- Filing status counts – if you are married, you must file jointly to get the credit. You are not eligible if you are married and file separately. There are exceptions if you are legally separated or live apart from your spouse.
- Camp costs must be for your dependent child or children, who are under age 13 at time of care.
- Camp costs must be incurred while you and your spouse are working or looking for work. One spouse can be treated as working for any month that they are a full time student.
- You and your spouse must each have earned income from wages, salaries, tips or self-employment net earnings.
- You will need the name, address and taxpayer identification number of the camp provider. You should save your receipts or other proof of payment to make it easier to claim the credit on your tax return.
- The amount of the tax credit is between 20% - 35% of your allowable expenses. Your applicable percentage is based on your income.
- There is a limit on allowable expenses of $3,000 for one qualifying child and $6,000 for two or more qualifying children.
- The following costs do not qualify for the credit: costs for overnight camps or summer school tutoring costs, care provided by a spouse or your child who is under age 19, or care given by a person you can claim as your dependent.
- Receiving dependent care benefits from an employer will reduce the amount of your allowable expenses.
Honorine M. Campisi, CPA