The Gifts That Keep on Giving

         Now that school is back in session, it’s a clear sign that summer is coming to an end. In many places, it’s time to expect a clear change of weather. It can also be the time for parents to prepare for some serious tax savings when it comes to expenses related to their children. With a little organization now, the benefits can be felt in the future.
          Most of us are familiar with the Childhood Tax Credit, which can be claimed for children under the age of 17. The TCJA has affected this slightly, but it continues to be a source of joy for parents. However, there are other situations that can become tax benefits, which often occur during the summer months.
          If the children are sent to a day camp, or have a nanny for the school break, those costs might be able to be written off by the parents. This is where good record keeping is critical. The caregiver for your children would basically need to be paid like an employee, including using the appropriate forms and withholding taxes. It may be worth the effort now to receive savings later.

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