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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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. Credit Amount. The credit is worth between 20 and 35 percent of your allowable expenses. The percentage depends on income.
  7. 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).
  8. 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.
  1. 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.
  2. 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.