Summer is in full swing, and with the kids out of school, Summer Camp, Daycare, and Babysitters may be a necessity. Recently, the IRS released a report about Tax Credit available for child care expenses, and Summer child are expenses are a convenient fit.
1. Day Camp- The cost of Summer Day Camp can count as an expense toward the child and dependent care credit.
2. Overnight Camps- The cost of overnight camps DO NOT qualify, however.
3. Sitters- if you have a babysitter at your home or at a daycare facility outside the home, you'll receive a tax benefit if you qualify for the credit. (this could be up to 35% of your qualifying expenses, it depends on your income amount.)
4. You can 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.
5. The dependent must be 13 years old or younger, unless they are over 13 and are unable to care for themselves (ex: disabled).
Labels: Children and Tax Debt