Hertsel Shadian, Attorney at Law, LLC

Summer Day Camp Expenses May Qualify for a Tax Credit

11 July 2011

For parents with school-aged children, summertime probably also comes with some extra expenses, including summer day camp. However, there might be some good news for parents: those added expenses can help you qualify for a tax credit. Many parents who work or are looking for work must arrange for care of their children under 13 years of age during the school vacation. The Child and Dependent Care Credit is available for expenses incurred during the summer and throughout the rest of the year. Following are some facts to know about the tax credit available for child care expenses:

  1. The cost of day camp may count as an expense towards the child and dependent care credit.
  2. Expenses for overnight camps do not qualify.
  3. Whether your childcare provider is a sitter at your home or a daycare facility outside the home, you’ll get some tax benefit if you qualify for the credit.
  4. The credit can be up to 35 percent of your qualifying expenses, depending on your income.
  5. You may use up to $3,000 of the unreimbursed expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.

For more information about this credit, consult your professional tax advisor or tax preparer, or call Hertsel Shadian, Attorney at Law, LLC at (503) 352-6985. You also can check out IRS Publication 503, Child and Dependent Care Expenses, available at www.IRS.gov or by calling 800-TAX-FORM (800-829-3676). See also the previously posted articles on these related topics, Important Tax Facts About the Child and Dependent Care Credit and Ten Important Facts about the Child Tax Credit. [Note that the applicable amounts set out in those articles might have changed since the time those articles first were posted.] Please also feel free to forward this article to others you know who might benefit from this information.