5 Summertime Activities That Could Affect Your Next Tax Return

Summer is often thought of as a season for vacations, weddings, and relaxation—but it’s also a good time to consider how your summer activities may affect your taxes. A little awareness now could lead to savings (or fewer surprises) next tax season.

1. Marriage: Tying the knot? Don’t forget the paperwork. Newlyweds should notify the Social Security Administration of any name change and submit IRS Form 8822 to update their address. Keeping records current helps avoid delays in processing your tax return.

2. Summer Day Camp: Sending your child to a summer day camp may qualify you for the Child and Dependent Care Credit. Just remember: overnight camps don’t count, and you’ll need proper documentation.

3. Business Travel: Traveling for work over the summer? Keep receipts and track your expenses. You may be eligible for deductions if the travel is away from your main place of business.

4. Part-Time or Gig Work: Seasonal jobs and side gigs may not generate enough income to owe federal tax, but filing a return could lead to a refund. Also, earnings via apps may trigger a 1099-K form—be prepared.

5. Home Improvements: Planning energy-efficient home upgrades? The IRS offers up to $3,200 in tax credits for qualified improvements like solar panels, new windows, or energy-efficient HVAC systems.

Summer may be short, but the financial impact can last all year. Stay tax-ready by tracking activities and keeping documentation organized.

Need help navigating how summer activities may impact your taxes? Contact Pricewise Business Solutions today at (720) 949-7733 for a personalized tax consultation. Let’s turn your summer fun into smart financial planning!