Child Care Credit

Are you a working parent paying childcare for your children under the age of 13? Be sure to ask your tax preparer or the professionals at Tax & Accounting Plus about a childcare credit!

A childcare credit of 20% to 35% of your childcare expenses is available for working parents who pay childcare for their children under the age of 13. The amount of eligible expenses is $3,000 for one child and $6,000 for two or more children. To be able to claim this credit, you must know the total amount paid to each childcare provider, the provider’s legal name and Social Security Number or Employer Identification Number, the provider’s address and phone number.

Itemizing vs Standard Deduction

The following is a general list of items that can be deducted on the Schedule A of your tax return. If these deductions total more than your standard deduction, it will be more beneficial to itemize rather than to use the standard deductions. Some of the expenses that can be itemized on your tax return are:

· Medical and Dental Expenses greater than 7.5% of your adjusted gross income

· Taxes paid in 2012 including State and Local Income Taxes, Real Estate Taxes, and Personal Property Taxes

· Home mortgage interest and Mortgage Insurance Premiums

· Charitable Contributions up to 50% of your Adjusted Gross Income

· Nonbusiness Casualty and Theft Losses

· Automobile Expenses and Other Employee Business Expenses over 2% of your adjusted gross income

· Gambling losses up to the amount of gambling winnings

· Other misc. expenses not subject to the 2% limit
 

What to Bring to Your Appointment

To help ensure that your tax preparation appointment runs smoothly, please be sure to bring all of the following items:

· All W-2’s 1099s, or any other tax forms received

· Any information pertaining to interest or dividend income

· Any information pertaining to sales of stock

· Categorized list of income and expenses for businesses and rentals

· List of personal itemized expenses (i.e. medical, mortgage interest, property taxes, sales tax,   contributions, employee expenses, etc.)

· Social Security cards for self, spouse and dependents

· Picture ID if requesting QIK for self and spouse

· A copy of your previous year tax return if prepared elsewhere

· Any other information pertaining to your tax return

For more tax informaiton visit taxaccountingplus.com