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Summer Camp Tax Tip!

July 31, 2014

If your kids are joining a summer day camp, they’ll be having a lot of fun while you get the consolation of saving on taxes. As with most expenses, there are specifications on what can be deducted and what cannot.

What is Deductible

  1. The cost of a physical exam to check the fitness of your kid(s)
  2. Any vaccination or medication that was done to prevent the spreading of a disease
  3. Any medical care associated with the above two, including the doctor’s fee

What is Not Deductible

Any equipment or gear that you bought for the camp, including shoes, sports items and clothing isn’t deductible. Unfortunately, it doesn’t matter if the purchased items are only going to be used during their camp stay, they can’t be deducted.

Sending your kids to a summer day camp may mean added expenses, but you might qualify for a tax credit: The Child and Dependent Care Credit. It may help you to manage your expenses on your child during summer camp and throughout the remaining year. If you qualify for this tax credit, you can save a considerable amount on taxes. Here are some important points to consider:

  • You can include the costs incurred during the day camp as an expense towards your child and dependent care credit.
  • You cannot deduct expenses for overnight camps, only for day camps.
  • You can get a credit of up to 35 percent of your qualifying expenses, depending on your income.
  • You may use up to $3,000 of the unreimbursed expenses paid in a year for one qualifying individual. If there are two qualifying people, the figure doubles to $6,000.
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