Sunshine and Savings: Summer Activities That Impact Your Taxes

Summer is here, bringing sunshine, beach trips, and—surprisingly—tax considerations! As you enjoy the sunshine and plan your activities, remember that certain summer choices—from saying ‘I do’ to renovating your home—could have implications for your tax return.

In this article, we’ll explore how events such as marriages, summer camps, business trips, part-time jobs, and home improvements can influence your taxes next year.

Marriage—Tying the Knot and Taxes

Lovebirds tying the knot? Congrats! Here’s how to make your tax filing as smooth as your wedding dance:

1. Name Change: Inform the Social Security Administration about your new name. No, they won’t send you a congratulatory card, but it’s important! This ensures your wages are correctly reported and your future benefits aren’t delayed.
2. Address Change: Let the USPS, your employers, and the IRS know where to find you now. Use Form 8822 for the IRS. It’s like sending them a moving announcement, but instead of housewarming gifts, you get accurate tax records!

For more tips on navigating taxes as newlyweds, check out our full guide here.

Summer Camp—Tax Breaks for the Kiddos

Sending your little ones to summer camp?

• Besides getting some peace and quiet, you might be eligible for the Child and Dependent Care Credit.
• If you’re working or looking for work, the cost of day camps (but not overnight camps) can count towards this credit.

Keep track of those expenses; they could help reduce your tax bill come filing season.

Learn more about how summer camp costs can affect your taxes in our article here.

Business Travel

Summer might mean vacations for some, but business travel never stops. Remember, your work trips can be tax-deductible.

• Whether you’re attending conferences or meeting clients, expenses like transportation, lodging, and meals can be written off.
• Ensure your expenses are directly related to your business and keep detailed records.

Your future self will thank you when filing taxes next year.

Learn more about deducting business travel expenses in our article here.

Part-Time Work—Seasonal Job Tax Implications

Whether you’re scooping ice cream or freelancing, part-time work can impact your taxes.

• Even if you didn’t earn enough to owe federal tax, file a return to claim any refunds.
• Got a side hustle? If you get paid through apps, you might receive a Form 1099-K.

Staying informed now can prevent headaches later.

For more on handling taxes for part-time and gig work, visit the Gig Economy Tax Center on IRS.gov to understand how these earnings affect your taxes.

Home Improvements—Renovations That Reward

Thinking of sprucing up your home this summer? The IRS offers tax credits for energy-efficient home improvements. From new windows to solar panels, you could save up to $3,200.

• Energy Efficient Home Improvement Credits are available things like water heaters, exterior windows and doors and heating and air conditioning installations.
• Residential Clean Energy Credits are available for taxpayers who install solar water heaters, fuel cells and battery storage or solar, wind and geothermal power generation.

Improvements must meet specific criteria to qualify, and you’ll need to keep detailed records of your expenses. These credits can significantly reduce your tax bill, so it’s worth the effort.

Dive into all the details about home improvement tax credits here.

Enjoy your summer, and remember these tips to make next tax season a breeze!