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Summer Child Care Credits
As we reach mid-year, it's a great time to review key tax benefits that can reduce your liability and support your family’s needs. One opportunity is the Child and Dependent Care Credit. Whether you're a working parent or supporting a dependent, this credit can offer meaningful tax savings. This credit helps working individuals and families cover the cost of care for qualifying children under age 13—or for a spouse or dependent who is physically or mentally incapable of self-care—while you work or look for work.
To qualify, you must have earned income during the year (both spouses if filing jointly, unless one is a full-time student or disabled), Pay for care that enables you to work or look for work, and use a qualifying care provider (not your spouse, your child under age 19, or another dependent).
What Counts as “Qualifying Care”?
- Daycare, nursery school, or preschool
- Day camps (not overnight)
- In-home care providers
- Nanny services (must provide tax ID)
To claim the Child and Dependent Care Credit, you need to provide specific information about your child care provider on Form 2441, Child and Dependent Care Expenses. Here's the required information:
- Provider's Name: The full name of the individual or organization providing the care.
- Provider's Address: The complete address of the provider.
- Provider's Taxpayer Identification Number (TIN): This is typically a Social Security number (SSN) for an individual or an Employer Identification Number (EIN) for an organization.
Please be sure to save this information for tax time.
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