IRS Says Summer Day Camps May Qualify for Tax Credit

The Internal Revenue Service said Wednesday that parents may be able to qualify for a tax credit to help defray the added expenses of summer day camp for their children.

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 IRS noted.

The Child and Dependent Care Credit is available for expenses incurred during the summer and throughout the rest of the year. However, the IRS noted that 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 the child care provider is a sitter at the family’s home or a daycare facility outside the home, parents will get some tax benefit if they qualify for the credit.

The credit can be for up to 35 percent of the qualifying expenses, depending on the parents’ income. Parents 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 or by calling (800) TAX-FORM.

The IRS also posted a link to a YouTube video from last year explaining the use of the tax credits for summer day care expenses. The tax deduction is not new, but the announcement issued Wednesday is part of a series of summertime tax tips that the IRS is emailing to subscribers this season.

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