School's out for the holidays! 6 ways to save on childcare this winter

School’s Out for the Holidays! 6 Ways to Save On Childcare This Winter
School’s Out for the Holidays! 6 Ways to Save On Childcare This Winter

With work, gift hunting, and out-of-town visitors looming over us this holiday season, it can be a scramble to find time to get anything done, especially when your kids are out of school! Before spending all your holiday savings, check out these six ways to save on childcare this winter:

Do your research. If you decide that daycare is your best option, make sure to do your research. Some centers are closed on holidays or still charge you even when your child isn’t there!

Reach out to your company. Many companies understand the responsibility of a parent, especially during the holidays. If you took advantage of a Dependent Care Flexible Spending Account for childcare you can use your pretax savings to pay for up to $5,000 in daycare. Other companies offer daycare reimbursements or even have onsite daycare.

Double up with friends. Do you have friends in the area who also have children? Combine your efforts (and money) and hire a nanny! You’ll pay less for higher quality care, plus your children can remain at a home instead of going to a daycare facility. Most nannies also charge per hour rather than per day, so if you need an hour or two to snag some last minute presents, they can fill in.

Hire a local teenager. Hiring a teenager from your neighborhood is a great way to cut costs on childcare. Not only will they also be out of school for Christmas break, but they don’t charge as much as a nanny or daycare. It’s also a great way for them to gain some work experience, a real win-win!

Utilize your family. Not everyone has a parent or family member nearby or in town to visit for the holidays, but if you do, reach out to see if they would mind watching your kids. Even if it’s just for a few days out of the week, that could shave a lot of money off of your childcare budget.

Don't forget the Child and Dependent Care Tax Credit. If your child is under the age of 13, you may be able to get the Child and Dependent Care Tax Credit up to $1,050 for your child and up to $2,100 for two or more if you paid for childcare over the holidays. According to BabyCenter.com, the average cost of full-time daycare costs about $972 a month, so that puts more money back in your pocket at tax-time!

Don't worry about knowing how to claim the Child and Dependent Care Credit and other tax credits. TurboTax will ask you simple questions about you and give you the tax deductions and credits you deserve based on your answers. Also, if you have questions while doing your taxes you can connect live via one-way video to a TurboTax Live CPA or Enrolled Agent to get your tax questions answered. A TurboTax Live CPA or Enrolled Agent can also review, sign, and file your tax return.

Brought to you by TurboTax.com

Your resource on tax filing
Tax season is here! Check out the Tax Center on AOL Finance for all the tips and tools you need to maximize your return.
Filing Your Taxes Late
What do you do if you can't meet the IRS filing deadline? Learn more about filing a tax extension, late payment and late filing penalties, and what to do if you can't pay your taxes.
Read MoreBrought to you byTurboTax.com
How to File an Amended Tax Return with the IRS
Did you make a mistake on your tax return or realize you missed out on a valuable tax deduction or credit? You can file an amended tax return to make the correction. Filing an amended tax return with the IRS is a straightforward process. This article includes step-by-step instructions for when and how to amend your tax return using Form 1040-X.
Read MoreBrought to you byTurboTax.com
Taxes 2021: 7 Upcoming Tax Law Changes
Tax Year 2021 will likely bring some surprises, but some of its changes are already planned. Here's what you need to know about some of the planned phase-outs, changes and inflation adjustments the IRS will present for taxes in 2021.
Read MoreBrought to you byTurboTax.com
Ways to Increase Your Tax Refund You Never Thought About
Laying the groundwork for a tax refund requires some simple tax planning, a little research and some forethought. Reviewing your tax status, consulting your spouse when filling out your W-4s and taking advantage of several tax credits can help you increase your tax refund. TurboTax also can help decide which credits can get you the biggest refund.
Read MoreBrought to you byTurboTax.com