While summer is often focused on travel and celebrations, certain seasonal activities can affect next year’s tax return. Plan now to help reduce surprises and identify opportunities before year-end.
Filing status, combined income, and tax bracket may all shift with marriage. Report name changes to the SSA, update address changes with employers and the IRS, and review Form W-4 withholding.
Day camp expenses may qualify for the Child and Dependent Care Credit if the care allows you to work. Eligible costs may include day camps, babysitters, and daycare programs for children under age 13.
Students, teachers, and seasonal workers often take on summer jobs. Even workers with modest earnings may qualify for refunds of withheld taxes.
If you rent the property for 14 days or less, the income is generally tax-free (the ‘Augusta Rule’). If rented for more than 14 days, it may qualify as a rental, allowing certain deductions.
If you filed a tax extension, summer is an optimal time to finalize your return. Don’t wait until the last minute!
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