Renner Individual News; August 22, 2022
You may or may not take a vacation this summer. Regardless, if you have children, you could still get a break — a tax break, that is.
If you send your children to a day camp, the money you pay may qualify for a tax credit when you file your return, meaning you might get some funds back. Day camp expenses can be used to claim the Child and Dependent Care Credit.
It must be a day camp, as overnight camps do not qualify.
If you pay to send your child to day camp or some other daycare arrangement, or if you pay someone to watch your child at home while you work, you may qualify for a credit that is a percentage of the amount you pay for child and dependent care expenses.
The credit is limited to children 12 or younger. The percentage you can claim as a credit is based on factors like your income, number of qualifying dependents and filing status.
“Make sure to keep the receipt or a record of the camp and payment to give to your tax preparer,” Paige said. “We will also need the address and federal tax identification number. Day camps such as sports camps and theater camps, as well as preschool programs and babysitters, are all eligible expenses for the credit.”
You figure the credit on up to $3,000 of expenses, $6,000 for two or more children. The credit rate ranges from 20% to 35% of expenses, depending on your income. The 35% rate applies if your income is under $15,000; the 20% rate, if your income is over $43,000.
There’s more to know about this. Contact Renner and Company here to learn more about the Child and Dependent Care Credit.
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