Working parents should be aware that the child and dependent care tax credit is available to offset some of the expenses for child care. Six facts the IRS wants taxpayers to know about the credit:
- Children must be under age 13 to qualify for the credit.
- The credit applies whether the childcare provider is a sitter at home or a daycare facility.
- The credit applies for up to $3,000 of expenses for one child and up to $6,000 for two or more.
- The credit can be up to 35% of qualifying expenses, depending on your income.
- Overnight camps don’t qualify; day camps do.
- Keep receipts for expenses, and get the employee ID number of the care giver.