The IRS would like to remind all parents struggling to fill gaps in their children’s summer schedules that there is a Child and Dependent Care Tax Credit available to help offset the expense. Here are 5 tips to making it work:
• The child must be under 13.
• The credit is available whether your childcare provider is a sitter at home or a daycare facility. Keep in mind if it is a sitter at home you will have to provide their name and Social Security Number in order to get the credit.
• $3,000 in unreimbursed expenses for 1 child or $6,000 if you have 2 or more children (if your employer has an FSA plan that you run daycare expenses through, the expenses do not qualify).
• Expenses for overnight camps or summer school/tutoring do not qualify.
• Remember to save your receipts as a reminder when filing your 2012 tax return. Your receipts should include the Employee Identification Number of the facility as well as its location and the dates attended. (or the Social Security Number of the sitter and the address where the child was watched)