The school year is well underway and while summer might be over, certain summer activities can affect your financial situation. Different activities or changes you make during the summer might affect you when you file your taxes the following April. Here are just a few things that could affect your finances.
We’ve covered this before, but if you get married at any point in the year, your filing status will change. You and your partner will either need to file Married Filing Joint or Married Filing Separate. You will also need to report any name changes to the Social Security Administration. If you move, you will need to report the address change to the Postal service, your employer and the IRS.
Sending Your Kids to Summer Camp
A popular summer activity is sending your kids to summer camp to learn new things and meet new people. While it greatly benefits your kids, sending your kids to day camp can also benefit you financially. The cost of summer day camp could count towards the child and dependent care credit. If you paid a daycare service, a summer camp or a babysitter to care for a qualifying child under 13 years, you could qualify for a tax credit of up to $3,000 for one child or up to $6,000 for two or more dependents.
Working Part Time
Did you or someone in your family work a summertime job? While you might have not earned enough to owe federal taxes, you still need to file a federal return. If you have taxes withheld in your paychecks, you may be due a refund. You should receive a W-2 Form from your employer that will account for the income you received from that job.