Summer is here and if you are a working parent your children may be in daycare or with an in-home caretaker. Did you know this expense may qualify for a tax credit? Indeed, if you incur child care expenses anytime during the year, you may be eligible for the tax credit.
In order to qualify for the tax credit you must have earned income from either wages or self-employment. If married filing jointly, your spouse must also have earned income. The exception to this is if the spouse is a full-time student or unable to care for themselves due to mental or physical issues. The child(ren) for which you pay childcare for must be under 13 years old and must be claimed as dependent(s). The childcare expense can qualify for either in-home care or a daycare facility. Expense for overnight camps or summer tutoring do not qualify. If you pay other members of your family to babysit, this does not qualify. Keep your receipts and records to document this expense.
If you have any questions about this give our office a call at 312-664-6649. Read more about the child care tax credit here: http://taxes.about.com/od/deductionscredits/qt/child_care.htm