You might not realize it, but your summer fun could impact your taxes. Here are a few summertime activities and tips on how you should consider them for tax season.
Marriage
Wedding season is upon us, and newlyweds can make their tax filing easier by taking two simple steps now:
- First, report any name change to the Social Security Administration.
- Next, notify the United States Postal Service, employers and the IRS of any address change. To officially change your mailing address with the IRS, you must complete and submit Form 8822, Change of Address.
Summer day camp
If you are sending a child to summer day camp, the cost may count toward the Child and Dependent Care Credit.
Business travel
Kids may have the summer off, but parents generally don’t – and business travel happens year-round. Tax deductions are available for certain people who travel away from their home or main place of work for business reasons. Whether you are away for a few nights or all summer long, it’s important to remember the tax rules related to business travel.
Part-time work
While summertime and part-time workers may not earn enough to owe federal income tax, they should file a tax return to get any refund they may be owed.
Home improvements
If you make qualified energy efficient improvements to your home after Jan. 1, 2023, you may qualify for a tax credit up to $3,200.
These types of improvements include Energy Efficient Home Improvement Credits for things like water heaters, exterior windows and doors and heating and air conditioning installations. Residential Clean Energy Credits are available for people who install solar water heaters, fuel cells and battery storage or solar, wind and geothermal power generation.
This article carries no official authority, and its contents should not be acted upon without professional advice. For more information about this topic, please contact our office.