Summer Activities and taxes: did you know they can go hand in hand?

Tax season has wrapped up and now the summer season is wrapping up, but did you know that many of your summer activities are tax-related? While you may have been enjoying a fun, relaxing, or even adventurous summer, did you know some summertime activities can affect your taxes?

Here are a few of the most common summertime activities that can impact one’s taxes. Keep these in mind when preparing for tax season next spring!

 

Summer Camp

Did you know that summer camp can be tax deductible?

 

This is a common tax deduction that many taxpayers may miss out on. If you send your child to camp, the cost may qualify for the Child and Dependent Care Credit. To receive the credit, there are certain qualifications:

  • Must be considered qualifying childcare expenses

  • Children over 13 years old do not qualify for the tax credit

  • Overnight camps do not qualify

  • Summer camps must be used as childcare

 

Home Improvements

Did you conquer any items off your summer to-do list? Spring and summer are some of the best times to do home improvements when the weather is nice, and some people may be around their homes more. The good news is that certain upgrades can provide you with good tax benefits.

 

If you did any renovations around your home that included energy-saving changes, you may qualify for a tax credit.

 

Each year you may be able to claim up to:

  • $1,200 for energy property costs and certain energy-efficient home improvements, with limits on:

    • Doors ($250 a door/$500 total)

    • Windows ($600)

    • Home energy audits ($150)

  • $2,000 per year for qualified heat pumps, biomass stoves, or biomass boilers

 

It is good to note that these tax credits are good all year round, not just in the summertime.

 

If you operate your business from a home office, you may be eligible to deduct a portion of home repair and maintenance expenses. To ensure you maximize your deductions, keep detailed records and save all relevant receipts for tax purposes.

Business Travel

While traveling for business is not as fun as traveling for fun or with your family, it is still something that may occur in the summer. If you traveled away from your home or place of work for any work-related reasons this summer (or any time of the year), you may qualify for a tax deduction.

 

Some of the basic guidelines to qualify your trip as business travel include:

  • away from your normal “tax home” of place or work

  • during your normal work hours

  • necessary and ordinary expenses (nothing lavish)

 

What part of your travel is deductible?

  • Transportation

  • Baggage fees

  • Shipping work materials

  • Dry cleaning and laundry

  • Lodging

  • Meals

  • Wi-Fi and communications

 

Staying informed on how your summer plans can impact your taxes is important. You can potentially save money and manage any tax liability.

Be sure to consult the Hardie CPA team for any questions about how your summer plans may affect your personal tax situation.

 Katie Hardie, CPA is the owner of Hardie CPA and a member of the American Institute of Certified Public Accountants. She has a full range of experience as a CPA - including tax, bookkeeping & audit. Her experience spans both public and private accounting. Her passion is helping small businesses & individuals with tax & accounting needs. Katie seeks to empower small-business owners in the area of bookkeeping & tax so that they can stay on track, focus on their bottom line and grow their business. She works virtually and can be reached at katie@hardiecpa.com or click here to fill out a contact form.

Hardie CPA provides the information in this article for general guidance only.  It is not intended to nor does it constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your situation. Tax articles in this blog are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

 

Katie Hardie