Section 21 of the Internal Revenue Code provides for a credit, throughout the year, for child care costs incurred while a taxpayer is gainfully employed. During the summer, when school is not in session, the cost of a day camp may count as an expense towards this credit (even if the camp specializes in a particular sport or activity such as soccer or computers). The cost of overnight camps, summer school or tutoring programs do not qualify for the credit.
To be able to claim the credit, a taxpayer must meet several requirements and tests. The credit is a percentage of the taxpayer’s work-related expenses. You must file Form 1040, 1040A or 1040NR in order to claim the dependent care credit.
Call the Loggins office for assistance with this tax credit opportunity.