Top 5 Tax Tips to Keep Your Summer Finances Cool

Top 5 Tax Tips to Keep Your Summer Finances Cool

1. Check for Correct Summer Employer Classification

Summer workers sometimes are misclassified as independent contractors (self-employed) rather than as employees. Ensure your classification is correct to avoid higher tax bills and lost benefits. Additionally, if you are an employer, make sure you provide the correct classification to avoid any future issues.

2. Keep Records of Rental Property Expenses

Unless you qualify for an exception based on limited rental usage (i.e. the Augusta Rule), your rental income is taxable, so you should treat it as business income. That means keeping records of income received and receipts for expenses incurred. Examples of these expenses may include fees related to marketing the property, cleaning, and maintenance related costs.

3. Deduct Storm/Natural Disaster Damage Losses

Summer can bring on many natural disasters such as hurricanes, tornados, and wildfires. However, you can claim a casualty loss from the damage, destruction, or loss of your property form these events outside of normal wear and tear. In certain circumstances, individuals may claim their casualty and theft losses as an itemized deduction. Filing for this can be complicated- reach out to CKH Group!

4. Report any Moving or Marriage Related Changes

Summer is a great time to move, change jobs, or get married. This also a great time to report any name or address changes in order to ensure you receive your tax documents, so they are up to date by tax time.

5. Prepare for 3rd Quarterly Estimated Tax Payment

You need to make estimated tax payments quarterly if you expect to owe $1,000 or more in taxes for the year—over and above the amount withheld from your wages. The third quarterly estimated tax payment is due on September 15, so take some time over the summer to prepare or ask questions about your payment.

CKH Group is here to help you. As always if you have any questions, CKH Group is here for you! Reach out and let’s chat, you can book a free online consultation here, or you can contact us at 1-770-495-9077 or email us at info@ckhgroup.com.

The above article only intends to provide general financial information and is based on open-source facts, it is not designed to provide specific advice or recommendations for any individual. It does not give personalized tax, financial, or other business and professional advice. Before taking any form of action, you should consult a financial professional who understands your particular situation. CKH Group will not be held liable for any harm/errors/claims arising from the articles. Whilst every effort has been taken to ensure the accuracy of the contents we will not be held accountable for any changes that are beyond our control.