Summer is here, and while most people are thinking about vacations and warm-weather plans, a handful of common summer activities can have real tax consequences come filing season.
Summer Day Camp and the Child and Dependent Care Credit
If you're paying for a child's summer day camp, those costs may qualify for the Child and Dependent Care Credit. This credit helps offset child care expenses for children under 13.
Important: overnight camps do not qualify, only day camps do. Keep your receipts and the camp's EIN.
For expats and non-residents: eligibility depends on your tax treaty and filing status — verify with a CPA.
Getting Married This Summer? Two Tax Steps to Do Now
- Update your name with the Social Security Administration (SSA) — a name mismatch can delay your refund
- Notify the IRS of any address change by completing Form 8822
Your filing status will also change — married couples can file jointly (Married Filing Jointly) or separately. In most cases, filing jointly results in a lower total tax bill.
Summer Jobs, Side Hustles, and Gig Work
Seasonal and part-time workers may not owe federal income tax — but should still file a return to claim any withholding refund. Check: Do I Need to File a Tax Return?
Gig workers — rideshare drivers, freelancers, delivery workers — should know this income is taxable. If you're paid through Venmo, PayPal, or Cash App, you may receive a Form 1099-K. See IRS Gig Economy Tax Center.
For non-residents doing gig work in the U.S.: this income is generally subject to U.S. tax, and you may need quarterly estimated tax payments.
Business Travel and Summer Vacations
Business travel is deductible year-round. Review the IRS rules on business travel expenses and keep detailed records.
Selling digital assets to pay for vacation? Be careful. Selling cryptocurrency is a taxable event. You may receive a Form 1099-DA. Keep records of your cost basis and sale price.
Official IRS Sources
- Publication 503 – Child and Dependent Care Expenses
- Form 8822 – Change of Address
- Do You Need to File a Tax Return?
- Gig Economy Tax Center
- Tax Topic 511 – Business Travel Expenses
- About Form 1099-DA
CPA Tips
- Day camp: Save all receipts and confirm the camp's EIN. Without it, you cannot claim the Child and Dependent Care Credit.
- Marriage: If one spouse is a non-resident alien, special rules apply — consult a professional before filing jointly.
- Gig income: If you expect to owe more than $1,000 in federal tax for the year, you're required to make quarterly estimated payments.
- Crypto sales: Every sale, swap, or use of crypto is a taxable event. Track your cost basis carefully.
- For your specific situation — especially if you're a non-resident — consider consulting a licensed CPA or tax attorney.