SUMMER TIME AND THE LIVING IS EASY

Well, it is if you are a child!  And if you place your child in a summer camp, it can be a little easier on you as well.  That’s right; the IRS may let you deduct the cost of summer camp for your qualifying children. 

First – the camp must be a DAY camp.  No overnight camps.
Second – you can only claim this deduction for children under the age of 13.
Third – the enrollment must be made so that you (or your spouse) can work, or search for work.
Fourth – you (and your spouse) must have earned income, or be a full time student.
Fifth – You’ll need to have the summer camp’s name, address and identifying number.
Sixth – you cannot file as Married Filing Separately. 

Here’s the really neat thing: it doesn’t matter if the camp is for computers, soccer, swimming, scouts, etc.  As long as it meets the requirements above, the expenses may qualify!

So, how do you determine the credit?  It’s 20%-35% of non-reimbursed expenses (that means that your employer doesn’t reimburse you for child care), up to $3,000 for one child and $6,000 for two or more children.  The credit percentage is based on your income.  According to the IRS, “the 35% rate applies if your income is under $15,000; the 20% rate [applies] if your income is over $43,000”. 

You can claim this credit on Form 2441.

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