Federal Tax, Tax

Tax Credit for Child and Dependent Care Expenses

Once kids are out of school for the summer, many will head to summer camp. Although camp can be a costly proposition for parents, day camp costs may count as an expense toward the federal child and dependent care credit. This credit ranges in value from 20% to 35% of day camp expenses, depending on working parents’ income. You may use up to $3,000 of unreimbursed expenses paid for one qualifying child or $6,000 for two or more children under age 13. Overnight camp costs don’t qualify for the credit and aren’t deductible. For more information, see IRS Publication 503, Child and Dependent Care Expenses (https://bit.ly/4c0g8tY ). Contact us with questions. © 2024