9 Summertime Tax Tips From The Roni Deutch Tax Center®
Update and organize your financial records
Can you think of a better way to spend a beautiful summer day then staying inside and organizing your financial documents? Ok, you can probably think of hundreds of activities you would rather do, but it is important to make sure your financial records are in order. This will allow you to review your information and prepare for the rest of the year. In addition, this activity can either be chipped-away at or taken care of all at once. Thus, if there is one, blistering hot day in July or August, you might decide to devote it to document organization and tax planning.
Hire a young family member during summer break
If you have a child, or know someone who has the summer off, you could consider hiring him or her to work for your business (if you have one). This can help you lower profits by writing off additional payroll expenses, and can provide quality working experience to a child or family friend.
Donate unneeded winter clothing
Now that it is hot outside, you probably do not have any need for a closet full or long pants, coats, thermal underwear, etc. So why not donate them to charity? Just make sure you get a receipt for the donation so that you can the donation amount in your charitable contributions.
Take a business trip
If you have to travel for a business reason this summer, then you can deduct your airfare, hotel expenses, meals, etc. Although the trip must be for a qualifying business purpose, there are still many professional conferences offered in spots like Las Vegas, Hawaii, or the Caribbean.
Send your child or dependent to camp
If you have a child or qualifying dependent that has the summer off from school, and you do not have a business to hire them at, then you can always send them to a day camp. You can then write off the expenses under the child and dependent care credit. However, you can only use the credit for day camps, not over night camps.
Get checked up
Health is always important – especially when there is a potential tax deduction to consider. Thus, take some time this summer to make your family’s medical, dental and eye doctor appointments for the balance of the year. You will then maximize your family’s medical expenses – and, hence, medical deduction – for the year.
Purchase an energy-efficient air conditioner
It takes a lot of energy to cool a house on a 110-degree day in August. If you upgrade to an energy-efficient air conditioner, you can save on the overall cost of cooling your home, and take additional tax credits on qualifying purchases.
Meet with your accountant
Accountants are usually quite a bit slower in the summer months. This is a great time for you to meet with your accountant or financial planner to review your total tax situation, and plan your strategy for the rest of the year. That way there will be no surprises this tax season when you get ready to file.
Trade in for a hybrid
This tip may be a bit more expensive than most of our readers were hoping for, but if you buy a qualifying hybrid this summer, you can claim an alternative motor vehicle credit and save on gas. And with gas prices getting dangerously close to $5 a gallon, this purchase can correlate to huge tax savings by lowering the amount you pay in federal excise taxes on gas.
The Tax Lady the Roni Deutch opened the Roni Deutch Tax Center to fill the need in this country for competent income tax return preparation. For more tax articles, check out the www.rdtc.com/blog/”>Roni Dutch Tax Center Tax Help Blog.
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