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While this may the time of the year for your children to enjoy their vacation from school, the daily work schedule continues for those who care and provide for them.   In some cases the costs can be many times greater than the regular “after school” costs during the school year. If the requirements and qualifications in IRS Publication 503 (“Child and Dependent Care Expenses”) are met, you may be able to deduct these costs and receive a tax credit (dollar for dollar reduction of your income taxes) when you file your income tax return this year. This link will provide the details: http://www.irs.gov/pub/irs-pdf/p503.pdf
The following section provides a  brief summary of the provisions for this tax law: Â
Keep the Child and Dependent Care Tax Credit in Mind for Summer Planning
During the summer many parents may be planning the time between school years for their children while they work or look for work. The IRS wants to remind taxpayers that are considering their summer agenda to keep in mind a tax credit that can help them offset some day camp expenses.
The Child and Dependent Care Tax Credit is available for expenses incurred during the summer and throughout the rest of the year.  Here are six facts the IRS wants taxpayers to know 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.  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.
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.  Save receipts and paperwork as a reminder when filing your 2012 tax return. Remember to note the Employee Identification Number (EIN) of the camp as well as its location and the dates attended.
For more information check out IRS Publication 503, Child and Dependent Care Expenses. This publication is available at IRS.gov or by calling 800-TAX-FORM (800-829-3676).
Links: IRS Publication 503, Child and Dependent Care Expenses
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