The Child Care Tax Credit

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Today, I’m sharing important details about the Child and Dependent Care Tax Credit particularly focusing on its relevance for parents during the summer months when childcare costs can be significant. I’ll share how you can use it during the summer months when sending your children to summer camp. 

I’m also talking about the difference between a tax credit and a tax deduction and why a credit is more beneficial to the taxpayer. 

Join me in this episode to learn how you can take advantage of this tax credit and how it can apply to you. 

Also mentioned in today’s episode: 

• 01:08 Understanding the Child and Dependent Care Tax Credit

• 04:00 Exploring Summer Camp and Tax Benefits

• 11:00 Eligibility and Application for the Tax Credit

Takeaways

• The Child and Dependent Care Tax Credit helps working parents with childcare costs.

• This credit is different from the child tax credit.

• Summer camp expenses can qualify for the tax credit.

• The credit allows for a percentage of childcare expenses to be claimed.

• Tax credits are more beneficial than tax deductions.

• Eligibility for the credit requires earned income or full-time student status.

• Unemployment income does not count as earned income for this credit.

• Both spouses must file jointly to claim the credit if married.

• It's important to keep records of care providers for tax purposes.

If you enjoyed this episode, please rate, review and share it!
Every review makes a difference by telling Apple or Spotify to show the Sunlight Tax podcast to new audiences.

Links:

VVRKSHOP, Paddy Johnson: https://www.vvrkshop.art/

Link to pre-order my book, Taxes for Humans: Simplify Your Taxes and Change the World When You’re Self-Employed.

Get your free visual guide to tax deductions

Check out my program, Money Bootcamp

Watch YouTube video version

When Do You Actually Need an Accountant?

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In this episode of the Sunlight Tax Podcast, I share when it makes sense to hire a professional accountant versus handling your taxes on your own, and why understanding your taxes is so important, especially during life changes like getting married, relocating, or experiencing major income shifts.

I dive into essential tax planning strategies for creative entrepreneurs, freelancers, and small business owners. I also break down complex tax situations that often require expert guidance, and explore the pros and cons of using tax software versus working with a tax professional.

Also mentioned in this episode:

00:00 Understanding the Importance of Tax Planning

00:49 When to Hire an Accountant vs. DIY Taxes

05:20 Life Changes and Financial Shifts

11:13 The Value of Tax Planning

15:39 Complex Situations Requiring Professional Help

21:40 Strategic Decisions and Consulting an Accountant

26:28 Empowerment Through Tax Education

Takeaways

• Even a couple hours of an accountant's time can save you money.

• There is no tax education in this country, which complicates things.

• Basic education in taxes can empower you to handle them yourself.

• Big life changes are a good time to consult with an accountant.

• Tax planning can save you a lot of money and headache.

• Consult a professional before significant financial decisions.

• Tax returns typically do not include tax planning services.

• Year-end tax planning is crucial for maximizing savings.

• Understanding your taxes is important for financial literacy.

• Using software like TurboTax can be effective if you know the rules.
  

If you enjoyed this episode, please rate, review and share it!
Every review makes a difference by telling Apple or Spotify to show the Sunlight Tax podcast to new audiences.

Links:

Link to pre-order my book, Taxes for Humans: Simplify Your Taxes and Change the World When You’re Self-Employed.

Get your free visual guide to tax deductions

Check out my program, Money Bootcamp

Watch YouTube video version here

What Small Business Bookkeeping is Actually For

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In this episode, I’m diving into the essentials of bookkeeping specifically for small business owners who want to take control of their finances without the overwhelm. I break down accounting basics like the difference between financial accounting and tax accounting, and I explain when (and if) you actually need audited financial statements. We’ll talk about how to simplify your DIY bookkeeping process, stay on top of your taxes, and make tax preparation less stressful. 

If you're a small business owner, freelancer, or creative entrepreneur looking for practical tips on bookkeeping, taxes, and staying organized, this episode is packed with everything you need to build confidence and clarity around your money.

00:00 Understanding Bookkeeping for Small Businesses

00:52 The Role of Bookkeeping in Small Business

13:14 Navigating Tax Accounting vs. Financial Accounting

16:34 Creating a Simple Spreadsheet System

19:23 Tracking Deductions and Expenses Effectively

22:41 Building a Sustainable Financial Future

Takeaways

• Bookkeeping does not need to be complicated for micro businesses.

• Understanding the purpose of bookkeeping can simplify your process.

• Most small businesses do not need audited financials.

• Key reasons for bookkeeping include knowing profit and tax predictions.

• Double entry bookkeeping can be confusing without training.

• Tracking expenses in a simple way can save time at tax time.

• DIY bookkeeping is possible with the right resources.

If you enjoyed this episode, please rate, review and share it!
Every review makes a difference by telling Apple or Spotify to show the Sunlight podcast to new audiences.

Links:

Link to pre-order my book, Taxes for Humans: Simplify Your Taxes and Change the World When You’re Self-Employed.

Get your free visual guide to tax deductions.

Check out my program, Money Bootcamp.

Watch YouTube video version.