IRS Tax Tip: Summer Day Camp Expenses May Qualify for a Tax Credit

Many parents who work or who are looking for work must arrange for care of their children under 13 years of age during the summer months.

But with childcare comes extra expenses, including summer day camp. The Internal Revenue Service has some good news for parents: Those added expenses may help you qualify for a tax credit.

"Parents who are are sending their young children to summer day camp should be sure to save the receipts, as it may entitle them to a special tax credit when they file their income tax returns next April," says Dianne Besunder, IRS spokesperson. "Expenses incurred for child care for you children under age 13 which allows you to work or look for work can be included in the calculation of your 2011 Child and Dependent Care Credit."  

Here are five facts the IRS wants you to know about a tax credit available for child care expenses. Please note that the Child and Dependent Care Credit is available for expenses incurred not only during the summer, but also, throughout the rest of the year:

1)     The cost of day camp may count as an expense towards the child and dependent care credit.

2)     Expenses for overnight camps do not qualify.

3)     Whether your childcare provider is a sitter at your home or a daycare facility outside the home, you'll get some tax benefit if you qualify for the credit. 

4)     The credit can be up to 35 percent of your qualifying expenses, depending on your income.

5)     You may use up to $3,000 of the unreimbursed expenses paid in a year for one qualifying individual or $6,000 for two or more qualifying individuals to figure the credit.

For more information, check out IRS Publication 503, Child and Dependent Care Expenses. This publication is available at www.irs.gov or by calling 800-TAX-FORM (800-829-3676).