I was happy to receive today’s “Tax Professionals” email from the IRS. Not only does it deal with an interesting and timely tax issue, but it addresses an issue I had to deal with on a bankruptcy petition only yesterday. The bankruptcy “means test” allows the Debtor to deduct child care expenses. My client just enrolled her son in day camp for the summer, specifically so that she can work her part time job. in fact, for the two weeks that there is neither school nor summer camp, she will take vacation from work, because she cannot leave the child home alone. This does fit within the IRS guidelines for Dependent Care Expenses. As such, I should have no difficulty convincing the Chapter 13 Trustee that this is a legitimate deduction under the means test.
A link to the IRS’ video is below: