With all the tax law changes this year, be sure that you are getting your just deductions in the coming tax season. That is, qualifying deductions that fall under the Child and Dependent Care Credit. According to tax giant and trusted resource Intuit, here’s the skinny…
If you paid a daycare center, babysitter, summer camp or other provider to care for a qualifying child under age 13 or a disabled dependent of any age, you may qualify for a tax credit of up to 35 percent of qualifying expenses—up to $3,000 for one child or dependent or up to $6,000 for two or more children or dependents.
The Child and Dependent Care Credit is designed to assist working parents and guardians with some of the expenses involved in raising a child or caring for a disabled dependent. To qualify, you must meet several criteria, including the following:
Qualifying expenses for the Child and Dependent Care Credit
Most know that daycare fees qualify for the Child and Dependent Care Credit. However, qualifying expenses often overlooked include childcare provided by a babysitter or licensed dependent care center…as well as the cost of a cook, housekeeper, maid or cleaning person who provides care for the child or dependent.
Other qualifying expenses include day camp or summer camp fees. Even camps centered around a sport or activity qualify if the camp was selected to provide care while the parent or parents were at work. Please note that overnight camps do NOT qualify.
Additional qualifying expenses include costs related to before- and after-school care for children under the age of 13 and expenses related to a nurse, home care provider or other care provider for a disabled dependent. Keep in mind that expenses related to schooling or tutoring are not qualifying expenses.
Because every family is different, be sure to check with your advisor on IRS exceptions. Here’s hoping your summer is fun and festive so far!
Most professions have their own lingo, and accounting is no different. What is different is that you have a vested interest in understanding what your accountant tells you about your financial situation. So, here’s a quick primer on common accounting terms—some business-related, some general—to keep you in the know:
There has rarely been a winter when we so badly needed to see (and feel) spring. Depending on where you live, this could mean bluer skies, warmer temperatures, time outside and…gardening! For those who live in a climate where spring doesn’t always mean it’s warm enough to garden outdoors, consider creating an indoor planting box for flowers, veggies, herbs or all of the above.
While “under a blanket on a cold winter day” isn’t the worst place to work, it’s a good idea to regularly assess your remote working environment—especially if you don’t have a full home office setup—to decide if anything needs an adjustment or upgrade. Here are four important points to consider: