Summer has really landed with a blast of hot air!
Along with the lazy, hazy days of summer come some extra expenses, the
air conditioning bill is ratcheting up and the kids are wanting to get
out of the house and head to summer day camp. But, there is some good
news for parents: those added day care expenses may help you qualify for
a tax credit.
Many parents who work or are looking for work must arrange for care of
their children under 13 years of age during the school vacation.
Here are some items to remember about the tax credit available for child
care expenses. The Child and Dependent Care Credit is available for
expenses incurred during the summer and throughout the rest of the year.
o
The cost of day camp may count as an expense towards the
child and dependent care credit. You must meet all other
requirements for the Child and Dependent Care Credit.
o
Unfortunately, expenses for overnight camps do not qualify.
o
Whether your childcare provider is a sitter at your home or
a daycare facility outside the home, you’ll get some tax
benefit if you qualify for the credit.
o
The credit can be up to 35 percent of your qualifying
expenses, depending on your income.
o
You may use up to $3,000 of the unreimbursed expenses paid
in a year for one qualifying individual or $6,000 for two or
more qualifying individuals to figure the credit.
Keep this credit in mind and don’t forget to keep the care providers tax
identification number with your records as you will need that
information at tax filing time.
