School is back in session, which means the return to busy schedules and endless activities. It’s also the perfect time to take a look at some of your important tax and financial matters that you’ve been thinking about since our last tax time, before we arrive at the end of the calendar year.
If you were recently married, you should report any name change to the Social Security Administration. If you have an address change, you should report that to the U.S. Postal Service, your employer and to the IRS by completing Form 8822, Change of Address.
If you have children, you may be eligible to take the Child and Dependent Care tax credit for childcare utilized over the summer months if you or your spouse paid someone to care for one or more of qualifying children in order for you to work or look for work, and your income level is within certain limits. You must have earned income during the year to claim the credit, such as wages, self-employment income or disability pay you report as wages. Earned income does not include unemployment compensation, workers’ compensation, pensions, or child support. Some examples of eligible expenses for care outside your home include a dependent care center and certain day camps, even if the camp specializes in a particular activity, such as computers or soccer. Tutoring programs where the program isn’t primarily for care are not eligible for the credit.
If you requested an extension to October 17, 2022, to file your 2021 income taxes or missed the April deadline, it is recommended that you file your income tax return as soon as possible if you expect to have a balance due with your tax return, so as not to add any more interest and penalties.
Lastly, life events such as marriage, divorce, having a child, or a change in income can all affect your income tax liability. We can assist with assessing your income tax, credits, adjustments and deductions and determine whether you may need to change your withholdings by submitting a new Form W-4, Employee Withholding and Allowance Certificate. As a reminder, this form is submitted to your employer and not to the IRS. There is plenty of time remaining to adjust your tax withholdings before the end of the year in the event you are under withheld.
Please do not hesitate to contact your me, Lisa Mrkall, CPA, MBA, Principal, or your Tronconi Segarra & Associates tax advisor for more 2022 planning considerations and tips! I can be reached at 716.633.1373 or at lmrkall@tsacpa.com.
