Summer Tax Reminders

Most of us don't want to think about taxes in the summer. We've already filed and got our refund or paid our balances, and we are still a long way from the next filing season. But there are a few things that happen in the summer that you may want to check in with your trusted advisor about.

Child Care

Often, families find themselves in need of child care during the summer while the kids are off school. If you decide to send your kids to day camp, daycare or babysitters this summer, you could qualify for the Child and Dependent Care Credit.

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Home Improvements

Many people use the nice weather to make upgrades to their home, or to their investment properties. If you fall into this category, be sure to ask a professional if you qualify for energy improvement credits, additional mortgage interest deductions if you financed improvements, or deductions against investment income.

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Buying or Selling a Home

Any time you buy or sell a home, whether personal or investment, it's always a good idea to get advice from a tax professional. Although most personal home fall under an exclusion from tax, you may have an obligation in certain conditions. Additionally, buying or selling an investment property typically has some impact on your return.

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Vacation Property

If you are fortunate enough to have a vacation property and have decided to rent it out for extra income, you will likely have a reporting obligation on your taxes. Speak with a professional about the records you should be keeping.

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Traveling

Although your family vacation is not a tax deduction, business travel may be. Be sure to save those receipts if you are not reimbursed, and ask your trusted advisor about the possibility of deducting expenses.

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Side Gigs

Whether W-2 or Contractor work, a side hustle during the summer can significantly impact your tax obligations, whether due to changing your tax brackets or not having adequate withholding. If you're unsure of whether you're paying in enough, consult your tax professional.

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Getting Hitched

Saying "I Do" can affect your tax filings in several ways, including the possible name change, address change and filing status change. The latter of those can often cause big adjustments to your tax liability, so getting a quick review to ensure you don't need a withholding or estimate change can be helpful!

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And don't forget, if you filed an extension for 2023 tax filings, you have about 4.5 months left to file.

Please do not hesitate to reach out if I can help you with any of the above.

Have a safe and wonderful summer!