TAX BENEFIT FOR SUMMER DAY CAMP EXPENSES

Jennah Purk, CPA, MST

With summer in full swing, it's time to identify the expenses of  summer day camps for your school-age children that qualify  for the dependent care credit. These day camps include those for math, computers, theater, or soccer, or other special day camps, like those that focus on improving reading, writing or study skills. The costs of summer school and tutoring programs are not eligible, however, as they are considered education costs.

The credit is generally a percentage of the qualifying expenses, the percentage depends on your adjusted gross income (AGI), for example, in 2012 it was 20% if your AGI was over $43,000.


Some rules for claiming the dependent care credit include the following:

• Your dependent qualifying child must be under the age of 13 when the care is provided.
• You must file a joint return, if married.
• The amount of expenses considered is capped $3,000 for one child, $6,000 for two or more.
• The expenses generally may not exceed the lesser of your earned income or your spouse's earned income.
• No credit is allowed for any child care costs that are paid through a Flexible Spending Account (FSA).
• The expenses must be work-related, which means they are paid to enable you and your spouse to work or actively look for work.

Please contact us if you have any questions about this topic.