A Tax Credit Back in Session
If your young children are going back to school soon, you may need to pay someone for after-school care, especially if both you and your spouse work. However, there is a silver tax lining – you may qualify for the dependent care credit. This credit is available for childcare costs for children under 13 years of age. Generally, the maximum credit is $600 for one child or $1,200 for two or more children, although low-income families may be entitled to a higher amount.
Donating to Charity the Right to Use Your Vacation Home
Charities such as schools and religious organizations often use vacation homes as door or raffle prizes for dinners, galas or auctions they sponsor to raise funds for their activities. If you provided use of your home to the charity, you don’t get a charitable deduction because you gave only a partial interest in the property. In addition, there is no deduction for the winning bidder unless the charity received more from the winning bidder than the place is worth when awarding use of the home.