Tax-Deductible Summer Camp Expenses
School is out for summer and for many households that means the start of summer camp.
Did you know that the cost of summer day-camps may count as a qualified expense for purposes of the dependent care credit? As families consider the cost-benefit of sending their kids to camp, it is important to consider these potential tax deductions:
- Costs incurred for a qualifying child under age 13, or other qualifying dependent
- Medical expenses (such as shots, doctor’s fees and exams) in excess of 7.5 % of your adjusted gross income
- Transportation fees charged by the camp to transport the child to and from the place of car
Be advised that the name, address, and federal tax identification number of the child care provider must be provided on Form 2441 of your personal return. In addition, some exceptions do apply:
- Costs incurred to send a child to overnight camp are not eligible for the child care credit.
- Sports equipment, clothing and other supplies purchased as a condition to attend the camp are not qualified costs
- Costs are only eligible if incurred so that you and your spouse may work, or seek employment.
If this applies to you, you can obtain more detailed information by reading Publication 503 issued by the IRS. You may also call our firm at (217) 351-2000 with any questions.