Expenses for summer day camps can count toward the Child & Dependent Care Tax Credit if certain requirements are met. Overnight camps don't count, but the Internal Revenue Service says day camp expenses do qualify for this popular credit.
Regardless of whether you paid for after-class child care during the school year or a week of day camp during summer break, you can apply the costs to the Child and Dependent Care tax credit and use it cut your tax bill at filing time.
There are limits that reduce the actual amount of the credit. Plus, you must make sure you and the person being cared for meet IRS eligibility guidelines.
Then there's the credit's job catch. You can only claim dependent care that was necessary so that you can go to or look for work.
If you're married, the IRS requires both of you to be employed or seeking a job. The only exception is when one spouse is either a full-time student or is physically or mentally incapable of self-care.
After clearing the employment hurdle, other requirements to claim the credit include:
* A filing status of single, head of household, married filing jointly or qualifying widow or widower with a dependent child. In most cases, married taxpayers who file separate returns cannot claim the dependent-care credit.
* The payments for care cannot be made to someone you can claim as your dependent on your return or to your child who is younger than age 19.
Please talk with me about the details of your situation to see if your expenses qualify for the Child & Dependent Care tax credit.
