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, 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

Should You and Your Spouse File Taxes Jointly or Separately?

Married couples have the option to file jointly or separately on their federal income tax returns. The IRS strongly encourages most couples to file joint tax returns by extending several tax breaks to those who file together. In the vast majority of cases, it's best for married couples to file jointly, but there may be a few instances when it's better to submit separate returns.

Read More

Brought to you by

Tax Tips After January 1, 2020

Your tax bill isn't chiseled in stone at the end of the year. Here are 10 tax tips and steps you can take after January 1 to help you lower your taxes, save money when preparing your tax return, and avoid tax penalties.

Read More

Brought to you by

8 Common Life Events That Affect Your Taxes

If one thing in life is certain, it's that your taxes will never stay static. Events in your own life as well as frequent adjustments by legislation can be cause for either increasing or decreasing your taxes. Here are 8 common life events you should know that may affect your taxes.

Read More

Brought to you by

How Bonuses Are Taxed

Working hard all year to help your company meet its annual goals deserves a reward, and you've definitely earned that bonus. But bonuses count toward your income for the year, so they're subject to income taxes. Read on to learn how much tax you can expect to pay on your bonus—and for tips on reducing your tax liability.

Read More

Brought to you by
Read Full Story
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.