Summer is in full-swing. For many kids, this means reuniting with summer camp friends to enjoy long, carefree days in the great outdoors. For parents, however, sending the kids off to summer camp is not entirely carefree — it can be a hefty expense. This summer, the IRS is reminding parents and caregivers that help is available to meet the cost of summer day camp.
In the summer months, day camps often replace daycare arrangements. As such, working parents and caregivers should take note that the cost of most summer day camps qualifies as a “work-related” (childcare) expense under the child and dependent care tax credit. The child and dependent care tax credit provides assistance to working parents and caregivers who must pay to have their young ones looked after while they are at work. The credit is calculated as a percentage of qualified childcare expenses incurred throughout the year, and the percentage depends on the taxpayer’s federal Adjusted Gross Income (AGI). Those with two or more dependents may claim up to $6,000 in qualified childcare expenses, for a credit worth up to $2,100.
So parents, when tax day rolls around next April, remember that you can lower your tax bill by claiming the cost of sending your kids to day camp this summer. Who knew summer camp could be fun for parents at tax time?