Did you know you can get a tax break for certain summertime activities like summer camp and summer cleaning?
Here are some tax tips from the IRS to keep in mind when thinking about money and finances this summer...
- Is your child enrolled in a summer day camp? Then, you may be eligible for a tax credit. Many working parents must arrange for care of their younger children under 13 years of age during the school vacation period. Unlike overnight camps, the cost of day camp may count as an expense towards the Child and Dependent Care Credit.
- Summer cleaning could earn you a tax deduction, as long as you donate items (in good condition!) to a qualified charity. You must itemize deductions to qualify to deduct charitable contributions and you must have proof of all donations.
- Deduct mileage by driving to a service project. There's no tax deduction for time donated toward a charitable cause, but driving your personal vehicle while donating your services on a trip sponsored by a qualified charity could get you a tax break. Itemizers can deduct 14 cents per mile for charitable mileage driven in 2009. Keep good records of your mileage.
- Relocating because of a job this summer? If you can satisfy the distance and time tests, job-related moving expenses are deductible. Other requirements apply if you are self-employed. Members of the armed forces do not have to meet these tests if the move was due to a permanent change of station.
- If your property is damaged in a summer storm you can deduct losses. Recent law changes make it easier to claim a casualty loss for the reduction in value of property damaged by storms, fire or other disasters. And if your county was declared a federal disaster area, you may be able to file a tax return immediately to claim that loss.
How do you save money on your taxes in the summer?