IRS Tax Tip Spotlights Summer Activities That Can Be Tax Write-Offs
A new IRS summer tax tip highlights everyday summer plans that can turn into legitimate tax savings on next spring’s return, from a child’s day camp to a self-employed road trip. The dollar opportunity is real: the Child and Dependent Care Credit is worth up to 35% of qualifying care costs, the Foreign Earned Income Exclusion is $130,000 for the 2025 tax year, and a Form 1099-K is required only once payment app activity exceeds $20,000 and 200 transactions. With a little planning now, summer activities can lower your next tax bill instead of catching you off guard, especially if you’re a U.S. taxpayer living or working abroad.
Which Summer Activities Can Lower Your Tax Bill?
The IRS tip groups summer tax opportunities into five categories, plus one common question the tip leaves unanswered:
- Day camp for a child under 13 can be a real tax write-off. Qualifying costs feed the Child and Dependent Care Credit under Publication 503, worth up to 35% of expenses for up to $3,000 for one child or $6,000 for two or more. Overnight camp does not count.
- A summer wedding opens the door to the joint filing status, with a $31,500 standard deduction for the 2025 tax year. To lock it in cleanly, report any name change to the Social Security Administration and update your address with the IRS using Form 8822.
- Part-time, seasonal, or side-gig income must be reported, but ordinary business expenses can offset much of it. Payment platforms send Form 1099-K only once you cross $20,000 and 200 transactions, and many seasonal workers actually qualify for a refund of withheld taxes.
- Business travel to a temporary work location of one year or less is genuinely deductible under IRS Topic 511, including airfare, lodging, ground transport, and 50% of business meals.
- Paying for a summer trip with digital assets is treated as a sale and may produce a deductible loss or a taxable gain. Custodial crypto brokers must now issue Form 1099-DA for 2025 transactions, with cost-basis reporting beginning for assets acquired on or after January 1, 2026.
- Summer college tour trips with your high-schooler are not on the IRS list, and they do not qualify as a tax write-off. The IRS treats personal college visits as personal travel, not deductible business travel, and tuition-related tax benefits like the American Opportunity Credit only begin once your child is actually enrolled.
The reminder is timely. Most of these decisions happen in June, July, and August, but their tax impact lands on the return you file by April 15 (or June 15 with the automatic expat extension).
How These Write-Offs Work Differently When You Live Abroad
The same five categories look different through an expat lens, and the benefits can be even bigger when planned correctly.
- Dependent care: A foreign day camp can still feed the Child and Dependent Care Credit, but you need earned income that has not been fully excluded under the Foreign Earned Income Exclusion. Excluding 100% of your income under the FEIE typically leaves no earned income to support the credit, so families abroad often capture more value by combining the FEIE with the Foreign Tax Credit. Foreign providers also need a taxpayer ID for Form 2441.
- Summer weddings to a foreign spouse: Joint filing is often the biggest write-off of all. Filing jointly with a foreign spouse unlocks the $31,500 standard deduction once your spouse has an ITIN, obtained through Form W-7 (about seven weeks to process).
- Summer jobs and side hustles: A U.S. citizen picking up freelance work while traveling can offset much of that 1099 income with legitimate expenses, then layer in the FEIE on what’s left. The self-employment tax of 15.3% still applies, but a totalization agreement with your country of residence may waive it. International students and J-1 scholars working a summer job typically file Form 1040-NR and may be exempt from FICA, but any 1099 still has to be reported.
- Business travel and your tax home: Travel deductions hinge on where your tax home sits. For digital nomads, establishing a clear foreign tax home is what makes a summer of client trips genuinely deductible business travel rather than personal living expenses.
- Vacations paid in crypto: If a summer crypto sale produced a loss, you can use it to offset other capital gains or up to $3,000 of ordinary income. Expect an IRS Form 1099-DA early next year and keep your own cost-basis records, since crypto held on foreign exchanges can also trigger FBAR and FATCA reporting.
Who This Affects
- Parents with dependents abroad who used a foreign day camp this summer and want to claim the Child and Dependent Care Credit.
- U.S. citizens considering a move abroad who married this summer, changed their name, or expect a foreign address by next April.
- International students and J-1 scholars who took summer work in the U.S. and received a 1099-NEC, 1099-K, or W-2.
- Digital nomads and self-employed Americans who traveled for client work or sold crypto to pay for a trip.
What You Should Do Next
- Save day-camp receipts and your care provider’s tax ID before fall, even if you’re not sure yet whether the credit applies.
- File Form 8822 if your summer included a wedding, a move abroad, or any other address change, and notify the Social Security Administration of name changes.
- Begin an ITIN application now if you are married to a non-U.S. spouse and plan to file jointly, since the IRS quotes about seven weeks of processing.
- Track every transaction on payment apps, and keep your own records of crypto sales so the cost basis is ready when 2025 Form 1099-DA copies arrive.
- Confirm your tax home before claiming summer business travel, and keep travel logs, lodging receipts, and a clear business purpose for each trip.
- Get matched with an expat tax accountant early so the credits, exclusions, and reporting forms line up cleanly on your next return.
One Summer Decision Can Reshape Your Whole Return
The information in this article is for general informational purposes only and does not constitute tax, legal, or financial advice. Tax rules are complex and change frequently. Consult a qualified tax professional regarding your specific situation before taking any action.
