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How Your Summer Plans Could Impact Next Year’s Tax Return

Credits and Deductions Individual Taxes
A young girl at summer day camp plays with a magnifying glass

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Updated for tax years 2023 and 2024.

There’s no need to pretend — we know tax planning wasn’t exactly at the top of your summer to-do list. But hear us out. As you’re cooking up exciting summer activities or life changes, it’s good to remember how they might impact your tax filing next year.

Summer tax tips you need to know

Here are five situations where your summertime activities could score you tax deductions or otherwise impact the taxes you will (or won’t) owe during tax time:

1. You’re getting married this summer.

Summer is wedding season, and if you’re planning on tying the knot, don’t forget to keep these tips in mind:

  • Name changes: Married couples should report any name changes to the Social Security Administration and their employer, if applicable. Your name must match your Social Security number to prevent delays in processing your tax return next year. You can get more information on reporting a name change online or by calling 800-772-1213.
  • Change of address: Notify the IRS of a change of address with Form 8822 if you move. This will ensure you receive any vital tax mail at your new address.
  • Adjust tax withholding: Getting married affects your filing status and could change your tax bracket. It’s a good idea for newlywed filers to revisit their Form W-4 and adjust their tax withholding as needed, especially if you both work or have any dependents. Not sure where to start? Give our Refund Booster (W-4 Calculator)1 a try.

2. You plan on sending your child to a summer day camp.

This summer, sending your kids to day camp may just qualify you for a tax break.

As one of the tax benefits available to parents, you can claim the Child and Dependent Care Credit if you paid someone to care for your child while you worked or looked for work. This includes day camp fees (overnight camps do not qualify), babysitter or daycare fees, pre-school fees, etc. So, if you’re signing the kids up for day camp, keep a record of any fees you paid.

To qualify for this tax credit, you must have earned income during the tax year, and the child(ren) must be under 13 years old.

3. You’re earning income from a side gig.

Summer side hustles can be a great source of extra income, but don’t forget to consider the tax implications of joining the gig economy.

If you are self-employed, such as an independent contractor or freelancer, and earn taxable income that is not subject to withholding, you must remember to pay estimated taxes to the IRS. If you sell goods or services via online marketplaces or payment apps, make sure you understand the new reporting requirements that went into effect at the beginning of 2024.

4. You’re working a part-time job.

If you are a seasonal worker getting a part-time job this summer, it’s possible you might not earn enough income to owe any federal income tax. But if you don’t anticipate a tax bill, you should still remember to file a return next year — and file early! This will ensure your tax refund hits your bank account as quickly as possible.

5. You filed a tax extension this year.

This is more of a reminder, but if you requested a tax extension this year to get more time to complete your return, remember to file your income tax return as quickly as possible. It’s always best to file while last year is still fresh in your mind rather than waiting until the end of the year.

This year’s tax extension deadline isn’t until Oct. 15, 2024, but we challenge you to file this summer if possible. You’ve got this!

 1Refund Booster may not work for everyone or in all circumstances and by itself doesn’t constitute legal or tax advice. Your personal tax situation may vary.
This article is for informational purposes only and not legal or financial advice.
All TaxAct offers, products and services are subject to applicable terms and conditions.

File your taxes with confidence.

Your max tax refund is guaranteed.

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