Summer Activities That Can Affect Your Tax Return Next Year
While summer is a time for fun, it’s never the wrong time to be thinking about taxes (even though you may disagree). Some summer activities can have an impact on your tax returns. Here are a few common summertime activities and tips on how taxpayers should consider them for filing season.
Marriage
- 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 a mailing address with the IRS, you must complete and submit “Form 8822, Change of Address.” You can find this form on our website at ppgpartners.net/forms.
Summer camp
If you are sending a child to summer camp, the cost may count toward the Child and Dependent Care Credit. Be sure to retain documentation regarding the camp and the cost and submit it with your tax return documents.
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. If taxpayers are paid through payment apps for goods and services during the year, they may receive an IRS Form 1099-K for those transactions.
Home improvements
Many clean energy credits will soon be eliminated or reduced. If you want to make any energy-efficiency upgrades, do so before the end of the year. You may be able to get “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 taxpayers who install solar water heaters, fuel cells and battery storage, or solar, wind and geothermal power generation.
Business Travel
Kids may have the summer off, but parents generally don't, and business travel happens year-round. Whether a business traveler is away for a few nights or all summer long, it’s important for them to remember the tax rules related to business travel – (see our post from last week!).
