Deducting Summer Activity Expenses - Don't forget to save receipts

The kids are out of school and summer is well underway. Make sure you understand the rules regarding the tax-deductibility of summer activities and related daycare expenses through the use of the Child and Dependent Care Credit. Collecting those receipts now can save plenty during tax time.

What is deductible?

20 to 35% of qualified un-reimbursed expenses with a maximum amount of $3,000 for one person and $6,000 for two or more qualifying persons.

How it works. To receive the credit you must;

  • Have a dependent under the age of 13 or have a spouse or dependent who is physically or mentally unable to care for themselves.
  • Have earned income (wages) to support the dependent.
  • The expenses allow for care while you work or look for work.
  • Have qualified expenses.
  • Financially support and maintain a home for the dependent.
  • If married, both you and your spouse must be working or looking for work.

Some summer-time tips

  1. Daycare expenses are the most common qualifying expense for the Dependent Care Credit.
  2. In-home daycare during the summer months also qualifies. Your sitter cannot be a dependent, a spouse or someone under the age of 19.
  3. Day camps qualify for the credit.
  4. OVERNIGHT camps and summer school/tutoring do NOT qualify.
  5. Track the mileage of qualified transportation to and from any qualified activity. For instance, if your daycare provider takes the kids on a field trip, the mileage would be part of the qualified activity.
  6. Even cooking and housekeeping expenses can count if at least partly for the protection and safety of a qualifying person.
  7. Placing your child in a day camp while one of you volunteers at a charity would not work in determining qualified dependent care expenses.

Don’t forget to get the provider’s name, address, and Social Security Number/Tax ID number. Also, retain and receipts and canceled checks to support your proof of payment. This information will be required when you fill out your tax return.

As always, feel free to pass this Tip along to friends, and reach out if you need help with your personal tax and finance situation.

WeDoBooks, Scottsdale
Michael DiSabatino
8145 E. Evans Road, Unit 1
Scottsdale, AZ 85260
(855) 922-9336
This email address is being protected from spambots. You need JavaScript enabled to view it.


We Do Books, Inc.™ Core Services

Bookkeeping / Accounting

We Do Books, Inc.™ knows the importance of relationships to excel and meet the needs of entrepreneurs and their businesses. Our client service relationship stresses client strategy and sound advice in all aspects of business - including the...

READ MORE

Cash Flow Management

Cash is king! and your business needs capital to work. In today's economy, we return to our specialty of pro-active Cash Flow Management for businesses. Our process employs Change Management to help your team make the appropriate modifications...

READ MORE

TAX PREPARATION SERVICES

Whether you are concerned about your business, personal, or estate taxes, We Do Books, Inc.™ can offer you practical tax advice to help you keep more of your money... we can help you negotiate your best path through the complex maze...

READ MORE

TAX RELATED PROBLEMS

We're here to help you resolve your tax problems and put an end to the misery that the IRS can put you through. We pride ourselves on being very efficient, affordable, and of course, extremely discrete. The IRS problems will not just go away by themselves;...

READ MORE

NEW BUSINESS FORMATION

When you are ready to start your business, let We Do Books, Inc.™ help you make the right choice of entity. We can also form the entity for you. As with any good council, we want to review your business plans, potential liability and specific needs,..

READ MORE

CONTACT WE DO BOOKS, Inc.™

We Do Books, Inc.™ Scottsdale
8145 E. Evans Road, Unit 1
Scottsdale, AZ 85260
(855) 922-9336

This email address is being protected from spambots. You need JavaScript enabled to view it.


We Do Books , Inc.™ has 3 Locations to Serve You Better!

WDB Logo

Ventura County, CA

WDB Ventura County 
1000 Town Center Drive, Suite 300-32
Oxnard, CA 93036
(805) 389.7300
This email address is being protected from spambots. You need JavaScript enabled to view it.

WDB logo

Scottsdale, AZ

WDB Scottsdale
8145 E Evans Road, Unit 1
Scottsdale, AZ 85260
(855) 922-WeDo (9336)
This email address is being protected from spambots. You need JavaScript enabled to view it.

WDB logo

Wickenburg, AZ

WDB Wickenburg
901 W Wickenburg Way #4
Wickenburg, AZ 85390
(928) 684.2336
This email address is being protected from spambots. You need JavaScript enabled to view it.


For Special Offers and Much More

  • We Do Books, Inc. ™
  • 1000 Town Center Drive
    Suite 300-32
  • Oxnard, CA 93036
  • (805) 389-7300
  • This email address is being protected from spambots. You need JavaScript enabled to view it.

© 2021 We Do Books, Inc.™, All Rights Reserved.

WeDoBooks of Scottsdale, Arizona