Schools out – you and your husband both work – what’s a parent to do during the summer when child care is soooooooo expensive?
The Child and Dependent Care Credit allows families to claim up to 35% of qualifying care expenses – or up to $3,000 for one child or dependent, and up to $6,000 for two or more children or dependents. It enables you to work or go to school, so if you are a single parent, or you and your spouse both work, you’ll qualify for the tax credit. There are no upper limits on income for claiming the credit.
Summer day camps qualify for the Child and Dependent Care Credit, as long as your little one is under the age of 13 at the end of the tax year and you are sending your child to camp so you can work. Unfortunately sleepover camps don’t qualify, but if your child is disabled there is no age limit.
Day camps can average more than $300 a week, so if that is not affordable, what are your other options? Money spent to engage babysitters or housekeepers who provide child care while you are working can count towards qualifying expenses. Day care facilities count just the same as day camps, but might carry a more affordable price tag!
The important thing to remember is that the care must be connected to the objective of allowing you to work, or look for work, so babysitting or any other care arranged for personal reasons or for a “date” night or vacation get-away don’t qualify.
Be sure to keep all payment receipts and records of the time your child attended the day care or day camps. When it comes time to file your taxes, you’ll need to provide the address, plus federal tax identification number for the facilities, or the social security number of the care provider.
CONTACT US: Let us help make your Summer less taxing! Remember a tax credit directly reduces the amount of the tax liability owed. Let our tax experts help you maximize this and any other tax breaks you might be entitled to, and assist you with the proper forms. Please remember there are always exceptions and exclusions as this is the IRS we are talking about. Contact us toll free at 855-534-2727.
