Many parents who worked or were looking for work this summer had to arrange for care of their children under 13 years old during the school vacation. The Child and Dependent Care Credit is available for expenses incurred over summer break and throughout the rest of the year. Here are five facts you should know about this tax credit:
1. The cost of day camp can count as an expense towards the credit.
2. Expenses for overnight camps do not qualify.
3. 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.
4. The actual credit can be up to 35 percent of your qualifying expenses, depending upon your income.
5. You may use up to $3,000 of the unreimbursed expenses paid in a year for one qualifying individual ($6,000 for two or more) to figure the credit.
For information, including credit for your spouse or dependents over 13 that cannot take care of themselves, contact your local office.