School is out! For many families with young children, that means finding daycare facilities or babysitters to watch the kids. When you’re making plans don’t forget about the Child and Dependent Care Tax Credit!
This credit is available for childcare expenses incurred throughout the year so parents are able to work or look for work. Below is a reminder of what you need to know:
- To qualify, children must be under age 13
- Either at-home sitters or daycare facilities outside of the home may qualify
- Overnight camps and summer school/tutoring do not qualify
- The credit is available for up to $3000 of unreimbursed expenses paid in a year, for one qualifying child, or $6000 of unreimbursed expenses for two or more qualifying children
You will want to be sure to save receipts and documentation to reference when filing your taxes. Also, you are required to report the Employee Identification Number (EIN) of the camp, location, and dates the child(ren) attended, so be sure to keep track of these items throughout the year.