Summertime Activities Could Affect Next Year’s Tax Return
While many people associate April with the dreaded tax season, it’s also important for taxpayers to keep in mind that decisions they make throughout the year will affect their tax returns. This often proves to be the case in summer, when many couples choose to make major life changes, like getting married or relocating. There are, however, also less impactful things that people do during the summer months that could affect their tax returns. For instance, parents who send their child to summer camp may be able to count the cost of the camp towards the Child and Dependent Care Credit.
Getting Hitched
The summer months are a popular time for weddings across the country. Although taxes may be the last thing on a soon-to-be married couple’s mind, the reality is that getting married does have tax implications. For instance, recently married couples who decide to file joint taxes will need to take steps in advance, including reporting a name change to the Social Security Administration and notifying the IRS, employers, and U.S.P.S. about a change of address. Making these changes sooner rather than later will make the tax return filing process a lot easier the following year.
Traveling for Business
While children often have the summer off, adults rarely do. Business travel tends to happen year-round, so individuals who have to travel away from home for business reasons should remember that they qualify for certain tax deductions. Whether gone for only a few nights, or for the entire summer, taxpayers can deduct certain travel, entertainment, and food expenses for their summertime business travel.
Working Part-Time
Many taxpayers earn extra income during the summer through gig economy work, like food delivery services. While someone who works part-time may not earn enough to owe taxes, they could still qualify for a refund and so should strongly consider filing a tax return. Taxpayers who are paid through payment applications and who earn more than $600 can also expect to receive a Form 1099-K from the IRS where they will need to record those earnings.
Home Improvements
Summertime is also a popular time to undertake a variety of home improvement projects around the house. What many people don’t know, however, is that there are actually a lot of tax benefits to making and reporting certain home improvements. For instance, taxpayers who make qualified energy-efficient improvements to their homes this year could qualify for a tax credit on next year’s return of up to $3,200. There are also tax credits for energy improvement projects related to water heaters, exterior doors and windows, and heating and air installations. Other credits can be applied to those who install solar, wind, and geothermal power in their homes.
Contact Experienced Tax Attorney Ronald Cutler, P.A.
To learn more about the summertime activities that could affect next year’s tax return, please call experienced CPA, former FBI Special Agent, and skilled Florida tax return preparation attorney Ronald Cutler, P.A. at 386-490-9949 today.
Sources:
irs.gov/newsroom/summertime-activities-that-might-affect-peoples-tax-return-next-year
irs.gov/forms-pubs/about-form-8822