As a working parent, you may be looking for things to do with your children during the summer. Summer camp may be the solution: It’s also a tax break!
If you are enrolling your child in a day camp this summer and you use the Child and Dependent Care Credit, you can be reimbursed.
Is it Possible for Me to Participate?
- You must both be working if you are married, or your spouse if you are not.
- To qualify for this credit, your youngster must be under the age of 13, be your legal dependent, and spend more than half of the year in your house.
Tip: If your spouse is a full-time student, he or she may qualify. Or if your spouse is disabled or does not work and is not able to care for herself or himself, they may still qualify.
How much money will I save?
For the year 2022, the maximum credit in expenses for one child goes from $1,050 up to $3,000. For two or more children, the credit is $2,100 up to $6,000.
What Types of Camps Are Required?
The only restriction is that there are no overnight camping trips.
This credit is designed to assist working parents who must care for their children during the day. Summer camps where youngsters remain overnight are not eligible for this credit.
Other than that, whether it’s summer school or a soccer camp, or even daycare, it makes no difference. All of these are eligible expenses for this credit.
Other Ways to Spend This Credit
Any expenditure to care for your children while you are working may qualify. This includes not only camps but also the following:
- Daycare centers
- Before and after school programs
- Afterschool enrichment programs
If you have any questions regarding the Child and Dependent Care Credit or other tax-related issues, please contact Veris CPA firm in SC.
You can also use this credit to pay for a qualified nanny or another care provider to look after your kid while you’re at work. You may even reimburse a family member who cares for your kid and claims the credit, as long as they aren’t one of your dependent children, a minor child, or a spouse.This is just one of several tax perks that may be beneficial to you. Please contact Veris if you have any questions about this credit, or if you’d want to talk about other tax savings ideas.