Category Archives: Featured

Summer Camp: A Time of Bugs, Fun and Maybe Even Tax Breaks

Depending on your income, you may be able to write off up to 35 percent of the cost of your child’s summer camp. As long as it’s day camp. As long as you haven’t already used up the maximum $3,000 you can take from the Child and Dependent Child Care Credit. As long as you use your child-free time to relax a little. (Okay…the IRS doesn’t require that one, but wouldn’t it be nice?)

“

Write Off Your Child’s Summer Camp,” a post on the

Equifax Personal Finance Blog by tax expert Eva Rosenberg, explains the good and bad news of the summer camp credit. You use IRS Form 2441 to claim the credit on your taxes. Unfortunately for many parents who have children in private school or daycare, the money is already spent in daycare and after school care charges long before summer arrives.

If you read the stipulations on Rosenberg’s post and find you’re eligible, she warns that you should request the camp provider’s tax ID number before you send the child away. Turns out, some of them don’t want to give it out because they’re not planning to report the income.

If you’re part of the sandwich generation providing care for both children and parents, be aware that the same tax credit could apply for the care of adults who are elderly or disabled. Learn more and ask your questions at the

Equifax Personal Finance Blog.

The Home Buyer Tax Credit for my new home was denied! What now?!

With an estimated 1.8 million homebuyer tax credit forms filed with 2009 taxes, the IRS has been given the extraordinary task of correctly processing the extra paperwork. There are limitations on filing these credit forms electronically, and each application should be accompanied by specific documentation. The physical mounds of paper probably threatens to overtake the average cubicle.

Let’s cut the IRS a break. It’s no wonder some mistakes are being made and checks are delayed.

Tax expert and regular

Equifax Personal Finance blog contributor Eva Rosenberg has tips for avoiding delays and advice to follow if you’ve already been erroneously denied. Her article, “

Home Buyer Tax Credit Cash: 7 Things You Need to Know When Filing for the Home Buyer Tax Credit,” advises documentation, documentation, documentation throughout the process.

If you haven’t filed your tax credit form yet, then be sure to send proof that you bought the house (papers from closing) as well as proof that you live there now (perhaps your drivers license). Address mix ups are happening, too, so be sure to file an official change of address form in addition to writing in your new address and checking the box that your address has changed.

If it’s too late and your request has already been rejected, try, try again. Resubmit your return with copies of all the documentation and a cover letter asking to be reconsidered quickly.

Rosenberg’s article gives numbers to call (and not to call) for help with your home buyer tax credit questions. Like all the information in the

Equifax Personal Finance blog, her advice is down-to-earth and easy to follow, so give it a try!

State Program Helps Avoid Foreclosures

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Even with foreclosure rates increasing 14% in 2009, North Carolina still ranks one of the lowest for foreclosures nationwide. With help from a government run program that focuses on counseling and legal-service agencies, the state was able to avoid $183.6 million in investor losses and $43.6 in value declines last year.

The State Home Foreclosure Prevention Act (SHFPP) is the result of 2008 emergency legislation to the state’s high rate of foreclosures on subprime loans and successfully dodged 2,620 foreclosures in 2009. The project was launched with the Commissioner of Banks, 34 state agencies, HUD-certified counseling services, legal service providers, and nonprofit groups. Lenders have to give 45 days notice before filing foreclosure, according to state law. Counselors review homeowner’s personal finances to figure out why the mortgage became unsuccessful and might be able to work out a loan modification and the Commissioner of Banks expanded the phone-counseling services to all North Carolina homeowners seeking help.

SHFPP emerged when the state passed its Emergency Foreclosure Act in 2008 and sent $600,000 in grants to nonprofits and counseling agencies. Bank of America put up another $2 million, and North Carolina Housing Finance Agency secured $25 million in federal grants and the Commissioner of Banks pays the SHFPP staff with more than $1 million in fees it charges banks. If these funds aren’t renewed, the project will need to tap other sources, such as national foundations. However, with the expected budget deficit there is a chance the funding won’t be renewed. Read the entire article.