Top 10 Summer Tax Tips to Keep Your Finances Cool

Beat the Heat with These Essential Summer Tax Tips and Strategies

As the sun shines brighter and the days grow longer, summer brings with it unique financial considerations. Whether you’re managing seasonal work, renting out a vacation home, or adjusting to life changes, it’s crucial to stay on top of your tax obligations. Here are ten comprehensive summer tax tips to help you keep your summer finances cool, with added insights on how CKH Group can assist you in optimizing your tax strategy.

1. Check for Correct Summer Employee Classification

Our first summer tax tip revolves around summer employment. Summer workers often face the risk of misclassification as independent contractors instead of employees. This misclassification can lead to higher tax bills and the loss of employee benefits. If you’re a summer worker, verify your classification to ensure you’re not overpaying on taxes. Employers should also ensure correct classification to avoid future legal and tax issues. CKH Group can help you navigate the complexities of worker classification and other payroll related questions,, ensuring compliance and optimizing your tax situation.

2. Keep Records of Rental Property Expenses

If you’re renting out a property this summer, remember that rental income is taxable. Treat it as business income by keeping detailed records of all income received and expenses incurred. Expenses might include marketing fees, cleaning costs, and maintenance expenses. Proper record-keeping can maximize your deductions and minimize your taxable income. CKH Group offers expert advice on making the most of your tax return. We can help you manage rental property taxes and identify deductible expenses.

3. Deduct Storm/Natural Disaster Damage Losses

Summer often brings natural disasters like hurricanes, tornadoes, and wildfires. If your property suffers damage, you may be eligible to claim a casualty loss deduction. This deduction applies to the damage, destruction, or loss of property from such events, beyond normal wear and tear. However, filing for this deduction can be complex as it requires you to itemize your deductions. CKH Group can guide you through the process to ensure you receive the maximum benefit.

4. Report Any Moving or Marriage Related Changes

Summer is a popular time for significant life changes such as moving, changing jobs, or getting married. It’s essential to report any name or address changes to ensure your tax documents are up-to-date. This proactive step helps avoid delays in receiving important tax documents and ensures accurate filing. CKH Group can assist you with updating your information, especially if you are a current client. We can also assist with understanding the tax implications of life changes, helping you stay organized and compliant.

5. Prepare for 3rd Quarterly Estimated Tax Payment

If you expect to owe $1,000 or more in taxes for the year beyond what is withheld from your wages, you need to make estimated tax payments quarterly. The third quarterly payment is due on September 15. Use the summer to review your income and expenses, and make necessary adjustments to your estimated tax payments. CKH Group provides personalized tax planning services to help you calculate and manage your estimated tax payments accurately.

6. Maximize Summer Childcare Credits

Many families incur additional childcare costs during the summer months. Day camps, daycare centers, and other summer childcare programs may qualify for the Child and Dependent Care Credit. This tax credit can significantly reduce your tax liability. CKH Group can help you determine which expenses qualify and assist in maximizing your childcare credits.

7. Utilize Education Tax Credits

Summer classes, workshops, and other educational pursuits may potentially qualify for education tax credits such as the American Opportunity Credit and the Lifetime Learning Credit. These credits can help offset the cost of tuition and related expenses. CKH Group has considerable tax credit knowledge, and can help you identify more than just education tax credits. If you own a business or are a decision maker at a large company, CKH Group can point out other applicable tax credits.

8. Take Advantage of Energy Efficiency Tax Credits

Installing energy-efficient appliances or making energy-efficient home improvements during the summer can qualify for various tax credits. These credits incentivize eco-friendly upgrades, reducing your tax bill while promoting sustainability. CKH Group is uniquely knowledgable in this area, and has environmental and waste compliance subject matter experts that can help you or your business make the most out of sustainability related tax credits.

9. Plan for Seasonal Business Income

If you run a seasonal business, summer might be your peak earning period. Properly planning for this income and setting aside funds for taxes can prevent cash flow issues later in the year. Additionally, if your seasonal business expects a large influx of new employees on your payroll, CKH group offers same-day or next-day payroll process services

10. Review Retirement Contributions

Our last summer tax tip is to take the downtime to review and maximize your retirement contributions. Contributing to retirement accounts such as 401(k)s and IRAs can provide significant tax benefits. Alternatively, if your company has reached the requirement for an employee benefit plan audit, CKH Group can provide expert service in this area.

In conclusion, staying proactive with your tax planning during the summer can lead to substantial savings and prevent future complications. CKH Group offers comprehensive tax preparation and advisory services to help you navigate these tips and more, ensuring your finances remain cool and collected all year round.

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.