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School is Out! Remember to Keep These Summer Tax Tips in Mind For Your Child’s Daycare…



Child with Books

The Child and Dependent Care Tax Credit is available for childcare expenses incurred throughout the year.

School is out! For many families with young children, that means finding daycare facilities or babysitters to watch the kids. When you’re making plans don’t forget about the Child and Dependent Care Tax Credit!

This credit is available for childcare expenses incurred throughout the year so parents are able to work or look for work. Below is a reminder of what you need to know:

  • To qualify, children must be under age 13
  • Either at-home sitters or daycare facilities outside of the home may qualify
  • Overnight camps and summer school/tutoring do not qualify
  • The credit is available for up to $3000 of unreimbursed expenses paid in a year, for one qualifying child, or $6000 of unreimbursed expenses for two or more qualifying children

You will want to be sure to save receipts and documentation to reference when filing your taxes. Also, you are required to report the Employee Identification Number (EIN) of the camp, location, and dates the child(ren) attended, so be sure to keep track of these items throughout the year.

Sources + Forms
Child and Dependent Care Expense Tax Credit

Keep the Child and Dependent Care Tax Credit in Mind for Summer Planning

Tax Credit: Residential Energy Efficient Property Credit



residential energy efficient homes

If you made energy efficient home improvements you may be eligible for a tax credit. (Photo Credit: office.microsoft.com)

If you installed certain qualified residential alternative energy equipment in your home you may be eligible for the Residential Energy Efficient Property Credit. With this credit you are able to claim up to 30% of the cost of the qualifying equipment (including labor costs in most cases). Please note this is a non-refundable credit not a deduction, so it will reduce the amount of tax you owe, rather than give you cash back.


Conditions to Receive the Credit

  • The equipment must have been installed in your home in the United States.
  • Fuel cell property only qualifies if it was installed in your primary home located within the United States.
  • Be sure you have the manufacturer’s tax credit certification statement because not all energy efficient improvements qualify.

If you are eligible for this credit complete Form 5695, Residential Energy Credits.

Sources & Forms (External Links)
Form 5695, Residential Energy Credits

 

Do You Cover Part of Your Employees’ Healthcare Costs? You May be Eligible For…

The Small Business Health Care tax credit is available to employers who pay at least half of the cost of health care for their employees. (Photo Credit: office.microsoft.com)

The Small Business Health Care tax credit, which is designed to help small businesses and tax exempt organizations provide healthcare to their employees, is available to employers who pay at least half of the cost of health care for their employees. To qualify you must:

  • Have fewer than 25 full time employees (FTE). 2 part time employees = 1 full time employee.
  • You must cover at least 50% of the premium for single health care coverage for each of your employees.
  • Your employees must have an average wage of less than $50,000 per year. This number is the average! So, if you have 9 full time employees, and 2 part time employees that together make $250,000 you would divide 250,000 by 10, which equals $25,000. Your 10 FTEs (remember 2 part time employees = 1 full time employee) make an average of $25,000 a year. Even if Joe makes $40,000; Sue makes $35,000; Bill makes $30,000; etc.

If you have any questions, or would like additional information regarding this credit please contact your H&S tax professional.