Welcome to the first full week of June. Have you finished making your vacation plans? I hope you left some time to also deal with summer tax tasks.
That's right, taxes don't go on holiday. And while they aren't fun, there are some tax moves you need to make, or at least consider, this June.
Since we're already on fifth day of the month, let's get right to them, focusing on some other relevant numbers.
Don't miss Tax Day take two.
June 15 is Tax Day for U.S. taxpayers who live and work outside the United States and Puerto Rico. This mid-June automatically delayed due date also applies to members of the military who are posted outside the United States and its nearby island territory, and who don't qualify for a longer combat zone extension.
If these are your circumstances and you've put off filing, here are some last-minute tips to help you finish your Form 1040. If you need assistance, the Internal Revenue Service also offers international taxpayers some help. And if you decide you need more time to finish your 2022 tax year return, you can get until Oct. 16 by filing for an extension.
Pay your estimated taxes.
No, you're not seeing double. June 15 also is another Tax Day for millions of folks who get income that isn't subject to withholding taxes. This mid-June deadline is for the second payment due on such income received this April and May. You can get more scoop on estimated taxes and timetables in my estimated tax primer. You also can check out my earlier posts on estimated tax questions and answers and why, when, and how to pay estimated taxes.
Do some summer house, and tax, cleaning.
The summer solstice arrives at 10:58 a.m. Eastern Time. It's the longest day of the year, giving us a bit more time to work on taxes. OK, I know, but I had to try. 🌞 But there is a tax-related task that you should consider if you let spring slip by without doing any of the earlier season's traditional housekeeping. Culling your residence of unused household goods and clothing will free up space. And if you donate the items to a charity — and follow the IRS' charitable giving rules, which include itemizing — you could get a tax deduction on your 2023 tax return you file next year. You'll also need to claim the correct fair market value of your donated items.
Prepare for a possibly mean Mother Nature.
June 1 marked the official start of the 2023 Atlantic basin/Gulf of Mexico hurricane season. While this numeral isn't in chronological order in this post, it's still a top priority, since Tropical Storm Arlene arrived on schedule last week. Thankfully, Arlene fizzled. But she was a definite sign for folks who live in Florida or the many other U.S. coastal areas (and inland, too, as systems move ashore) that it's time to get ready for the other storms that are sure to follow this tropical season, which lasts through Nov. 30. One of those moves is to take an inventory of your personal property, just in case you need to file an insurance or tax deduction claim from storm damages.
Adjust your withholding.
Whether your payday is on the first or last day of the month (which is the 30th in June, hence the 30) or any day in between, each check comes minus income tax withholding. June is a good time to re-evaluate that amount. It's an especially important task if you got a big refund or were surprised by a tax bill when you filed.
The tax goal is to have the amount of income taxes taken out each pay period to be as close as possible to what you owe when you file your return. You can do that by adjusting your payroll withholding. Doing so in June will spread any changes over six or so months so they shouldn't be such a shock, for good or ill, to your cash flow. The IRS' online estimator can help you determine the appropriate withholding information to give your payroll office via a new W-4 form.
More June tax moves: OK, you've checked out these five June Tax Moves over four dates and followed through or made a note to take care of them once you get your vacation reservations nailed down.
If, however, you're not heading out for an early summer adventure and want more tax tips to take care of this month, you'll find them in their regular spot on the ol' blog. The June tax tasks are in the right column, along with a couple of countdown clocks ticking off the time left until the Oct. 16 filing extension deadline and how long you need to be on high hurricane alert. Peruse them at your leisure.
And in between, take time to have some non-tax summer fun.
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