Summer Camp tax breaks and deductions
We hope that you are all enjoying your summer!
Summer is a fun season for everyone, especially the kids. But with school not in session until September, it can present challenges for many regarding childcare. Working parents either opt to find someone to watch the kids during the day or send their children to summer camps.
Summer camp can get expensive, but we have good news. Your camp expenses may qualify for a tax credit.
WHO QUALIFIES AND WHAT ARE THE REQUIREMENTS?
If you are working, your child is under the age of 13, and are attending a summer day camp, you can count these expenses toward the Child & Dependent Care Credit.
Additionally, if your child has a disability, there is no age limit and you will qualify.
The ability to claim summer camp as tax deductible does come with further restrictions and factors of eligibility:
- Again, the camp your child is attending must be a day camp
- Sleep-away camp, tutoring, and summer school do not qualify
- The day camp must be one that allows you to continue to work as you normally would when school is in session
- If you are single and working, you qualify
- If you are married, both parents must be working
- Exceptions: full-time students, disability
- Stay-at-home spouses do not qualify
- If you are married, you must also be filing jointly
WHAT ABOUT SUMMER BIRTHDAYS?
Now, let's say you've enrolled 12-year-old Timmy in a summer day camp from June 24th to August 9th, 2019. Timmy's birthday is July 29th. You're confused and left wondering if you still qualify?
The answer is yes. You still qualify. However:
- You only qualify for the 4 weeks that Timmy attended camp and was still 12 (June 24th – July 28th)
- The remaining 2 weeks after he turns 13 is not included towards the child tax credit (June 29th – August 9th)
I QUALIFY! WHAT IS THE CREDIT WORTH?
There is no exact number to answer this question. The percentage of the credit you receive all depends on your adjusted gross income.
The credit is 20%-35% of qualified expenses up to $3,000 for one child and up to $6,000 for two or more. The amount of percentage allowable is based from your Adjusted Gross Income.
The federal form that needs to be filled out for this credit come tax season is Form 2441. With many years of personal experience sending children to camp, we have the ability to walk you through all the steps. Give us a call today!