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| 🚌 School may be out, but taxes are a year-round concern 😟. As a working parent, you may need child care during the summer ⛱️ months. Did you know that your child’s care 🤱🏻may qualify for the child and dependent care credit? |
Here are some important requirements to keep in mind: If you’re married💍, both you and your spouse must work, or one of you must be disabled or a full-time student 👩🏻🎓 Your child must be under 12 years old 👪 when the childcare expenses are incurred and live with you for more than half of the year 🏠 While day camps 👨🏻🌾 count towards the credit, overnight camps do not ⛺Additionally, if your child gets a summer job 😎, you’ll want to ensure that they are paid as an employee and not as an independent contractor. This will help avoid any taxation issues. If you own a business, you may also consider hiring 👔 your child to provide meaningful services. This can provide them with valuable work experience and, if under 18 years old, they won’t be subject to social security and Medicare taxes 🏥. |
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| Another way to help your child build toward their future is by assisting them to contribute to an Individual Retirement Account (IRA). By earning wages and contributing, your child can build a solid retirement fund 👵🏻🏗️ early on. In fact, they can contribute the lesser of their earned income or $6,000 per year. Even if they are reluctant to do so, a parent, grandparent, or other family member can gift 🎁 them the money for the contribution. Summer 👙🩴 is a great opportunity to get kids excited about managing their finances 🤑🏦 and setting themselves up for a secure financial future. If you have any questions about these topics, call us ☎️ 781-214-8122 , and we’ll be happy to help. Let’s make this summer a great one for both kids and parents! |
| P.S. Don’t forget to take advantage of our Financial Management For Small Business Owners to help you make the most of your money year-round! |