Send your child to summer camp and receive a tax credit

 

Most understand that paying for daycare expenses either at your home or at a daycare facility outside the home, qualifies you for a tax benefit if the purpose of the care is so the taxpayer can work. 

However, many families are leaving additional childcare expenses on the table that could qualify them for additional tax savings.  Summertime is peak season for camps.  Soccer camps, lacrosse camps, baseball camps and yes, the old favorite, chess camps.  The cost of the camp can count as an expense towards the child and dependent care credit so long as it is a day camp.  Expenses for overnight camps do not qualify.  So if you send your child away for two weeks to Camp Wanna-be-a-star, the expenses do not qualify if the child stays overnight. 

The IRS is out with a recent Summertime Tax Tip that discusses five tax facts about summertime child care expenses.  In addition, find out more about Child and Dependent Car Expenses here. 

So hold onto all your receipts or substantial records that show you paid for summertime day camps for a child...it's deductible!

Tom Taylor, CPA is a fee-only, independent Financial Planner and Certified Public Accountant and can be contacted at Thoma Capital Management or Taylor & Company in Towson, MD.  He is a member of NAPFA and the MACPA and AICPA.