Summertime Tax Considerations

 

When you think of the summer time, or even the early fall, you probably think of the hot sun, the lake and water parks, family vacations, sending the kids back to school, and labor day. One subject that probably does not cross your mind is taxes. However, as a tax lawyer, I can tell you that there are several ways in which summer events and expenses may have an impact on your tax return.

  • Summer camps and daycare. Summer day camps are essentially daycare for working parents who do not have school to send their children to during the summer. These camps can be incredibly expensive and can cost a small fortune during the long summer. Qualifying day camps may be claimed as a child and dependent care tax credit. Please note, however, that overnight summer camps to not qualify for this credit. Instead, this credit is meant to cover day care expenses for working parents of children below the age of thirteen.
  • Housecleaning. People often take time during the summer and before school starts to clean out the house and donate property to charity. These are charitable tax deductions. However, the IRS takes a skeptical view of people who claim large charitable deductions. It is essential to obtain proper proof of every donation. If you cannot prove it, do not claim it.
  • Tax extensions. If you obtained a six-month extension to file your taxes, your tax return is due in October. However, this means that your preparations and number gathering should already be well underway during the summer months.
  • IRS Notices. In addition, during the summer, the IRS begins to send notices of adjustments or audits to taxpayers who filed their returns in April. Be vigilant of any such letter and contact a tax attorney if you receive one and need assistance.
  • Summer Fraud and Scammers. Thieves never rest, and the IRS has issued warnings of numerous schemes to defraud taxpayers. These include: (1) fake IRS agents or automated calls demanding prepaid debit cards to pay off an unknown tax obligation; (2) people pretending to be private contractors collecting debt for the IRS; and (3) people targeting taxpayers who are not English proficient.

A Tax Attorney Can Help You

If you need IRS tax assistance at any time of the year, let me help you. I have been a tax attorney for over two decades and can provide you with prompt, informed, and accurate legal advice. In addition, I have earned a Master of Law Degree (LLM) in Taxation, and am licensed to practice in the United States Tax Court. Call The Law Offices of Robert S. Thomas at 847-392-5893 for a consultation or visit our website today.

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