What’s Deductible? Summertime Child Care Expenses
July 31, 2009 by blackgirlgrown
Filed under life, taxes
The Internal Revenue Service (IRS) recently provided guidance to taxpayers on the use of the Child and Dependent Care Creditand deductibility of child care expenses during summer.
The Good News:
- The cost of day camp can count as an expense towards the child and dependent care credit.
- 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.
The Bad News:
- Expenses for overnight camps do not qualify.
blackgirlgrown
