When kids are out of school, you don’t want them to wander the streets all day. Summer day camps have become extremely helpful for working parents. Now, they are even more helpful when it comes to taxes. These extra expenses for summertime care can actually help you qualify for a tax credit.
During school vacation, children under 13 can attend many different types of summer camps. These camps are provided by non-profits, the YMCA, and local churches to name a few.
The IRS understands the added expenses, and they want you to know some facts about receiving credit for the camp costs. The five facts are listed below to qualify for the Child and Dependent Care Credit.
1. The amount of money paid for the day camp can contribute as an expense towards the child and dependent care credit.
2. Overnight camp expenses do not qualify for the credit.
3. Whether your childcare provider is a daycare facility or a sitter outside the home, you'll get some type of tax benefit if you qualify for the credit.
4. Depending on your income, the credit can be up to 35 percent of your qualifying expenses.
5. 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.
These expenses are not exclusive to summer camps. Any childcare expenses that qualify can be used for the Child and Dependent Care Credit. TaxSlayer.com has these instructions built into the program for e-filing federal taxes. The helpful interview process can guarantee you the biggest refund.
For more information check out IRS Publication 503, Child and Dependent Care Expenses. Please contact TaxSlayer.com if you have any questions about the credit as well.