According to the IRS website, this credit is available to people who, in order to work or to look for work, have to pay for child care services for dependents under age 13. The credit is also available if you paid for care of a spouse or a dependent of any age that is physically or mentally incapable of self-care. Many people do not know on how many different ways they can save money on their taxes, said Jayson French, a tax practitioner for Palm Beach Tax Center. Child and Dependent Care Credit can be very helpful for parents that have to pay for daycare and other work related expenditures.

The tax credit is a percentage, based on your gross income will cover work related child and dependent expenses. For example, if your child needs after-school care because you work until 6 p.m., you will fit in this category.

Conditions that apply:

- You must have earned income from wages, salaries, and tips or other  taxable employee compensation, or net earnings from self-employment. If you are married, both you and your spouse must have earned income, unless one spouse was either a full-time student or was physically or mentally incapable of self-care.

- The payments for care cannot be paid to someone you can claim as your dependent on your return or to your child who is under age 19.

- Your filing status must be single, head of household, qualifying widow(er) with a dependent child, or married filing jointly.

- The care must have been provided for one or more qualifying persons identified on the form you use to claim the credit.

- You (and, if you are married, your spouse) must maintain a home that you live in with the qualifying child or dependent.

For more information, go to http://www.irs.gov/taxtopics/tc602.html.

DMCC is a 501 (c)3 is a charitable organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with their debt.  Education is provided free of charge to consumers as well as personal counseling to identify the best options for the repayment of any unsecured debt. To speak to a certified credit counselor, call 1-954-418-1466, email contact@dmcconline.org.

DMCC is located at 700 West Hillsboro Blvd., Building 1, Suite 105, Deerfield Beach, FL 33441.

Do you owe money?

If you owe money to the government, perhaps you should re-examine your financial plan so that you do not get stuck with a huge tax bill next year. Contact your local chamber of commerce and inquire about financial professionals that donate their time and services or contact a tax advisor for more information.

Don’t pay for electronic filing

The Internal Revenue Service (IRS) offers Free File  a free online service that lets you prepare and file your tax return electronically. Calculations are instantaneous and you are informed whether you owe money or are receiving a refund. A refund can be mailed or directly deposited into your bank account. Visit www.irs.gov/efile for more information.

DMCC is a 501 (c)3 is a charitable organization committed to educating consumers on financial issues and providing personal assistance to consumers who have become overextended with their debt.  Education is provided free of charge to consumers as well as personal counseling to identify the best options for the repayment of any unsecured debt. To speak to a certified credit counselor, call 1-954-418-1466, email contact@dmcconline.org.

DMCC is located at 700 West Hillsboro Blvd., Building 1, Suite 105, Deerfield Beach, FL 33441.

Just like auto insurance, policies have deductibles, and the same rule of thumb applies–carry the highest deductible you can afford. The higher your deductible, the more premium credit you can expect to receive from your insurance company. Your savings could reach 25% by increasing the deductible from $100 to $1000.

Improve Your Home Security

Most insurance companies offer discounts for smoke detectors, burglar alarms, dead bolts, fire extinguishers, and Neighborhood Watch Areas. Homes with a fire and burglar alarm system hooked up to a third-party monitoring company receive higher discounts than homes with local bell alarms.

Consolidate Policies

Insuring two or more vehicles with the same insurance company can save you 10 – 15% on your premiums. If you cover your homeowners insurance and auto insurance together, you can reduce your premiums by another 10 – 15%.

Construction Type

Before buying a home, consider its construction type, such as frame or concrete block and steel (CBS). A wood frame house typically costs more to insure than one built mostly of concrete.
Verify Distance To Fire Stations And Windstorm Areas

If you live in the country, you’ll probably pay higher rates for your insurance than if you lived in town. Why? It’s because of the longer distance to your local fire station. If you live more than 5 miles from the nearest fire station, and more than 1,000 feet from a fire hydrant, you will most likely pay a higher premium.

Before purchasing your home, you may want to get a quote for both and flood insurance. Insurance companies may not offer you windstorm or flood coverage, depending upon the area in which you live. If your home is in a hurricane prone area and your insurance company offers windstorm coverage, then installing approved hurricane shutters should result in a premium discount.

Claims Free Record And Renewal Discounts

If you have not had a claim under your policy during the past 3 – 5 consecutive years, you could receive up to a 15% discount, depending on the insurance company. Plus, most companies will discount your premium if your policy has been in force for 3 straight years.

Mortgage Free Discounts

Some insurance companies target who have paid off their mortgage and offer them premium discounts of up to 5%.

New And Renovated Home Discounts

A majority of insurance companies offer a discount for new homes, and you may qualify if your home was built in the last 10 – 15 years. Also, a recently renovated home costs less to insure, so find out when the last major electrical, heating and plumbing update was completed on the home.

Non-Smokers And Early Retiree Discounts

Some companies offer a non-smokers discount of up to 15% to qualified . To qualify, you must be a non-smoker and you cannot permit smoking in your home by anyone. Retirees or senior citizens are usually offered discounts because insurance companies believe they are home more often and are therefore better able to protect their home against fire and burglary.
Live-In House Keeper

Some insurers offer up to a 2% premium credit if you have a live-in employee as they feel it could reduce the likelihood of burglary.

Conclusion

After reviewing the foregoing savings tips, you may think that if you added up all your credits you could receive a 70 – 90% reduction in your premiums. Unfortunately, it doesn’t work that way. Certain safety or other measures you take may qualify you for being placed with the “preferred” company of a particular insurance group. This “preferred” company will be able to give you more premium credits than a standard company is able to.