Summer is a time for fun, but it’s also a good time to think about how your activities might affect your taxes. Here are some common summer activities and how they could impact your tax filing:
Getting Married
Wedding season is here! If you’re getting married, you can make tax season easier by doing these two things now:
- Name Change: Report any name changes to the Social Security Administration.
- Address Change: Notify the United States Postal Service, your employers, and the IRS of any address changes. To change your address with the IRS, complete and submit Form 8822, Change of Address. Detailed instructions are on page 2 of the form.
Sending Kids to Summer Camp
If you’re sending your child to summer camp, the cost might qualify for the Child and Dependent Care Credit.
Business Travel
Parents may still have to travel for work during the summer. If you travel for business, remember that some of these expenses might be tax-deductible. Whether you’re away for a few days or the whole summer, keep track of your business travel expenses.
Part-Time or Seasonal Work
If you or your kids are working part-time during the summer, you might not owe federal income tax, but it’s still a good idea to file a tax return. This way, you can get any refunds you’re owed. For more information, visit IRS.gov.
Earning Money from Side Jobs
If you earn extra money from a side job or gig work during the summer, visit the Gig Economy Tax Center on IRS.gov to learn how this income affects your taxes. If you’re paid through apps for goods and services, you might get an IRS Form 1099-K. For more details, check out IRS.gov/1099k.
Home Improvements
If you make energy-efficient improvements to your home after January 1, 2023, you might qualify for a tax credit up to $3,200. This credit is available for improvements made through 2032 and includes things like energy-efficient water heaters, windows, doors, and HVAC systems. There are also credits for installing solar panels, fuel cells, and other clean energy systems. To learn more, visit the Home Energy Tax Credits page on IRS.gov.
Enjoy your summer and keep these tips in mind to make tax season easier! If have any questions or need help with any financial matters, schedule a meeting with a Francis planner.
