Now is good time to look at your taxes
By Sandra Block
USA Today
Unless you occasionally bump into your accountant at the swimming pool, you probably don't give much thought to your taxes in the summer. But even as the summer winds down, there are things you can do to reduce your federal and state tax bills. No need to knock your tax preparer off his inflatable raft. These are steps you can take on your own:
Your day-camp bills may be eligible for the child and dependent care credit. This credit allows working parents to claim from 20 percent to 35 percent of childcare expenses, up to $3,000 a year for one child, or $6,000 for two or more. The actual amount of your credit will depend on your adjusted gross income.
For day-camp expenses to qualify for this credit, your child must be under 13 years old. Expenses for an overnight camp don't qualify.
Remember: If you don't spend all the money in your account by the end of the year — or March 15, 2008, if your plan provides a grace period — you'll forfeit what's left. You'll have an easier time getting an appointment now than in December, when procrastinators are scrambling to spend what's left in their accounts.
If you overlooked the refund, you can still claim it by filing an amended return. Use Form 1040X and claim your credit on Line 15. You can download Form 1040X at www.irs.gov.
