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Are my Kids’ Summer Camps Tax-Deductible?

Are my Kids’ Summer Camps Tax-Deductible?

Summer time means vacation, beach trips, and time spent visiting family, but unfortunately most of us can’t take the whole summer off to look after the kids who are out for the summer.  The solution for many is summer camps.  And yes, you are able to write some of these expenses off on your taxes as a dependent care credit.

 

Here are the rules:

  1. Your child has to be your dependent and under the age of 13 when the expenses are incurred.

  2. You and your spouse must both be working or be actively looking for work (one may be a fulltime student if the other spouse is working) to qualify for the credit.

  3. The child care/ summer camp is a necessity for you to be working.

  4. Day camps, day care, preschool, and after school care qualify for this credit, but beware that tutoring programs and overnight camps do not qualify.

  5. Care provided by an individual does qualify, but the care taker cannot be your spouse, parent of the child, your dependent, or your child who is under the age of 19.

  6. You may not take this credit if your filing status is married filing separately.

 

How much can I claim?

For one child you can claim up to $3,000 of your dependent care expenses.  For two or more children the amount is a total of $6,000.  The size of the credit depends on your income level.  If you make $15,000 or less your credit is 35% of expenses claimed.  If you make $43,000 or more, your credit is reduced to 20% of claimed expenses.  This means if you have two children and make more than $43,000, your maximum credit will be $1,200 ($6,000 x 20%) on your tax return.

We wish you and your family a fun and adventurous summer, and you can always contact us if you have further questions or need help with your taxes!

 

Allen & Company, PC  - a CPA firm serving Kennesaw, Marietta, Acworth, Woodstock and north Atlanta.  Providing accounting, financial statement audit, taxation, and advisory services for individuals and businesses.  Extensive experience working with franchised restaurants and other franchised businesses.