Summer camp for kids may mean tax credits for parents

Just a quick reminder from the IRS that summer day camp costs for dependents generally qualify for the child and dependent care credit. California and numerous other states provide additional credits. One important item to remember is overnight camps are not eligible for this credit…day camps only.

Here’s the full details:

IRS Summertime Tax Tip 2011-01, July 6, 2011

Along with the lazy, hazy days of summer come some extra expenses, including summer day camp. But, the IRS has some good news for parents: those added expenses may help you qualify for a tax credit.

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.

Here are five facts the IRS wants you to know about a tax credit available for child care expenses. The Child and Dependent Care Credit is 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.
  2. Expenses for overnight camps do not qualify.
  3. 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.
  4. The credit can be up to 35 percent of your qualifying expenses, depending on your income.
  5. 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 http://www.irs.gov or by calling 800-TAX-FORM (800-829-3676).

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