• Skip to primary navigation
  • Skip to main content
  • Skip to footer

Windham Region Chamber of Commerce

  • Home
  • News
    • Chamber News
    • Member News
  • Community Programs
    • Eastern CT Veterans Community Center
      • Resources
      • Survivors of Suicide Loss
      • Afghanistan: Let’s Talk About It
  • Business Resources
    • RE-OPENING CT
    • COVID-19
    • Business Resource Center
    • Windham Region Business Directory
  • Upcoming Events
  • Member Center
    • Member Login
    • Member Directory
    • Member to Member Deals
    • Chamber Alliance Networking (CAN) Coffee Hour
  • Join
    • Benefits Of Membership
  • Staycations
    • Step Back in Time
    • Shopping Staycation
    • The Great Outdoors
  • About Us
    • 2019 Annual Report
    • 2020 Board of Directors
    • Contact Us

Jul 12, 2017 by Windham Chamber

IRS Summer Tax Tip 2017-05

Reduce Certain Summertime Costs with the Child and Dependent Care Tax Credit

Many parents send their children to summer day camps while they work or look for work. The IRS urges those who do to save their paperwork for the Child and Dependent Care Tax Credit. Eligible taxpayers may be able claim it on their taxes in 2018 if they paid for day camp or for someone to care for a child, dependent or spouse during 2017.

Here are a few key facts to know about this credit:

  1. Qualifying Person. The care must have been for “qualifying persons.” A qualifying person can be a child under age 13. A qualifying person can also be a spouse or dependent who lived with the taxpayer for more than half the year and is physically or mentally incapable of self-care.
  2. Work-Related Expenses. The care must have been necessary so the taxpayer could work or look for work. For those who are married, the care also must have been necessary so a spouse could work or look for work. This rule does not apply if the spouse was disabled or a full-time student.
  3. Earned Income. The taxpayer — and their spouse if married filing jointly — must have earned income for the tax year. Special rules apply to a spouse who is a student or disabled.
  4. Credit Percentage/Expense Limits. The credit is worth between 20 and 35 percent of allowable expenses. The percentage depends on the income amount. Allowable expenses are limited to $3,000 for care of one qualifying person. The limit is $6,000 if the taxpayer paid for the care of two or more.
  5. Care Provider Information. The name, address and taxpayer identification number of the care provider must be included on the return. The childcare provider cannot be the taxpayer’s spouse, dependent or the child’s parent.
  6. IRS Interactive Tax Assistant tool. Use Am I Eligible to Claim the Child and Dependent Care Credit? tool on IRS.gov to help determine if eligible to claim the credit.
  7. Dependent Care Benefits. Special rules apply for people who get dependent care benefits from their employer. See Form 2441, Child and Dependent Care Expenses, has more on these rules. File the form with a tax return.
  8. Special Circumstances. Since every family is different, the IRS has a series of exceptions to the rules in the qualification process. These exceptions allow a greater number of families to take advantage of the credit. For more information, see IRS Publication 503, Child and Dependent Care Expenses.

Even if the childcare provider is a sitter in the home, taxpayers may qualify for the credit. Taxpayers who pay someone to come to their home and care for their dependent or spouse may be a household employer. They may have to withhold and pay Social Security and Medicare tax and pay federal unemployment tax. Find more on that in IRS Publication 926, Household Employer’s Tax Guide.

Avoid scams. The IRS will never initiate contact using social media or text message. First contact generally comes in the mail. Those wondering if they owe money to the IRS can view their tax account information on IRS.gov to find out.

Additional IRS Resources:

  • Tax Topic 602 – Child and Dependent Care Credit
  • Filing Your Taxes
  • IRS Tax Map
  • Is My Child a Qualifying Child for the Child Tax Credit?

IRS YouTube Videos:

  • Welcome to Free File – English  

Share this tip on social media: #IRSTaxTip -Reduce Certain Summertime Costs with the Child and Dependent Care Tax Credit . https://go.usa.gov/xNF6Q

Filed Under: IRS Tips

Footer

Connect With Us

We’re conveniently located in the heart of downtown Willimantic’s business district. Call us to schedule a meeting to discuss your business needs or to meet with our Business Resource Center.

Windham Region Chamber of Commerce
1320 Main St., Suite 27
Willimantic CT 06226
Phone: (860) 428-7739

info@windhamchamber.com

Subscribe to our newsletter!

Sign up below to receive weekly news and events from the Chamber!

Select list(s) to subscribe to


By submitting this form, you are consenting to receive marketing emails from: The Chamber of Commerce, Inc, Windham Region, 1010 Main Street, Willimantic, CT, 06226, https://www.windhamchamber.com. You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts

  • SLICE OF LIFE Living History Event in Windham, CT
  • STANDARD MILEAGE RATES FOR 2022 & OTHER MILEAGE TAX INFO
  • DID YOU KEEP ANY OF YOUR EMPLOYEES THROUGHOUT THE PANDEMIC? YOU NEED TO READ THIS!
  • DO YOU OWE ANY CT TAXES FROM 2020 OR BEFORE? THERE IS HELP
  • MAPLE FESTIVAL IS MARCH 19-20!!

Categories

Copyright © 2022 · The Chamber of Commerce, Inc. Windham Region