A Cool Tax Credit

Did you know that your summer daycare expenses may qualify for an income tax credit?  Many parents who work or are looking for work must arrange for care of their children under 13 years of age during the school vacation.  Those expenses may help you get a credit on next year's tax return.
Here are five facts the Internal Revenue Service wants you to know about a tax credit available for childcare expenses.  The Child and Dependent Care Credit is available for expenses paid during the lazy, hazy days of summer and throughout the rest of the year.
  • The cost of day camp may count as an expense towards the child and dependent care credit.
  • Expenses for overnight camps do not qualify.
  • If 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.
  • The actual credit can be up to 35 percent of your qualifying expenses, depending on your income.
  • 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.
For more information check out IRS Publication 503, Child and Dependent Care Expenses. This publication is available on the IRS Website, IRS.gov or by calling 800-TAX-FORM (800-829-3676).  Please note that Revenue does not guarantee any tax credit and employees should consult a tax specialist if you have questions or concerns about filing your federal taxes.     
Source: Internal Revenue Service web site

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