You Won’t Believe How Your Summer Plans Could Save You Money on Taxes!
Summer is all about sunshine, relaxation, and fun. But did you know your summer plans could also impact your tax return next year? While tax planning might not be your top priority during these sunny months, a little attention now can save you a lot of stress and potentially money down the road. Here are some essential summer tax tips that could make a significant difference in your tax filing next year.
1. Getting Married This Summer? Congratulations! But Don’t Forget These Tax Tips
Summer is wedding season, and if you’re planning to tie the knot, here are some tax tips to keep in mind:
– Name Changes: If you change your name, report it to the Social Security Administration and your employer to ensure your name matches your Social Security number on your tax return. This will help avoid any delays in processing.
– Change of Address: If you move, notify the IRS with Form 8822 to receive any vital tax mail at your new address.
– Adjust Tax Withholding: Marriage can change your filing status and tax bracket. Review and adjust your Form W-4 tax withholding, especially if both spouses work or have dependents. Try our Refund Booster (W-4 Calculator) to get started.
2. Sending Your Child to Summer Day Camp? Enjoy Tax Breaks!
Sending your kids to day camp can qualify you for the Child and Dependent Care Credit if you paid for their care while you worked or looked for work. Keep records of day camp fees as they are deductible. Note that overnight camps do not qualify, and your child must be under 13 years old.
3. Earning Income from a Side Gig? Don’t Forget the Tax Implications
Summer side hustles are a great way to earn extra income, but remember the tax responsibilities. If you’re self-employed, such as an independent contractor or freelancer, make sure to pay estimated taxes to the IRS. Stay updated with the new reporting requirements for online marketplaces and payment apps effective from 2024.
4. Working a Part-Time Job? File Early to Get Your Refund Faster
Seasonal part-time jobs may not result in enough income to owe federal taxes, but filing a tax return is still necessary to get any potential refunds. File early to ensure your refund hits your bank account quickly.
5. Filed a Tax Extension This Year? Don’t Delay Further!
If you requested a tax extension, aim to file your tax return as soon as possible. Filing early, while last year’s finances are still fresh in your mind, will help you avoid the October 15, 2024, deadline rush. Challenge yourself to file this summer!
Conclusion:
By keeping these summer tax tips in mind, you can potentially save money and avoid any unpleasant surprises during tax season. Our team of professionals is ready to assist you with any tax-related queries or concerns. Don’t hesitate to reach out and secure your financial peace of mind.
Need Assistance?
Summer is a time for fun, but a little tax planning now can go a long way. For personalized advice and to ensure you’re maximizing your tax benefits, contact our COO, Anshul Goyal, at anshul@kkca.io. Our licensed professionals are here to help you navigate the complexities of tax planning so you can enjoy your summer worry-free.
Disclaimer
This blog provides general information and should not be considered as professional tax advice. Always consult with a certified tax professional regarding your specific situation.
FAQs
1. How does getting married affect my taxes?
Getting married can change your filing status, tax bracket, and require updates to your name and address with the IRS.
2. Can I claim a tax credit for sending my child to summer day camp?
Yes, day camp fees can qualify for the Child and Dependent Care Credit if you paid for care while working or looking for work.
3. What should I do if I earn income from a summer side gig?
Ensure you pay estimated taxes to the IRS and understand the reporting requirements for any income earned from self-employment.
4. Do I need to file a tax return if I only worked a part-time job?
Yes, filing is necessary to receive any potential refunds, even if you didn’t earn enough to owe federal taxes.
5. How should I handle a name change after marriage for tax purposes?
Report the change to the Social Security Administration and your employer to match your name with your Social Security number on tax documents.
6. What form do I use to notify the IRS of a change of address?
Use IRS Form 8822 to ensure you receive all vital tax communications at your new address.
7. What is the tax extension deadline for 2024?
The tax extension deadline for 2024 is October 15, but it’s advisable to file as soon as possible.
8. Are overnight camp fees eligible for the Child and Dependent Care Credit?
No, only day camp fees qualify for this tax credit.
9. How can I adjust my tax withholding after getting married?
Review and update your Form W-4 to reflect your new filing status and any changes in your household income.
10. Who can I contact for personalized tax advice?
Contact our COO, Anshul Goyal, at anshul@kkca.io for expert assistance tailored to your specific tax situation.