The Tax Chick.PRO

Summer Activities and Taxes – Did You Know?

Summer is a time to relax and have fun, but some seasonal activities may have tax consequences. Being aware of them now may save you time and hassle later.

If your child attends a day camp so you can work or look for work, some of the cost may qualify for the Child and Dependent Care Credit. Be sure to keep records and obtain the camp's tax identification information.

Students with summer jobs may be entitled to tax refunds if income tax is withheld from their pay. Adults earning income from seasonal, part-time, or gig work may need additional withholding or quarterly estimated tax payments.

Summer is also a popular wedding season. If you change your name after marriage, update your records with the Social Security Administration. If you move, update your address with the IRS and submit a new Form W-4 to your employer so your withholding reflects your current tax situation.

Health Savings Accounts - Did You Know?

Changing jobs? If you have a health savings account (HSA), you can take it with you. Unlike flexible spending accounts (FSAs), which are usually tied to your employer, your HSA belongs to you. You can continue using your HSA funds after leaving the job where you opened the account. However, you may make new HSA contributions only if you remain eligible to contribute. To remain eligible, you generally must be covered by an HSA-eligible high-deductible health plan (HDHP) and have no disqualifying coverage.

Tax Filing Extension Options – Did You Know?

The IRS recently posted a reminder that people who cannot complete their tax returns by the April 15 deadline have options to avoid late filing penalties. The vast majority of people qualify for an automatic 6-month filing extension until October 15, which can be requested through the IRS website or by filing Form 4868. Because the extension is automatic, you do not need to get IRS approval.

Just remember that the standard 6-month extension only applies to filing a return, not to paying taxes. Before requesting the extension, estimate how much tax you will owe for 2025, then subtract away the amount of tax you have already paid. (Most people can determine how much tax they have paid by checking their W-2 forms.) Paying the remaining balance with your extension request will help prevent or minimize late payment fees and interest charges.

Note that U.S. citizens and resident aliens who are currently living outside the country automatically have until June 15, 2026 to file their returns. People affected by federally declared disasters like storms, floods or wildfires may also qualify for extended filing or payment deadlines.