Tax Strategies & Credits

Are Summer Camps Tax Deductible?

Are Summer Camps Tax Deductible?

Attending camp is as much a summer rite of passage as watching fireworks displays, lighting sparklers, and going out for ice cream on a hot night. Some parents send their kids to camp for the social activities and to get them out from underfoot, while others rely on a camp for childcare while they are attending school or going to work each day.  If you are either a single parent who falls into one of those two categories or a couple who are both out of the house and you have kids under the age of 13, the expense of summer camp can be offset by the Child and Dependent Care Credit.

Here’s what you need to know:

  • Overnight camp does not qualify for the credit, but day camp does.
  • Parents who stay at home and send their kids to day camp do not qualify for the credit: it is only available for single or married filers who are both out of the house during the day, either for work or to attend school.
  • The camp must be a legitimate institution that has an identifying tax number for you to be able to take the credit. Sending your kids to a neighbor’s house or letting them run around at the beach or your backyard does not count. You will be asked to provide the identifying number when you prepare your tax return.
  • Camps that you pick up and drop off from do not count, but those that include pick up and drop off in their fee qualify.
  • Parents of one child receive a tax credit of 35% of up to $3,000 ($1,050) in the costs of camp or childcare, and parents of more than one child can double that and take a credit up to a maximum of $6,000 ($2,100) in expenses.

Though these rules may make taking the Child and Dependent Care Credit seem complicated, it really isn’t. Your tax professional will know exactly what you are entitled to and can help you take advantage of this valuable credit.

Jon Osborn, EA writes for TaxBuzz, a tax news and advice website. Reach his office at [email protected].

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Steward Financial

Steward Financial

Jon Osborn is a tax preparer based in San Dimas, California. His company, Steward Financial Services, offers a broad range of tax preparation, accounting and business consulting for small businesses. He loves to work with clients who are looking for answers to complex tax and business planning issues. He has owned several small businesses and worked with over one hundred small business owners. He helps his individual and business tax clients find the best ways to spend their money in order to minimize IRS tax. Small businesses looking to grow, sell or just increase cash flow are one of Jon's specialties.

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