Did you know that the average cost of child care in our country is almost $12,000 a year? No one would ever say that child care is cheap or even affordable, but it is unfortunately a necessity for families everywhere. Luckily, there are a few ways to make the cost of child care a little bit more affordable. The following is a list from our DC tax attorney of the top ways that you can save money on childcare:
- Utilize the Child and Dependent Care Credit- This amazing tax credit allows you to itemize your expenses for child care on your taxes! You can itemize up to $3,000 per child every year. Visit the IRS online to find out if you quality.
- Use your Flexible Spending Account- If your work offers a Flexible Spending Account, you can put up to $5,000 of your pretax dollars towards your child’s daycare expenses. By taking advantage of your Flexible Spending Account, you could be one of the many families that save approximately $2,000 a year on child care.
- Look into your employee benefits- Many companies offer on-site daycare solutions for their employees. However, if your work doesn’t, you still have options! You could talk to your boss about working a more flexible schedule or possibly even telecommuting to work, so you won’t have to utilize daycare as much.
- Find out if subsidized care is available- You may qualify for subsidized child care based on your income level, so don’t hesitate to ask your daycare provider about your options.
Child care can be incredibly expensive, but with the above tips from our experienced Maryland tax lawyer, it doesn’t have to be!