It’s hard to believe Fourth of July is already here! In the lineup of one of the most celebrated holidays, the Fourth of July can be quite expensive as everyone rushes around making last-minute purchases for their celebrations. Despite one of America’s most celebrated holidays falling in the middle of the week this year, more than 216 million Americans expect to spend $6.9 billion on food alone according to the National Retail Federation.
Although Fourth of July festivities can get quite pricey, there are some moves you can make over this holiday week to save at tax time, which can help you offset what you spend.
Home of the Clutter-Free
This year Independence Day falls in the middle of the week, which may not seem like the most ideal time, but after you’ve recovered from your festivities, you can take some of the extra time at the end of the week to get organized and clean out your closets.
By cleaning out your closets you can start the summer with a sparkling clean slate and take the clothing and household goods you no longer want to your favorite charity. If you are able to itemize your deductions you will be able to reap the benefit of a tax deduction when you donate to your favorite charity.
You can use TurboTax ItsDeductible year-round to accurately value and track your donations and then they can transfer to TurboTax at tax-time.
Star Spangled Summer Camp
It’s kind of a bummer that the Fourth of July falls on a Wednesday this year especially if you have to work before and after the holiday, but there is a bright side.
If you take your kids to camp so you can go to work, first of all, you will be a shining star and second of all, you can get a tax credit worth up to $1,050 for one kid and up to $2,100 for two or more kids with the Child and Dependent Care Credit. This, unfortunately, does not count for overnight camp but can include day camps, such as sports camps.
In Honor of Our Military
This Independence Day while many of us are planning barbecues or family trips, we always stop and remember our courageous troops who made and continue to make the ultimate sacrifice for our country.
If you are active duty military and have a permanent change of station over the holidays remember that your un-reimbursed moving expenses in connection with that change are still tax deductible unlike the moving expenses for civilians, which are no longer tax deductible under the new tax reform law beginning with the tax year 2018 (the taxes you file in 2019).
So raise your flag, fire up the grill, enjoy the warm weather, and remember these Fourth of July tax savings that will help make you triumphant at tax-time.