July is 🧨 poppin'!
This first full month of summer begins with fireworks and the tax-related pyrotechnics continue through the month. In fact, they started before the official Independence Day celebrations.
Click on the image for some fireworks safety tips and warnings from the U.S. Consumer Product Safety Commission.
I know, you're feeling like the youngster above, not quite ready yet to talk taxes. But take your hands off your ears to hear — or rather keep scrolling to read — some tax moves to make in July. July 1: Today is the beginning the new fiscal year for many states, meaning some
new tax laws take effect today across the country.
July 1: Today also is the start of some of the various state
sales tax holidays happening this summer and early fall in 18 states. Attention Florida shoppers, most of them are in the Sunshine State.
July 4: Happy 246th Birthday, America!
July 4th actually falls on Monday this year, so there's no need to shift it to accommodate the federal Monday holiday law. That also means there's no confusion about what jurisdictions are closed across the United States. It's also a good time to note how official
federal holidays often do affect tax deadlines.
July 8: A tropical system organized enough last week to give us the
second named storm of 2022. U.S. residents didn't have to worry about Tropical Storm Bonnie making landfall but she's a good reminder that the tropics are heating up. Be prepared physically, financially, and tax wise to cope with what storm watchers expect to be another active Atlantic/Gulf of Mexico
hurricane season.
Uncle Sam's official forecasters at the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center
expect 2022 to bring as many as 21 named storms, with six to 10 possibly becoming hurricanes. Three to six of those could reach major status, which is category 3, 4 or 5 with winds of 111 mph or higher. Regardless of the count, it only takes one to wreak havoc. The countdown clock below can help you keep track of how many more days you have to worry about tracking any size or type of tropical storms.
You also might want to check out the ol' blog's special
Storm Warnings.
These multi-page collections of posts offer tax advice on preparing for, recovering from and helping those who sustain damages from the many ways that that weather goes wild. That includes
claiming uninsured losses from a major natural disaster as an itemized tax deduction.
July 11: Eateries are still recovering from the challenges of operating during a national health crisis. Restaurants closed, then opened, then closed again. Others relied on and have stuck with take-out and deliveries. Whether you're dining in or still getting food brought to your house because of the latest Omicron coronavirus variants, remember to tip your server or delivery person.
If a tip isn't included in your food delivery charge, click the image above to calculate how much to tip the person who brought it to you.
As for servers who now are back on the job, remember that your
tips are taxable income. If you worked at least some of May at a job where you got gratuities, you need to account for them today if they came to at least $20 last month. Use
Form 4070 to report your tips today to your employer.
July 18: We're not officially into the last half of the year. Time really does speed by when you're having summer fun! But if you've had some changes in your life, now is a good time to make related tax accommodations. Specifically, conduct a
paycheck checkup to determine if the amount of taxes taken out of your wages is still correct. You might need to
adjust your payroll withholding.
July 25: If you got an
extension back in April to file your 2021 tax return, you have until
Oct. 17 to do that. But you don't have to wait until that deadline. You can get to work on that tax paperwork now and be done with it so it won't be hanging over your head while you're trying to enjoy summer.
Whenever you do get around to finishing your tax return, the IRS recommends you do so electronically. Check out ways to e-file at no cost, including via Free File, which is, as its name says, free. The official electronic filing webpage is
Free File on IRS.gov is available to qualifying taxpayers through Oct. 17.
Free File this year is available for taxpayers whose adjusted gross income is $73,000 or less. That income level applies to all
filing statuses. This year,
8 software programs are available to eligible filers. Spoiler: The two biggies, Intuit's TurboTax and H&R Block, are not among the choices. The two leading tax prep programs decided to
end their participation in the program.
July 31: Again, too much tax fun getting us to July's end in no time. But you can keep the festivities going, and possibly save some money, by taking care of these July tax moves.
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.
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Posted by: Arkansas Tax Return | Thursday, November 24, 2011 at 05:24 AM
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Posted by: State Tax Retunr 2011 | Tuesday, November 15, 2011 at 05:34 AM
Although probably not a very popular topic it has certainly been coming for quite some time. Current state sales tax laws are just not addressing the way business is being conducted today and certainly missing a big portion of revenue.
Posted by: Accounting Business for Sale | Monday, November 14, 2011 at 07:55 PM
Int Retailer: I am not accusing anyone of not following the law. I personally think all sales taxes are regressive and believe progressive taxes on ALL income are the best way to go.
Trying to enforce State "use" taxes with taxpayers is virtually impossible, not gov't laziness.
Failing that, you're looking at a VAT that you'll be collecting & remitting to the IRS, which the Feds & States will share.
Posted by: Ray in MD | Sunday, November 13, 2011 at 11:13 AM
Ray - how is forcing an internet retailer to collect a tax owed by the buyer FAIR. We use NO local services, we would have the undue and until now illegal burden to collect taxes owed by the LOCAL USER. There are ways for the state and local governments to collect these taxes - through the payment processor. It can be seamless, easy, private and quick. Instead they prefer to ask Congress to make small business to collect and remit. This is a huge burden for the small business which is why it is illegal right now.
Internet retailers have a competitive advantage of being able to sell outside their local area. Local B&M business have the competitive advantage being able to sell right then and have the customer take the item home.
Internet retailers follow the law and don't collect USE tax for which the buyer has an obligation to remit. Trying to paint that as UNFAIR is misleading and wrong.
If government needs more money, then they should collect the taxes they are owed under the current laws. Try auditing a few people and then see how quickly people start remitting some of those taxes. Try working with the local CPAs and requiring them to file those returns for their clients. If there are consequences, then people will start paying.
Posted by: Int Retailer | Sunday, November 13, 2011 at 07:50 AM
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Posted by: State Tax Retunr 2011 | Sunday, November 13, 2011 at 01:43 AM
Politicians are looking at lobby $$, not fairness.
You buy online, you owe Use Tax. The 1930s Depression created Sales Tax laws (yes, States were cash strapped then too) Use Tax was a provision added for purchases made out-of-State. Agree or disagree that States have a spending problem, Use Tax is a Constitutional Upheld Law. Problem is, States have done little or nothing to enforce said law.
Worse is the lack of education, as over 60% of the public is unaware that such law exists.
This is a consumer issue, not one for online.
'Fairness' What a MYTH. B&Ms cry that every time a WalMart/Target moves in next door. Even if online did collect tax, they can still out price a B&M b/c of lower overhead. What would B&Ms want next? Fed. mandated price fixing? I think not.
Enough of my rants. The solution is simple. Have the CC Processors collect and remit Sales/Use tax directly to the States (States pay related fees. It's a win-win. States get instant funds, no privacy issues, no exemptions, paperless for online small/large sellers,and the system would work for B&Ms as well.
Simple.
Sadly, simple is a word Lawmakers don't know.
facebook.com/groups/stop.sales.tax.fees.now
Posted by: xcergy | Sunday, November 13, 2011 at 01:26 AM
Both are extremely bad reasons to change the tax law. First reason is that we already bailed out the banks with tarp. If states want to collect use tax, enforce the existing laws. Government being lazy is no reason to punish business. Business has no obligation to enforce use tax, only sales tax as an agent for the state. The level playing field is a bs argument. It's always been fair. Blame your government if they don't know how to collect use tax. This whole debate has been brick retailer vs online retailer when the fault has always been non enforcement by government. Now they want to add MORE laws when all that was required was enforcement.
Posted by: Sun | Saturday, November 12, 2011 at 03:51 PM
Folks won't like this, but it HAS to happen if (1) the states are ever going to balance their budgets, including pensions, and (2) local retailers are to compete on a level playing field.
Posted by: Ray in MD | Saturday, November 12, 2011 at 12:15 PM