Summer means fun, travel, and family time, but some of your favorite summer activities could have tax implications you don’t want to miss. At Torkelson & Associates CPAs, we’re here to help you stay ahead so you’re not caught off guard come tax season.
Marriage: Tying the Knot? Don’t Forget These Tax Steps
If you’re getting married this summer, congratulations! Make your future tax filing smoother with a couple of key updates:
- Report any name change to the Social Security Administration.
- Update your address with the U.S. Postal Service, your employer, and the IRS using Form 8822, Change of Address.
This will help ensure your tax documents, as well as refunds, find you promptly.
Summer Day Camp: Potential Tax Credit for Parents
Sending your child to summer day camp? Those costs could count toward the Child and Dependent Care Credit. Keep your records so you don’t miss out on potential savings.
Business Travel: Don’t Overlook Your Deductions
Traveling for work this summer? Be sure you know what qualifies for a deduction. The IRS has resources on business travel deductions to help you maximize your tax benefit while on the road.
Part-Time Work, Side Hustles & Gig Economy Income
Whether it’s a summer job, a part-time gig, or freelance work, be mindful of the tax rules:
- Filing a return: Even if you don’t owe federal income tax, you might qualify for a refund, see who should file a tax return.
- Gig economy income: Learn more at the IRS Gig Economy Tax Center.
- Payment apps: If you’re paid for goods or services through an app, you may get a Form 1099-K.
Home Improvements: Claim Your Energy Credits
Making your home more energy efficient? Upgrades like new water heaters, windows, or HVAC systems may qualify for valuable energy tax credits of up to $3,200!
Thinking bigger? Clean energy projects like solar panels, geothermal systems, or battery storage may also qualify for additional credits. For details, see the IRS guide to Home Energy Tax Credits.
Don’t Let Summer Surprises Impact Your Taxes
A little planning today can make tax season stress-free next year. If you have questions about any summer activity, weddings, camps, travel, side jobs, or home projects, our team at Torkelson & Associates CPAs is ready to help you plan ahead and avoid surprises.
Questions? Contact us today for expert, personal guidance.
For more information, see the original IRS post: Summer activities that could impact next year’s tax return