COLUMBIA, S.C. — A tip sheet released by the South Carolina Department of Revenue is suggesting at least one way parents may be able to get a tax break this summer.
The agency said in its release that working parents, or those looking for work, may be able to get a break by way of the federal Child and Dependent Care Tax Credit.
The state agency defers to the Internal Revenue Service (IRS) which suggests that parents can claim up to 35% of childcare expenses limited to $3,000 for one child and $6,000 for two or more. The tip sheet suggests that those expenses could include the cost of childcare or day camp.
Residents of the Palmetto State may also be able to claim the Child and Dependent Care Credit on their SC1040 "equal to 7% of child care expenses allowed in the federal credit.
One important point described by the SC DOR is that the name, address, and taxpayer identification number of all "care providers" must be included on a tax return that plans to claim the credit.
As for the childcare provider, that person can't be the taxpayer's spouse, dependent, or a parent of the child in question.
This was just one of a handful of items covered in the list which also went over the basics of how taxes impact teen summer jobs and seasonal work.
For additional details, visit the South Carolina Department of Revenue website.