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Wednesday, July 13, 2011

What Do Summer Camp and Taxes Have In Common?


Now that school is out and you are still working, you may have enrolled your children in summer camp. To the kids it may be about kickball, swimming and arts & crafts but for you it may be about extra expenses. But, those added expenses may help you qualify for the Child and Dependent Care Credit tax credit!

Parents who are working or are looking for work and have arranged for care of their children under 13 years of age during the school vacation may qualify for this credit. Here are some facts you need to know about the tax credit available for expenses incurred during the summer and throughout the rest of the year.

  1. The cost of day camp may count as an expense towards the child and dependent care credit but expenses for overnight camps do not qualify.
  2. Whether your childcare provider is a sitter in your home or at a facility outside your home, you may get some tax benefit if you qualify for the credit.
  3. The credit can be up to 35% of your qualifying expenses, depending on your income(s).
  4. 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 calculate the credit.
  5. In order to claim the credit you must have the full name and address of the care provider as well as their social security or employer ID number.

For more information check out IRS Publication 503, Child and Dependent Care Expenses. This publication is available at or by calling 800-TAX-FORM (800-829-3676).


IRS Publication 503, Child and Dependent Care Expenses

Disclaimer: Tax advice contained herein was not written to be used and cannot be used to avoid payment of taxes or to avoid penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions. All information provided is for illustrative purposes only. You should contact an accountant, tax preparer or tax attorney for advice or information specific to your situation. This information is not to be used as a directive.

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