July 29, 2011
Summertime Tax Tip: Tax Credit For Kids Summer Camp
Did you send your kids to summer camp this year? If you did, here is a great tax tip to know: those expenses may help you qualify for a tax credit.
Working parents and parents who are looking for work must arrange care for their kids under 13 years of age.
Here are 5 things a parent should know about a tax credit available for child care expenses incurred during the summer.
5 Things Parents Should Know About The Child Care Tax Credit
- The cost of day camp may count as an expense towards the child and dependent care credit.
- Expenses for overnight camps do not qualify.
- 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.
- The credit can be up to 35 percent of your qualifying expenses, depending on your income.
- 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 check out IRS Publication 503, Child and Dependent Care Expenses. This publication is available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).
This is a great tax tip because most parents aren’t even aware that summer day camp expenses may qualify them for the Child Care Tax Credit.
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