Summertime Tax Tip 2012
Keep the Child and Dependent Care Tax Credit in Mind for Summer Planning
During the summer many parents may be planning the time between school years for their children while they work or look for work. Keep in mind a tax credit can help offset some day camp expenses.
The Child and Dependent Care Tax Credit are available for expenses incurred during the summer and throughout the rest of the year. Here are six facts taxpayers should know about the credit:
1. Children must be under age 13 in order to qualify.
2. Taxpayers may qualify for the credit, whether the childcare provider is a sitter at home or a daycare facility outside the home.
3. 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.
4. The credit can be up to 35 percent of qualifying expenses, depending on income.
5. Expenses for overnight camps or summer school/tutoring do not qualify.
6. Save receipts and paperwork as a reminder when filing your 2012 tax return. Remember to note the Employee Identification Number (EIN) of the camp as well as its location and the dates attended.