Summertime Child/Dependent Care Expenses

The IRS reminds us that this summer’s child-care expenses can be used as a tax credit when you file after January, 2011.  Since parents work or are actively looking for employment, the documented cost of care for children under 13 years of age during the summertime (a period of school recess) may qualify for a tax credit on personal federal income tax.  This child and dependent care credit covers up to 35% of the following expenses depending on your reported income incurred during the tax year:

  • Documented costs of day camp; overnight camp expenses DO NOT qualify for a credit.
  • Costs for a provider of child care regardless of whether it pertains to an at-home sitter or at an outside day-care facility.

Keep records and any receipts of payment including Employer Identification Number (EIN) or Social Security Number and business address. For more information, refer to IRS Publication 503, Child and Dependent Care Expenses available on the IRS website, or by phone at 800-TAX-FORM (800-829-3676).  The PDF version of IRS Publication 503 is available here.

Consult a qualified tax preparer.