End-of-Summer Tax Planning for 2019

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Yesterday (9/27/19) we started talking about possible deductions from summer activities for you and/or your business. Now let’s look at some more expenses.

Tax Planning and Summer Weddings

Did you get married this summer? Or you’re planning to get married before the end of the year? Probably your tax planning is the last thing on your mind, but what you don’t prepare for costs you more money.

Every single time.

Here are some things to remember if you get married in 2019:

  • Change your tax return filing status.
  • Update your paycheck tax withholding. Your status will change which table you use.
  • Update your name. If you or your spouse changes your name, you need to update that with the Social Security Administration. They will tell the IRS.
  • Update your address. You can wait until you file your tax return to update your address, but it’s better to file that directly with the IRS ahead of time. Use Form 8822 to change your personal address. Use Form 8822-B to change your business address.
  • Change your status with the marketplace. If you’re currently buying health insurance from the Marketplace, make sure the Marketplace knows about your new status.

Summer Camp Expenses

Let’s switch gears for a second and discuss a deduction that many families may be able to claim.

Did your kids go to summer camp? If normally you pay someone to watch your kids so that you can work (or look for work), you may be able to get a tax break. It doesn’t matter whether you send your kids to day care or day camp, it can be considered child care. And that’s deductible. Unfortunately, overnight camp stays would not be deductible as child care.

Remember that you do need to be working or actively seeking work to take this deduction. If you’re married, both you and your must also be working or actively seeking work to take this deduction.

Tomorrow, we’re going to look at tax breaks if you made a little extra money from your home this summer.

Remember, plan ahead to pay less tax. The best strategy of all is to have a business. If you don’t have one, start one now. If you already have a business, make sure you’re taking advantage of all the tax deductions available to you and that you’re in the best business structure for the current level of your business.

A little planning goes a long way when it comes to taxes! If you’re not already signed up for the weekly tax updates via email, go to https://www.ustaxaid.com/free-tax-updates/.

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