorsements. In other words, my ramblings on the ol' blog are free advice and you know what they say about getting what you pay for. That's why when it comes to filing your taxes, I urge you to get additional, professional, paid-for guidance from an accountant, Enrolled Agent or other qualified tax preparer who is familiar with your individual tax circumstances.

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COVID-19 & Taxes

  • COVID-19
    Coronavirus has wreaked havoc
    on the 2020 and 2021 tax seasons.
    These three Coronavirus (COVID-19) and Taxes pages have details:
    March-July 2020,
    August-December 2020,
    January-December 2021, and
    January-December 2022
    You can find medical coronavirus resource links in the next section.

COVID-19 Resources

  • COVID-19
    Need help finding a coronavirus vaccine in the United States?
    Call 1-800-232-0233
    or TTY 1-888-720-7489.
    More information and resources at:
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February 2023

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Tell it to the Hill

  • DMWT Politics Posts
  • While it's easy to rail at the IRS, for the most part we can thank — or blame — our tax laws on Congress and the White House. So if you have an issue with tax legislation or want a tax bill passed, you need to let your federal legislators and the White House occupant know of your concerns. You can find out who in Washington, D.C., to contact (and how), as well as get information on your local lawmakers for matters, tax or otherwise, closer to home, at USA Gov.

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