Even if your overall cash-flow situation is good, but you still need to cover a short-term deficit, today’s still-strict credit environment often won’t allow you to take out a loan.  More than likely, your only option would be an untapped home equity line of credit or a generous relative.  If that’s the case, great.  If not, you may be able to turn to a surprising source for some help: the taxman.

If you’re self-employed, an investor or someone who lives off Social Security benefits, pension payments, retirement account withdrawals, and the like, you can apply for loan from the Internal Revenue Service.  Better yet: To borrow from the IRS, you don’t have to fill out any annoying applications, prove your income or fence with a balky loan officer.  While this may sound too good to be true, it is true.

What you do is simply postpone some federal income tax payments that you would otherwise make to the IRS via estimated tax installments.  You don’t need the government’s permission.  You just do it and then make up the difference later.  Of course, the IRS will charge interest on the difference between what you should have paid in for each installment and what you actually paid.  However, the current interest rate on estimated tax underpayments is only 3%.  While the rate can potentially change each quarter, it will probably remain at a reasonable level for a while.

The IRS calls the interest on estimated tax underpayments a “penalty.”  But since the current interest rate is only 3%, it’s not really a penalty.  In fact it’s actually a pretty good deal for someone with a short-term cash crisis.

Note: If you are a salaried employee, you must pay in federal income taxes via payroll withholding.  You may be able to adjust the withholding downward a bit for the rest of this year by turning in a revised Form W-4 to your employer.  However, the strategy of borrowing from the IRS is basically unavailable to you.  Sorry.

Estimated Taxes:

There is no federal income tax withholding on income from self-employment activities conducted via sole proprietorships, partnerships, or LLCs.  Nor is there generally any required federal income tax withholding on interest income, dividends, capital gains, Social Security benefits, pension payments, or taxable retirement account withdrawals.  Instead those with income from these sources are expected to make four installment payments of estimated taxes for each year. The installments for the 2012 tax year are due on Apr. 17, June 15 and Sept. 17 of this year, and Jan. 15 of 2013.  Obviously the first date has since passed, but the next three are still in the future.  So you can work with the installments due on those dates by paying in less than you owe or even nothing at all.

As mentioned, you will be charged interest based on the difference between the amount you should have paid in for each installment and the amount you actually pay for as long as the underpayment remains outstanding.  The amount that you should pay in for each installment generally equals the lesser of: (1) 22.5% of what you expect to report on your 2012 Form 1040 for total federal income and self-employment taxes or (2) 25% of what you reported on your 2011 return (27.5% if your 2011 adjusted gross income was over $150,000).

Borrowing from the IRS in this fashion is only a short-term fix.  By no later than April 15th of next year, you must catch up for any estimated tax payment shortfalls for the 2012 tax year.  If you don’t, the IRS will start charging additional interest of half a percent per month on the shortfall, which equates to a 6% annual rate.  That 6% is on top of the “regular” interest charge, which is currently only 3%.  So you could be looking at a rate of 9% or maybe more.  In any case, owing the IRS for 2012 taxes after April 15th of next year is just not a good position to be in.  So, if you are not ready, willing, and able to pay up by that date, this is not a good option for you.  You do not, however have to wait until April 15th to catch up.  You can do so as soon as you are able and that is the recommendation.

Are you LinkedIn? If not, try expanding your horizons outside that of Facebook.  Indeed, LinkedIn has more than 100 million members, including executives from every Fortune 500 company.  LinkedIn’s research team recently mined that information to determine the most common names for CEOs.  Verdict?  Peter, for a man, and Deborah, for a women.  But no matter what your name, LinkedIn can take your networking to the next level with just a little effort.  Here are the most common ways people aren’t making the most of their presence on the site (and how experts say you can fix that):

Having A Vague Headline
Say your current title is marketing manager.  Many people naturally leave that as their headline, which is a huge error because it says nothing about what you actually do, says career coach Kimberly Schneiderman.  Instead: “Use a headline statement that really describes your expertise and talent, like ‘Executive-level Product Strategist’ or ‘Hospitality Executive — Expertise in Franchise, Operations, & Change Management,'” suggests Schneiderman.  Then further develop it: “Create a summary about your career that fully describes your passion for your work, your impact in your company or companies, and your professional focus.  People in an open job search can map out the kinds of opportunities they are pursuing next.  Make it about 3 paragraphs and write in 1st-person using ‘I’ statements,” says Schneiderman.

Maintaining A Passive Profile
Filling out an attractive profile is just the beginning. “Most people create a LinkedIn profile, but then don’t take advantage of potential connections that might be available through their existing network,” says career consultant Shawn Graham, author of Courting Your Career.  His suggestions: regularly identify and reach out to potential contacts, use status updates to congratulate those contacts on their successes, and consistently review the “People You May Know” section to identify additional connections.

Not Trying New Tools
Branding expert Dan Schawbel says that a major mistake is not taking advantage of the many tools Linkedin has to offer.  His tips include connecting with someone you have no connection with by joining a LinkedIn Group they’re active in, using a 1st degree contact to gain access to 2nd and 3rd degree ones, and using apps like SlideShare to connect with even more people.  And don’t forget to take your toolbox on the go: “The LinkedIn mobile application allows you to transfer contact details electronically,” says Schawbel.  A new one has just been released for the Droid.

Networking Only When You Need Something
Schawbel also reminds people that networking on LinkedIn is no different than networking in real life.  You still want to give more than you receive, particularly when asking for a recommendation: “The best way to get recommendations on LinkedIn is to give one first,” says Schawbel.

When it comes to retirement, there are many things to consider: taxes rates, vacations, and maybe where you plan on living.  But experts are saying that there are 2 major obstacles that must be factored into your plans: the old notion that, “hey, I can work later in life” and make up for my savings then, and the diagnosis, either by you or a loved one, with Alzheimer’s disease.  Research has indicated that many Americans plan to keep working as a way to make up for not having saved enough or invested wisely enough for retirement, or as a way to keep health insurance.  These are both good reasons to continue working, however, many companies, according to the unemployment reports, are still laying off, specifically, 55 years and older employees.  No assumptions can be made that a job will be there for you when you reach that age or are coming up to that age, so you should look at other options now.  You should speak with a financial adviser, as it is never too late to plan for your retirement, but not doing it at all can prove problematic to your future well-being.

The second possible obstacle is Alzheimer’s disease, either suffered by you or a loved one.  It is estimated that around 5.3 million people now suffer from this disease.  And the prevalence of Alzheimer’s is supposed to grow by at least 80%  by 2025.  You don’t have to go on facebook to realize that there is only one degree of separation between you and someone with Alzheimer’s or dementia; and you may also realize that those most affected by this terrible disease are women.  When families are faced with this diagnosis, they are often left scrambling and are subject to fall victim to any one or all of these fraudulent practices: medical, financial, and legal.  Because of this, understanding that there is a 3-20 yr. lifespan for this disease, and speaking with an estate planner or financial adviser about how to plan for 20 years of dependent care (just in case) is the most responsible financial move you can make.  The second most important decision you must make is choosing your beneficiaries and power of attorney(s).  The more decisions you take control of now, the less worrying you will have later.

The promise to settle all your debts pennies on the dollar sounds like a dream come true for countless consumer and the promise of hundreds of advertisers.  Beware.  There can be major tax consequences to having your debts forgiven.  Once you have your debts canceled, the forgiven balance is considered taxable income on your annual returns.  The IRS, unfairly in my opinion, views the forgiven amount as going from a loan you had to repay to income the moment you didn’t have to pay it back.  There are certain circumstances in which forgiven debt is not considered income and you should speak to a qualified tax professional to see if you qualify or can qualify for one of these special circumstances.  When considering debt forgiveness make sure to consider the effect on your credit score and if it would be the best financial move for you in the long run as well.

On December 19, 2014, President Obama signed into law The Tax Increase Prevention Act of 2014 (HR5771), which which temporarily extends over 50 expired incentives for individuals, businesses and energy through 2014.  The law also creates Achieving a Better Life Experience (ABLE) accounts set up for the benefit of persons with disabilities.  Extenders included in the legislation are the state and local sales tax deduction, IRA distributions to charity, and the above-the-line deduction for higher education.

Key provisions in the bill particularly impacting construction and real estate businesses include the extension of 50% bonus depreciation and qualified leasehold improvements for the 2014 tax year.  Under HR 5771, qualified leasehold improvement property will continue to be eligible for 50% bonus depreciation.  This property is defined in IRC 168(k)(3) as new improvements to an interior portion of a building that qualifies as nonresidential real property.  In addition, this treatment is available as long as the improvements are made by the lessor more than three years after the date the building was placed in service.

Notable exceptions to qualified leasehold improvement treatment include: elevators, escalators, structural components benefiting a common area, or the internal structural framework of the building.  For more information or to take advantage of the new legislation, please contact Eric L. Bach & Associates for a free consultation.

The same company that investigated alleged Navy Yard shooter Aaron Alexis for his security clearance also did a 2011 follow-up investigation of Edward Snowden, the former NSA systems analyst who leaked documents about the National Security Agency.

The company, USIS, said in a statement Thursday it conducted Alexis’ background check in 2007 for the Office of Personnel Management but that it couldn’t elaborate.

“Today we were informed that in 2007, USIS conducted a background check of Aaron Alexis for [the Office of Personnel Management],” spokesman Ray Howell said. “We are contractually prohibited from retaining case information gathered as part of the background checks we conduct for OPM and therefore are unable to comment further on the nature or scope of this or any other background check.”

USIS is under a federal investigation into possible criminal violations involving its oversight of background checks, the AP reported in July. USIS dominates the background check industry, taking in $195 million in government payments last year and more than $215 million this year.

Alexis had worked for a Florida-based IT consulting firm called The Experts. He had been refreshing Pentagon computer systems, holding a military security clearance that would have expired five years from now.

Alexis’ employer said it had had no personnel problems with him and two separate background checks revealed only a traffic violation. But there were trouble signs below the surface. Public records databases used in those kinds of searches can be spotty repositories of arrest records, court dockets and other information.

The Experts — and possibly the government — missed how, in September 2010, Alexis’ neighbor called police in Fort Worth, Texas, after she said she was nearly struck by a bullet shot from his downstairs apartment. When police confronted Alexis about the shooting, he said he was cleaning his gun when it accidentally discharged. Alexis was arrested on suspicion of discharging a firearm within city limits.

The checks also missed how, six years earlier, Seattle police arrested Alexis for shooting the tires of another man’s vehicle in what he later described as an angry “blackout.” Police said two construction workers reported seeing a man, later identified as Alexis, walk out of the home next to their worksite, pull a gun from his waistband and fire three shots into the rear tires of their car before he walked back home.

No charges were filed in either the Fort Worth or Seattle incidents.

The Experts said it had most recently used a company called First Advantage of Alpharetta, Ga., to search Alexis’ past for criminal involvement. A First Advantage spokeswoman said Thursday The Experts asked only for a typical employment background check that only returns information on convictions, not merely arrests.

Navy Secretary Ray Mabus announced Wednesday that he wants three rapid reviews of security clearance procedures completed by Oct. 1, including a review of Alexis’ service record to determine whether his conduct problems while in the Navy should have threatened his ability to keep his clearance.

The announcement came after Defense Secretary Chuck Hagel ordered a review of the physical security and access procedures at all U.S. defense facilities worldwide as well as a study of the programs used for granting and renewing the security clearances for the military, civilian employees and contractors.

“Obviously, there were a lot of red flags” about Alexis, Hagel told reporters at a Pentagon briefing Wednesday. “Why they didn’t get picked, why they didn’t get incorporated into the clearance process, what he was doing, those are all legitimate questions that we’re going to be dealing with.”

Hagel, facing mounting questions from lawmakers and the public over the military’s security procedures, said he has ordered two Pentagon reviews. One will examine the physical security and access procedures at DoD facilities around the world. The other will examine the procedures for granting and renewing security clearances, including to contractors. Hagel said an independent panel will also look at those issues, while the Navy conducts a review of its own.

Military leaders are under pressure to account for how Alexis was able to both keep his security clearance — despite a history of disturbing and violent behavior — and walk into the military facility with a shotgun.

As the final matches were rounding up in London, some rather unflattering comments were made about this year’s new female singles champ.  The outrage has left BBC facing mounting pressure to take action against one its most high-profile sports presenters for criticizing the appearance of France’s Marion Bartoli.

John Inverdale incensed radio listeners before Bartoli beat German Sabine Lisicki when he asked if people thought her father told her when little that she was never going to be “a looker” like Maria Sharapova so would have to fight harder for success.  The last thing any little girl would want to hear from their father.  Eventually, he did apologize for the comments after a storm of protests on Twitter, admitting the remark was “insensitive”.

Inverdale said on Sunday he had written to apologize to Bartoli and told listeners ahead of Sunday’ men’s final that he used “a clumsy phrase” about Bartoli in trying to make a point that not all players need to be “6 ft fall Amazonian athletes”.  As a female, I can think of any instance that I would take his comment as such.  It is simply a blatant insult.  And the public seems to feel the same.

“This is appalling.  Tennis is one of the worst offenders in sport in terms of the focus on women athletes’ looks and the BBC needs to take action,” Sue Tibbals, chief executive of the Women’s Sports and Fitness Foundation, told Reuters.  “I thought Bartoli was an absolute inspiration, so spirited and gutsy, and she does not deserve these outrageous remarks.  This is not a one-off event from this presenter.”

A BBC spokesman, however, said the corporation had apologized and so had Inverdale and that there were no plans for further action to be taken.

Bartoli, 28, won the admiration of Centre Court on Saturday when she won her first grand slam title in a straight-sets victory over 23-year-old Lisicki that earned her 1.6 million pounds ($2.4 million) in prize money.  The Frenchwoman, celebrating her success in becoming the first Frenchwoman in seven years to win the coveted Wimbledon women’s title, shrugged off Inverdale’s comments.

“It doesn’t matter, honestly.  I am not blonde, yes.  That is a fact,” Bartoli said in a press briefing late on Saturday.  “Have I dreamt about having a model contract?  No.  I’m sorry.  But have I dreamed about winning Wimbledon? Absolutely, yes.”  Bravo on her maturity and ability to let the negative comments roll off with such ease.  Twitter users praised Bartoli’s dignity as they called on the BBC to act against Inverdale.  Many of the Tweets included the hashtag “Everyday Sexism”, which has gathered a large following as people tweet examples of causal sexism in the workplace and public life.

“Isn’t it time the BBC woke up to the sexism at the heart of its sport broadcasting?” tweeted feminist blogger Leopard.

“#BBC apology over sexism comments not good enough. suspend #Inverdale & hold enquiry. Sexism is on par with racism,” tweeted yvonneridley.

The incident came after the BBC has this year faced one of the biggest crises in its 90-year history.  A sex scandal involving the late TV presenter Jimmy Savile threw the broadcaster into turmoil and raised questions about the organization’s ethics, leading to the appointment of a new head, Tony Hall.  Hopefully Mr. Hall is a pro at damage control if the BBC continues to head in the direction that it is now.

While all the information collected by the Internal Revenue Service is protected by strict privacy statutes, the federal tax collector is well within his investigative rights to peruse what you choose to make public.  So you might want to reconsider bragging on Facebook about buying a Ferrari when you’re reporting just a $30,000 annual income on your Form 1040.  Or at least tighten up the privacy controls on your social media account.

The IRS reportedly plans to collect personal information from sites such as Facebook and Twitter as part of its continuing effort to catch tax cheats.  The added social media attention reportedly will be given to individuals with tax returns that already have raised audit red flags.

This is not a surprise.

Social media ‘spies’

Advertisers already are data mining all our social media activities, seeking ways to manage public attitudes and encourage us to buy their products.   On the legal front, criminals are regularly caught because of their ill-advised social media discussions about or videos of their illegal activities.   It’s even happened in the tax area.  Five years ago, a group of University of Central Oklahoma students bragged on MySpace that their party business had served thousands.  That boast caught the attention of the Oklahoma Tax Commission, which promptly issued the young businessmen a $320,000 state tax bill.

I’ll bet Mom and Dad weren’t thrilled when their kids called to ask for help paying the tax collector!

Limited IRS surfing

Will the IRS do the same, using taxpayer information posted on today’s popular social media outlets?  Maybe.

But you shouldn’t expect the agency to bring in a lot more money based on social media prompted tax investigations.   The main reason is that the IRS already is running on a tight budget.  Many workers face furloughs if sequestration cuts continue.   And the IRS also recently caught congressional flack for making what some lawmakers saw as frivolous and money-wasting videos, ostensibly for training purposes, in its own in-house production studio.   So I suspect that diverting already thin resources to monitor social media sites won’t go over too well on Capitol Hill.

That said, remember that what you say on the worldwide web about your lifestyle could have consequences beyond just impressing your friends.

Best real life example I experienced this past Tuesday – I was involved in a hit and run and did not get the driver’s license plate number.  I was able to identify the make and model of the car and had seen the driver.  Luckily, it was a nurse that was leaving a hospice and I was able to use Google and social media to find her, as no one at the facility actually knew her name.  Myself and the facility staff identified her by her picture online alone.  Thank you smartphone.  Once you are out there, you are there for anyone to find.  Just remember, social media (in my case) can be your friend, or (in the case of the students) be your foe.  Be mindful of you put out there.

Every tax-filing season, the great quest by filers is to find the most tax deductions.  But there are some deductions you should steer clear of.  If you claim these wrong write-offs, you’ll deduct expenses that don’t meet Internal Revenue Service guidelines.  Simply, that means you’ll end up spending time with a tax auditor and paying more in taxes, penalties and interest.

With the assistance of Bankrate, here is a list of no-nos (but to be fair, there are some related tax breaks included that will pass the through the IRS).

Don’t deduct homeowners insurance, but …

The hazard policy you bought to cover damage from fires, tornadoes, hurricanes, winter storms and other disasters, as well as for more-routine mishaps, offers peace of mind.  What it doesn’t provide is a tax deduction for the insurance premiums.

But if you meet some tax law guidelines, you can deduct private mortgage insurance, or PMI on your 2012 tax return.  PMI is the insurance your lender requires you to buy if you don’t put down a big enough down payment.  PMI premiums are deductible as an itemized expense (it goes on Schedule A with your mortgage interest claim) as long as the mortgage insurance policy was issued in 2007 or later.  This tax deduction is in effect through 2013.

You also must meet income requirements.  If your adjusted gross income is $100,000 or less (or $50,000 and you’re married and filing separately), your full PMI premium amount is deductible.  If you make between $100,001 and $109,000, the amount of PMI that you can deduct is reduced.  And if your income is more than $109,000 ($54,500 married filing separately), you can’t deduct PMI at all.

You can figure your allowable PMI deduction using the work sheet in the Schedule A instructions.

Don’t deduct a telephone land line, but …

You can’t deduct the cost of your main home telephone land line, even if you primarily use that phone for your business.  The IRS says that the first hard-wired phone line in your home is considered a nondeductible personal expense.

But you can deduct as a business expense the cost of business-related long distance charges on that phone.  If you are an employee, they would be claimed as an un-reimbursed business expense on Schedule A.  If you are self-employed, you would count the phone calls as an expense on your Schedule C or C-EZ.  And if you install a second telephone land line specifically for your business, its full cost is deductible.

Don’t deduct commuting costs, but …

The cost of getting to and from your workplace is never deductible.  Taking public transportation or driving to work is a personal expense, regardless of how far your home is from your office.  And no, you can’t deduct commuting expenses even if you work during the commute.

But you might be able to deduct some commuting costs if you work at two places in one day, whether or not for the same employer. In this case, you can deduct the expense of getting from one workplace to the other.

You also can deduct some expenses related to other work-related travel, such as visits to clients (current and potential) and out-of-office business meetings.  If you’re self-employed, these expenses would go on your Schedule C or C-EZ.

If you’re an employee, travel costs must be claimed as un-reimbursed business expenses.  As such, your business and other miscellaneous itemized expenses must exceed 2 percent of your adjusted gross income.

Whatever your business travel situation, be sure to keep good records.

Another idea is to ask your employer to establish a commuter savings account program.  This employee transportation fringe benefit lets workers use pretax dollars to purchase mass-transit passes and pay for parking near work.

Don’t deduct your pet, but …

Yes, your dog or cat is a family member.  And yes, some insurance companies now include coverage for Fido or Fluffy in auto policies.  But your affection for your pet or an insurer’s willingness to pay for some of your domesticated animal’s care doesn’t carry any weight with the IRS. so don’t dare try claiming your pet as a dependent.  Yes, as ridiculous as it sounds, there are people out there that have tried it.  And yes, it is disallowed by the IRS when the furry facts are revealed.

You can, however, deduct as itemized medical expenses the costs of buying, training and maintaining a guide dog or other service animal to assist a visually impaired or hearing-impaired person, or a person with other physical disabilities.

Don’t deduct Social Security taxes, but …

You lose a lot of income each payday to Federal Insurance Contributions Act, or FICA, taxes, the money withheld from your checks to pay for your future Social Security benefits.  The debate as to whether Social Security will be around when you retire is still raging.  But one thing is sure: Don’t even think about trying to deduct these taxes.

But if you overpaid this tax, you can get a credit for your Social Security over-withholding.  There is a limit on how much FICA taxes can be contributed each year.   The tax is withheld on up to the Social Security earnings base, which is adjusted annually for inflation, and which for 2012 is $110,100 and for 2013 is $113,700.

If you had multiple jobs and your combined earnings exceeded the wage base, you probably had too much FICA withheld.  You can claim the excess Social Security tax as a credit when you file your tax return.

Don’t deduct plastic surgery, but …

If you simply are following your inner Joan Rivers, the IRS definitely won’t let you deduct the costs of your nips and tucks.  The IRS specifically says you generally cannot include in deductible medical expenses the amount you pay for procedures such as face lifts, hair transplants, hair removal (electrolysis) and liposuction.

But if a surgery is medically prescribed, for instance, a nose job to treat respiratory issues, and you just happen to like the look of your new sniffer, then that’s OK.  The doctor’s decision makes it a medical deduction.

The IRS says: “You can include in medical expenses the amount you pay for cosmetic surgery if it is necessary to improve a deformity arising from, or directly related to, a congenital abnormality, a personal injury resulting from an accident or trauma or a disfiguring disease.”

Remember, all your medical expenses, including any allowable plastic surgeries, must come to more than 7.5 percent of your adjusted gross income on your 2012 Schedule A before you can claim them.  For the 2013 tax year, the medical deduction threshold is 10 percent of your AGI.

Don’t deduct dry cleaning, but …

Looking sharp at work rests totally on your shoulders.  A recent U.S. Tax Court ruling reaffirmed this tax law when the judge disallowed a television anchorwoman’s deductions for tens of thousands of dollars in clothing she bought to wear on air.

But you can deduct the cost of dry cleaning or laundry of business uniforms.  Under the tax code, that means attire you can’t wear anywhere else, although with the ways some folks dress today, that designation could be hard to nail down.

When an outfit is “not suitable for everyday use,” the IRS says the costs of upkeep for the apparel can be claimed as an un-reimbursed business expense on Schedule A.  Also deductible are the cleaning charges for nonprofit uniforms, for example, an outfit required of hospital volunteers or Boy Scout or Girl Scout troop leaders.  Here the costs of the uniform and its maintenance would count as charitable deductions, also claimed on Schedule A.

Don’t deduct time for volunteer services, but …

Your time is valuable, but that doesn’t matter to the IRS when it comes to volunteering at a charity.  You can’t claim the value of your wages for the hours spent helping out at your favorite nonprofit.  Neither can you count as a deduction the value of a project you created, such as a poster that you, a graphic artist, designed for the charity.

But you can deduct other costs associated with your charity work.  This includes your mileage in connection with the group’s work, which can be claimed on Schedule A at the rate of 14 cents per mile.  You also can claim as a charitable deduction un-reimbursed out-of-pocket expenses.

As with all things tax, keep good records.  Track your charitable travel and hang on to the receipts for the poster board and special markers you bought just for the nonprofit’s poster project.

Don’t deduct OTC medication, but …

Headache and cold treatments from your neighborhood pharmacy shelves have never been tax deductible.  There was some confusion here because for a while, the IRS allowed owners of medical flexible spending accounts, or FSAs, to use money in those pretax accounts to pay for over-the-counter drugs.

That option ended when 2011 began.  Now you must get a doctor’s prescription for OTC medications before the purchase can be reimbursed with FSA funds.  But you still can deduct diagnostic tests, such as store-bought tests for pregnancy and diabetic blood sugar levels.

And the IRS says moms get a tax deduction on breast-feeding supplies, including pumps and bottles, because, like obstetric care, “they are for the purpose of affecting a structure or function of the body of the lactating woman.”

Don’t deduct kids’ overnight camp costs, but …

When school lets out for the summer, working parents face a child care dilemma: what to do with the youngsters while Mom and Dad are at the office.

Some families send the kids off to summer camp.  That’s a great experience for the kiddos and eases, at least temporarily, parental child care concerns.  But sleep-away camps, in the summer or any other time of the year, are not tax deductible.

However, if you decide instead to keep the kids at home and simply send them to day camp during the hours you’re working, that expense could qualify as a claim for the child and dependent care credit.

If your care costs are for one child, you can count up to $3,000 of care expenses each year toward the credit.  The expense amount is doubled for the cost of caring for two or more dependents.

Your actual tax credit can be up to 35 percent of your qualifying expenses, depending upon your income.  And while that might not seem like a large percentage, remember that since it’s a credit, you get to use it to offset your tax bill dollar for dollar.

If you have further inquiries, contact Eric Bach at Eric L. Bach, CPA for a free consultation and all your tax questions.  We work to make your taxes work toward your best interest.