Summer Activities That Could Impact Next Year’s Tax Return
Summer is often seen as a time to relax, travel, and spend time with loved ones. But while you're enjoying the season, it's also a good time to think ahead — especially when it comes to your taxes. Several common summer activities can have implications for your tax return next year. Here’s what to keep in mind.
Marriage: A New Beginning with New Tax Responsibilities
If you’re getting married this summer, congratulations. To make tax season go more smoothly next year, take a couple of important steps now:
Update your name with the Social Security Administration if it changes. Your name must match the one on file when you file your tax return.
Notify the IRS of any address changes by submitting Form 8822. Also update your address with the U.S. Postal Service and your employer to ensure all tax documents reach you.
Being proactive now can prevent delays or issues during tax season.
Summer Day Camp: A Tax Break for Working Parents
Summer day camp costs can count toward the Child and Dependent Care Credit. If you're paying for day camp so you can work or look for work, you may be eligible.
Be sure to:
Keep detailed records of expenses.
Note that only day camp costs are eligible — not overnight camps.
This credit can help reduce your tax bill based on a portion of those expenses.
Business Travel: Tax Rules Still Apply
Summer doesn’t mean a break from business travel for many professionals. If you travel away from your home or main workplace for business, some expenses may be deductible.
Qualified expenses can include:
Transportation (e.g., flights, rental cars)
Lodging
Meals and incidentals
The travel must be primarily for business purposes, and proper documentation is key. Visit IRS.gov for specific requirements and guidelines.
Part-Time Work and Side Gigs: Don’t Overlook the Details
Many students and adults pick up part-time or seasonal work during the summer. Even if income is low, it’s worth checking if you need to file a tax return — especially if any federal tax was withheld. Filing may result in a refund.
For those earning income through side gigs or freelance work:
All income must be reported.
You may receive Form 1099-K if you’re paid through digital apps for goods or services.
Business-related expenses may be deductible.
The IRS Gig Economy Tax Center offers guidance on how to properly report and manage this income.
Home Improvements: Energy Credits Available
If you're making energy-efficient improvements to your home this summer, you may qualify for valuable tax credits.
These include:
Energy Efficient Home Improvement Credit (e.g., for HVAC systems, windows, doors, water heaters)
Residential Clean Energy Credit (e.g., for solar panels, geothermal systems, battery storage)
Taxpayers may be eligible for credits of up to $3,200 depending on the upgrades made after January 1, 2023. For eligibility details, visit the IRS Home Energy Tax Credits page.
Final Thoughts
Summer may be a time to unwind, but it’s also a good opportunity to plan ahead. From marriage and childcare to part-time work and home improvements, many summer activities have tax implications.
Keeping accurate records and staying informed can make a big difference when tax season arrives. For complex situations, consider consulting a tax professional to help you prepare — and possibly even save — when it's time to file.
