Ah, summertime is here, and with the kids out of school, it's essential to review how you can deduct eligible summer activities on your tax return. 💼💰
Here's what you need to know about the Child and Dependent Care Credit:
- The credit ranges from 20% to 35% of qualified unreimbursed expenses, with a maximum of $3,000 for one person or $6,000 for two or more qualifying persons.
- To qualify, you must have a dependent under 13 or a dependent/spouse who is unable to care for themselves, earned income to support them, and maintain a home for them.
Some tips for maximizing the credit:
- Daycare expenses and in-home daycare qualify, but overnight camps and summer school/tutoring do not.
- Remember to track transportation mileage, cooking, and housekeeping expenses if done for the safety of the qualifying person.
- Volunteer work while your child is in day camp does not count as qualified care expenses.
Don't forget to keep records of providers' information, receipts, and canceled checks for tax filing. Take advantage of this opportunity to reduce your child care expenses this summer! ☀️
Gary M Albert CPA MST CSSCS CFSWC Trauma of Money Certified Practitioner https://lnkd.in/erhQDaNa [email protected]
I coach businesses to turn chaos into clarity, aligning teams and unlocking growth with agile precision—because when Shift Gets Real, results follow.
1wIt’s impressive to see how you guys continue to innovate by leveraging AI. In my coaching experience, I’ve seen firsthand how financial aid complexities and procedural barriers can weigh on students, detracting from their focus on growth and learning. Tools like these not only level the playing field but also empower individuals to navigate systems that often feel overwhelming.