Tax Credits for Summer Camps and Childcare
Summertime has a special meaning for children: bike rides, swimming, sleeping late, and most importantly, no school for two and a half months. But many parents—whose work schedule is unaffected by the changing seasons—dread the end of the school year, because finding summer childcare during the day becomes a difficult (and expensive) task.
Sound stressful? Don’t worry, there’s good news.
To ease the financial burden of summer expenses, the IRS offers special tax credits for qualifying taxpayers who pay for summer childcare. This means that the money you pay these next couple of months for daycare, summer day camps, and even in-home baby-sitters can help you earn a significant tax credit on next year’s return—up to 35% of what you pay now. This helps offset the cost as you go to work every day (or look for work, if you are unemployed).
Of course, there are certain rules that apply:… Read More