Monday Money Tip: A look at summer camp and other tax breaks
Summer camp gives you a mental break. Sending your child to day camp might also provide a tax deduction. Local accounting firm Isdaner & Associates notes that day camp is a qualified expense under the child and dependent care credit, which is worth 20 percent of qualifying expenses (more if your adjusted gross income is less than $43,000), subject to a cap.
Summer camp gives you a mental break. Sending your child to day camp might also provide a tax deduction.
Local accounting firm Isdaner & Associates notes that day camp is a qualified expense under the child and dependent care credit, which is worth 20 percent of qualifying expenses (more if your adjusted gross income is less than $43,000), subject to a cap.
For 2014, the maximum expenses allowed for the credit are $3,000 for one qualifying child and $6,000 for two or more. Be aware: overnight camp doesn't qualify for the credit.
Other deductions that the Bala Cynwyd firm highlights are qualifying medical and dental expenses. Here are some that may be deductible:
Prescription drugs and nutritional supplements (for a specific medical condition diagnosed by a physician).
Acupuncture or chiropractor fees.
Eyeglasses and contact lenses (plus eye-moistener and cleaning solutions).
Hearing aid, telephone, or television equipment for the hearing-impaired.
Home improvements for medical purposes (to the extent they don't add to the value of your home).
A "stop-smoking" cessation program. A weight-loss program (if part of treatment for specific disease, such as obesity).
Wig (if hair is lost because of medical problems), and artificial limbs or teeth.
Alcoholism/drug addiction treatment and psychiatric care/mental health treatment.
Savings rates rising?
Online banking website WalletHub shows that interest rates for checking and savings accounts are increasing, if only slightly.
National banks charge the highest fees on checking accounts, while some credit unions offer much higher interest rates. (For example, my bank, HSBC, offers a savings rate of 0.01 percent; Philadelphia Federal Credit Union offers 0.30 percent on a similar account.) To compare, NerdWallet has a list of credit unions and their account rates (www.nerdwallet.com/credit-union).