5 End of Summer Money Tips to Help You Save at Tax Time

Tax tips don’t need to come only at the end of the year.

We’re providing five actions you can take in summer. These should make life easier come tax time and help boost your tax refund.

1. Plan ahead

What expenses will you have for the rest of the year? Which of those things can give you a tax credit or deduction?

By looking ahead, you can get a solid idea of what you’re eligible for and then plan your expenses. 

Here are a few scenarios that might make sense for you.

Thinking about giving to charity?

If you don’t have the cash on hand right now, you can start saving today with the goal of making the contribution in December. 

Cash and non-cash contributions to an IRS-recognized nonprofit organization are deductible if you itemize. 

There’s also good news if you don’t itemize: Starting with tax year 2026, the One Big, Beautiful Bill adds a new above the line tax deduction for cash contributions up to $1,000 ($2,000 for married filing jointly). Keep in mind that non-cash contributions do not qualify. 

If you do itemize your deductions, a 0.5% adjusted gross income (AGI) floor applies starting in tax year 2026. This means that you can only deduct the amount of contributions over 0.5% of your AGI. For example, if your AGI is 100,000, you’d only be able to deduct your contributions that exceed $500. 

By looking ahead, you can get a solid idea of what you are eligible for and then plan your expenditures accordingly. It makes sense to be prepared rather than try desperately to find last-minute tax savings.

Are you self-employed and thinking about purchasing office equipment?

You can purchase that equipment any time throughout the year, even on December 31, and take a business expense deduction under Section 179 on your taxes. The new tax bill increased the amount that you can deduct for business property purchased in tax year 2025 to $ 2.5 million and is limited to $2.56 million for tax year 2026.

Thinking about an extra mortgage payment?

If you pay the January bill in December, you are allowed to deduct the additional mortgage interest payment this tax year. This strategy will be beneficial if you itemize your deductions and only prepay January’s payment (since it technically covers the month of December). Any further prepayment is ineligible for this year’s tax deduction.

2. Itemize your tax deductions

For many taxpayers, itemizing tax deductions is a way to reduce taxable income.

Some eligible tax deductions include charitable contributions, mortgage interest, property taxes, and a portion of medical expenses  that exceeds 7.5% of your adjusted gross income.

TurboTax will help you decide which is more beneficial for you (the standard deduction or itemized deductions) based on your entries, but it’s helpful to start thinking about the tax deductions you may have now.

Keeping those receipts can help you save more money when you file your taxes.

3. Keep good records

This one’s simple advice, but it makes a real difference. When it comes to taxes, it helps to have your records all in one place so you don’t miss any tax deductions or credits. By keeping good records now, even if you haven’t in the past, you can save time when you prepare your tax return.

4. Strategically sell your investments

If you want to sell investments, do it thoughtfully.

Got gains? Sell some losing investments, too. And use those losses to cancel out the gains. This is called “tax loss harvesting.”

Are your losses bigger than your gains? You can use up to $3,000 of that extra capital loss to lower your taxable income and roll over the rest to the next year.  If you have more than the $3,000 in capital losses, those losses can be rolled forward each year until it is completely used up.

Not sure where you stand?  Use the  Capital Gains Tax Calculator to help you figure out your gains, losses, and taxes owed. If you want to donate to charity and you own stock that’s gone up in value, donate the stock instead of selling it. You still get to deduct its full value and you skip the capital gains entirely.

Before you do anything, sell or not sell, particularly if you’re worried because markets are shaky, read the post “Make the Money Moves that Hold Up when Markets Don’t.” It helps you set up a simple framework so you don’t react in an uncertain market.

If you’re a first-time investor, you might want to check out this post that goes into what you need to know about your investments and taxes.   

5. Tax benefits for your kids

There are some tax credits you can use if you have dependents.  

The Child Tax Credit (CTC) is a tax credit that you get for having your dependent kids under the age of 17 that are claimed on your tax return.

If you don’t qualify for the Child Tax Credit because your dependent child is over 16 at the end of the tax year, or if you support a friend or a relative, you may still be able to claim the Other Dependent Credit of up to $500 per qualifying person.

If you’re working or actively seeking work, and you pay childcare for your dependent who is under the age of 13 (no age limit if disabled), you may be able to claim the Child and Dependent Care Credit.

The Earned Income Tax Credit (EITC) is available if your wages or self-employment income are below a certain income level. 

The American Opportunity Tax Credit (AOTC) is a refundable tax credit that can help cover necessary expenses like books, supplies, and tuition during your first four years of college.

Get more details in this post, “Parents, Don’t Sleep on These Tax Credits (and What To Do with Them).” 

TurboTax has you covered

Don’t worry about knowing these tax rules. Meet with a TurboTax expert who can prepare, sign, and file your taxes, so you can be 100% confident your taxes are done right. Start TurboTax Expert Full Service today, in English or Spanish, and get your taxes done and off your mind.