Did you know that a portion of your child’s summer camp expenses may be tax-deductible. You have to be careful and consult an expert, but keep your receipts and when it’s time to prepare your taxes we can take a look.
For instance if your child is in a local day camp, under certain conditions “While sleep away camp does not count for the child care credit, day camp could, according to Minkow. For a camp or daycare facility to qualify, parents must add the camp’s federal ID number and address to the Form 2441 or the camp will not qualify for the credit, she noted.
“In addition, to qualify for the credit, you must pay child and dependent care expenses so that you and your spouse, if married, can work or look for work,” Minkow added. “However, if you don’t find a job or if you don’t have any earned income from wages, salaries, tips, other taxable employee compensation or net earnings from self-employment for the year, you may not claim the credit. On the actual credit, there is an exception to earned income for taking the credit. The exception is for a student or disabled spouse. If one spouse is a full-time student or disabled, earned income is deemed to be at $250 per month with one qualifying child to $500 for two or more. Other exceptions do apply.”
McCain and Samons
This is an excerpt taken from Accounting Today