Posted by James Financial Services Inc

Summertime Tax Tips To Lower Tax Bills.

Summertime Tax Tips To Lower Tax Bills.

The summer months are always busy as it is a time to unwind and enjoy a much-needed break. However, while on your vacation, you also want to keep a keen eye on your income taxes because those are not on a summer break. 

It is a time to reduce your tax liability and consider how to get tax breaks. What are your plans for summer? Will you be moving to a new residential structure, or are you preparing for educational expenses in the fall academic session?

These preparations are ways to reduce your tax payment and get a bigger refund when tax time comes knocking on your door. So it would help if you had summertime tax tips that will reduce your bills, and we’ve got some helpful ideas below: 

  1. Educational plans 

There are numerous tax deductions and credits you can use to offset educational expenditures. For example, tuition and other education-based costs can be tax-deductible for you, your dependents, and your spouse. There is a Lifetime Learning Credit and American Opportunity Credit which offers help with educational expenses. You can seek the help of a tax professional who will help you understand the tax breaks that apply to you. 

  1. Business vacations and trips

If you combine your family vacation and business trips in the summer, you might be eligible to deduct some parts of your trip. You can deduct the parts of the journey for work purposes, such as your airline ticket, but the airline tickets for your family members will not be removed. 

  1. Consider your withholding taxes. 

In the summertime, we will be in the second half of the year, which means it is an excellent time to look through your withholding taxes to ensure you are paying the IRS the correct amount. So if you just got married, just had a baby, or experienced a change in income, you must adjust all withholding standing with your employer. 

  1. Moving expenditures

Summertime is a popular period for people to make big moves. It is common to find people moving from their jobs, and if you have done this, some of the expenditures will be tax-deductible. 

For example, if you traveled for over 50 miles to get a new job and work in that location for 39 weeks before the move, you can get some of the moving costs deducted on your tax return. Ensure to keep all moving receipts for your tax records. 

The IRS constantly reminds taxpayers to adjust their taxes and all expectations by summertime, making for an easy annual tax filing process. If you want to have lower tax bills, you must start using the tips above to identify deductible areas. 

If you filed for a tax extension in April, you would still have up to 6 months to file income tax returns. Before the six months elapses, all tax records and deductible aspects should be in place. You will also receive notices from the IRS in the summertime concerning your filed tax returns. 

You must respond swiftly when you get such notifications to help you handle all discrepancies on time. You can make the tax timeless nerve-wracking when you keep an eye out for annual deduction opportunities. To stay ahead of the game regarding a reduction of the tax bill, you must know your deductibles. 

The sunlight, beaches, calm waters, and bikinis are just some of the things that characterize summertime, but with taxes, it goes beyond that. You’ve got to be prepared, plan for lowered taxes, and know how to handle all of it before the fall season. The tips discussed will help you reduce those tax bills even as you enjoy the thrills of summertime.



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