Did you know that the Child and Dependent Care Tax Credit can help to offset the cost of your child’s day camp this summer? Along with the lazy, hazy days of summer come some extra expenses, including summer day camp. But, the IRS has some good news for parents: those added expenses may help you qualify for a tax credit.
Summer day camp is considered a childcare expense; however, overnight camps, summer school and tutoring do not qualify. Here is what you need to know about the tax credit available for child care expenses. The Child and Dependent Care Credit is available for expenses incurred during the summer and throughout the rest of the year.
1. Children must be under the age of 13 in order to qualify.
2. The cost of day camp may count as an expense towards the child and dependent care credit.
3. Expenses for overnight camps do not qualify.
4. Whether 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.
5. The credit can be up to 35 percent of your qualifying expenses, depending on your income.
6. 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 to figure the credit.
7. Make sure to save receipts and paperwork as a reminder when filing your 2013 tax return. Remember to make a note of the location of the camp and the dates your child attended.