Get Credit for
Dependent Care This Summer +
Social Security Webinar Replay
parents pay for childcare or day camps in the summer while
they work. If this applies to you,
your costs may qualify for a federal tax credit that can lower
Here are 10 facts that
you should know about the Child and Dependent Care Credit:
Your expenses must be for the care of one or more qualifying
persons. Your dependent child or children under age 13
usually qualify. For more about this rule see Publication 503,
Child and Dependent Care Expenses.
Your expenses for care must be work-related. This means
that you must pay for the care so you can work or look for
work. This rule also applies to your spouse if you file a
joint return. Your spouse meets this rule during any month
they are a full-time student. They also meet it if they’re
physically or mentally incapable of self-care.
You must have earned income, such as from wages,
salaries and tips. It also includes net earnings from
self-employment. Your spouse must also have earned income if
you file jointly. Your spouse is treated as having earned
income for any month that they are a full-time student or
incapable of self-care. This rule also applies to you if you
file a joint return. Refer to Publication 503 for more
As a rule, if you’re married you must file a joint return
to take the credit. But this rule doesn’t apply if you’re
legally separated or if you and your spouse live apart.
You may qualify for the credit whether you pay for care at
home, at a daycare facility or at a day camp.
Last month I
hosted a live webinar on Social Security Strategies and
Secrets you should understand and use as you contribute
and eventually take distributions from this program.
If you are interested in watching the VIDEO REPLAY you
click here. Kevin
The credit is a percentage of the qualified expenses you
pay. It can be as much as 35 percent of your expenses,
depending on your income.
The total expense that you can use for the credit in a year
is limited. The limit is $3,000 for one qualifying person
or $6,000 for two or more.
Overnight camp or summer school tutoring costs do not
qualify. You can’t include the cost of care provided by
your spouse or your child who is under age 19 at the end of
the year. You also cannot count the cost of care given by a
person you can claim as your dependent. Special rules apply if
you get dependent care benefits from your employer.
Keep all your receipts and records. Make sure to note
the name, address and Social Security number or employer
identification number of the care provider. You must report
this information when you claim the credit on your tax return.
Remember that this credit is not just a summer tax benefit.
You may be able to claim it for care you pay for throughout
For more on this topic, see
Publication 503 on IRS.gov. You can also call 800-TAX-FORM
(800-829-3676) to have it mailed to you. And as usual
fee free to call our offices at 502-426-0000.
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Regards, Kevin Roberts, CPA
President, Roberts CPA Group