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Good News:  Not Only is Camp Fun for Kids, it Can Provide a Valuable Tax break for Parents

As working parents know, child care arrangements are turned upside down once school lets out for the summer. The answer for many Moms and Dads is camp.

Here's what you need to know to pocket your savings from Uncle Sam:

  •   The cost of day camp is eligible for the child and dependent-care tax credit if your child is
    under the age of 13. Expenses paid for sleep-away camp, however, are not eligible. What's the difference? Day camp is treated as a substitute for child care, while sleep-away camp is considered a luxury.
  •   To collect a "Child and Dependent Care Credit," your child must be under 13. However, the credit is also available for older children and dependents of any age who are physically or mentally incapacitated.
  •   A tax credit is more valuable than a deduction because it's a dollar-for-dollar reduction from your tax bill. A deduction, on the other hand, only lowers the amount of income on which you calculate your tax.
  • If you have a tax-saving "flexible spending account" at work, the cost of day camp can be paid with money from the plan. Again, overnight camps don't qualify for "flex account" withdrawals.

    You can claim the child care credit as long as you (and your spouse, if married) have earned income. (A couple can also qualify if one spouse is working and the other is a full-time student or works part-time.) How much is the credit worth? It depends on your income. Check with your tax pro for the exact amount.

    Tip: If you're planning on claiming a credit, get the camp's tax identification number while your child is attending. You must have the number to collect the savings on your tax return. Don't wait until April 15th when you're filing your return to track the number down. By then, the camp will probably be closed for the winter.


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    We take great care in the preparation of our articles and announcements. It may be very important to consult with us or your Investment Advisor before implementing ideas contained in articles and announcements.

    Many ideas have complexities and nuances that cannot be adequately detailed in the articles or announcements. We are not responsible for errors, misinterpretations, or omissions, related to these articles or announcements.

    One or more of the articles contained in this publication may provide an analysis or discussion of tax matters or tax planning opportunities.  Where tax matters or planning is discussed it is intended only as an introduction to a topic or to provide a general analysis of a topic and is not intended to be applied to a particular circumstance without further analysis.  If a reader would like to determine if a tax planning opportunity set out in an article may apply to his or her circumstances then the services of a compete! nt tax professional should be sought. Further, in accordance with IRS Circular 230, Regulations Governing the Practice of Attorneys, Certified Public Accountants, Enrolled Agents, Enrolled Actuaries, and Appraisers before the Internal Revenue Service, the information in this publication is not intended or written to be used as, and cannot be used as or considered to be a "covered opinion" or other written tax advice, and should not be relied upon for the purposes of (1) avoiding tax-related penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any transaction or tax-related matter(s) addressed herein, for IRS audit, tax dispute or other purposes.