Are you looking for a tax break for the busy summer? Many working parents must arrange for care of their children under 13 years of age during the school vacation period. A popular solution – with a tax benefit – is a day camp program.
The cost of day camp can count as an expense toward the child and dependent care credit. Expenses for overnight camps do not qualify.
You figure the credit on up to $3,000 of expenses for one child, $6,000 for two or more children. The credit rate ranges from 20 percent to 35 percent of expenses, depending on your income. The 35 percent rate applies if your income is under $15,000, and the 20 percent rate, if your income is over $43,000.
The maximum credit is $1,050 for one qualifying dependent and $2,100 for two or more qualifying dependents.
You can find more information in IRS Publication 503, Child and Dependent Care Expenses.