Parents Can Get Credit for Sending Kids to Day Camp
Here’s a tax break for the busy summer. Many working parents must arrange for care
of their children under 13 years of age during the school vacation period. A popular
solution — with a tax benefit — is a day camp program.
The cost of day camp can count as an expense towards the child and dependent care
credit. Expenses for overnight camps do not qualify. If your childcare provider
is a sitter at your home, you'll get some tax benefit if you qualify for the credit.
The credit is generally 20% to 35% of non-reimbursed expenses; up to $3000 in expenses
for one child and up to $6000 for two or more children. The actual credit is also
based on your income.
You figure the credit on up to $3,000 of expenses for one child, $6,000 for two
or more children. The credit rate ranges from 20% to 35% of expenses, depending
on your income. The 35% rate applies if your income is under $15,000; the
20% rate, if your income is over $43,000.