Summertime Child Care Expenses May Qualify for a Tax Credit

Did you know that your summer day care 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.


The Child and Dependent Care Credit is a credit that may be available to you for child care expenses you incur during the summer or anytime of the year. Here are the facts:


  • 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 upon 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.


Talk to your tax advisor for more details or go the IRS website (www.irs.gov) and view publication 503, Child and Dependent Care Expenses.