Smart Summer Moves That Could Change Next Year’s Tax Return
It’s easy to associate summer with carefree days, vacations, and relaxation. But while you’re soaking up the sun, the IRS isn’t taking a break. Many common summer activities can directly affect your tax situation. From seasonal jobs to charitable contributions and even the way you vacation, what you do this summer could have serious implications for your next tax return.
Whether you’re a parent, a small business owner, or someone simply making the most of the season, understanding the tax impact of your summer choices is a smart move. Strategic tax planning in Monroe, LA, doesn’t begin at year’s end; it starts right now.
Below, we’ll walk through the unexpected ways summer can influence your taxes. You’ll also find expert guidance, helpful tips, and links to trusted local professionals who can help you make the most of it all.
Before the Leaves Change: Summer as Your Tax Prep Advantage
Summer is when life shifts gears. Families travel more, students take summer jobs, and many business owners adjust operations. All these changes open doors to deductions, credits, or tax-saving strategies if you’re proactive.
Think of summer as a checkpoint. With half the year behind you, it’s the perfect moment to evaluate financial decisions and adjust your strategy. Tax law isn’t always intuitive, but the guidance of an experienced tax lawyer can help uncover opportunities to protect more of your income.
Learn how Niswanger Law can help with your tax planning in Monroe, LA.
1. Summer Childcare and Camps Could Mean Valuable Credits
One of the most overlooked summer-related tax benefits is the Child and Dependent Care Credit. If you pay for childcare while you work or look for work, those expenses could help reduce your tax bill.
Eligible expenses include:
- Day camps
- Babysitters or daycare
- Preschool and nursery programs
To qualify, the care must be necessary for you (and your spouse, if applicable) to work. Overnight camps, however, are excluded from this deduction.
For working families, this credit offers meaningful relief. Keeping receipts and accurate records can make all the difference. Partnering with a local tax planning professional ensures nothing is left on the table.
2. Summer Jobs for Teens: What Parents Need to Know
If your teenager gets a job this summer, it might seem simple at first. But depending on your income and your overall tax picture, it could influence your return.
Here are a few things to consider:
- Wages are taxed at the teen’s rate, but unearned income may trigger the Kiddie Tax
- You may still claim them as dependents
- Setting up a Roth IRA for earned income can offer long-term benefits
Taxes don’t have to complicate your child’s new income. Just make sure you’re planning ahead. An experienced tax lawyer can guide you on filing requirements and deductions.
3. Vacation Expenses: When They’re Tax-Deductible
If you’re self-employed or run a small business, combining business with summer travel can open the door to deductions if the trip includes a legitimate business purpose.
Potential deductions include:
- Conferences or training events
- Client meetings or business research
- Transportation, lodging, and some meals
The key here is documentation. Keep receipts and maintain a record of the business purpose. Need help deciding what qualifies? Book an appointment online to review your travel plans with a professional before it’s time to file.
4. Volunteer Work and Charitable Giving
Summer is a popular time for volunteering and charitable giving, both of which may come with tax benefits.
You might be able to deduct:
- Donations to qualified 501(c)(3) organizations
- Travel costs associated with volunteer work
- Out-of-pocket costs for charity events
- Donated goods or materials
It’s critical to have documentation, especially for larger donations. If you’re planning to give back this summer, work with a tax advisor to maximize the benefit. Learn more about charitable tax strategies at Niswanger Law.
5. Hosting Events or Running a Summer Side Hustle?
Running summer classes, hosting paid workshops, or selling items at markets could push you into self-employment territory. This means:
- Reporting all income, even if cash-based
- Tracking business-related expenses (supplies, advertising, space rental)
- Understanding tax responsibilities for part-time businesses
If you’re using part of your home for business purposes, you may also qualify for a home office deduction.
These ventures are exciting, but they can create unexpected tax obligations. Schedule your service now to ensure your new side hustle doesn’t come with surprise penalties.
6. Buying or Selling Real Estate This Summer?
Real estate deals often close in summer, and those transactions can influence your taxes more than you might expect. Whether you’re buying a vacation home or selling your current property, timing matters.
Things to consider:
- Capital gains exclusions for primary residences
- Rental property depreciation
- Mortgage interest and property tax deductions
A skilled tax advisor can help you structure your transaction to reduce or defer tax liability while also complying with state and federal regulations.
7. Poolside Inspiration: Summer’s the Season for Big Ideas
Here’s something you may not have considered: some of your best financial ideas might come while you’re relaxing. Summer is when many people start thinking about:
- Launching a business
- Investing in property
- Forming a nonprofit
- Updating estate plans
But great ideas need great execution. From choosing the right business entity to qualifying for tax-exempt status, a clear plan can protect your assets and lower your tax exposure.
That’s where Niswanger Law can help. We create customized legal and tax strategies for Louisiana families and businesses, working closely with your CPA, banker, and financial advisors to ensure nothing slips through the cracks.
Talk to our team today and turn your summer inspiration into smart, strategic action.
The Halfway Check-In That Can Save You Thousands
July or August is the perfect time to schedule a mid-year tax review. If you’ve experienced any changes like a new job, new home, new business, or even a new child, your tax strategy should shift, too.
Benefits of a mid-year review include:
- Identifying missed deductions before the year ends
- Adjusting your withholdings or quarterly tax payments
- Planning for big financial decisions still ahead
At Niswanger Law, our proactive, year-round approach helps clients avoid April surprises and stay financially prepared all year long.
The Local Partner Who Listens First and Plans Second
Niswanger Law isn’t your average law firm. We offer personalized tax planning in Monroe, LA, that fits your life, not a generic checklist. Our services are crafted for business owners, families, and individuals who want:
- Clear answers without legal jargon
- Customized tax strategies tailored to their goals
- A firm that treats them with respect and transparency
From using the latest technology (video consults, cloud documents, e-signatures) to our unique “pay what you think it’s worth” policy, we’re all about taking the stress out of legal and tax planning.
Quick Answers to Your Summer Tax Curiosities
Can I deduct the cost of a family road trip if I scout business locations along the way?
Possibly, but only if the trip’s main purpose is business. If you’re meeting with clients or researching opportunities and keeping records like itineraries and receipts, some costs may be deductible. Personal expenses, like theme parks or hotel stays for non-business days, won’t qualify. A tax lawyer can help clarify what’s allowable.
Are seasonal rental properties taxed differently than full-time rentals?
Yes. Short-term rentals (like Airbnb or VRBO) follow different IRS rules, especially if you also use the property personally. The number of days rented impacts whether it’s considered a business and what deductions apply. The right classification can significantly affect your return.
What’s the best way to track summer-related tax deductions?
Use a system like a spreadsheet or accounting app to log deductible expenses. Keep personal and business spending separate, save digital receipts, and document business purposes. Niswanger Law can recommend tools to simplify tracking and compliance.
Is there a benefit to adjusting my W-4 in the summer?
Definitely. If you’ve had changes in income, dependents, or marital status, adjusting your W-4 now can prevent underpayment penalties later. It’s also useful if you want more take-home pay to cover end-of-year expenses.
Can summer tax planning help with next year’s education expenses?
Yes. Summer’s a good time to contribute to 529 plans or prepare for tuition costs. Your tax advisor can help you use education credits like the American Opportunity or Lifetime Learning Credits more effectively.
Secure Your Next Season, Starting Now
Summer decisions have a ripple effect. Whether you’re launching a new side hustle, investing in property, or sending the kids to camp, each choice has a tax impact waiting in the wings.
Why not handle it now, while the sun’s still shining?
At Niswanger Law, we go beyond generic advice. We design tax planning strategies that are personal, precise, and built around your goals. We believe in taking the worry out of taxes, so you can focus on what matters most.
Give us a call at (318) 953-0071 or book your appointment today and finish the summer with peace of mind. Visit us at 3820 Cypress Street, West Monroe, LA, to start planning your tax strategy today.