November 25th, 2016
TAX TIP OF THE DAY... MAXIMIZE YOUR DAYCARE CREDIT
1) use SUMMER CAMP tuition (no overnight camps).
2) use after school CLEANING LADY if kids are home alone.
3) BABYSITTERS can be used; but you'll never see that sitter again if you ask for their social security number.
4) use daycare for dependent PARENT WITH DEMENTIA.
5) Daycare FLEXIBLE SPENDING ACCOUNTS (FSAs) at work usually save more tax, but at the risk of the "use it, or lose it" feature.
6) Parents must be working, JOB HUNTING, STUDENT or DISABLED.
7) applies to children under age 13, disabled children of any age or dependent PARENTS WITH DISABILITIES.
8) Always list a 2nd child on the form even if child #2 was not in daycare. This quirky rule can save you $600 or more.
9) child of DIVORCE... the custodial parent gets the credit EVEN IF NOT CLAIMING THE CHILD as a dependent on the tax return.
SHARE WITH A FRIEND.
If you need any help.. www.baboiancpa.com
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David S. Baboian, CPA