August brings us the sunsetting of summer. But amid the season’s waning days, taking care of some tax tasks can be beneficial. (Photo by Kay Bell)
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It’s August. Already! How did this final summer month sneak up on us, or at least on me? I guess I was having too much fun, tax and otherwise. 😉 I hope you were, too.
But now, with days growing incrementally shorter and the imminent return of classes, it’s time for us to start wrapping up summer and refocus for fall. That includes making some timely August tax moves.
Here are five to consider.
1. Make your tax holiday shopping list. School welcome back students later this month across much of the United States this month. So it’s no surprise that August is full of the summer’s final back-to-school tax holidays of the year.
Three that started on July are wrapping up today. But the coming weekend, the first Friday and Saturday of August, are the heart of these tax-exempt sales events. This post has details where you can see if your state is one of 16 holding a sales tax holiday in August.
If so, mark your calendar, make your list, and then head to your local merchants to buy tax-free (or reduced) class supplies, clothing, computers and more.
2. Examine educational tax help. In addition to stocking up on school supplies, it’s time to do some homework on how Uncle Sam can help pay for some common education expenses.
The Internal Revenue Code offers a variety of tax-advantaged ways to help pay for school costs, from kindergarten to post-graduate to beyond. They include the American Opportunity and Lifetime Learning tax credits, 529 plans, Coverdell accounts, and the newest option, the Trump Account.
3. Prepare for hurricane season. Some folks see the resumption of school days as a signal to take one last summer trip. Many head to the shore to shore for a final few warm days of beach lounging.
Full-time coastal residents, however, have a different perspective. They must focus on things beyond warm days of beach lounging. They know too well what can happen when warm Atlantic Ocean and Gulf of Mexico waters feed tropical systems.
A strong El Niño has dampened the 2026 tropical storm season so far. But hurricane season tends to tends to pick up speed in late summer. And remember, the tropical threat officially runs through Nov. 30.
So, if you haven’t already made your hurricane preparations, now is the time to get ready.
4. Review your summer earnings. You had time this summer to make some extra cash from your hobby or a side hustle to supplement your wage-paying job. The additional income also is a boon for the Internal Revenue Service since it is taxable income.
If your summer earnings were/are substantial, you should treat the activity that created them as another job, not a summer lark. That could save you some tax dollars. When you operate your money-making endeavor as a business, not merely a hobby, you might be able to deduct some of those income producing efforts as business expenses.
Note, though, that this self-employment add-on means some additional tax work.
First, make sure you have all your earnings records and associated expenses in order. Good record keeping, as in all tax matters, is crucial.
As for the tax on these earnings, you can adjust your main salary paying job’s withholding to account for the tax you’ll owe on the summer self-employment income. Or you can make estimated tax payments. The third quarter’s estimated tax deadline is Sept. 15.
5. Work on your tax filing extension. If you spent most of the summer having fun, good for you. But if you got a filing extension to file your 2025 tax return, you might want to start working on that now.
Yes, the deadline isn’t until Oct. 15. But as noted at the top of this post, time has a way of slipping away. So, to avoid facing a filing crunch in a couple of months, consider at least getting started on that Form 1040.
You can begin by reviewing the tax statements you need to file your tax return. You also should check out the new tax laws that might affect your 2025 filing. They include some that are available whether you claim the standard deduction or itemize.
You also can check out the ol’ blog’s monthly tax tips, starting with January’s list (which has links to the subsequent months) for other tax filing and saving suggestions and reminders.
I know you just want to finish out a relaxing summer. I share that goal. But if some these tax tasks apply to you and you deal with them now, you can chill during the rest of the season’s last lazy, hazy days. And maybe save a few tax dollars, too.
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