Vega Income Tax Service

Summer Activities and Taxes – Did You Know?

Summer is a time to relax and have fun, but some seasonal activities may have tax consequences. Being aware of them now may save you time and hassle later.

If your child attends a day camp so you can work or look for work, some of the cost may qualify for the Child and Dependent Care Credit. Be sure to keep records and obtain the camp's tax identification information.

Students with summer jobs may be entitled to tax refunds if income tax is withheld from their pay. Adults earning income from seasonal, part-time, or gig work may need additional withholding or quarterly estimated tax payments.

Summer is also a popular wedding season. If you change your name after marriage, update your records with the Social Security Administration. If you move, update your address with the IRS and submit a new Form W-4 to your employer so your withholding reflects your current tax situation.

Health Savings Accounts - Did You Know?

Changing jobs? If you have a health savings account (HSA), you can take it with you. Unlike flexible spending accounts (FSAs), which are usually tied to your employer, your HSA belongs to you. You can continue using your HSA funds after leaving the job where you opened the account. However, you may make new HSA contributions only if you remain eligible to contribute. To remain eligible, you generally must be covered by an HSA-eligible high-deductible health plan (HDHP) and have no disqualifying coverage.

IRS Online Business Accounts Now Available to Partnerships & Tax-Exempt Entities

The IRS has expanded its Business Tax Account (BTA) service, which enables businesses to handle many federal tax matters online. Previously, only sole proprietors, S corporations and C corporations could use the BTA platform. Now, partnerships (including LLCs that file taxes as partnerships), along with many tax-exempt organizations, can benefit from the convenience of a BTA as well.

Tasks that can be readily completed through the BTA system include checking tax balances, making payments, viewing payment histories and downloading digital IRS notices. In addition, BTA users can access payroll and income tax return transcripts, seek help with compliance concerns, or verify the accuracy of a business name or address on file with the IRS.

Many government entities, including tribal governments, also qualify to use the expanded BTA service.

IRS Business Tax Account: https://www.irs.gov/businesses/business-tax-account

The election to open an initial Trump Account must be made by an authorized individual on Form 4547, Trump Account Election. Learn more details to sign your baby up at: https://ow.ly/ruRf50YtulX