Tax Tips for August 2022

Parents can boost their back-to-school budget by claiming tax credits and refunds

COVID Tax Tip 2022-134, August 31, 2022 — Summer is slipping away and another school year is starting. As kids head back to the classroom, parents are ticking items off the school supply list. If they want to boost their back-to-school budgets, parents and guardians should make sure they aren’t missing out on their 2021 refunds and tax credits.

Understanding federal tax obligations during Chapter 13 bankruptcy

Tax Tip 2022-133, August 30, 2022 — Bankruptcy is a last resort for taxpayers to get out of debts. For individuals, the most common type of bankruptcy is a Chapter 13. This section of the bankruptcy law allows individuals and small business owners in financial difficulty to repay their creditors.

Highlights from the Summer 2022 Tax Security Summit

Tax Tip 2022-132, August 29, 2022 — The IRS, state tax agencies and the tax industry – working together as the Security Summit recently concluded its summer series, Protect Your Clients; Protect Yourself. This campaign was a reminder for tax pros to focus on fundamentals of security and watch out for emerging issues when using cloud-based services for their practice.

Taxpayers: File when ready, don’t wait until October 17 to file a 2021 tax return

COVID Tax Tip 2022-131, August 25, 2022 — For people who requested an IRS extension to file, the October 17, 2022, deadline may seem far away, but it’s coming up fast. Taxpayers who haven’t filed, whether they requested an extension or not, should file a complete and accurate return as soon as possible.

Info to help with tax authorizations now available in traditional Chinese

Tax Tip 2022-130, August 24, 2022 — It’s important for taxpayers to be able to get tax resources in a language they understand. To help more people get the information they need, the IRS has added a translation of the instructions for Form 8821, Tax Information Authorization, in traditional Chinese.

Businesses can make excise taxes easier by filing and paying electronically

Tax Tip 2022-129, August 23, 2022 — The IRS encourages taxpayers who file federal excise taxes to file and pay electronically.

Aspiring entrepreneurs: learn the basics of setting up a business

Tax Tip 2022-128, August 22, 2022 — New entrepreneurs can start out on the right foot by making sure they understand the tax responsibilities of running a business. The process can seem daunting, but IRS.gov has resources to help new business owners.

Understanding taxpayer rights: Every taxpayer has the right to privacy

IRS Tax Tip 2022-127, August 18, 2022 — The privacy of America's taxpayers is paramount at the IRS. The right to privacy is one of ten rights the Taxpayer Bill of Rights gives all taxpayers.

After disaster strikes, getting copies of important records can help people rebuild their lives

IRS Tax Tip 2022-126, August 17, 2022 — Picking up the pieces after a natural disaster can be challenging. Fire or flood may have destroyed personal and financial records, including records needed to recover disaster-related losses. People may need documentation for tax purposes, federal assistance programs or insurance claims.

Taxpayers should be sure to have all their info before going to a tax pro

COVID Tax Tip 2022-125, August 16, 2022 — Taxpayers using a professional tax preparer should make sure they have all their information readily available before their appointment. Collecting their information and getting copies of any missing documents before taxpayers sit down to prepare their return is critical to filing an accurate tax return.

IRS reminds all truckers the deadline to file and pay heavy highway vehicle use tax is Aug. 31

IRS Tax Tip 2022-124, August 15, 2022 — The heavy highway vehicle use tax is a federal excise tax. These taxes are used to pay for highway and mass transit projects. It is annual tax on heavy highway motor vehicles operating on public highways with a taxable gross weight of 55,000 pounds or more. The deadline to file and this tax is Wednesday, August 31, 2022.

College students should study up on these two tax credits

IRS Tax Tip 2022-123, August 11, 2022 — Anyone pursuing higher education, including specialized job training and grad school, knows it can be pricey. Eligible taxpayers who paid higher education costs for themselves, their spouse or dependents in 2021 may be able to take advantage of two education tax credits.

What business owners need to do when closing their doors for good

IRS Tax Tip 2022-122, August 10, 2022 — There are a few things business owners need to do before they close their business. Of course, they need to fulfill their federal tax responsibilities. It’s also important to notify the IRS of their plans.

How extension filers – and everyone else – can get tax help fast

COVID Tax Tip 2022-121, August 9, 2022 — For people who haven’t filed their 2021 tax return yet, and for everyone looking for tax assistance, IRS.gov has resources to help people file electronically, get personalized tax account info, and find the status of their refund. These online tools are available any time, so taxpayers can use them at their convenience.

Some things to know about crowdfunding and taxes

IRS Tax Tip 2022-120, August 8, 2022 — Crowdfunding is a popular way to raise money online. People often use crowdfunding to fundraise for a business, for charity, or for gifts. It’s important to know that money raised through crowdfunding may be taxable.

People should donate carefully after a disaster to avoid scams

Tax Tip 2022-119, August 4, 2022 — After an emergency or disaster, people rally to help victims by donating money. Unfortunately, this can give criminals an opportunity to prey on them by soliciting donations for fake charities.

From markers to face masks, classroom supplies may be tax deductible

COVID Tax Tip 2022-118, August 3, 2022 — Teachers go above and beyond for their students, often buying classroom supplies needed to make learning successful. The educator expense deduction allows eligible teachers and administrators to deduct part of the cost of technology, supplies and training from their taxes.

Worker Classification 101: employee or independent contractor

Tax Tip 2022-117, August 2, 2022 — A business might pay an independent contractor and an employee for the same or similar work, but there are key legal differences between the two. It is critical for business owners to correctly determine whether the people providing services are employees or independent contractors.

Basic things all businesses should know about excise tax

Tax Tip 2022-116, August 1, 2022 — Excise tax is an indirect tax on specific goods, services and activities. Federal excise tax is usually imposed on the sale of things like fuel, airline tickets, heavy trucks and highway tractors, indoor tanning, tires, tobacco and other goods and services.

Tax Tip Archive

IRS Tax Tips from January 2011 forward.