Tax Tip #152
Ralph Loggia • July 25, 2023
Dependent Care Expenses
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?
