TAX NEWS - 2010

US Tax: Get ready for next tax filing season

Summertime is a great time to start preparing for next year's tax filing season.

Preparing yourself now for some tax benefits will make summer vacation even more enjoyable.

Helpful tips from the Internal Revenue Service include:

- Keep tax issues from interrupting newly-wedded bliss. When the honeymoon's over, 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 the 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 IRS.gov website.

- Working students also need extra advice. You may be exempt from withholding if you can be claimed as a dependent (usually on a parent's return), your total 2010 income will not be over $5,700, your unearned income (interest, dividends, etc.) will not exceed $300, and you had no income tax owed for 2009.

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. Additional information is also available in Publication 505, Tax Withholding and Estimated Tax.

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 and IRS Publication 1872, Tips on Tips for food or beverage industry workers.

- Summer day camps also present some tax situations.

Many working parents must arrange for care of their younger children under 13. 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.

- If your tax filing due on April 15 is still in flux, you can check its status.

Visit IRS.gov and click on "Where's My Refund?" You'll need to input the primary Social Security Number on your 2009 return, your filing status (single, married filing jointly, etc.) and the exact amount of refund you expect. If you don't have Internet access, call 1-800-829-1954 for 2 4/7 automated refund information.

- If you get an e-mail from the IRS, be wary. The IRS will never contact you about your taxes via e-mail. It's probably an attempt by scammers to steal your private information. Don't click on any links in the message. Forward the fake e-mail to phishing@irs.gov using the instructions at IRS website.