Minimizing Your Taxes and Managing Your Complex Affairs

Tax Tips, Finance Tips, Fun Events

Tips for Individuals, Businesses and Charities. Fun Events.

Did you Know Summer Camp May Qualify for the Dependent Care Credit?

Day camps are common during the summer months. Many parents pay for them for their children while they work or look for work. If this applies to you, your costs may qualify for the federal dependent care credit that can lower your taxes .

Your dependent child must be under age 13 and you and your spouse must have wages or self-employment income (or attend school)

You may qualify for it whether you pay for care at home, at a daycare facility or at a day camp. However, overnight camps or summer school tutoring costs do NOT qualify.

Credit Amount. The credit is worth between 20-35% percent of your allowable expenses. The percentage depends on the amount of your income. Also no credit is allowed if you have already deducted dependent care expenses on a pre-tax basis from your paycheck.

Richard Pon CPA, CFP