Tax Tip #152

Have young kids? Since it is summer time, good chance the kids are in day camp. Did you know this may qualify you for a tax credit?

What to know:

• Child needs to be under age 13 

• Married? Both spouses need to have earned income

• Overnight camp is excluded from this benefit

• If employer offers per-tax benefits for dependent care expenses, take advantage as this normally provides a better tax savings then claiming the credit on the tax return. Up to 5K can be withheld pre-tax from wages.

Interested in finding out which provides a better tax savings, the employer provided pre-tax benefit or the direct credit taken on the return?