5 Summer Activities That Can Change Your Taxes
Certain summertime fun might help lower your taxable income. Here's what you need to know.
For many, summer is a time for relaxation, fun, and adventure. But did you know that certain summertime activities might affect your taxes?
The IRS has identified five things you might do this summer that could impact your taxable income next year, along with some tax planning tips to help you navigate them. Here they are.
1. Your summer wedding (Getting married)
Summer is a popular season for weddings, and the IRS reminds newlyweds to take steps to make future tax filings a bit easier.
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- First, if there has been a name change, you must report it to the U.S. Social Security Administration to ensure that the name on your tax return matches your Social Security records.
- Second, if you have moved, you should notify the United States Postal Service, your employers, and the IRS.
- Note: Just so you know, you must complete and submit Form 8822 to officially change your mailing address with the IRS.
Updating these details now can help save time and avoid complications when filing your first tax return after getting married.
Also, remember that whether you pay less income tax when you're married depends on several factors including tax deductions and credits you may claim, filing status (e.g., separately vs jointly), and your federal tax bracket.
2. Summer camp: Is it tax deductible?
Surveys show that good summer camps can be hard to get into in many areas of the U.S. But if you can send your child to a camp program this summer, the cost might qualify for the Child and Dependent Care Credit.
- This credit is available for costs related to the care of children under age 13.
- The tax benefit can offset expenses associated with the care of those children, including summer day camp fees if the care is necessary for a parent(s) to work or look for work.
To take advantage of this tax break, keep detailed records of camp fees to ensure they meet IRS eligibility requirements.
For more information, see Is Summer Camp Tax-Deductible?
3. Summer job
Summer often brings opportunities for part-time and seasonal work. Even if you don't earn enough to owe federal income tax, the IRS recommends you file a tax return to receive any refunds.
Additionally, some people may have gig work or side hustles during the summer. The IRS offers some reminders:
- Earnings from these activities are taxable. Earnings from seasonal work, freelancing, or gig platforms must be reported, regardless of whether you receive formal tax documents.
- Filing a Return: Even if you don't earn enough to owe federal income tax, filing a return is the only way to get a refund for any taxes withheld from your paychecks.
- 1099-K Reporting Thresholds: Following recent tax changes, payment platforms are only required to issue a Form 1099-K if your gross payments exceed $20,000 across more than 200 transactions. However, you are still legally required to track and report all self-employment earnings even if you don't receive a 1099-K.
Also, worth noting: If you use your personal vehicle for gig work or freelance driving, the IRS increased the business standard mileage rate to 76 cents per mile effective July 1, 2026 (up from 72.5 cents for the first half of the year).
Make sure your driving logs separate miles driven before vs. after July 1 to maximize your deduction.
You can visit the IRS Gig Economy Tax Center online for more information on how these earnings can impact your taxes.
Part-time and seasonal workers can visit IRS.gov or see Who is Required to File a Tax Return? for more information.
4. Home improvements
Federal tax credits for residential solar, heat pumps, energy-efficient windows, and HVAC upgrades expired at the end of 2025. However, some home renovations still come with potential tax implications:
Capital Improvements vs. Repairs: Routine maintenance (like repainting or fixing a leak) cannot be deducted on your tax return. However, major upgrades that add value to your home or extend its useful life, like replacing a roof, building a deck, or installing a new HVAC system, increase your home’s cost basis.
Lower Future Capital Gains: Increasing your cost basis reduces your taxable profit when you eventually sell your primary residence, helping you stay below the federal capital gains home exclusion ($250,000 for single filers / $500,000 for married couples).
Local Rebates: Check with local utilities and state energy offices, as some may offer direct rebates or property tax exemptions for efficiency upgrades.
5. Business travel tax deduction
Business travel doesn’t stop just because it’s summertime.
All year round, tax deductions are generally available for the self-employed and certain other people who travel away from their home or principal place of work for business reasons.
- If you are self-employed and travel for your work, you can generally deduct certain expenses like airfare, lodging, and meals, provided they are necessary and directly related to your business.
- Keeping detailed records of all expenses is crucial to substantiate your deductions.
- Also note the recently updated mileage deduction: Self-employed individuals deducting business travel by car can use the updated 76¢ per mile rate for trips taken between July 1 and December 31, 2026. If you reimburse employees under an accountable plan, you might want to update your payroll systems now to reflect the higher tax-free rate for post-July 1 driving.
Familiarizing yourself with IRS guidelines on business travel can help you maximize your deductions and reduce your taxable income.
However, if you're uncertain whether you can deduct business travel expenses, consult a trusted tax advisor.
Summer 2026 and your taxes: Bottom line
Staying informed about how these and other activities affect your taxes helps you manage tax liability and potentially save money.
Whether it’s keeping receipts for home improvements and travel, filing the necessary forms after a marriage, or claiming credits for childcare, a little planning can also make the next tax season less stressful.
Always consult a qualified tax professional if you have questions about how specific activities may affect your personal tax situation.
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