SC folks who do these summer activities could get tax breaks in 2025, IRS says. What to know
Sure, summer in South Carolina is filled with the more usual fun activities like outdoor cookouts, beach trips and concert festivals. But do you know what else can be fun in the summer?
Saving money on future taxes.
According to the IRS, there are various popular activities that many taxpayers engage in each summer that, if they put in a bit of extra effort, could lead to tax refunds and credits. Below is a list of typical activities South Carolinians could do this summer that would help them get tax breaks in 2025.
Summer camp
A trip to summer camp is often a kind of rite of passage for many children each summer. It can also be a good way for parents to get some much-needed peace and quiet.
However, for a taxpayer sending a child to summer camp, the cost may count toward the child and dependent tax credit, the IRS states. For those who qualify, the tax credit may help you pay for the care of eligible children and other dependents.
Business travel
Business travel doesn’t stop for parents just because their kids are out of school for the summer. But for certain people, that business travel away from home could result in tax deductions. Regardless if a business traveler is away for a few nights or all summer, they should make sure they remember tax rules related to business travel, the IRS states.
Part-time work
Summertime and part-time workers may not earn enough to owe federal income tax, but they should still file tax returns to get any refund that may be owed to them. Part-time and seasonal workers should visit IRS.gov to learn more about who should file tax returns.
There are also taxpayers who earn summer income as a side hustle or as gig work. The IRS recommends those workers visit the Gig Economy Tax Center at IRS.gov to learn how working in the gig economy can impact their taxes. Also, if taxpayers are paid through payment apps for goods and services, they may receive an IRS form 1099-K for those transactions, the IRS states. For more info, click here.
Home improvements
Homeowners often choose the summer time to make improvements and upgrades. Some of those improvements could earn tax credits.
For instance, if taxpayers make qualified energy efficient improvements to their home, they may qualify for a tax credit up to $3,200.
These types of improvements include Energy Efficient Home Improvement Credits for water heaters, exterior windows and doors and heating and air conditioning installations. Meanwhile, Residential Clean Energy Credits are available for homeowners who install solar water heaters, fuel cells and battery storage or solar, wind and geothermal power generation.
Visit the Home Energy Tax Credits page at IRS.gov to learn more.
More credits
Learn how to claim these tax credits by following these guides listed below.
