Current Tax Tips

Spear phishing targets tax pros and other businesses

Tax Tip 2022-100, June 30, 2022 — Tax pros take their responsibilities to protect client data seriously. Knowing common identity theft scams, like spear phishing, is one way they can do that.

An overview of the IRS’s 2022 Dirty Dozen tax scams

COVID Tax Tip 2022-99, June 29, 2022 — Compiled annually, the Dirty Dozen lists a variety of common scams that taxpayers can encounter anytime. The IRS warns taxpayers, tax professionals and financial institutions to beware of these scams. This year’s list is divided into five groups.

Claiming a child as a dependent when parents are divorced, separated or live apart

Tax Tip 2022-98, June 28, 2022 — Parents who are divorced, separated, never married or live apart and who share custody of a child with an ex-spouse or ex-partner need to understand the specific rules about who may be eligible to claim the child for tax purposes. This can make filing taxes easier for both parents and avoid errors that may lead to processing delays or costly tax mistakes.

Here are some things gig economy workers should know about their tax responsibilities

Tax Tip 2022-97, June 27, 2022 — Many people take up gig work on a part-time or full-time basis, often through a digital platform like an app or website. Gig work, such driving a car for booked rides, selling goods online, renting out property, or providing other on-demand work, is taxable and must be reported as income on the worker’s tax return.

How to file a final tax return for someone who has passed away

Tax Tip 2022-96, June 23, 2022 — When someone dies, their surviving spouse or representative files the deceased person’s final tax return. On the final tax return, the surviving spouse or representative will note that the person has died. The IRS doesn’t need any other notification of the death.

Year-round tax planning: All taxpayers should understand eligibility for credits and deductions

Tax Tip 2022-95, June 22, 2022 — Tax credits and deductions can help lower the amount of tax owed. All taxpayers should begin planning now to take advantage of the credits and deductions they are eligible for when they file their 2022 federal income tax return next year.

What people new to the workforce need to know about income tax withholding

Tax Tip 2022-94, June 21, 2022 — For many new grads and other people entering the workforce for the first time, filling out new hire paperwork can be confusing — what’s a W-4, anyway? New employees should ensure they understand their tax situation and do some planning now, so they’re in good shape at tax time next year. It’s important to know the correct amount of tax to withhold.

Fast facts to help taxpayers understand backup withholding

Tax Tip 2022-93, June 16, 2022 — Under the tax law, payers responsible for knowing who they are paying. To accomplish this, payers are required to collect the legal name and taxpayer identification number, or TIN, from vendors they pay. Generally, backup withholding is required when a service vendor does not provide the payer their TIN timely or accurately.

Some tax considerations for people who are separating or divorcing

Tax Tip 2022-92, June 15, 2022 — When people go through a legal separation or divorce, the change in their relationship status also affects their tax situation. The IRS considers a couple married for filing purposes until they get a final decree of divorce or separate maintenance.

Here’s what businesses need to know about the enhanced business meal deduction

Tax Tip 2022-91, June 14, 2022 — The IRS encourages businesses to begin planning now to take advantage of tax benefits available to them when they file their 2022 federal income tax return. This includes the enhanced business meal deduction.

What taxpayers need to know about making 2022 estimated tax payments

Tax Tip 2022-90, June 13, 2022 — By law, everyone must pay tax as they earn income. Generally taxpayers must pay at least 90 percent of their taxes throughout the year through withholding, estimated or additional tax payments or a combination of the two. If they don’t, they may owe an estimated tax penalty when they file. Some taxpayers earn income not subject to withholding.

Understanding taxpayer rights: Everyone has the right to finality

Tax Tip 2022-89, June 9, 2022 —Taxpayers interacting with the IRS have the right to finality. This right comes into play for taxpayers who are going through an audit. These taxpayers have the right to know when the IRS has finished the audit. This is one of ten basic rights — known collectively as the Taxpayer Bill of Rights.

When the lemonade stand makes bank: Young entrepreneurs and taxes

Tax Tip 2022-88, June 8, 2022 — Teens and young adults often go into business for themselves over the summer or after school. This work can include babysitting, lawn mowing, dog walking or other part-time or temporary work. When a teen or young adult is an employee of a business, their employer withholds taxes from their paycheck. However, when they are classified as an independent contractor or are self-employed, they’re responsible for paying taxes themselves.

The Where’s My Refund tool is now better than ever

Tax Tip 2022-87, June 7, 2022 — The IRS recently rolled out a new and improved Where's My Refund tool. This updated tool allows taxpayers to check the status of their refunds for the 2021, 2020, and 2019 tax years.

IRS Free File and other resources available until Oct. 17 for 2021 tax returns

COVID Tax Tip 2022-86, June 6, 2022 — The IRS reminds taxpayers who have not yet filed their 2021 tax return, they should file a complete and accurate return electronically when they are ready rather than wait until the October 17, 2022, extension deadline.

Taxpayers should check their federal withholding to decide if they need to give their employer a new W-4

Tax Tip 2022-85, June 2, 2022 — The IRS encourages all taxpayers to review their federal withholding at least once a year to make sure they're not having too little or too much tax withheld.

People can protect themselves from tax-related identity theft with an Identity Protection PIN

Tax Tip 2022-84, June 1, 2022 — Identity Protection PINs stop identity thieves from filing fraudulent tax returns. When a taxpayer chooses to participate in this program, the IRS assigns them a six-digit number which the taxpayer uses to prove their identity when they file their tax return.

Tax Tip Archive

IRS Tax Tips from January 2011 forward.