Summertime Child Care Expenses May Qualify for a Tax Credit

The child and dependent care credit is available for expenses incurred during the lazy hazy days of summer and throughout the rest of the year. Here are seven facts the IRS wants you to know about a tax credit available for child care expenses.

  1. Applicable for care of dependents under the age of 13 (some exceptions apply). 
  2. The expenses must be paid so that both you and your spouse (if married) can work or look for work.
  3. Day camp costs may count as an expense towards the child and dependent care credit.
  4. Expenses for overnight camps don’t qualify.
  5. If 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.
  6. The actual credit can be up to 35 percent of your qualifying expenses, depending upon your income.
  7. When figuring the credit, 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.

For more information on Child and Dependent Care Expenses, contact your Padgett Office today.

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