Sending Jr. off to summer camp this week? Don’t forget the Child and Dependent Care Tax Credit.
Day camp expenses may be eligible for a federal tax credit of up to 35 percent of your qualifying expenses. You could receive up to a $3,000 credit for one child or $6,000 for two or more. Typically, expenses for children under age 13 qualify.
There are a few other rules that go along with the child tax credit. For one thing, overnight camp doesn’t count. Same goes for tutoring or if you’re paying your 16-year-old, or another older dependent, to keep watch over a younger sibling. But, if you pay for home day care so you can go to work, and the person you pay is not one of your dependents, your expenses can qualify.
And speaking of work, you’ve got to do that to be eligible for the credit. You must have earned income. If you’re filing jointly, your spouse must also work or be a full-time student, unless he or she is incapable of self-care.
Of course, you’ve got to keep all your records for when you visit your tax preparer. You’ll need the name, address and taxpayer ID number of your care provider. This handy tax organizer can help you keep those records in one place.
Now that you’ve got your tax issues covered, let’s hope Jr. enjoys summer camp.
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