If you have kids under 13 that have after (or before) school activities (i.e. soccer, basketball, dance, etc.), daycare, or even summer camp, you might be entitled to a tax credit when you file your taxes.
You will need to get some information to claim that tax credit like a) name of the institution or person provided the child care, b) EIN of the institution or SSN of the provider, c) address of the institution or provider and d) the amount incurred and paid in the tax year.
Note that the credit might be from 20% to 35% of the qualifying childcare expenses for those activities. Based on current IRS guidance (as this item might be subject to change in this election year), the IRS states that “…For 2024, the maximum eligible expense for this credit is $3,000 for one qualifying person and $6,000 for two or more.”
However, there is a phase out based on the modified adjusted gross income MAGI for high earners, around $400,000 for married filing jointly and $200,000 for all other filers. If the MAGI keeps going up, then, this credit keeps reducing itself until it runs out.
From personal experience, we know how expensive having kids is these days so every single tax credit helps.
Link IRS – Child and Dependent Care tax credit can help offset summer day camp expenses
Note that this is a topic subject to change based on the political climate, and especially in this presidential year – In early August 2024, a bill to increase child tax credit was rejected by Senate even if this same package passed the House back in January 2024 by an very large majority (around 84% in favor).
Link AP News – Senate rejects legislation that would expand child tax credit and restore business tax breaks
