Let’s be honest, tax planning is probably the last thing on your mind while sipping lemonade or planning that long-awaited getaway. But here’s the reality: your summer decisions can shape next year’s tax return in ways you might not expect. Whether you’re getting married, working a summer job, or sending the kids to camp, it’s smart to consider the tax implications now, not later.
In this guide, we’ll break down common summer scenarios that could affect your filing and help you prepare for a smoother tax season next year.
1. Getting Married? Update Your Tax Details
Summer weddings are beautiful — and financially impactful. If you’re saying “I do” this season, there are a few tax-related tasks you shouldn’t ignore. These small updates can make a big difference when it’s time to file your next tax return.
Name change: If you’re changing your last name, update it with the Social Security Administration so that your name matches your Social Security Number (SSN). Otherwise, your return could be delayed.
Address change: Moving in with your spouse? Submit IRS Form 8822 to update your address. This ensures any tax documents or notices are sent to the right place.
Tax withholding: Getting married changes your filing status, which could bump you into a different tax bracket. Review your W-4 forms and adjust your tax withholding accordingly. This helps avoid surprises when you file your tax return next year.
2. Summer Camps May Offer Tax Benefits
Planning to send your kids to summer day camp? You might qualify for the Child and Dependent Care Credit, which can lower your overall tax bill. That’s right — the IRS may reward you for giving your little ones fun-filled learning time while you work.
What qualifies? Payments made to a licensed day camp, babysitter, or daycare facility may be eligible, provided the care was needed so you could work or actively seek employment.
Important note: This credit doesn’t apply to overnight camps, and your child must be under 13 years old to qualify. Be sure to save your receipts, they’re essential for claiming this credit on your tax return.
3. Earning Extra with a Side Gig? Don’t Forget Taxes
Many people take on side gigs in the summer, whether it’s freelancing, food delivery, selling handmade goods, or tutoring. It’s a great way to boost your income, but it also comes with responsibilities that affect your tax return.
If you earn over $400 from self-employment, you’ll need to report that income and may also need to pay estimated taxes quarterly. Moreover, digital platforms like Etsy, PayPal, and Venmo are required to send you Form 1099-K if your total payments exceed the IRS threshold, which has changed recently.
Even though it may be part-time, your side hustle is real income. Therefore, keeping a clear record of earnings and expenses throughout the summer can make your tax filing process easier later on.
4. Summer Jobs Still Count – Even for Students
Are you or your teen working a summer job? Even if the income is small, it could still have tax implications. Some students think they don’t have to file if they don’t owe taxes, but filing early can help them receive a refund if too much was withheld.
What to know: If your employer withholds federal income taxes from your paycheck, you’ll want to file a return to potentially get that money back. Also, some states may require you to file even if the federal government does not.
Remember, the earlier you file your tax return next year, the sooner you get your refund, especially important for first-time filers!
5. Filed an Extension? Don’t Delay Too Long
If you filed a tax extension earlier this year, you’re not alone. Many taxpayers opt for extra time. But don’t let the October 15 deadline sneak up on you. Summer is an ideal time to knock out that tax return.
Why wait until the fall rush when you can file now, while last year’s numbers are still fresh in your mind? Getting it done early also helps you avoid stress and gives you more time to address any unexpected issues that arise during the filing process.
Keep Records of Any Big Life Changes for Tax Return
In addition to these summer-specific tips, keep in mind that any major change in your financial life could impact your tax return. Whether you’re:
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Moving to a different state,
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Starting a small business,
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Investing in a new property, or
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Taking educational courses
It’s important to save relevant documents and receipts. Staying organized today prevents tax-time headaches tomorrow.
Final Thoughts: Prepare Now, Relax Later
At USeFiler, we specialize in helping you make tax-smart decisions year-round. Whether you’re planning a wedding, working a summer job, or catching up after an extension, we’re here to simplify your tax return and maximize your peace of mind.