Five Summer Tax Tips: Summer Day Camp And Childcare Expenses

The Internal Revenue Service issued a slew of summer tax tips in July, among them that summer day camp expenses “may qualify for a tax credit.”

Below are five facts the IRS wants taxpayers to know about a tax credit available for childcare expenses, not only during the summer, but also throughout the rest of the year.

Number one

The cost of day camp may count as an expense toward the child and dependent care credit.

Number two

However expenses for overnight camps do not qualify, according to the IRS.

Number three

If you qualify for the credit, you will get some tax benefit if you qualify for the credit whether your childcare provider is a babysitter in your home or an outside daycare facility.

Number four

Depending on your income, the credit can be up to 35 percent of your qualifying expenses.

Number five

Taxpayers can use up to $3,000 or $6,000—for one qualifying person or two or more, respectively—of unreimbursed expenses paid in a year to figure the credit.

Click here to learn more about the IRS’s child and dependent care credit or to find out if you qualify.