Summer Vacation-5 Facts about Childcare Tax Credits

July 12, 2010 | Subscribe to our RSS Feed

Your summer day care expenses may qualify for an income tax credit.

Many parents who work or are looking for work must arrange for care of their children (under the age of 13) during summer vacation.  These expenses could qualify you for a credit on next year’s tax return.

The Child and Dependent Care Credit is available during the summer (and throughout the rest of the year).  Here are 5 facts you need to know:

1. The cost of day camp may count as an expense towards the child and dependent care 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 for the credit.
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 or $6,000 for two or more qualifying individuals to figure the credit.

Submitted by Sam Cohen

Questions?

sam.cohen@glassjacobson.com