July 2022 Tax Tips

Tax pyrotechnic time!

The first full month of summer is supposed to be a time to chill, literally if you can from the increasingly hot temperatures.

But July, which starts with a July 4th bang celebrating the birth of the United States, keeps throwing up tax flares throughout the month.

There are tax holidays, many of them kicking off on July 1 and running until the start of school as summer winds down.

There are new state tax laws across much of the country.

Plus, we’ll keep an eye on the tropics and the tax implications of major disasters.

Taxes now and in the future: And, of course, there are federal tax matters to take care of between your summer breaks.

Millions of folks extended their 2021 tax return filings, giving them until Oct. 17 to get their 1040 forms to the Internal Revenue Service. But Uncle Sam’s tax collector will gladly accept those returns early if you feel compelled to be tax productive this July.

Then there’s some planning to do and moves to make, regardless of whether you’re finished with 2021, to ensure your already accruing 2022 tax bill is as small as possible.

These dualities also apply to taxes this month. There will be pieces of filing advice, along with tax planning moves for the current year. 

I know, you’d rather be enjoying the summer, but I promise not to take up too much of your time. So let’s get to July tax tips now!

1. 2022 summer sales tax holiday season begins — It’s time again for the annual batch of state sales tax holidays. They’re bad tax policy, and really don’t provide that much savings, but shoppers love them, so state officials keep renewing and adding to them. 18 states are offering shoppers holidays this summer, but Florida is king. Starting today, the Sunshine State has nine no- or reduced-tax events on its summer/early fall calendar. (July 1, 2022)
2. 6 tax holiday shopping tips — Is your state one of the 18 holding a sales tax holiday this summer? Before you head out to make tax-saving purchases, check out these 6 shopping tips. They could help you make the most of your state’s no or reduced-rate tax event. (July 2, 2022)
3. Deductible mileage rates increased on July 1 — This year’s historic inflation has increased the cost of almost every living expense. It even prompted the Internal Revenue Service to implement a mid-year bump up of the annual optional standard mileage rates for tax-deductible driving. The 4-cent hikes for allowable business, medical, and relocation miles driven took effect on July 1, and will last through Dec. 31. (July 3, 2022)
4. Don’t wave any of these audit red flags — Sure, IRS audit rates have dropped in recent years, but do you really want to take a chance on attracting the tax agency’s attention? To stay off the IRS radar, don’t fly any of these 8 tax audit red flags. (July 8, 2022)
5. 4 back-to-school tax holidays in July — School is still out for the summer, but classes will start before you — OK, before your children — are ready. That’s why four states, starting with Alabama this weekend, are holding back-to-school sales tax holidays in July. The others later this month are in Florida, Mississippi, and Tennessee. But wait, there’s more. Longer, more diverse no-tax days already are underway this month in a couple of other states, too. (July 14, 2022)
6. 5 states with no sales tax — Most states don’t tax ice cream you buy during a grocery shopping trip. But if you buy a cone or sundae or some other ice cream treat at a retailer, you’ll pay tax on the frozen delight. That’s true even today, July 17, which is 2022’s National Ice Cream Day. Unless you live in one of these five states without a sales tax. (July 17, 2022)
7. Tax considerations for young workers — Summer jobs are rites of passage for many teenagers. The temporary work allows them to put aside some money for college or buy something from a wish list. The jobs also provide real life lessons on taxes for young workers. (July 18, 2022)
8. 6 tax & financial tips for lottery winners — Tonight’s Mega Millions jackpot will be at least $660 million, making it the United States’ third-largest lottery jackpot ever. If your numbers come up, congratulations. Also, check out these tax and financial tips once you recover from the realization of being a sudden millionaire, since you’ll likely take the immediate cash payout of $388 million. (July 22, 2022)
9. 6 tax & financial tips for lottery winners — Yes, you are reading, again, this tip correctly. It gets another run since Powerball has joined Mega Millions in offering very attractive multi-million dollar jackpots. If your numbers come up in either, or both of the national lottery games, congratulations. Also, check out these tax and financial tips once you recover from the realization of being a sudden multi-millionaire. (July 24, 2022)
10. End-of-July sales tax holidays in FL, MS & TN — Summer’s winding down, meaning kiddos soon will be going back to school. But before they head to their classrooms, they’ll need a few things. Three Southern states are focusing on families with such shopping lists. Florida, Mississippi, and Tennessee are closing out July with back-to-school tax holidays. If you don’t live in one of these states, don’t worry. Your state could be among the 15 that will be hold similar tax-saving shopping periods in August. (July 28, 2022)

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Most of us revert to our childhood selves and want summer to last forever. But if you are looking ahead, yes, you can click on the August through December links below.

I must warn you, though, that you’ll just be greeted (again) by that nay-saying guy’s GIF telling you you’ll have to wait until those months arrive for additional Internal Revenue Service information, tax law changes, and tax code tips.

You can, however, go back. Check out the 2022 filing season tips already posted in the first six months of the year for which we’ve turned calendar pages.

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