Summer Camp Fees Can Qualify for a Tax Credit

Image via WikipediaSummer time is coming to an end and it's time to get the kids ready for the new school year. But before you put away the summer fun and start to get ready for the new school year, get out those receipts for the summer camp you sent the kids to. If you have enrolled your kids in summer camp and they attended while you were at work or while you were looking for work, you are eligible for a tax credit.

According to the IRS website, at IRS.gov, under the existing rules up to 35% of qualifying camp expenses is allowed to be claimed as a federal child care tax credit for children under 13.

The IRS wants the public to know that a summer day camp does qualify for a tax credit. It's looked at as the same as a day care center or even hiring a baby sitter does just like during the school year. The federal child and dependent care tax credit allows a 35% credit. For incomes above $43,000, it's 20 percent. Qualifying expenses for the tax credit are limited to $3,000 per year for one child or $6,000 for two or more. So if you're eligible for the maximum 35 percent with one child, you could claim a credit of $1,050.

Also note that overnight camps do not qualify toward the tax credit. Only expenses that occur when the parent is at work or looking for work.