Posted: Jul 8, 2010 4:18 PM by Alex Grubb (Great Falls)
Working parents in Montana may be able to get a break on their taxes when it comes to daycare expenses.
Through the Child and Dependent Care Credit, a portion of the cost of summer camps and daycare can be deducted when filing a tax return.
The amount ranges from 20% to 35%, depending on your income, and children must be 12 or younger. The maximum amount available is $3,000 for one child, and $6,000 for two or more kids.
Although the credit focuses mainly on children, it can also help people with other dependents as well. Accountant Lana Kadoshnikov noted, "It's not only children, sometimes you have a spouse, or an older child who is maybe physically or mentally incapable of caring for themselves, and if you hire somebody to take care of your spouse or dependent, such expenses qualify for the credit as well."
Overnight camps typically do not qualify for the credit unless the parent works overnight. Babysitting expenses also qualify for the credit unless it is an older sibling or spouse that is getting paid.
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