With many parents struggling to fill gaps in their children's schedules as summer kicks into high gear, the IRS is reminding taxpayers to keep in mind the Child and Dependent Care Tax Credit to help them offset some day camp expenses.
The credit is available for expenses incurred during the summer and throughout the rest of the year. The IRS is emphasizing six key facts about the credit:
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. Taxpayers 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. Taxpayers should save receipts and paperwork as a reminder when filing their 2012 tax return. They should also note the Employer Identification Number of the camp, as well as its location and the dates attended.
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