Child and Dependent Care Credit

Claiming Summer Camp Expenses On Your Tax Returns

Keeping children busy and entertained during the summer months when school is out is no easy task for parents. One alternative is sending the youngsters to summer camp, which is typically not a small expense. However, tClaiming Summer Camp Expenses On Your Tax Returns

During the school year, working parents have the luxury of not having to find someone to care for their younger children during normal school hours. In this case, children only need care during the hours between the time school ends and when a parent arrives home from work, which may be two to three hours at the most. However, during the summer this changes when school end and parents must find day-long care for their children. Many parents send their kids to camp during the summer to solve this problem. Is there any tax relief for parents in this situation?

How Your Job Hunt Could Lower Your Taxes

For taxpayers seeking a new job in their same line of work, a tax deduction for some job search expenses may be available. First and foremost, these expenses must be related to a job search in a taxpayer’s current occupation, as expenses related to a search for a job in a new occupation may not be deducted. If an employer or third party provides reimbursement for the expense, it may not be deducted.

Here are some expenses that may be deducted:

  1. Employment and job placement agency fees;
  2. Costs of preparing, copying and mailing résumés to prospective employers;

Child and Dependent Care Credit Explained (26 U.S.C. §21)

Federal courts have long held that expenses incurred by taxpayers for the care of dependents, such as a daycare or babysitting expense, while the taxpayer is away from home and at work, are not deductible under I.R.C. § 162(a). However, taxpayers who incur daycare expenses for their children or disabled adult dependents may be eligible for a federal tax credit of up to 35% percent of the cost of day care. To qualify for the child and dependent care credit, you must have a dependent child age 12 or younger, or a dependent of any age who cannot care for himself or herself. You may calculate your tax credit on IRS Form 2441.

To Be or Not To Be? Married Filing Jointly or Married Filing Separately?

Married couples have the option to file jointly or separately on their federal income tax returns. Undoubtedly, married couples during tax season have asked each other if they are filing advantageously, whether currently filing jointly or separately. The IRS strongly encourages most couples to file joint tax returns by extending several tax breaks to those who file together. In the vast majority of cases, it’s best for married couples to file jointly, but there may be a few instances when it’s better to submit separate returns.