How Seasonal Activities Can Impact Your Filing
Summer is a time for fun and relaxation, but it’s also a good opportunity to think about your taxes. Many summer activities can have an impact on your tax situation. Here are some key summertime activities and tips to keep in mind for the next filing season.
Tying the Knot
Summer is a popular season for weddings. Newlyweds can streamline their tax filing process by taking care of a few important tasks:
Update Your Name: If you've changed your name, report it to the Social Security Administration.
Change of Address: Notify the United States Postal Service, your employers, and the IRS of any address changes.
Sending Kids to Summer Camp
Did you know that the cost of sending your child to summer camp may qualify for the Child and Dependent Care Credit? This credit can help offset some of the expenses associated with childcare during the summer months.
Part-time and Seasonal Work
Summer is a great time for part-time jobs and seasonal work, especially for students. Even if you don’t earn enough to owe federal income tax, filing a tax return could help you get a refund.
For those earning extra income through side gigs or the gig economy, If you receive payments through apps for goods and services, you might get an IRS Form 1099-K.
Home Improvement Projects
Summer is an ideal time for home improvements. The IRS offers tax benefits for making energy-efficient upgrades to your home. If you’ve made qualified improvements after January 1, 2023, you might be eligible for a tax credit of up to $3,200. This credit is available for improvements made through 2032.
Eligible improvements include:
Energy Efficient Home Improvement Credits for items like water heaters, exterior windows and doors, and heating and air conditioning systems.
Residential Clean Energy Credits for installing solar water heaters, fuel cells, battery storage, or systems that use solar, wind, or geothermal power.
