Working parents should be aware that the child and dependent care tax credit is available to offset some of the expenses for child care.
- 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.