At Lowe & Associates, we thought we should check in and offer some insights on how common summer activities can have implications for your taxes. Here are a few things to keep in mind:
- Vacation expenses: If you’re planning a vacation, it’s important to know which expenses may be deductible. While personal vacations generally aren’t tax-deductible, if you’re including business-related activities in your trip, a portion of your expenses might be eligible for deduction. I’m happy to take a look at your plans with you and determine if any deductions may apply.
- Summer jobs and taxes: Many people take up seasonal or part-time jobs during the summer months–with accompanying tax implications. I can offer guidance on proper withholding, estimated tax payments, and any available credits or deductions related to your or your family member’s summer job.
- Child and dependent care expenses: Summer often means finding care for children while you’re at work. The expenses incurred for qualified child and dependent care services may be eligible for the Child and Dependent Care Credit. We can review the requirements, limitations, and documentation needed to claim this valuable credit together.
- Home improvements and energy efficiency: Summer can be an opportune time for home improvement projects, such as upgrading to energy-efficient appliances or installing solar panels. These improvements may qualify for tax credits, such as the Residential Energy Efficient Property Credit or the Nonbusiness Energy Property Credit.
- Charitable Donations: If you make donations during the summer, it’s important to keep records and receipts to substantiate your contributions. Charitable donations may be tax-deductible and potentially reduce your overall tax burden. However, certain rules and limitations apply, and I’m here to ensure you adhere to the requirements while maximizing your tax benefits.