Summer tips to help during tax season
You may not think sending your kids to day care or camp during the summer could actually put money back in your pocket. “Any money I can get back for putting my kids in childcare is a good idea,” said Dwann James.
Dwann is a working mom with four year old twins. During the school year, they were busy in pre-k so only were in day care part time, but come summer time, she needed full time help.
“It did go up to 220 dollars a month for my kids during the summertime,” she said.
James will get some of that money back when she gets her tax return. That is because for children under the age of twelve years old, parents can apply for a credit worth up to 35 percent of their daycare expenses.
“The credit is not a dollar for dollar credit, meaning you do not get to deduct every single dollar you have in childcare expenses,” said financial advisor Ross Marino.
And depending on how many children are in the family, parents can get anywhere from 3 to 6 thousand dollars. Mom, Lesley Whitby said, “That means more money in our pocket to spend on other things we need during the year.”
For those who rented houses to vacationers this summer, if you rented for 15 days, you may not have to report that income on your taxes. “Rental income may be offset by expenses, but it will be limited depending on how much you use the rental property,” said Marino.
These tax credits apply to the 2009 tax season. Financial advisors say the thought of getting reimbursed for expenses like childcare and rental property is one way to perk folks up during these tough times.
These credits depend on what you claim and how much money you make, so be sure to check with a tax professional to see if you qualify.
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