Summer is not only a fun time for kids, but may also be a source of tax credits for parents as well.
If your child is under13 years of age at the end of a tax year and they attend a day camp, you could be eligible for a Child and Dependent Care credit.
If the following apply to your family, you could receive a tax credit on your personal income tax returns:
- Your child is going to a day camp. (Please note that overnight camps do NOT qualify for the credit, however, if they participate in a sports camp for a week, these may qualify.)
- The payments to the camp must be made to enable one to find or continue to work.
- You (and a spouse if married) must either have a W2 or Self employment income.
The maximum that can be paid annually for camping expenses that qualify for the credit are $3,000 for one child and $6,000 for two or more children. These expense limits are added to any other childcare expenses that one incurs.
When claiming your tax credit, you will need to provide to the IRS the following:
- Name of camp
- Address of camp
- Federal Employment Identification Number (FEIN) of the camp
Check with your KOS professional to see how much you can save by sending your kid or kids to camp!