Are you thinking about ways to save money on your taxes this summer? Most people don’t think about taxes in the summer, but it’s actually a good time to start planning.
Tax planning recently cross my mind when we donated a bunch of clothing and other items to our local Good Will. But there may be a few ideas that are less obvious. CNNMoney.com recently published a few tips I thought were good to keep in mind. Perhaps some of these apply to you. If so, don’t miss out on the savings by keeping good records now.
Energy Efficiency
Don’t forget tax credits up to $1500 are available on windows and doors to insulation and cooling systems. Find out if your upgrade qualifies here.
Summer Camp Savings
Who would of thought camp could generate tax savings! If you send a child 12 years old or younger to a day camp, the cost may count as an expense toward the Child and Dependent Care Credit. Keep in mind your child must be at camp while you are working or looking for work.
Rent Your House
Some of you are fortunate and live near the coast 
, or a hot spot tourist attraction. According to the article you can rent your home up to 14 days without declaring taxable income. Hey, this could generage some extra cash if you’re into this idea and again live in an area that may draw visitors.
Some of you may own a second home (or guest house). If so you can rent it and deduct the expenses related to renting which includes maintenance and insurance. We all know such expenses can add up to be quite a bit and the tax savings will help. Just make sure you don’t use this second home for personal use more than 14 days out of the year. Otherwise, it’s not considered rental property.
Homebuyer Tax Credit
Finally, don’t forget the homebuyer tax credit extension from June 30 to September 30. If you’re in a binding contract you now have a 90 day extension to get your deal closed.
Adjust Your Withholding Allowances Using the IRS Withholding Calculator
Along the lines of good tax planning, it may be a good time to check to see how much you may owe, or the IRS may owe you next year. How do you do this? Visit IRS.gov and enter your information into the IRS tax withholding calculator. You might consider adjusting your withholding allowances by submitting a new W4 to your employer if it looks like you’ll get a refund.
Do you have any summer tax savings or planning tips?
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