Navigating Tax Extensions
May 31, 2024
New Federal Reporting Requirement
August 1, 2024
Summer is synonymous with fun, but it’s also a good time to keep tax considerations for summer activities in mind – some summer activities might affect your tax situation. Here are a few activities to consider and tips on how they could impact your tax filing.
Tax Considerations for Summer Activities
Check out these Tax Considerations for Summer Activities:
Marriage
With wedding season in full swing, newlyweds can simplify their future tax filings by taking these steps now:
- Notify the Social Security Administration of any name changes.
- Inform the United States Postal Service, employers, and the IRS of any address changes.
Learn more about marital status tax implications.
Summer Camp
Sending your child to summer camp? The expenses might be eligible for the Child and Dependent Care Credit, offering potential tax savings, which can provide financial relief for parents who incur costs for the care of their children while they work or look for work.
Read more about eligibility for the Child and Dependent Care Credit.
Business Travel
While kids enjoy their summer break, many parents continue with business travel, which is year-round. Business travel expenses can be deductible if you’re away from your home or main place of work. Whether your trip lasts a few days or spans the entire summer, remember the tax rules associated with business travel to optimize your deductions.
Read more about permissible deductions for business travel.
Part-Time Work
Summer jobs are common, but even if part-time workers don’t earn enough to owe federal income tax, they should file a tax return to claim any refund due. Additionally, if payments for goods and services are received through payment apps, taxpayers might get an IRS Form 1099-K.
For those earning extra income through side gigs, check out the Gig Economy Tax Center on IRS.gov. This resource explains how gig work impacts taxes.
Home Improvements
Taxpayers can receive up to $3,200 in tax credits for energy-efficient home improvements made after January 1, 2023, including upgrades to water heaters, windows, heating and cooling systems, and renewable energy installations like solar water heaters and fuel cells, claimable through 2032.
Eligible improvements include Energy Efficient Home Improvement Credits for items like water heaters and windows, and Residential Clean Energy Credits for solar water heaters, fuel cells, and renewable energy systems.
Tax Considerations for Summer Activities: Stay Informed with AAC
By staying informed and proactive about tax considerations for summer activities, you can enjoy your summer activities without any unwelcome surprises during tax season. For personalized assistance, reach out to us at Anderson, Adkins & Company. We’re here to support you in all your financial endeavors.
