"SUMMER" RERUN – SUMMER CAMP AS CHILD CARE

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If both you and your spouse work, orif you are a working single parent, the cost of sending your dependent childunder age 13 to a summer day camp is eligible for the Credit for Child andDependent Care Expenses.
Onlyday camp expenses qualify for the credit. The cost of an overnight/sleepovercamp does not qualify.
If you have one qualifying child youcan claim the credit on up to $3,000.00 in expenses. For two or more qualifyingchildren the maximum is $6,000.00.
The amount of child care expenseseligible for the credit is further limited to the lower earned income of thetaxpayer or spouse. If one spouse earns $50,000.00 and the other $2,500.00,only $2,500.00 of expenses is eligible for the credit.
If one spouse works and the other isdisabled or a full-time student, the non-working spouse is "deemed"to earn $250.00 per month if there is one qualifying child or $500.00 per monthif there is more than one. This applies to only one spouse per month. If bothspouses are full-time students during the same month, only one is"deemed" to earn the $250.00 or $500.00.
The amount of credit allowed dependson your Adjusted Gross Income. If your AGI does not exceed $43,000.00 thecredit ranges from 35% to 21%. The credit is 20% if your AGI is more than$43,000.00.  In most cases, if you aremarried you must file a joint return to be able to claim the credit.
The credit is allowed for adependent who is under age 13. However, you can claim the credit on expensesyou have incurred up to the child's 13th birthday. If your child will turn 13this November you can still claim the credit on any day camp expenses incurredduring the summer.
Day camp costs also qualify forreimbursement under an employer-sponsored "pre-tax" Dependent CareBenefit plan. In most cases you will receive a greater tax benefit by runningthe day camp costs through your employer's "flexible spending"dependent care program than if you claim the credit.
If you will be claiming the crediton payments made for a summer day camp, be sure to get the name, address and Employer Identification Number ofthe camp when registering. You will need this information to complete Form2441, the IRS form used to claim the credit.
{Itis important to get the federal Employer Identification Number of the Day Campif it is a “for-profit” business. You must report this number on the Form 2441- the IRS will disallow the credit if you do not include an ID number. However,again according to Pub 503, “You do not have to show the taxpayeridentification number if the care provider is one of certain tax-exemptorganizations (such as a church or school). In this case, enter “Tax-Exempt” inthe space where the tax form calls for the number. - rdf”}
Some states, such as New York, alsoallow a Child Care Credit on the state income tax return.
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