Where am I?
News & Events
Summertime Child Care Expenses May Qualify for a Tax Credit
July 08, 2010
Did you know that 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 13 years of age during the school vacation. Those expenses may help you get a credit on next year’s tax return.
Here are five facts you should know about a 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.
The cost of day camp may count as an expense toward the child and dependent care credit.
Expenses for overnight camps do not qualify.
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.
The actual credit can be up to 35 percent of your qualifying expenses, depending upon your income.
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.
For more information about deducting child care expenses, consult your tax adviser.
« Back to News | Back to the top
The content in our Web site's news articles is intended to review and explain business issues, trends and ideas to business owners, executives and individuals. We hope this article, publication and web site will help you deal more effectively with a variety of management, tax and business planning issues; it is not intended, however, to provide accounting, legal or other professional advice. For more information about the ideas presented in this news article, please call our offices at (314) 962-0300.
