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Fun Tax Facts & Reminders

By July 5, 2023January 30th, 2024IRS Updates
Tax Facts

Tax season may be the most exciting time of the year, but here are some fun tax facts and reminders for July 2023 you may want to know.

There are a few updates in tax laws for July 2023. Here is a short list of what to expect for the coming months and keep yourself updated with the tax facts.

Fun Tax Facts and Updates for July 2023

July brings some interesting tax facts and updates to keep in mind. Here are some of a few:

  1. The annual ceiling deductible contribution to a Health Savings Account (HSA) will increase in 2024. It’s going to increase to $4,150 for account owners that are on the self-only plan and $8,300 for those with a family coverage plan.

  2. The IRS was initially supposed to get $80 billion from the government. However, the Congress has reduced their funding even further for 2025. Instead of $80 billion they will only be getting $59 billion in a span of ten years. This will definitely affect how things work especially with the plans of ramping up on workforce.

  3. The IRS is starting to crack down unreported or underreported employment taxes. Back in 2014 to 2016 they noticed about $87 billion in unaccounted payroll taxes. If you have any old payroll taxes, make sure that you’re paying them.

  4. For parents, Summer camps qualify for Dependent Care Credit. Camps like sports, math, computer, theater, and others are covered. It includes before and after care when your children are enrolled for these programs.

    What is not included is tutoring, summer school, and overnight camps. If you have children that are going to summer day camps, they need to be under the age of 13 and reside with you for at least 6 months throughout the year in order to qualify.

    The credit amount is not changing but the credit has a range between 20% to 35% depending on your income.

  5. If you have a tax balance that is over about $59,000 the IRS can potentially revoke or deny a passport issued to you so you won’t be able to leave. Or when you decide to come back, they will notice. There has been a few cases of this where individuals and our taxpayers have a higher balance and their passports have been revoked. Surprisingly, some people are not even aware they have debt due.

  6. States like Alabama, Georgia, Montana, and New Mexico will be receiving stimulus checks. They are still sending out some rebates. Keep an eye out, you may qualify.

  7. For business owners, be sure to watch out for W-2 employer or 1099 independent contractor. If you are not sure, feel free to reach out to us or go through our articles to find out more.

    Since the IRS is cracking down on this, they have been quite strict. Recently a doctor that thought his employees were independent contractors, were actually classified as employees by the IRS. Now he’s on the hook for all the employment taxes over the years.