The IRS wants to remind everyone that summer day camp expenses might help you snag the Child and Dependent Care tax credit.
For many working parents, summer means finding care for their kids under 13. Day camps are a popular choice, and they can also give you a nice tax break. If you’re paying for someone to look after your child—or another qualifying person—so you can work or look for work, you might be eligible for the Child and Dependent Care credit.
It’s important to note that while overnight camps don’t qualify, the costs of day camps do count toward this tax credit.
Here’s how it works:
To claim this credit, you need to have earned income. The credit amount is based on your income and a percentage of what you’ve spent on care that lets you work, look for work, or attend school.
- Depending on your income, the credit could cover up to 35% of your qualifying childcare expenses. The minimum credit is 20% of those expenses. For 2024, you can count up to $3,000 of expenses for one qualifying person and up to $6,000 for two or more.
- If you’ve been reimbursed for any expenses—like from a state social services agency—you’ll need to subtract that from your work-related expenses before calculating the credit.
- Generally, the work-related expenses you use to figure the credit can’t be more than your earned income for the year if you’re single. If you’re married, it’s limited to the lower of your or your spouse’s income.
- When you claim the credit, make sure to include the name and address of the day camp on your tax return, along with the camp’s taxpayer identification number unless an exception applies.
For all the details, check out IRS Publication 503, Child and Dependent Care Expenses. It covers the rules, tests, and even an exception for some taxpayers who are living apart from their spouse. You can also head to IRS.gov and use the Interactive Tax Assistant to see if you qualify for this credit.
