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Summer Tax Planning Tips
Summer is a time to relax, travel, and enjoy family, but it’s also a great time to consider how seasonal activities may impact your taxes. Here are some common summertime events that could affect next year’s tax return—and how to stay ahead:
Marriage and Address Changes
Wedding bells? Congrats! However, don’t forget these two important steps that can make filing your return smoother:
- Update your name with the Social Security Administration if it has changed.
- Submit IRS Form 8822 to report any address changes officially. Also, notify your employer and the U.S. Postal Service.
These small actions can help avoid delays during tax season.
Summer Day Camp May Qualify for Credits
If your child attends summer day camp while you work, those costs might count toward the Child and Dependent Care Credit. Therefore, it’s important to keep detailed receipts and records to claim this valuable benefit.
Business Travel
While your kids enjoy summer break, your work may not stop. If you’re traveling for business, remember:
- Certain expenses may be deductible, including transportation, lodging, and meals.
- You must travel away from your tax home and keep detailed records.
As a result, it’s wise to check with a tax advisor to ensure your deductions are valid and well-documented.
Part-Time and Seasonal Work
Teens and adults alike often take on part-time jobs or seasonal gigs in the summer. Even if you don’t earn enough to owe federal tax, it’s wise to file a return to claim any possible refund.
If you take on gig work or side hustles, contact our office to understand your obligations. You may receive Form 1099-K if you’re paid through apps like Venmo, PayPal, or Zelle for business transactions.
Energy-Efficient Home Improvements
Did you install a new A/C unit, windows, or solar panels? You may qualify for up to $3,200 in energy tax credits for improvements made after January 1, 2023.
Specifically, you can possibly receive these two credits:
- Energy Efficient Home Improvement Credit: Items like windows, doors, HVAC, and insulation.
- Residential Clean Energy Credit: Solar panels, wind turbines, battery storage, and similar upgrades.
Visit the Home Energy Tax Credits page at IRS.gov for more details.
Don’t Wait for Winter to Think About Taxes
While summer is a season for fun, it’s also the perfect season to stay proactive with summer tax planning. From weddings to work, and from camps to home upgrades, these activities may carry tax benefits—or requirements—you won’t want to overlook.
If you have questions about how your summer plans could affect your taxes, please contact our office.
References
Publication 503 (2024), child and dependent care expenses. Internal Revenue Service. https://www.irs.gov/publications/p503
Topic no. 511, Business Travel expenses. Internal Revenue Service. https://www.irs.gov/taxtopics/tc511
Home Energy Tax Credits. Internal Revenue Service. https://www.irs.gov/credits-deductions/home-energy-tax-credits
Residential Clean Energy Credit. Internal Revenue Service. https://www.irs.gov/credits-deductions/residential-clean-energy-credit
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