School’s out, summer’s almost here and it’s time to start preparing for day camp! While you are checking and double checking your summer camp list, additional costs will start to pile up from clothing and supplies to snacks and insect repellants. All these extra expenses can lead to worry and stress, but there’s good news! The Child and Dependent Care Credit provides a tax break for childcare expenses, including summer day camp!
There are several qualifications you need to meet in order to receive the childcare tax credit for summer day camp:
- Is your child under the age of thirteen or a disabled dependent who is incapable of caring for himself or herself?
- Are you and your spouse employed or actively looking for employment while your child is at day camp?
- Are you the custodial parent or main caretaker of the child or dependant attending camp?
If you answered yes to all of these, you could receive a credit of up to 35% of your expenses, depending on your income. The Child and Dependent Care Credit is given for summer day camps because it is considered a child care expense that parents pay while they are at work. This is why parents or guardians must be employed or looking for a job. This is also why you cannot qualify for the credit if you are paying for the child of a friend or family member.
Do you qualify? To claim a credit for childcare expenses, you’ll need to attach federal form 2441 to your Federal Tax Return.
Now that you know you can apply for a tax credit on your summer camp expenses, you and your kids can fully enjoy the summer! And next year? Maybe you’ll indulge and decide it’s time for sleepaway camp!
Paul Herman, a tax expert for individuals and businesses, is the founder of Herman & Company, CPA in Westchester County. He provides guidance and strategies to improve clients’ financial well-being. For more information, visit hermancpa.com or call 914-400-0300.