June 2022 Tax Updates and Tips
June 8th, 2022
QUARTER 2 ESTIMATES
The tax system in the United States operates under the premise that taxpayers remit income tax on profits as they earn it. For individuals that only have earned income from wages, that remittance is usually done by their employers. For taxpayers that have multiple sources of income (or income that is not reported on a form W-2), estimated payments may be required. Estimated taxes are typically paid in four equal installments based on the IRS's annual schedule. Estimated payments for quarter 2 must be post-marked by Wednesday, June 15th, 2022.
2022 DELAWARE RELIEF REBATE PROGRAM
Prompted by skyrocketing gas and grocery prices, the Delaware legislature authorized a “relief rebate” through House Bill 360. Delaware residents who filed a timely 2020 tax return are entitled to a $300 payment for each resident adult. No further steps are required for eligibility. Payments were scheduled for distribution by the end of May 2022 and may arrive by paper check. This rebate is not subject to Delaware State income tax.
PHILADELPHIA CITY TAX UPDATES
As property taxes rise, the City of Philadelphia is looking to reduce the city wage tax to 3.7% from 3.8398% for residents. Non-residents would see a reduction from 3.4481% to 3.44%. Philadelphia Mayor Jim Kenney is also proposing statutory modifications that would limit the scope of the Business Income and Receipts Tax for Philadelphia service businesses to sales delivered to customers within the city limits.
IRS REFUND TOOL – CURRENT AND PRIOR 2 TAX YEARS
In an effort to improve efficiency, the IRS has expanded the scope of information available to taxpayers using the “Where’s My Refund” tool. With this recent update, taxpayers can now get details for the current and 2 preceding tax years. Prior to the upgrade, taxpayers could only view information related to the most recently filed tax return from the past two years.
NEW YORK SALARY TRANSPARENCY LEGISLATION
Beginning November 1, 2022, employers with four or more employees or one or more domestic workers must include a “good faith” salary range for all New York City job postings and solicitations for employment opportunities. While an exception for “temporary help firms” exists, employment agencies are generally covered by this new legislation and expected to comply. Penalties for unresolved violations can result in penalties of up to $250,000 for a single infraction.
For additional information on these tips and strategies, please reach out to a member of the Siegfried team.