Summer Tax Tips: How Your Summer Plans Can Affect Next Year’s Taxes

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The information in this article is up to date for tax year 2024 (returns filed in 2025).

Beaches, barbecues, and…taxes? Yeah, right.  We know taxes probably aren’t on your radar right now—but they should be. 

Some of your summer activities may qualify for special tax breaks. While others can cause unexpected hurdles at tax time if you’re not prepared.  

Keep reading to see how your summer plans may affect your taxes next year—and what you can do now to prepare.

Marrying the love of your life

It’s wedding season! In the U.S., about 78 percent of couples say their nuptials between May and October. Aside from being one of the biggest life decisions you’ll make, getting married also has one of the biggest impacts on your taxes. For those who’ll be saying “I do” this year, we have some summer tax tips for you.  

Read More: Filing Taxes After Your Name Changed

• Notify the IRS of an address change.

If your address changes when you get married, make sure to notify the IRS by completing Form 8822, Change of Address. If you have children and this change also affects the mailing address for your children who filed income tax returns, complete and file a separate Form 8822 for each child.

• Choose your filing status carefully.

If you are married by December 31 of the tax year, you are considered married for the full year by the IRS. This means, come tax time, you’ll need to decide your filing status. You can file as married filed jointly, or married filed separately. 

In most cases, you will not save money on your tax bill by choosing to file separately. But if you do decide to file separately, keep in mind that certain limitations will apply: you won’t be able to claim the Earned Income Tax Credit or the Child or Dependent Care Credit, you won’t be able to claim education credits, and you can’t deduct student loan interest.

• Review your benefits.

Once you are married, you may have expanded benefits options through your spouse’s employer. Sit down together to review your benefits and coordinate a plan to get the most tax-advantaged benefits package. For example, you may be able to join your spouse’s medical plan and contribute to a tax-advantaged HSA. 

Renting out your home

Thanks to sites like Airbnb, it’s no longer taboo to rent your space to travelers looking to live like the locals. In most cases, it’s a win-win situation. They get a great place to stay, and you get to earn some extra cash. Typically, rental income is considered taxable income. But if you play your cards right, your earnings may be tax-free.  

The rules are simple: 

• You cannot rent out your home for more than 14 days a year.
• You must use the property yourself more than 14 days a year or at least 10% of the time you rent it out.

Follow those guidelines and you’ll walk away scot-free.   Regardless of what you plan to do, it’s imperative that you report all rental income on your tax returns and keep good records just in case the IRS comes knocking.

Surviving the hurricane season

Atlantic hurricane season runs from June through November.  If you live in a hurricane-prone area, you already know what kind of expensive damage it can leave behind.  The good news is the tax law allows you to claim losses that were due to a federally declared disaster. That’s why the IRS recommends creating and reviewing your emergency preparedness plan—including steps to protect tax-related records.

• Document your valuables and assets.

Take photos and videos of your home and any valuables so you have a record of your assets should you experience loss or damage. This will help you support any insurance claims.

• Secure important documents.

Store important documents, including birth certificates, deeds, titles, and tax returns in a waterproof and fireproof storage container. Make physical and/or digital copies of these documents to store in a separate location in case the originals are lost or damaged.

• Contact the IRS if you’ve been impacted.

If FEMA declares a disaster, the IRS may postpone filing and payment deadlines for impacted taxpayers. Those impacted can contact the IRS at 866-562-5227 with any tax-related questions.  

Sending your kids to summer camp

As a working parent, you must decide what to do with your kids when school is out of session.  A popular solution is to put them in a summer day camp program.  Although the price tag can be hefty, there is a tax credit you may be able to claim for the summer camp expenses.  It’s called the Child and Dependent Care Credit and it’s available to parents who are working or looking for work. 

• Eligible families can claim up to $3,000 of qualifying expenses for one child.
• You can claim up to $6,000 of expenses for two or more children.

You can only claim the expenses if your child is under the age of 13 or incapable of caring for themselves.  Overnight camps do not qualify.

Late filing and payment

Requested a tax filing extension? Well, there’s no time like the present to finally get your taxes done. If you owe the IRS, you’ve been racking up interest and penalties since April. The penalty for paying your taxes late is 0.5 percent of your unpaid balance. Meanwhile, the interest rate is 3% plus the federal short-rate.   So although the extended deadline is October 15^th, you’ll save a lot more money by filing them as soon as possible.  

When you’re ready to file, give ezTaxReturn a try. We make taxes so easy, your return can be ready for e-file in as little as 30 minutes.

The articles and content published on this blog are provided for informational purposes only. The information presented is not intended to be, and should not be taken as, legal, financial, or professional advice. Readers are advised to seek appropriate professional guidance and conduct their own due diligence before making any decisions based on the information provided.