How Summer Shtuff Affects Taxes! & Ur BFF: Withholding Estimator
The Bottom Line:
Summer Shtuff We Do that affects Taxes
Camp/ Gigs/ Gittin Hitched
The Withholding Estimator is Your Friend!
Oh hi September! Matching mask/tankini n soaking up those last summer vibes? Pull up a lawnchair, whip out the vegan dogs, light the citronella and lets talk SUMMER TAX SHTUFF, and your year-round Best Tax Friend.
Check Please!....your withholding.
The Tax Withholding Estimator is there to help you: it’s like an accountability app, mom, principal and crystal ball all rolled into one. Learn to love the Tax Withholding Estimator. Compile your paystubs, tax returns, etc, answer the questions and check your results to see if what you’ll owe Taxman is Yay – if not you can submit a new W-4 form to your employer.
What common summer thingz will affect my taxes!!
Gittin hitched!
Congrats on the June barn hootenanny, Sept Sin City elopement, or August Aruba Extravaganza I do’s! Even though they may not have made the invite list, the Social Security Administration needs to know about a name change, and USPS, employers, and the IRS need to know about an address change.
Also if you are HOTDANG HAPPILY SINGLE and have made a legal name or address change, report that too.
Would you like fries with that?
If you did summer work, a few things to clock– firstly, are you an independent contractor or an employee and did you fill out the appropriate forms? (Handy graphic here!) Nextly – independent contractors are responsible to calculate their own withholding and to pay, so don’t wait til April to get Tax-Smacked.
Slung those mollusks @ Lobster Lobby? Don’t bury those tips in the backyard like a moblord – tip income is taxable!
Took a relaxed approach? Remember, even if you didn’t earn enough to owe income tax - Social Security and Medicare taxes may still be due.
In general, the Gig Economy Tax Center is a great resource for anyone working a non-employee job at any time. Like that awesome lady who intermittently laminated the lanyards at camp!
SPEAKING OF CAMP...
Bye kids! BUT ONLY til Dad picks you up after Mommy’s late frosébizlunch becaaaaause:
Summer day camp may count toward child and dependent care tax credit BUT - overnight camp is not considered a work expense, and therefore would not be eligible! So if you're looking to deduct, day-camp might be your dude.
Think of the IRS’ tools like that friend who pretends SHE wants to go to all those yoga classes together to secretly support your #happyhealthgoalz -- use their resource so there are no surprises! And while you're there confirm that all that summertime fun won’t come for you come April! And you’re sure to have a Good (Last) Day(s of beach-/lake-/hike-/pool- b4 school- time).