Summertime Tax Tips

Hello all, first I want to thank you for stopping by to read our blog. It means a lot to us that you value our opinion. Not only that, but we can promise that your tax refund will be bigger next year because you are reading this…no really we can’t do that BUT we can promise to give you some tips that could help you along that path.

Summertime is most definitely here…temperatures are in record ranges across the country and a heat advisory goes hand in hand with your morning cup of joe. So, grab a cold glass of lemonade and a comfy spot in the air conditioning and enjoy these summertime tax tips.

Summertime=School Vacation…
and when the kids are out of school they are most likely sleeping late, holing up in front of a TV and/or video console, or taking up permanent residence at the neighborhood pool. However, in some cases, ok it’s really more common than I have made it seem, the more enterprising kids are working. If your children are working, or if you are a working child, make sure you follow these tips courtesy of the IRS. Full text of tips can be found here.

 

  • Fill out a W-4 designating your desired withholding…
    to make sure you fill it out correctly use the IRS withholding calculator
  • Keep track of your tips…they ARE taxable
  • Self-employment Income over $400 IS taxable, keep track of income from babysitting, yard work and
    EVEN lemonade sales…just make sure you keep track of the cost of cups, sugar, ice and
    lemons to deduct as expenses!

 

School vacation can also bring with it additional child care expenses. It is going to be hard to convince the zoo to take on all 5 of your little bundles of joy and volunteer child care is going to be hard to come by. There are income limitations for the child care credit but as long as you meet them you can deduct up to 35% of your related expenses. Child care expense is not limited to the traditional notion of someone taking care of your kids. You can also deduct the cost of a day camp or perhaps even a sports camp. Check IRS Pub. 503 for more information.

Summertime=Hot…
We already mentioned how the temperatures outside can make it feel like you are being baked like a Thanksgiving turkey, BUT thanks to that wonderful not-so-little thing called an air conditioner we can all enjoy the indoors the way the great people at Carrier and Rheem intended it to be. Now, while it may not be instantly advantageous to your wallet to go out and buy a new air conditioning unit it can pay off over time and it can definitely benefit you on your tax return.

An energy star certified AC can use 10-20% less energy than a standard non-energy star model. That will result in noticeable savings on your power bill during the summer. You can also brag to your friends about how you have become a part of the GREEN initiative…really they will think you’re cool. Not only will you see a sudden rise in your social status but you can also get a tax credit for 30% of the cost of the unit up to $3,000. You can use some of that savings to throw a nice barbeque for all of your friends. For more information on the Federal Energy Tax credits from Energy Star click here.

That is all the tips that we have for you today but make sure to stop by in the future as we keep blogging and you, hopefully, keep reading!

Did you know…

 

  • TaxSlayer.com files hundreds of returns a day during the summer
  • TaxSlayer.com is a great alternative to high priced sites like Turbo Tax
  • TaxSlayer.com is endorsed by the IRS
  • TaxSlayer.com files Active Duty military returns for FREE!!
print