Day Camp for Kids
Day camps are common during school vacations and the summer months. Many parents enroll their children in a day camp or pay for daycare so they can work or look for work. Unlike overnight camps, the cost of summer day camps may count towards the child and dependent care credit. Here are 10 things parents should know:
1. Care for Qualifying Persons. Your expenses must be for the care of one or more qualifying persons. Your dependent child or children under age 13 generally qualify.
2. Work-related Expenses. Your expenses for care must be work-related. In other words, you must pay for the care so you can work or look for work. This rule also applies to your spouse if you file a joint return. Your spouse meets this rule during any month they are a full-time student. They also meet it if they are physically or mentally incapable of self-care.
3. Earned Income Required. You must have earned income. Earned income includes wages, salaries and tips. It also includes net earnings from self-employment. Your spouse must also have earned income if you file jointly. Your spouse is treated as having earned income for any month that they are a full-time student or incapable of self-care.
4. Joint Return if Married. Generally, married couples must file a joint return. You can still take the credit, however, if you are legally separated or living apart from your spouse.
5. Type of Care. You may qualify for the credit whether you pay for care at home, at a daycare facility or at a day camp.
6. Credit Amount. The credit is worth between 20 and 35 percent of your allowable expenses. The percentage depends on your income.
7. Expense Limits. The total expense that you can use in a year is limited. The limit is $3,000 for one qualifying person or $6,000 for two or more.
8. Certain Care Does Not Qualify. You may not include the cost of certain types of care for the tax credit, including:
- Overnight camps or summer school tutoring costs.
- Care provided by your spouse or your child who is under age 19 at the end of the year.
- Care that is given by a person you can claim as your dependent.
9. Keep Records and Receipts. Keep all your receipts and records for when you file taxes next year. You will need the name, address, and taxpayer identification number of the care provider. You must report this information when you claim the credit on Form 2441, Child and Dependent Care Expenses.
10. Dependent Care Benefits. Special rules apply if you get dependent care benefits from your employer.
Keep in mind this credit is not just a school vacation or summer tax benefit. You may be able to claim it at any time during the year for qualifying care. Be sure to keep detailed records of the expenses you incur for day camp and consult with a tax professional to see if you are eligible for the credit.
Sending your child to day camp can have many benefits, including:
- Socialization: Day camps offer a great opportunity for children to interact with their peers in a fun and engaging environment. They can make new friends and learn important social skills.
- Physical activity: Many day camps offer a variety of outdoor activities such as sports, swimming, and hiking, which can help children stay active and healthy.
- New experiences: Day camps provide opportunities for children to try new things and develop new interests, whether it’s arts and crafts, music, or science experiments.
- Independence: Being away from home and parents for a few hours a day can help children develop a sense of independence and confidence in their abilities.
- Education: Some day camps offer educational programs or specialized instruction, such as language classes, coding workshops, or nature exploration, which can help children learn new skills and broaden their horizons.
Sending your child to day camp can be a great way to help them grow and develop in a fun and supportive environment.
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