The question that comes once a year is here again:
What do I do with the kids? The struggle is real! How do you run a business or have a job and take care of the kids when they are out of school? This challenge can even include those whose children are on year round school schedules during their four-week breaks. How can you keep your money while your kids are out for the summer?
Simple…the Child and Dependent Care Credit.
This credit allows you to recover some of the costs of a camp. These camps can include sports camps, music camps, art camps, or even science camps. Also, it will help you recover some of the costs of your babysitter or daycare expenses.
Now that I have your attention, let’s go over your next question.
“What do I have to do to qualify?”
1. Both parents have to work OR one can be a full time student. If one parent has a business, that business has to show a profit or the credit does not apply.
2. Children have to be 13 years old or younger (unless the child is disabled).
3. The caretaker cannot be the spouse or a dependent (i.e. one of the older kids).
4. It only covers day camps. Overnight camps do not qualify.
5. You will need the name, EIN (Employer ID Number) or social security number, address and phone number of the person or group who watched your children.
Have questions or topic suggestions? Let me know.