Summertime Tax Tips

Summer is filled with activities–weddings, jobs, and summer camps are just a few. Whether you’re tying the knot, or sending your child to camp, these tips from the Internal Revenue Service (IRS) can help you prepare for tax implications that might occur and prepare for some possible tax breaks.

Newlyweds
• Report any name change to the Social Security Administration so your name and Social Security number will match when you file your next tax return.
• File address changes with the U.S. Postal Service–this way you’ll continue to receive your mail and can let the IRS know your new address.
• Consider whether you’ll file joint or separate returns.
• If you’re considering buying a house, find out which expenses may be deductible and which are not.

Working students
You may be exempt from withholding taxes if:
• You can be claimed as a dependent (usually on a parent’s return),
• Your total 2012 income will not be more than $5,950,
• Your unearned income (interest, dividends, and so forth) will not exceed $300, and
• You had no income tax liability for 2011.

Summer Camps
Day camp programs can have favorable tax consequences. Unlike overnight camp, the cost of day camp counts as an expense toward the child and dependent care credit. You may figure the credit on up to $3,000 of expenses, $6,000 for two or more children. The credit rate ranges from 20% to 35% of expenses, depending on your income. The 35% rate applies if your income is under $15,000; the 20% rate, if your income is over $43,000.

Check the IRS website at http://www.irs.gov for more information.

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