~ Summertime Child Care Tax Credit Reminder ~

Day Camp Expenses May Qualify for Tax Credit  

 (An excerpt from IRS.gov)

Are you a parent who’s hired a summer-nanny to care for your children? Or have you taken advantage of the many day-camp options available during the summertime school break?  If so, you'll be relieved to know that you may be entitled to one or more tax breaks!

While temperatures and extra expenses seem to escalate quickly during the summer months, the IRS has some good news for parents:  Those additional child care expenses may help you qualify for a tax credit!

 Here are five facts that you should know about the Child & Dependent Care Tax Credit:

1. The cost of day-camp may count as an expense towards the Child & Dependent Care Tax Credit
2. Keep-in-mind, expenses for overnight camps do not qualify.
3. Whether your childcare provider is a sitter at your home or at a daycare facility doesn’t matter, parents can still get some tax benefit if qualified for the credit.
4. The credit could amount to as much as 35% of qualifying expenses, depending upon your household income.
5. You may use up to $3,000 of the un-reimbursed expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.

For more information check out IRS Publication 503, Child and Dependent Care Expenses.  This publication is available from the IRS or on GTM.com under Tax Resource Center. 

For specific questions, contact GTM’s Household Tax & Payroll Specialists toll-free at (888) 432-7972 or simply click here to discover your potential Tax Savings using our FREE online tax calculator!   The most accurate tool currently available, including annualized payroll and tax information, GTM’s FREE online tax calculator aids in estimations for Tax Savings which household employers could potentially benefit from, including DCAP and Child & Dependent Care Tax Credit calculations.

Since many qualifications and limitations apply to the various credits, additional information is available at www.IRS.gov.

_______________

At GTM we aim to provide access to the most comprehensive services & solutions available with better advice, better service and better value...for an easier life!  With nearly 20 years of advocacy for the professionalism of the household employment industry, New York-based GTM Payroll Services has been continually guiding and educating thousands of clients throughout the U.S. with services for household employment such as "nannytax", labor compliance, human resources help, workers' compensation and health insurance needs.  Additionally, Guy Maddalone's How To Hire A Nanny: A Household HR® Handbook (Sourcebooks/Sphinx Legal, 2006) has helped set the standard for any family interested in learning how to be a compliant and successful employer.  

_______________ 

The items included in this blog are informational only and are not meant to exclude the tax advice from an accredited representative.  Please consult the experts at GTM or another professional tax adviser for more information and to determine how any item applies to your personal tax scenario.