Tax Credit for Clients who Hired Nannies this Year: Tax Strategy Scan
Despite the changes that came with the Tax Cuts and Jobs Act, clients can still claim the child and dependent care tax credit on their 2018 returns. Working parents who paid for day care, summer camp or a babysitter should take advantage of this tax break, which can help them save as much as $1,050 per child below age 13. Those who intend to claim are advised to pay their babysitter legally and remit the necessary employment taxes. “In general, the nanny tax is paid as part of your tax return,” an expert says.
To read the full article in Financial Planning, click: Tax Credit for Clients who Hired Nannies this Year: Tax Strategy Scan.