Tax Tip #1: Deducting Summer Camp Expenses
Expenses paid for summer camps may qualify for the Child and Dependent Care tax Credit. These expenses must be paid for one or more qualifying persons. A qualifying person is a dependent child or children under age 13. The taxpayer’s expenses must be work-related. This means they must pay for the care so they can work or look for work. However, the total expenses paid are limited to $3,000 for one qualifying person or $6,000 for two or more.
Taxpayers may not include the cost of certain types of care, including overnight camps or summer school; care provided by a spouse or child who is under age 19 at the end of the year; and care given by a person who can be claim as your dependent.
In order to claim the credit, the taxpayer must have earned income, such as wages, salaries or net earnings from self-employment. Their spouse must also have earned income, if filing a joint return. However, spouses can be treated as having earned income for any month they are a full-time student or physically or mentally incapable of caring for themselves. Further, taxpayers should keep all their receipts and records. They would also need the name, address and taxpayer identification number of the care provider when filing their tax return.