Don't Mess With Taxes

Image by Tabea from Pixabay

June is here. Summer officially arrives in a few weeks. Are you ready?

Summer’s supposed to be the peak leisure season, but it takes some work. There are vacation plans to make. If you’ve got children, you’re probably ironing out day camp details.

And, of course, you have made your June tax moves list, right?

Oh, you don’t have taxes on your June to-do list? Sure, taking care of tax matters definitely isn’t the day at the beach you want. But some summer tax moves can help make next year’s filing easier, and potentially less costly.

Here are five tax moves that might apply to you this month.

1. Pay your estimated taxes. Millions of us must make these extra tax payments each year. The money goes to Uncle Sam to cover income we get that’s not subject to withholding, such as earnings from gig work or other self-employment jobs, prize or gambling winnings, or investment income. Some Social Security recipients who must pay tax on these government retirement benefits also pay that amount via estimated taxes.

The June deadline for all these folks usually is June 15, but this year it’s pushed to Monday, June 16, because the 15th is on Sunday. This month’s payment is the second estimated tax amount for 2025, and is for income earned in April and May.

Most of us estimated taxpayers, however, don’t calculate the per month income. Instead, we figure how much we expect to make, calculate the overall tax bill, and send in that amount in four equal payments. These four amounts, not the calendar quarters we know, are how the tax collection process got its name.

You can mail your payment along with the Internal Revenue Service’s paper Form 1040-ES by April 15. Or, since you don’t want to waste any more precious summer time, you can avoid the form and simply pay your estimated tax amount electronically.

2. File your 2024 tax return. Yes, I know it’s June, not April. And no, I’m not talking about taxpayers who got an extension to file their 1040 forms by Oct. 15.

June 16 is the due date for U.S. taxpayers who live and work abroad. This deadline, which usually is June 15 but as noted in tax move #1 is on Sunday this year, also applies to armed forces members who are posted outside the United States or Puerto Rico.

These foreign-based filers, however, should have paid any tax due by the April Tax Day. If they didn’t, they’ll owe interest on the unpaid amount that’ been accruing for the last two months.

If you're facing the June 17 deadline, either as a civilian or military taxpayer, and still aren’t ready to file your return, don't panic. You can get even more time, until the regular Oct. 15 extension deadline, by sending the IRS Form 4868. And be sure to pay your due tax if you haven’t already.

3. Get hurricane ready. June 1 marked the official start of the 2025 Atlantic/Gulf of Mexico hurricane season. Federal forecasters are again calling for a very active tropical storm season, but Mother Nature’s been calm. So far. We can’t be sure when she’ll send a storm our way; the season runs through Nov. 30. The best move early, and through the storm season, is to be prepared. Even if you don’t live along the coast, storms still do a lot of damage as they move inland.

4. Do some summer cleaning. We’re all familiar with spring cleaning, or at least the term. But some of us (guilty!) let that seasonal housekeeping slide earlier this year. Take care of it now. Tired of some of your winter wear? Don’t pack it away, give it away to a nonprofit that can make good use of your still good, but unwanted, apparel. The same is true of household goods.

If you itemize, you can claim the donations as a charitable tax deduction. Just be sure to follow the IRS' charitable giving rules. That includes claiming the correct fair market value of your donated items.

5. Adjust your withholding. If you have a wage or salary paying job, a chunk of your earnings every pay period goes to the IRS via payroll withholding. The tax goal is to have the withholding amount to be as close as possible to what you owe when you file your annual tax return. If you got a big refund or were surprised by a tax bill when you filed, you can adjust your withholding to get it closer to your year’s final tax bill.

The IRS' online Tax Withholding Estimator, available in English and Spanish, can help you get your withholding amount just right. Then plug the tool's numbers into a new Form W-4 and give that document to your payroll office. Doing so in June will spread any changes over the next six to seven months, depending on your pay schedule, so the amount, especially if your withholding increases, shouldn't be such a shock and mess up your budget’s your cash flow.

More June tax moves: Okay, you've checked out these five June Tax Moves, and some apply to your tax situation. Take care of them now, or as soon as you get back from your holiday.

And if you’re feeling invigorated by your early summer break, take a look at more possible tax actions in their usual place, over in the ol' blog's right column, under the red June Tax Moves image.

Here’s hoping some may help you save enough in taxes so you can take another trip later this summer.

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