Information courtesy of IRS.gov
Day camps are common during the summer months and many parents enroll their children in a day camp or pay for day care so they can work or look for work. If this applies to you, your costs may qualify for a federal tax credit.
- Care for Qualifying Persons. Expenses must be for the care of one or more qualifying persons. Dependent child or children under age 13 generally qualify.
- Work-related Expenses. These expenses for care must be work-related. You must pay for the care so you can work or look for work.
- Earned Income Required. You must have earned income. Earned income includes wages, salaries, tips and net earnings from self-employment. Your spouse must also have earned income if you file jointly.
- Joint Return if Married. Generally, married couples must file a joint return. You can still take the credit if you are legally separated or living apart from your spouse.
- Type of Care. You may qualify for the credit whether you pay for care at home, at a daycare facility or at a day camp.
- Credit Amount. The credit is worth between 20 and 35 percent of your allowable expenses. The percentage depends on income.
- Expense Limits. The total expense that you can use in a year is limited ($3,000 for one qualifying person or $6,000 for two or more).
- Certain Care Does Not Qualify. You may not include:
- Overnight camps or summer school tutoring costs.
- Care provided by your spouse or your child who is under age 19 at the end of the year.
- Care given by a person you can claim as your dependent.
- Keep Records and Receipts. Keep all receipts and records for when you file taxes next year. You will need the name, address and taxpayer identification number of the care provider.
- Dependent Care Benefits. Special rules apply if you get dependent care benefits from your employer.
Give us a call to discuss whether or not your child’s camp or child care qualifies.
