Get your child-care credit
Tax rules say you can't claim the same expense twice on a tax return—but don't neglect to take all the credit you can.
Even if you use a company flex plan to pay for child care costs, you can still claim a credit for any excess if your actual expenses run higher. The maximum you can pay through the FSA is $5,000. But the allowable credit can run as high as $6,000 for taxpayers with two or more children under 13. Don't lose that extra $1,000 in credit.
More: keep in mind that summer day camp costs qualify for the dependent care credit, too, if they are incurred so that parents can work. Those special day camps that expose the youngsters to training in computers, theater, sailing or soccer are considered child care. On the other hand, the costs of summer school or tutoring are considered education, not care, and thus are not eligible for the child-care credit.
For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.
He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.
An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.
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