Tax Help for Parents Sending Kids to Day Camp
While school’s out, many working parents must arrange for child care during the week. What you may not be aware of is that you can get a tax break to help cover the costs of summer camp - as long as it’s a day camp (as opposed to an overnight camp). The IRS tax credit applies to the cost of day camp for a dependent or child under the age of 13, regardless of your child-care costs during the school year. If you have an at-home childcare provider or a daycare facility outside the home, you may also qualify for the credit.
This can help cut your taxes come filing time, but be sure to keep records of your child- or dependent-care related expenses. There are also limits on how much you can spend and the credits you can earn. The credit is generally 20% to 35% of non-reimbursed expenses; up to $3,000 in expenses for one child and up to $6000 for two or more children. The actual credit is also based on your income. The 35% rate applies if your income is under $15,000; the 20% rate, if your income is over $43,000.
If you’re not convinced already, here’s a post from a CPA about why you should take advantage of this tax credit.
For more information, check out IRS Publication 503, Child and Dependent Care Expenses available on the IRS Web site, www.IRS.gov or by calling 800-TAX-FORM (800-829-3676).
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Tags: child care credit, tax credit, tax help
