Are you a parent trying to figure out how to cover the costs of summer camp for your child? Did you know that there is a tax credit available for certain types of summer camps?
Here’s all you need to know about tax credits for summer camps:
Please Note: This post is for informational purposes only; this is not tax or legal advice. Always consult a professional.
What Summer Camp Expenses are Eligible for the Credit?
If you paid someone to care for a child or a dependent so you could work, you could reduce your federal income tax by claiming the credit for child and dependent care expenses on your tax return. This credit is available to people who, in order to work or to look for work, have to pay for childcare services for dependents under age 13.
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. Keep reading to learn more.
Who is Eligible for the Credit?
The first thing you need to know is that not all summer camps are eligible for a tax credit.
You can only claim the credit if all the following are true:
- Your child is either under age 13 or unable to care for himself or herself at the time they attended camp.
- You have earned income during the tax year.
- Your child is attending summer camp, so you can work or look for work.
- If you’re married, you file a joint tax return for the year.
- The camp must be a “qualifying childcare facility” in order to be recognized by the IRS. This means that the camp must provide a structured program of activities.
Suppose you’re claiming the child and dependent care tax credit for summer day camp expenses. In that case, the credit amount is equal to a percentage of your total qualifying work-related costs. Your qualifying expenses are subject to an earned income limited dollar limit (the rate is based on your adjusted gross income).
Notes:
- Any expense paid with funds from a government social services program, employment benefit (including a dependent care FSA), or other reimbursement program is not eligible.
- Overnight camps do not qualify.
Read: 7 Essential Life Skills Taught at Summer Camp
Is the Summer Camp Credit Refundable?
The child and dependent care tax credit is a non-refundable credit. As a result, if your tax liability before the credit is applied is less than the credit amount, your tax bill will be cut to $0, but you won’t get a tax refund.
You Might Also Like: Kids Summer Camp Checklist
How Much Can You Claim?
Parents can claim up to 35% of their child’s eligible camp expenses. That is up to a maximum of $3,000 for one child or $6,000 for two or more children. Eligible expenses include the actual cost of sending your child to the camp, including tuition, registration fees, and transportation to and from the camp.
Read: 15 Budget Summer Camps in DFW
How to Claim Your Tax Credit?
To claim your tax credit, you will need to fill out Form 2441 when filing your taxes. You will need to provide the name, address, and taxpayer identification number of the camp, as well as the expenses you paid for each child.
Read: How to Use FSA For Summer Camps
How to Check if You Qualify
For more information, check out IRS Publication 503, Child and Dependent Care Expenses. This publication is available at www.irs.gov.
Read: Guide to Summer Camp Cost in Dallas, Texas
Follow Up
Summer camp can be a great way for children to have fun and make new friends while also learning new skills. If you are struggling to cover the costs of summer camp, remember that there is a tax credit available for certain qualifying summer camps. Make sure to do your research and find out if your child’s summer camp qualifies for this tax credit. Happy camping!
