Now that school's almost out, do you have plans for child care? The cost of child care during the summer can be quite the budget-buster! However, you may be able to cut the costs if you can use the Child and Dependent Care Credit.
If you're sending them to summer camp, did you know that the money you pay for that may help you qualify for a tax credit on next year's tax return?
Summer day camp expenses may help you qualify for the child and dependent care credit.
- Remember, it must be a day camp.
- Overnight camps do not qualify.
- Only applies to children who are under 13 years old at the time of care, unless there are special circumstances.
- You must pay child and dependent care expenses so you (and your spouse if filing jointly) can work or look for work.
- And even if you pay someone to watch your child at home while you work, you may still qualify for a credit of up to 35 % of what you pay.
- The amount of credit you receive is dependent on your costs and your adjusted gross income. The higher your income, then you'll receive a smaller percentage of the child care costs.
Other rules do apply so be sure to find out more to see if this Credit will apply to your situation.
To learn more about the child and dependent care credit and to find out if you qualify, go to www.IRS.gov and read more about Child and Dependent Care Expenses. Or, talk to a tax professional for more help.