NYS Tax Department reminds taxpayers to keep accurate records of expenses
By the New York State Tax Department
The New York State Tax Department reminds parents and guardians that summer day-camp expenses for a child or dependent may qualify for the child and dependent care credit. The credit, which varies based on income, is intended to help reduce expenses involved in raising a child or caring for a dependent.
The tax break applies, for example, to qualified expenses for a dependent child under age 13 to attend day camp, but not overnight camp. To claim the expenses, the taxpayer and spouse (if married) must be working or job hunting while the dependent attends the camps.
Nearly 520,000 taxpayers claimed nearly $189 million in state child and dependent care credits for tax year 2014. The average amount claimed was $364.
To claim the state credit, taxpayers must first qualify for the federal child and dependent care credit. The state credit ranges from 110 percent of the federal credit, for taxpayers with incomes under $25,000, to 20 percent if their income is more than $65,000. A state child care tax credit is also available to New York City residents with incomes of $30,000 or less with a child or children under age 4.
Dependent-care benefits from an employer will reduce the credit amount; these benefits are included on a taxpayer's W-2 form.
Taxpayers should maintain accurate records to support their claims for the credit and for use when filing their income tax returns. These include:
•Itemized statements from the day camp or licensed care provider;
•Names, addresses and taxpayer identification numbers of the care providers; and
•Copies of the checks or money orders used to pay, or receipts for cash payments.