Insights

Summer Camp Costs May Brighten Your Tax Return

PKS CPA

Row of happy kids with bags near school building

The coming and going of Memorial Day marks the beginning of summer in the minds of many Americans. Although the kids might still be in school for another week or two, summer day camp is rapidly approaching for many families. If yours is among them, did you know that sending your child to day camp might make you eligible for a tax break?

Day camp is a qualified expense under the child and dependent care credit. This tax break is worth 20% of qualifying expenses, subject to a cap — and could be worth even more if your adjusted gross income is less than $43,000. For 2016, the maximum expenses allowed for the credit are $3,000 for one qualifying child and $6,000 for two or more.

Be aware, however, that overnight camp costs don’t qualify for the credit, nor do expenses related to summer school tutoring. In addition, certain types of child care are ineligible. These include care provided by a spouse and care provided by a child who’s under age 19 at the end of the year.

A variety of additional rules may apply. For example, eligible costs for care must be work-related. In other words, parents need to pay for the care so that they can work (or look for work). If you think you might qualify for the child and dependent care credit, please contact us. We can help you determine whether you’re eligible and then properly claim this potentially valuable tax break.


Get Updates From PKS & Company, P.A.

Enter your email address to get our monthly newsletter and important updates regarding financial advice, tax code changes and more. 

MORE INSIGHTS

feature-image

Jeffrey A. Michalik - CPA

Avatar

Federal Tax News for Individuals

  Contribute More to Your FSA in 2023 Taxpayers that participate in employer-sponsored health Flexible Spending Accounts (FSAs) can contribute more
Read Full Article
feature-image

PKS CPA

Avatar

Cybercrime Webinar Hosted by PKS – October 12, 2022

As your trusted advisor, helping you achieve your life goals is part of our mission.  This includes educating you on how to protect yourself from
Read Full Article
feature-image

Daniel M. O'Connell - CPA/PFS, CVA

Avatar

MarylandSaves Launching in September

Governor Hogan has rolled out the MarylandSaves program mandating that most employers will be required to offer their employees a type of retirement s
Read Full Article