COLUMBIA, SC (FOX Carolina) – The Internal Revenue Service is reminding South Carolina taxpayers of a possible tax credit for children and dependent care.

South Carolina taxpayers who pay for the care of a child or other eligible individual so that he or she can work or look for work may be able to claim the Child and Dependent Care Expenses Tax Credit.

The credit is only valid for the day camp, not for the overnight camp.

To qualify for the credit, taxpayers must have income. The credit is calculated based on income and a percentage of the costs incurred in caring for eligible individuals so taxpayers can work, look for work, or attend school.

Depending on income, taxpayers can receive a credit of up to 35 percent of their eligible child care expenses, with a minimum of 20 percent of those expenses. For 2024, the maximum amount of eligible expenses for this credit is $3,000 for one eligible person and $6,000 for two or more people.

Reimbursed expenses, for example from a state social benefits agency, must first be deducted as business expenses in order to calculate the amount of the credit.

The amount of work-related expenses used to calculate the credit generally cannot be more than the income earned in the year (for single people) or the lower income of the spouse (for married people).

Taxpayers who claim this must include the day camp name and address and the taxpayer identification number on their tax return, unless an exception applies.

Click here to learn more about the Child and Dependent Care Credit.

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