DALLAS – Many working parents must arrange for care of their younger children under 13 years of age during the school vacation period. A popular solution — with favorable tax consequences — is a day camp program.
"Unlike overnight camps, the cost of day camp could count as an expense regarding the Child and Dependent Care Credit," said Clay Sanford, a Dallas-based spokesman for the Internal Revenue Service. "The cost of sending your child to a day camp may be a work-related expense, even if the camp specializes in a particular activity, such as computers or soccer."
Otherwise, if your childcare provider is a sitter at your home or theirs, you'll generally get some tax benefit if you qualify for the credit. Also, if you paid someone to care for your child so that you (or your spouse if you are married) could look for work, you may be able to claim the credit. The Child and Dependent Care Credit can be up to 35% of eligible expenses, depending on adjusted gross income.
For more information, see IRS Publication 503, Child and Dependent Care Expenses, available at www.irs.gov or by calling 1-800-TAX-FORM.