HOW MIGHT YOUR TAX RETURNS BE IMPACTED BY SUMMER PLANS?
You are Reading..
HOW MIGHT YOUR TAX RETURNS BE IMPACTED BY SUMMER PLANS?
Summer is a great time to unwind and enjoy the warm weather. But we all know that finances do not go on ‘summer break’! If anything, your finances may be over extended during the summer between paying for kids camps and daycares, home remodeling projects, family trips, and more. As you plan for those [often expensive] summer activities, be sure to keep in mind how each of those events could affect your tax returns.
TYING THE KNOT and COMMINGLING YOUR TAXES
According to a 2025 study by The Knot, summer is the second most popular season for weddings, with the most popular being late summer into early fall (Boswell, 2025.) For those getting married, your taxes will change even if names stay the same. You will no longer have the option to file ‘single;’ you will have to file married. You can, however, choose to file married ‘joint’ or married ‘separate.’ There are, of course, advantages and disadvantages to all tax filing statuses, and your unique financial situation plays a big role in whether you should opt for ‘joint’ vs. ‘separate.’ We highly recommend discussing this decision amongst yourselves, as well as with your tax professional to weigh the options and ensure you are putting yourself in the best possible tax position when changing to ‘married’ status.
Though increasingly less common, the majority of married couples still choose for one partner to take the last name of the other. Don’t forget – if making the switch, your new surname must be reported to the U.S. Social Security Administration and other applicable agencies. If the name on your tax return does not match your name with SSA, you may have to jump through a number of hoops to get your tax returns file and accepted. And a P.S.A. to go with this – be sure to provide your tax preparer with a copy of your new SSA card (via a secure method), so they can make sure your tax return is correctly updated to reflect your new name.
Married or not – are you moving in with your partner this summer? The IRS requires timely address updates of all taxpayers using the Form 8822 – Linked here, and easily available for download on IRS.gov. Be sure to not only report your new address to the IRS right away, as required, but also to your tax preparer so they can update your tax file and client records timely, ensuring a more efficient preparation process come tax season. Our best recommendation is to make a copy of your completed Form 8822 before you mail it to the IRS. Retain this copy in your own records, with a note of the date this was mailed…just in case.
HOME IMPROVEMENTS and TAX CREDITS
With longer days and better weather, home renovation projects commonly take place in the summer months. Fortunately, some of those projects could give you a kick-back. The IRS promotes energy efficient upgrades to your home as a way of helping our communities protect natural environments and reduce utility costs. As you consider your home renovation options, be sure to think about those projects that could give you a tax credit for energy efficiency.
If you are a homeowner and want to revamp your space, you may be eligible for these tax credits:
IRS RESOURCES
The IRS website (IRS.gov) is very comprehensive with a lot of great information. But, if taxes aren’t your jam (like they are for us) it could be overwhelming to comb through a robust tax website. Instead, keep in mind the FREE presentations given by the IRS over the summer, covering topics such as tax returns, tax updates, and tax credits for U.S. citizens.
The IRS cannot, however, provide advisory services unless you qualify for the ‘Taxpayer Advocate Service’ (IRS, 2025.)
That’s where ATLAS CPAs & Advisors can help – offering expert guidance tailored to your financial situation. Click through for a friendly reminder as to why summer is a great time to meet with your CPA or other financial professional.
WORK SMART, NOT HARD
Certain professions and companies only offer seasonal work during winter months, leaving employees with income gaps over the summer. Some may want to take on a summer job or ‘side hustle’ to supplement their income, but should be aware of how this could change the preparation of tax returns.
Your summer job may simply result in an additional W-2 at the end of the year. Or, if considering work that might fall under “gig” economy, your tax return complexity may increase more than expected. Pay close attention to earnings, along with all IRS tax updates. And if starting a side-hustle along the lines of ride sharing, food delivery via an app, or the like – be sure to consult a CPA or other financial professional to gain a full understanding of the details that are necessary to track, ensuring your taxes can be prepared correctly without last-minute surprises.
Traveling for business can take place year-round, but you may be eligible for tax deductions on select transactions. ATLAS recommends business travelers verify tax deductions with the IRS, your employer, and your CPA or tax professional to get the best benefits.
SCHOOL’S OUT (FOR THE KIDS!)
Though your kids are excited for their homework-free days, it can be difficult for parents who work full-time to have kids at home during the summer. It may cause changes to your schedule, cash flow, work availability, and more. Signing kids up for day camps while you work can be helpful in keeping them active. And bonus! You may be able to claim these expenses under the Child and Dependent Care Credit to help offset the cost.
Want to know more about budgeting, planning, and staying on track with your tax strategies throughout the summer? Reach out to ATLAS for a mid-year check in. We are always happy to help!
These tips are provided by the IRS’s “Tax Tips” email service (IRS, 2025.) Interested in more tax tips? Visit IRS.gov to subscribe to their mailing list.