By PATRICIA SABATINI
Pittsburgh Post-Gazette
17-JUL-06
Too bad time spent sitting poolside or swinging in a hammock isn't tax-deductible.
Still, other common summertime activities can have a big impact on your tax bill, such as getting married, moving _ even sending your children off to camp.
With that in mind, the Internal Revenue Service (www.irs.gov) offers these summer tax tips:
Getting hitched
Your marital status on Dec. 31 determines whether you are considered married for that year.
Notify the Social Security Administration of any name change before filing a tax return. (Form SS-5, Application for a Social Security Card.)
Filing jointly is usually the best way, but also figure your taxes separately and compare.
Joint tax deductions may exceed the standard deduction, allowing you to itemize.
Hauling out the hitch
Moving expenses may be deductible if your move is job-related and you meet other tests.
If your employer reimburses you for moving expenses, that amount may be taxable income.
Generally, a gain of up to $250,000 ($500,000 filing jointly) from the sale of your home is not taxable.
New homeowner? Be aware that mortgage interest, points and real estate taxes typically are deductible.
For more information, see Publication 521, Moving Expenses; Publication 936, Home Mortgage Interest Deduction.
Kids at work
Working students can mark their W-4 forms (submitted to employers) as "exempt from income tax withholding" if they are claimed as a dependent, their 2006 income won't exceed $5,150, unearned income won't exceed $300 and they had no tax liability for 2005.
Tip income and cash payments are considered taxable wages.
See publications 970, 525 and 531.
Kids at play
The cost of summer day camp counts as an expense toward the Child and Dependent Care Credit.
Generally, the costs of child care while you work, look for work or attend school qualify for the credit.
See Publication 503, Child and Dependent Care Expenses.
Sprucing up
Certain energy-saving improvements to your home may qualify for a tax credit for 2006.
Sales tax paid on materials used to substantially improve your home may be deductible.
Fully deduct points for mortgage refinancing if the proceeds are used to improve your main home.
See www.Energy.gov (search for "Tax Breaks") and IRS Tax Tip 2006-28.
Cleaning up
If you itemize, you may be able to deduct some of your losses from storm damage or other casualties.
Your loss generally is the difference between the property's fair market value before and after the disaster.
From your loss, subtract reimbursements, 10 percent of your adjusted gross income and $100 per event.
See Publication 547, Casualties, Disasters and Thefts.
(E-mail Patricia Sabatini at psabatini@post-gazette.com.)
(Distributed by Scripps Howard News Service, www.scrippsnews.com.)
