Don’t bid summer farewell until you update your tax files. Internal Revenue Service spokesman Christopher Miller says when tax time rolls around, it could bring pleasant memories — in the form of deductions — from some of your some typical summer activities.
If your kids go to a day camp, the cost could count toward part of your Child and Dependent Care Credit, up to three-thousand dollars for the child, up to six-thousand for two or more children. That credit can range from 20-percent to thirty-five percent of your expense, depending on your income.
Miller points out that could mean a significant amount of money. You could get the 35-percent rate if your income’s quite low, and the 20–percent rate even if you earn over 43-thousand dollars. He adds that break is only for day camps, not overnight sessions.
“How about if you’ve moved this summer?” Miller suggests moving expenses may be deductible, if the move was job-related and you meet certain tests. Just keep in mind that some employers reimburse a worker for costs of moving, and some of that amount may be taxable income. Keep any paperwork related to it, so you’ll have the proof in black and white when you take it all out to figure your taxes a few months from now.