Tax Credit for Summer Child Care

Tax Credit for Summer Child Care

By A New England Nanny 19 0

tax credit for summer child careAre you hiring a summer nanny to care for your children? Or will you be taking advantage of the many day camp options available during the summertime school break?

While temperatures and extra expenses seem to escalate quickly during the summer months, the IRS has some good news for parents:  Those additional expenses may help you qualify for a tax credit for summer child care!

Here are five facts the IRS wants you to 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.

  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. 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.
  4. The credit can be up to 35 percent of your qualifying expenses, depending on your income.
  5. You may use up to $3,000 of the non-reimbursed 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, check out IRS Publication 503, Child and Dependent Care Expenses.

For specific questions, contact us at (518) 348-0400.

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