Save Those Day Camp Receipts!

Hang onto those day-camp expenses for kids. These might, subject to tax legislation, be deductible or eligible for tax credits.

You may be aware that daycare fees qualify for the child and dependent care credit, but the IRS actually considers much more than just the cost of daycare for this credit. Qualifying expenses could also include childcare provided by a babysitter or licensed dependent care center and the cost of a cook, housekeeper, maid, or cleaning person who provides care for the child or dependent.

Day camp or summer camp fees, even for camps centered around a sport or activity, may qualify if the camp was selected to provide care while the parent or parents were at work.  However, overnight camps do not qualify.  Additional qualifying expenses may include costs related to before and after-school care for children under 13 and expenses related to a nurse, home care provider, or other care provider for a disabled dependent.

Keep in mind that expenses related to schooling, tutoring, or overnight camps are not qualifying expenses.

Since every family is different, the IRS has a series of exceptions to the rules in the qualification process. These exceptions allow a greater number of families to take advantage of the credit.  For example, parents that are divorced, diasabled or full-time students.

Please check with you accountant or tax professsional for details.

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