How Can the IRS Help Kids?

July 10, 2012 by  Filed under: Taxes 

If you have children, you already know that you can receive tax benefits to cover the costs of childcare. However, did you know that the government is handing out money to help your kids go to summer camp as well?

As a parent, most of us dread the summertime mainly due to the out-of-pocket expenses that occur. Do we love our children any less? Of course not, but that doesn’t make summer easier financially. During the summer school break, many parents are turning to summer camps to provide some sort of childcare while they work, and the U.S. government is now stepping up to help offset some of the cost. Of course, the overnight camps won’t count but the IRS says that any expenses you shell out is going to qualify for an end-of-year credit.

It doesn’t matter if you paid for after-class care during the actual school year or if you had your child attend a week or two of summer day camp, you can apply for the credit under the Child and Dependent Care clause. This credit is also going to apply to care for any dependants other than your child as well. There are limits imposed, however, both on what you can earn and what you spend.

Here are the services that you can have and still be eligible for the credit:

· Licensed care centers

· Nursery schools

· Private home nurses

· Household help

Here are some other things that you have to keep in mind when considering your summer care:

Percentage Restrictions – One you determine the allowed expense amount, the credit is going to be limited to a certain percentage of that number. With that in mind, it doesn’t matter how much you pay out, you are only going to get that percentage back. The max credit is $1,035 for one dependent and double that number for two.

Care Cost Limitations – The IRS is not going to give you all your money back for all the child care costs you spend so keep that in mind. You will only be able to claim a max of $6,000 per household no matter how many children you have.

If You Don’t Pay Taxes, Don’t Apply – Simple rule, if you want IRS tax help, they are not going to hand out money to those who don’t pay taxes.

Company Benefits – If you happen to get company benefits, you will have to fill out special paperwork at the end of the year when you file your taxes. Do not forget to do this because if you do, chances are you will lose the credit.

Defining Your Dependents – If you shell out money for daycare or any other type of childcare then claim the credit. It can help offset some of the money you spent during the year.

If you are facing an IRS audit or need IRS tax help, contact the experts at Guardian Tax Resolutions today by visiting GuardianTaxResolutions.com for a free consultation and quote.

Article Source:
http://EzineArticles.com/?expert=Mark_R_Randall

Speak Your Mind

Tell us what you're thinking...
and oh, if you want a pic to show with your comment, go get a gravatar!


You must be logged in to post a comment.

Prev Post:
Next Post: