Summer Activities and Next Year’s Tax Return

As we head into the summer season, it is critical to consider which activities may qualify for a deduction and which may affect your personal or business tax return for the next year. Ahead of tax season, the Internal Revenue Service encourages taxpayers to consider a few common summer-based activities that could have an impact on your return and how much you will or will not owe before tax season begins.

If you or a loved one are planning a wedding, there are a few things to keep in mind which include reporting any name changes to the Social Security Administration and Employer, as your social security number must match your name used when filing your tax return. Secondarily, you must notify the Internal Revenue Service when your home address has changed. Additionally, your tax withholding and filing status may change the tax bracket which can be updated by revising your Federal W-4 form and State Tax Withholding Form (if you are subject to income tax) and submitting to your employer before the end of the tax year.

If you or a loved one is planning to send a child or children to summer day camp, the costs associated may qualify for a tax deduction on your next tax return. Overnight summer camps do not qualify). However, summer day camp can include babysitter or daycare fees, preschool fees, etc. Read more about what qualifies as a Child and Dependent Care Credit as parents or guardians may elect for this tax credit if they have earned income during the tax year and the child or children are under thirteen years of age.

If you or a loved one has a side job, work part-time, or have a seasonal position, there might be tax implications regardless of how much income was earned or if no federal income tax is owed. It is critical to file a tax return anyway and early to avoid any potential, unforeseen tax penalties. This will also ensure that any possible and qualifying tax refunds are processed timely.

If you or a loved one has filed a tax extension, it is crucial that you submit your tax return as soon as you can, while you can continue to recall every detail of that particular tax year. Extensions generally run from April to October, depending on your circumstances, so stay the course and cross this task off your list before the final quarter of the year.

Lastly, don’t forget to have fun this summer without worrying too much about your taxes. Leave the worries to your local  tax attorney. We're here to help.

If you have any questions regarding your individual or businesses’ state and/or federal tax return(s) or received a notice from the IRS, FTB, EDD, CDTFA or any other regulatory agency, please call or email Wilson Tax Law Group, APLC, to setup a consultation with our firm.

Wilson Tax Law Group, APLC is a boutique Orange County tax controversy law firm that specializes in representation of individuals and businesses before federal and state tax authorities with audits, appeals, FBAR, offshore compliance, litigation and criminal defense.  Firm founder, Joseph P. Wilson, is a former Federal tax prosecutor and trial attorney for the IRS and California Franchise Tax Board.  Wilson Tax Law Group, APLC, is comprised of former IRS litigators & Special Agents, and Assistant US Attorneys from the US Attorney’s Office, Central District of California, Tax Division, which at the time handled both civil tax lawsuits and criminal tax prosecutions on behalf of the United States of America.

For further information, or to arrange a consultation please contact: Wilson Tax Law Group, APLC

Tel: (949) 397-2292 (Newport Beach Office) 

Tel: (714) 463-4430 (Yorba Linda Office)

Disclaimer: This blog post is for informational purposes only and does not constitute legal, tax or financial advice. Please consult with a qualified attorney, accountant or financial advisor for specific guidance related to your circumstances.