Aha! There is a “Child and Dependent Tax Credit”!

by roger chartier

Our dear IRS helps us in so many ways…

A…hem well in any case check out how they do in this case:
The IRS reminds us taxpayers that there is the “Child and Dependent Tax Credit” that will help us with some day camp and other such costs.

People are often looking for ways to save money as far as making ends meet during the year but in the summer it gets worse as there is no school to keep the kids occupied during the day.

Our IRS wants us to keep this in mind as far as the tax credit is concerned and these are things that must be considered:
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.”.

This is a good set of rules to think about concerning the summer but for the rest of the year as well where it would apply.

For more information check out IRS Publication 503, Child and Dependent Care Expenses.

Share and Enjoy