Summer Tax Tips from the IRS

(ATLANTA, GA) Summertime fun - barbeques, trips to the beach, picnics and taxes. Yes, taxes. "Being aware of the tax issues - and preparing yourself for some tax breaks - will make that summer vacation even more enjoyable", said IRS Spokesman Mark Green.

Check out these tips for newlyweds, working students, parents with children at day camp, vacation homes and moving.

Advice for Newlyweds
It may not be high on the list of wedding planning activities, but there are a few, simple steps that can help keep tax issues from interrupting newly-wedded bliss. There are some practical things to attend to when the honeymoon's over and you start balancing that new joint checking account.

* Report any name change to the Social Security Administration, so your name and social security number will match when you file your next tax return.

* Report any address change to the U.S. Postal Service - they'll forward your mail and let IRS know. You may also notify the IRS directly by filing Form 8822, Change of Address.

* Report any name and address changes to your employer to ensure receipt of your paychecks and Form W-2 during tax season.

*Check your withholding status using the automated "IRS Withholding Calculator" available on the "Individuals" page at Web site.

* Consider whether you'll file joint or separate tax returns.

* If you're buying a home, find out which expenses may be deductible and which are not.

Tips for Working Students

All employees have income tax withheld from their pay, right? Not necessarily. You may be exempt from withholding if:

* You can be claimed as a dependent (usually on a parent's return)

* Your total 2007 income will not be over $5,350,

* Your unearned income (interest, dividends, etc.) will not exceed $300, and you had no income tax owed for 2006.

You'll still have to pay Social Security and Medicare taxes, but skipping unnecessary income tax withholding will put more money in your pocket now. Read Form W-4 carefully before filling it out for your employer.

If customers tip you, those tips are taxable. You must keep track of the amounts, include them on your tax return, and - if they total $20 or more in a month - report them to your employer by the middle of the next month.

Check-out IRS Publication 531, Reporting Tip Income, IRS Publication 1872, Tips on Tips (for food or beverage industry workers), and Form W-4, Employee's Withholding Allowance Certificate (with worksheets to figure how many allowances to claim).

Summer Day Camp

Many working parents must arrange for care of their younger children under 13 years of age during the school vacation period. A popular solution - with favorable tax consequences - is a day camp program.

Unlike overnight camps, the cost of day camp counts as an expense towards the child and dependent care credit. Of course, even if your childcare provider is a sitter at your home, you'll get some tax benefit if you qualify for the credit.

Check-out IRS Publication 503, Child and Dependent Care Expenses.

Vacation Homes

The mortgage interest and real estate taxes you pay on a second home may be deductible. If you rent your vacation home fewer than 15 days per year, that income may not be taxable.

Job-Related Move

Moving expenses may be deductible if your move is job-related and you meet certain tests. If your employer reimburses you for moving expenses, that amount may be taxable income. Generally, up to $250,000 of gain ($500,000 filing jointly) from the sale of your home is not taxable.

New homeowners, be aware that mortgage interest, points and real estate taxes may be deductible.

For more details and information see IRS Publication 523, Selling Your Home, and IRS Publication 521, Moving Expenses.

Tax Forms and Publications

For more information and to access IRS forms and publications, go to the IRS Web site at Also, forms and publications can be ordered by calling toll-free 1-800-TAX-FORM (1-800-829-3676).

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