The Making Work Pay tax credit is not receiving much attention on Capitol Hill. Image: Flickr / willpalmer / CC-BY

After two years in effect, the Making Work Pay tax credit is due to expire. Unless Congress takes action, most middle-class taxpayers will see a reduction in their paychecks. The Making Work Pay tax credit will likely expire amongst debate over the Bush tax cuts.

The effect of Making Work Pay

The American Recovery and Reinvestment Act of 2009 included the Making Work Pay tax credit. This credit cut payroll taxes, adding about $33 a month to the average single person’s paycheck. This credit takes full effect for anyone making $75,000 or less, with partial credit for those earning more. About 90 percent of U.S. workers received some benefit from the Making Work Pay credit.

The expiration of the Making Work Pay credit

The Making Work Pay credit was designed to expire at the end of 2010. This credit was capped at $400 for anyone filing as a single person and $800 for joint filers. The money came in a slight increase in paychecks, rather than a one-time increase in tax returns. When the tax credit expires, deductions out of paychecks will increase, making a no fax payday loan tougher to get for some workers. There are currently two proposals to extend the Making Work Pay credit in the works, but none have been presented.

The tax cut debate

The debate over extending the Making Work Pay credit is not very loud. During the lame-duck Congress, the Bush tax cuts are most likely to be the center of the discussion. The major debate in Congress will likely be tax cuts for the 5 to 6 percent of Americans making $250,000 per year or more. If the Making Work Pay tax cut is extended, it will cost about $60 billion per year. Critics claim that the incremental nature of Making Work Pay reduces its impact. Proponents say that the extra $33 a month can have a huge impact for low-income families. How about you? Did you notice the Making work Pay credit in your paycheck?

Sources:

News Advance
CNN.com

BP has decided to roll the dice and try to take a $10 billion tax credit. Image: Flickr/alancleaver

Facing a $17 billion second quarter loss and $32 billion in spill cleanup costs, BP has decided to take a $10 billion tax credit. This credit is intended as a cash loan advance for companies in trouble. The legality of the BP tax credit is under debate. In the end, the U.S. Government may see more than half of the oil spill cleanup fund coming out of its own coffers.

Losses that spurred the BP tax credit

The way current IRS law is written, a company that is in severe financial trouble can take an extensive tax credit. In just the second quarter of this year, BP has reported losses of over $17 billion. Most of this loss is from the falling prices of BP stock. Though BP has not needed to borrow money fast to keep their operations going, they are facing heavy losses.

Effect of the BP tax credit

If BP does take the $10 billion tax credit, the U.S. Government could well be left holding half the oil spill cleanup bill. BP agreed to put $20 billion in an escrow account to pay for oil spill cleanup costs. If the U.S. Government gets $10 billion less in taxes, though, then the net effect is halving BP’s cost of the cleanup.

Arguments against BP’s tax credit

Press Secretary Robert Gibbs, in a press briefing, commented on the BP tax credit by saying “I don’t think anybody would prefer that [BP] do that.” The only even slightly comparable situation is where Goldman Sachs agreed to not write off the $535 million penalty paid to the SEC. It is an especially difficult situation because no other company has ever been in a situation like this — promising loans until payday to the U.S. Government, and then writing off those same loans.

Arguments for the BP tax credit

As reprehensible as some people are saying the BP tax credit is, there is a possibly legitimate reason for them. BP has promised to pay all cleanup costs of the spill — which will prove to be expensive. Unless BP can stay solvent, then getting the quick money loan needed for the cleanup could be practically impossible. If BP were to the point that the $10 billion tax credit made the difference between staying in business and continuing to make enough money to pay for cleanup, it may be defensible. If they are in that situation or not, though, is going to be up to the IRS investigation.

Sources:

Daily Finance http://www.dailyfinance.com/story/taxes/bp-claiming-9-9b-tax-credit-on-gulf-clean-up-costs/19571518/

MarketWatch http://www.miamiherald.com/2010/07/28/1749344/bp-eyes-10b-tax-credit-over-gulf.html#ixzz0uyReljAI

Benefiting from federal tax incentives while obtaining a college education is a win-win situation. While many are unaware of how to go about this, wealth-education information is everywhere and should be carefully studied. With diligent research and a commitment to learning as much as possible, parents and students are often surprised to discover that tax breaks and college savings often go hand in hand.

The following are but a few of the programs, which offer tax incentives and other savings while helping families afford the cost of college without having to obtain personal loans:

US savings bonds

If purchased by someone 24 years old or older after 1989, redeeming EE and I savings bonds may be done so without paying taxes on them if the owners of the bonds, their children or a spouse are using the money to help pay for college. However, income limits apply to such savings. For instance, in 2010, those who earn between $70,000 per year and $85,000 per year are excluded. For married couples who file a joint tax return, this income limit is between the amounts of approximately $105,100 per year and $135,000 per year. It should further be noted that these income limits are subject to increase with each year. Consulting with a qualified investment advisor can help a person determine if and how these limits may affect them.

Hope Scholarship Credit

Also known as the American Opportunity Tax Credit, the Hope Scholarship Credit allows a parent to claim a one-hundred percent credit up to $2,500 annually per child for as many as four years per student. This credit is only allowed if a student is enrolled at least half-time in a degree program and the student must be in their first four years of undergraduate study in order to qualify. Income guidelines do apply, therefore it is recommended that a professional be consulted before applying for a Hope Scholarship Credit.

Coverdell Education Savings Account

This college savings program was once known as an Education IRA. Now, commonly referred to by the acronym, ESA, earnings on these education savings accounts be tax-free if they are used for college costs. Up to $2,000 can be contributed to this account per child and these accounts can actually be used to fund a student’s precollege education, such as private school tuition for elementary and secondary schooling.

Individual Retirement Accounts (IRAs)

When money is withdrawn early from a traditional or a Roth IRA for the purpose of paying for college, penalties for doing so are waived. This is true whether the student is the investor, the investor’s spouse, a child or the investor’s grandchild. While taxes are still likely to be due on such a withdrawal, the penalties normally assessed on such are not, which can amount to a significant savings to help pay for college.

Consider all the options

Being aware of tax incentives that will help offset the cost of college makes affording an education easier than ever. By asking a qualified tax professional and investigating all available options, families find great reward in the savings they discover. While a college education can be expensive and some find themselves taking out personal loans in order to pay tuition, other options are available and each should be considered carefully.

Whether your tax return is a piece of cake or you have a lot of balls to juggle in order to get the numbers to work, there are always tips and tricks that can make things better. They don’t require online loans, and they most certainly do not require you make the mistake of apply for tax refund loans. You’d be much better clicking that link and applying for online loans.

Here are the top 10 overlooked tax deductions

Thanks to a recent WalletPop article, everyday consumers like you and me can get a bigger tax refund. Here are the highlights from a fine piece by Ken and Daria Dolan that I’d recommend you check out (See: http://www.walletpop.com/taxes/article/10-most-overlooked-tax-deductions/879239). Just remember that Personal Money Market is not a professional tax adviser. Any questions should be directed at a certified tax professional.

1. Mind the mileage – The IRS says taxpayers can deduct miles “primarily for, and essential to” medical care at 24 cents per mile. People who need to travel for regular treatments can benefit greatly. You can also deduct for miles driven for charity work at 14 cents per mile.
2. Property taxes don’t need to be itemized – According to the Dolans, a 2008 law lets you up your standard deduction by the amount of property tax you pay ($500 max, or $1,000 on a joint return).
3. New car excise tax – Did you buy a car between February 17 and December 31, 2009? The Dolans say “you can deduct the sales and excise taxes that you paid up to a maximum purchase price of $49,500.” It doesn’t have to be itemized!
4. Spring forward? Fall back! – If you filed state income tax in the Spring because you owed money in 2008, you can still count it towards your 2009 state return.
5. Environmental credits – Yes, I mean going green. Heating and cooling products – as well as other energy-saving home improvements – can save you green. Saving 30 percent on up to $1,500 worth of improvements is worth your time!
6. Sell a home in 2009? – Deductions for sale and closing costs, Real Estate agent commissions and other legal fees are available.
7. Take the PMI deduction – New laws now make private mortgage insurance payments deductible, but only through your 2010 return. Check this out with a tax professional before it’s gone!
8. Investors, take heed – Investment-related expenses like investment publications, financial advisor fees, mileage to go see a broker and more are available for deduction. In a similar vein, certain tax preparation expenses are deductible.
9. Unemployed in 2009? – The American Recovery and Reinvestment Act “made the first $2,400 you receive in unemployment benefits tax free,” write the Dolans. Job search expenses may be deductible if you searched for a job in the same field. This could include agency fees, ads, postage, phone calls, travel, etc. If it all amounts to more than two percent of your adjusted gross, it’s fair game, say the Dolans.
10. Childcare expenses – This credit includes daycare, nannies and more. The credit reaches as high as $3,000 for one child, $6,000 for two or more. They just have to be under 13 years old.

Remember – CONSULT WITH YOUR TAX PROFESSIONAL if you have questions!

Oh, and avoid tax refund loans in favor of online loans. That is all.

Related Video:

Homebuyers can find cash today with the $8,000 first-time homebuyer tax credit. The credit is the showpiece of the 2009 American Recovery and Reinvestment Act. It was designed by the government to boost housing sales and help spur the market to recovery. So far projections say that the plan was a success. Chief economist for the National Association of Realtors Lawrence Yun said, “According to our projections, homebuyers will purchase an additional 300,000 homes in the coming year as a result of the tax credit.”

Overall, the tax credit was a help to the nation’s recovery efforts. Yun said, “We think this year’s tax credit will certainly have a much bigger impact because it is a true tax credit which is also refundable. For example, if you owe $1,000 in taxes and qualify for the first-time homebuyers tax credit, you will receive a tax refund of $7,000.” Yun believes the credit will continue to bring down housing inventories and stabilize housing costs.

The first-time homebuyer tax credit

There are rules along with the first-time homebuyer tax credit. Here are the main ones:

• It does not have to be repaid unless the home is sold within three years
• It is available to homes purchased between January 1st and December 1st of 2009.
• Restricted to individuals with AGI of $75,000 or more and couples with AIG of $150,000 or more
• The tax credit is for up to 10% of the purchase price, to a maximum of $8,000
• The credit can be taken in 2008
• It applies to first-time homebuyers, or those who have not owned a home in three tax years

The filing exceptions to the tax credit are:

• Those who closed on a home prior to April 15, 2009
• Those who got an extension to file taxes
• Those who filed an amended return

Critics of the tax credit

Though many financial experts are in support of the tax credit, there is still a portion of analysts who don’t believe it is the easiest way to find cash today. Greg Smith, Certified Financial Planner with The Wise Investor Group, believes the tax credit is an incentive to buy, but the buyer needs to be realistic about the credit’s potential. He said, “This incentive only works for people who have complete job security, who know they won’t be transferred within three years, who qualify as first-time homebuyers and have the ability to obtain financing. In addition, they need to live in an area with reasonable home prices.”

Michael Dooley, another financial planner in Beverly, Massachusetts, agrees. He said, “While the theory behind the tax credit is great, I just don’t think $8,000 is enough. The people who would benefit from this the most are looking to survive financially or are even leaving their homes because they can’t afford them.” The tax credit was meant to cover 10% of the home’s purchase price, but surveys show that in reality it’s only covering about 4%.

The performance of the tax credit

Although there are detractors to the tax credit who don’t believe it is the answer to finding cash today as easily as it was supposed to, it still is allowing buyers to purchase homes. The real job of the tax credit was to benefit first-time homebuyers and spur them into action. Overall, the tax credit did just that and can’t be called unsuccessful just yet.

Need cash today? Apply HERE!

It’s true – there are some major advantages that come from being a homeowner. For example, instead of just paying a landlord every month, you’re actually investing in an asset that has the potential to grow in value over time. In addition, the government has a whole package of benefits for homeowners, even beyond the $8,000 tax credit they’re currently offering to new homeowners. When tax season rolls around, you’ll also be able to deduct the interest on your mortgage, your property taxes and many other financial elements against your annual income.

However, homeownership isn’t for everyone. There are plenty of reasons why you might not be ready to make the leap from renter to owner. Let’s look at a few:

How Big is Your Bank Account?

Buying a home isn’t just trading in your monthly rent for a mortgage check – there’s a lot more that goes into the price of buying a home. Before you even set foot in your new home, you’ll have to pay for home inspections, appraisals and the closing costs that are part of the home buying process. And, unfortunately, the fun doesn’t stop once the deal is finished.

Another thing to consider is whether or not you’ll be able to afford any major repairs your home needs once you’ve settled in. As a renter, your landlord takes care of things like leaky faucets, malfunctioning appliances and more serious repairs, including roof, siding and foundation problems. As a home owner, the ball’s in your court to take care of these problems and they can get expensive. When you’re considering homeownership, take the time to determine whether or not you’d be able to cope with an extra $1,000 of repairs you weren’t expecting at any given time.

How Stable is Your Lifestyle?

Are you ready to settle down in one area? Or is it possible that your job will require relocation to another area? The stability of your lifestyle is another important consideration to make before you start shopping for a home.

Most experts recommend not buying until you’re ready to spend three years in the home, as it will take that long to turn a profit on the sale after expenses like realtor commissions are taken into account. In fact, some economic analysts are extending this recommendation to five years, given the recent financial losses in the housing sector as a whole. But regardless of which prediction is correct, the end result is the same – don’t buy a home until you’re ready and willing to commit to one place for several years.

So What Should You Do?

The decision to become a homeowner isn’t one to be made lightly. However, there’s no doubt that now is a great time to buy a home – prices are lower than ever, inventory is at an all-time high and the government is offering plenty of incentives for both first-time and repeat home buyers to make a move. If it’s something you’re considering at all, make an appointment with your real estate agent and a mortgage lender to learn more about the home buying process.

Finding emergency money isn’t easy, but with the vast amount of tax credits available the government is trying to make it a little simpler. Once you get your income tax liability down, you then can start looking at tax credits. There are a wide variety of them available, but it’s important to remember that they do not create a refund if they exceed your tax liability. Here are some of the most popular tax credits and a little about how to utilize them.

Child tax credit

In general, you can claim a tax credit of $1000 for every under-17 year old child in the household. To calculate your exact credit you need to complete a “Child Tax Credit Worksheet.” Even though this credit could exceed your tax liability, you still may be able to use a portion of it if your income for the year was more than $8,500 and you have three or more children. There may be some limitation on the credit if your income is more than $55,000. This is one of the most common tax credits used and though there is paperwork to fill out, it can help create more savings.

Child and dependent care credit

For anyone who had to hire an outside worker to help with their children or dependents, there could be an additional tax credit. The care you needed to outsource may be considered an expense, even if you only worked outside the house part-time. This credit is claimed on Form 2441 if you file a 1040 and on Form 1040A , Schedule 2. To calculate the amount of the credit, you’ll need to have the amount of the expense, number of dependents who needed provisions, and your income. The actual credit amount is then based on your adjusted gross income.

The adoption credit

Emergency money can also be found using the adoption tax credit. If you adopt a child under the age of 18, there is an adoption credit that can reach a maximum of $11,650. It also is applicable if you adopt a person physically or mentally disabled and incapable of self-care. This credit is used on Form 8839. If your employer provided an adoption expense, then you can exclude that money from your income.

Hybrid vehicle tax credit

If you purchased a hybrid vehicle, there is also a tax credit available. The amount of this credit is dependent on the car’s projected lifetime fuel savings, as dictated by the IRS. The maximum for the credit is $3,400. Only the car’s original purchaser of a new hybrid car can be claimed on this credit and if you leased the car, the leasing company claims the credit.

The retirement plan tax credit

For anyone who contributed to their 401k plan or an IRA there may be a second tax credit to take advantage of. The maximum for this credit is 50% of a contribution up to $2,000. The credit is a good way for people who are vigilant about contributing to their savings, to find even more savings. Those with higher incomes may also qualify for an additional 20% credit. This credit is on Form 8880.

Using the tax credits

Adding to emergency money funds can be easier if you utilize the tax credits available to you. Check with a tax preparer who is well-versed in optimizing tax credits to be sure that you are taking all credits available. The savings can be considerable in minimizing your tax liability.

Apply for emergency money here!

Most people are now well aware of the First Time Home Buyer Tax Credit issued in 2009. The National Association of Realtors (NAR) statistics indicated a consistent rise in pending home sales during the period in which first time home buyers could reap tax credits. In fact, NAR’s statistics showed pending home sales were up 31.8% during October, 2009 when compared with October, 2008.

Washington State Representative (D), Jim McDermott said, “The homebuyer’s credit has helped pave the way for stabilization in the housing market…. Its extension will continue to make homeownership more affordable and bring confidence to a housing market and economy that remain fragile.” There were, however, no tax credits included in this legislation to help those millions of people who currently owned a home or had owned a home within the past five years. There was much grumbling on the part of homeowners who failed to qualify for tax credits under this program.

2010 Extended Home Buyers Tax Credit

On November 8, 2009, President Obama signed into law an extended version of the tax credit legislation as part of a larger economic stimulus package. The tax credit for qualifying home owners who chose to upgrade to a new or more expensive existing residence between November 7, 2009 and April 30, 2010 would enjoy up to $6,500 in tax credit. The first time home buyer benefits remained with a cap of $8,000.

Charles McMillan, President of the National Association of Realtors, states, “The substantial rise in home sales we’ve seen over the past few months proves that the tax credit is working and is being used by buyers who were waiting for the right opportunity to get into the market. This important incentive is helping to stabilize the housing market, stimulate the economy and create new jobs in communities all across our great nation. Extending and expanding the home buyer tax credit will enable even more families to take advantage of current low interest rates and affordable prices to invest in their future through homeownership.”

Buyer Qualification for the Tax Credit Extension

Each qualifying home buyer who has not owned their own residence, nor has their spouse owned a residence, during the three years prior to buying a qualifying home during the period beginning November 7, 2009 and ending April 30, 2010 will receive a tax credit of $8,000. Any qualifying homeowner who buys a home during the same tax credit period AND who has owned the home being sold or vacated as their primary residence for five consecutive years of the past eight years will qualify for up to $6,500 tax credit. The qualifying home must be in the binding contract phase of purchase no later than April 30, 2010 in order to qualify for the tax benefit. A copy of the HUD-1 Settlement Statement must be provided after closure of the sale; closing must occur no later than June 30, 2010. No person under the age of 18 can qualify for the tax credit benefit.

Income Qualifications

Homebuyers who are not married must have income of less than $125,000 to qualify for the full tax credit. Married homebuyers must have combined incomes not exceeding $225,000 to fully qualify. Single homebuyers earning between $125,000 and $145,000, or married couples filing joint income tax returns indicating income of between $225,000 and $245,000, will qualify for a portion of the tax credit. The tax credit amount is calculated on a sliding scale so that the more money is earned over the maximum, the less tax credit is available.

Tax Credits Versus Tax Deductions

The greatest part of this tax credit program is that it offers a CREDIT as opposed to a DEDUCTION. A tax deduction means that your taxable income is reduced by a specific amount. However, a tax credit means that after your taxes owed or refund due are calculated, the tax credit is subtracted from income tax owed or added to tax refund amount due. This maximizes the benefits to those who take advantage of the 2010 Extended Home Buyers Tax Credit Program.

Parents looking for some debt relief can find aid trough a tuition tax credit of up to $2,500. Part of Obama’s stimulus bill is the higher-education tax credit. The stimulus, signed into law in February, should hopefully help Americans who are financially struggling.

This particular tax credit aims to help parents who are paying for college tuition this year. One of the benefits of this credit is that it requires no additional paperwork or a hefty financial aid application. Students only need to file their tax returns on time to take advantage of it. Jackie Perlman, analyst for H & R Block stated, “This will definitely help people.”

Complicated tax code

Like all tax code, the tuition credit does come with some complexity. In return for sorting through its regulations, however is a “bigger and more inclusive [tuition credit] than previous higher-education tax credits, which were so complicated that more than a quarter of eligible taxpayers failed [to get them],” according to Perlman.

Those who were able to collect normally saw a return of about $900. This time around the $2,500 tuition credit promises to be much simpler to manage. Perlman stated, “Any professional tax preparer knows how to use the credit and parents filing themselves can still do it relatively easily.”

How the credit works

Perlman explained the rules by sorting out some of the details:

• Taxpayers can utilize the credit for a reduction of their 2009 taxes.
• The credit can be up to $2,500, and even if taxpayers owe no money, they can still get a credit of $1,000.
• The tuition credit covers tuition, fees and books that were paid for throughout the 2009 to 2010 school year.
• The tuition credit is available to undergraduates who are enrolled at least half-time.
• Taxpayers with $80,000 adjusted gross incomes or $160,000 jointly-filed incomes are eligible for the full tax credit.
• Taxpayers who earn more than $90,000 and $180,000, single and joint filers, respectively, do not qualify.
• Because the credit covers only tuition, fees and books, students who have scholarships or grants that cover these are ineligible.
• Students with any drug felony convictions are not eligible either.

In the end, the tax credit is useful to a wide variety of taxpayers who are seeking small ways of finding debt relief. They need to follow a few rules to take advantage of the credit. Taxpayers can claim 100 percent of the first $2,000 they spend on tuition, fees or books and 25 percent of the next $2,000 spent. For example, if a parent has a $4,000 expense for tuition, fees or books, they can take $2,500 off of their 2010 taxes. If they owe less than the $2,500, then the government will return 40 percent of “whatever extra credit they qualify for, up to a maximum of $1,000.”

Finding help with college

Parents should utilize every tool they can to help defray the costs of college. It’s standard practice that tuition, fees and books increase every year as colleges and universities try to manage their own debt in a difficult economy.

With potentially an additional $2,500 in tax credited money, consumers can find some debt relief to help with their budgets. It may take a professional to sort through the complete tax code, but in the end it is worth the added trouble.

Many people are looking for mortgages to aid them with credit repair. The recession has left finances disheveled, and people are trying to find ways to regroup. Although recent crackdowns on mortgage lending have been put into place by the government, there are still some unscrupulous lenders trying to find their way back into the mortgage market.

Dani Babb, founder of The Babb Group, which offers real estate consulting, said, “Since early this year … a new wave of people are finding ways to scam home buyers.” Here are some of the newest programs they are advertising that are less than advantageous to the potential homeowner.

Hard money lending loans

Hard money loans may seem like a good idea, but they are not designed to be used for large purchases like homes. These types of loans disregard a borrower’s credit score and employment status. These can even be offered to consumers who have already been turned down for government-backed mortgages.

Because the loan is considered more risky due to credit, lenders may require up to a 30 percent down payment. Some may circumvent the down payment if the applicant puts up some form of collateral, such as a car. Hard money loans come in several forms, but in general it is best to stick to smaller, short-term hard money loans.

Advances to First-time homebuyers tax credit

The first-time homebuyer’s tax credit offers up to $8,000 to qualifying buyers. Last month, HUD agreed to allow FHA-approved mortgage lenders to offer eligible borrowers an “advance based on the tax credit.” Borrowers are still required to make a 3.5 percent down payment, but they can include the tax credit value to it or use the money for closing costs. Repayment can be tricky, however.

Borrowers will have to pay the loan each month and pay an additional sum when they receive the tax credit or spread their payments out over a number of years. These payments will have interest attached. The reality is that if borrowers need to rely on the tax credit to make the down payment, they most likely will have problems affording their loan payments. It may be wise to work on credit repair to open doors to better loan options before using the tax credit for this purpose.

Zero-percent down financing

Some states are creating programs that give potential homeowners the 3.5 percent down payment they need to procure an FHA-backed loan as a second loan. Piggyback loans — where the home buyer has two loans — are also becoming more popular. In a lot of cases, lenders who cannot provide the entire loan amount suggest second mortgages from another loan company. These secondary companies can carry high interest rates, some close to 25 percent.

In other cases, buyers try to step in and “lend” the money to eager homeowners, persuading them to pay back the loan over time. Piggyback and zero-down loans create two mortgage payments every month. This can be a difficult situation for homeowners to manage and studies are showing it makes “walking away” from the home more probable if financial disaster occurs.

Homeowners

In the end, potential homeowners have to be smart and do their own research. The reality is that the best idea is to have a down payment, get a traditional loan and pay it off like millions of other people do. If that isn’t possible, consumers should consider putting off their home purchase, working on their credit repair and saving money. There are dishonest lenders waiting for opportunities to strike.

Get professional credit repair help

Speak to a professional today and take proactive steps to repair your credit. For a FREE credit consultation, call 1-877-563-2076.

The kind of summer camp I always wanted, but I didn't have the installment loans to pay for it. (Photo: flickr.com)

Parents are using installment loans to fund summer camp for their children in 2010. Due to the economy, many parents are finding it difficult to finance their children’s summer vacation away from home. On average, summer camp costs anywhere from $90 to $1,200. It depends upon the length and type of the program. Peg Smith, CEO of the American Camp Association, reported that while some parents are opting to keep their children home due to their financial constraints, others are working hard to create summer adventures for their kids. Many are utilizing installment loans as a means of paying upfront costs of summer camp.

How to Cut Summer Camp Costs

Keep in mind that there are ways to cut costs for summer camp, but parents need to act quickly to receive help. Last year, enrollment across the country at summer camps was at full capacity. The National Camp Association offers free summer camp placement. They also help find funding for qualified parents who need aid.

In addition to the NCA, there are also other tactics parents can use to fund the summer camp costs.

1. Early-bird discounts. For example, Lake Greeley Camp, a privately owned co-ed campground in Pennsylvania, is cutting prices anywhere from $400 to $1,300 for children registered before June. Prior to the discount, tuition is a standard $7,400 for an eight-week stay. In addition, many campgrounds offer discounts for first-time summer campers, so parents need to be sure to ask about these when registering.
2. Payment plans. A lot of parents are funding the costs of summer camp by using payment plans. Many campgrounds understand the financial difficulties of consumers. Rather than suffer low attendance, they will work with people. Payments can be extended over weeks, sometimes months, to help parents.
3. Limit the camp stay. Many campgrounds have summer camp options that last two, four and eight weeks. Cutting back to a two-week summer camp session can also help parents afford the payments. With the elevated price, this may be the best compromise. Allowing the child to still participate in summer camp but keeping the cost down by limiting the time can serve both parties well.
4. Installment loans. Installment loans can help pay for summer camp with payment deadlines. If a parent is qualified, he or she can make the payment to the campground on time and their child can participate. Installment loans are especially helpful in cases where upfront money is needed, but isn’t yet available.
5. Ask for help. Parents can look for accredited campsites that offer scholarships and financial aid to participants in need. According to Smith, the ACA generates over $39 million in scholarship monies every year. For example, The New York YMCA Camp in Huguenot, New York offers scholarships that families can utilize and make up the difference of $540 to $980 for tuition requirements. They can receive the money without showing any financial documents, but only asking for an application. If a parent is willing to show financial documents, camps are even more generous, often times paying for well over 75 percent of tuition costs.
6. Tax credits. Children under the age of 13 who go to day camp can make their parents eligible for the Child and Dependent Care Credit. This credit allows a 20 to 35 percent deduction on expenses for one child and double the amount for two children or more.

Finding Funding for Summer Camp

Whatever way parents fund their children’s camp stay, it’s clear that the recession has affected every aspect of life as the U.S. citizen knows it. Parents are using government assistance, installment loans and tax credits creatively to fund their children’s vacations. Research and asking are keys to finding the funds for summer camp. The money is out there!

If you need Installment Loans APPLY NOW