The ubiquitous back to school campaigns serve as a constant reminder that the end of summer is quickly approaching. One way to help pay for new school supplies is to have the IRS help pay for your summer babysitting expenses. Yes, you heard right. The popular Child and Dependent Care tax credit can help your pocketbook by allowing for dependent care deductions that include summer day camps.

Generally speaking, most types of child day care will qualify for the credit, but there are some notable exceptions. Where summer day camp programs qualify for the credit, an overnight camp does not, according to the Kansas City Star. So yes, those summer day camps that you send your children to can help you save money come tax time. Even camps specializing in a sport or skill (such as soccer camp or computer camp) qualify for the credit. Also, a family day care, home, or church falls under the Child and Depdendent Care credit, but if the taxpayer receives free child or dependent care, then that care will not qualify.

Allowing deductions relating to summer camp is a great way to keep your child and dependent care options open in the summer, and hopefully allow parents to feel expansive rather than limited in their summer options. There is one final step in the equation … you actually have to take the steps to file for tax credits and deductions. As with other credits and deductions, the IRS does not do this for you, so keep track of these expenses as the time draws closer for accounting for them.

Related Resources:

  • California Child and Dependent Care Expenses (CDC) Credit (Franchise Tax Board Ca.gov)
  • The IRS Can Help You Look After Your Kids (Bank Rate)
  • The Parent Tax Credit (FindLaw)
  • Be Tax Savvy! Deduct Daycare Expenses (FindLaw’s Law and Daily Life)
  • Taxation Information Center (provided by Kathleen M. Newman & Associates, P.A.)
  • Civil and Criminal Tax Penalties (provided by Tax Law Group, LLC)

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