News & Events

Summer Child Care Tax Credit 2016

-updated by Sue Sears, Senior Tax Manager (originally posted on July 9, 2015)

Summer Camp

Are your kids in camp this summer? If so, you may qualify for a federal tax credit that can lower your overall taxes. Of course there are guidelines as to what qualifies for credit. Here are some of the more important criteria to consider:

  • To qualify, your expenses must be for the care for one or more qualifying persons. Typically, your dependent children under the age of 13 qualify;
  • The cost for care is paid so you and your spouse (if you file a joint return) can work, or go to school;
  • You and your spouse (if you file a joint return) must have earned income during the time your child is at camp. One spouse may be a full-time student;
  • Credit is available to if you are legally separated or living apart from your spouse; otherwise it can be claimed on your joint return;
  • Care at home, daycare or day camp qualify;
  • Overnight camps; summer school tutoring; care provided by your spouse or your child who is under the age of 19 at the end of the year; and care provided by a person you can claim as your dependent do NOT qualify for credit;
  • Keep all records and receipts for when you file your tax return. This includes name, address & taxpayer I.D. number of the care provider. Use tax form 2441 if you qualify for the credit;
  • Credit is based on your income and is worth between 20% and 35% of your allowable expenses;
  • There is an expense limit that you can use of $3,000 for one child or $6,000 for two or more children;
  • Special rules apply if you get dependent care benefits from your employer.

For the complete detailed outline of the Summer Child Care Tax Credit as posted by the IRS [click here]. Should you have questions, please contact a Sansiveri tax professional at 401-331-0500.