Summer Activities Could Impact Next Year’s Tax Return

To quote Ralph Waldo Emerson, “Live in the sunshine. Swim in the sea. Drink in the wild air.” You might add, “Plan for taxes.” Here are two activities that could impact a student’s tax return next season.

Marriage

Newlyweds can take two simple steps now to make tax filing easier later:

  1. Report any name change to the Social Security Administration.
  2. Update any address change with the United States Postal Service, employers and the IRS. To officially change your mailing address with the IRS, submit Form 8822, Change of Address. Page 2 of the form has detailed instructions.

Part-Time Work

You may not earn enough as a summertime or part-time worker to owe federal income tax, but you should file a tax return to get any refund. Visit IRS.gov to learn more about who should file a tax return.

To learn how earning a summer income from a side hustle or gig work can affect your taxes, visit the Gig Economy Tax Center at IRS.gov. Keep records of money you receive from gig work and sales. You may receive an IRS Form 1099-K from transactions paid through payment apps during the year, but you must report all income on your tax return, even if you don’t receive Forms 1099! Hot tip: Save receipts of your expenses too. You can lower the amount of tax you owe by deducting certain expenses. For more information, go to IRS.gov/1099k.

Note: This information cannot take the place of advice from a lawyer. Each case is different and needs individual legal advice. You should contact the LITC or a private attorney if you need representation on a tax matter or if you have questions.

Sources:

Summer activities that could impact next year’s tax return | Internal Revenue Service