Cool Sumer-time Tax Relief for ParentsBrian Jang ON June 22, 2017
Sun, fun, kids… and taxes? Yup, you read that right. Now that summer is here, children everywhere are on vacation. And you? You’ve got your hands full scrambling around, trying to keep them occupied, so taxes are the last thing on your mind. Truth is, summer is the perfect time to start planning for the next tax season (and save some money while you’re at it). Here are some welcome tax relief tips to help cool down all those child care expenses this summer.
Daycare Tax Deduction
We don’t need to tell you that daycare costs are through the roof, perhaps causing you to sweat more than the hot August sun. The good news, thankfully, is that you can pocket a nifty child care tax credit to help ease your summertime burden. And the best part is that it’s not only daycare centre fees that are tax deductible. You can also claim nursery schools and in-home child care expenses this summer season.
Summer Camps Tax Deduction
Sending your kids off to summer camp is a great way for them to pick up some extra skills, meet new friends, and enjoy the great outdoors, not to mention give you a much needed break. Fortunately, summer camp programs are also tax deductible—a handy child tax credit that will help offset the cost of all those activities. But before you sign your kids up to that trendy fashion design, horseback riding, or tennis camp, you might want to hold off. You can only take advantage of a child care tax benefit if the camp’s main purpose is to provide child care, not to improve your little tennis star’s backhand swing.
Babysitting Tax Deduction
Looking for another cool child care expense deduction to help beat the heat this time of year? Well, if you have to work or go to school during the summer, you can claim babysitting expenses—but there’s a catch. Your babysitter can’t be a dependent on your taxes, meaning they can’t be a blood relative or related by marriage or adoption and under the age of 18.
How to Claim Child Tax Credit?
When filing your taxes electronically, submit your child care expenses by following your tax software instructions. If you are filing your taxes on paper, complete the Child Care Expenses Deduction form (Form T778).
For professional child care tax deduction advice, contact us today!
- Why You Should Hire a Bookkeeper for Your Business
- Valuable Accounting Tips for Business Owners
- Are You Getting the Right Level of Accounting Support?
- Top 10 Payroll Questions Answered
- Medical Expenses You May Be Missing