Potential Tax Credit for Summer Camp for Your Children

June 11th, 2014 at 4:55 PM

There are many benefits to sending your children to summer camp, but did you know the IRS will give you a tax credit for the cost and effort.

If your child goes to day camp this summer while you and your spouse work, the cost qualifies for the dependent care credit.

The maximum credit is generally $600 for one child; $1200 for two or more children; and this is a tax credit –a dollar for dollar reduction against your tax bill. The credit also applies to specialty camps such as volleyball or computer science.

Here are the requirements to ease the pain of writing that check for Camp:

1. Age Limit-Your child must be under age 13.
2. 3rd Party Care-You must identify the care provider on your tax return, so the payment must be to a qualified provider; not your spouse or to a child or some other person.
3. Your Income-You must have earned income from wages, salaries, tips, or self-employment earnings. If you are married-BOTH of you must meet this same criterion.
4. Only Dependents-The child or children must have lived with you for more than half of the year and qualify as a dependent under IRS rules.

The amount of the credit is based upon your adjusted gross income, and is reduced to 20% at higher income levels.

Please feel free to contact for further details on this matter.