July 26th, 2016 Summer Child Care Tax Credit 2016 -updated by Sue Sears, Senior Tax Manager (originally posted on July 9, 2015) 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.