Soccer, band, and art camp; birthday parties; play dates; daycare…whew! Your kids’ summers can be busier than your own. And as activities pile on, so do those nasty bills. But before you get an ulcer over little Lucy’s burgeoning social calendar, listen up to this good news!
For children under 13, the IRS provides a “Child and Dependent Care” tax credit for the cost of day camps and childcare. This includes specialized camps, like art or tennis camp. Overnight camps do not apply. Your actual tax credit can be up to 35 percent of what you pay (depending on your income). More specifically, the tax credit can be applied to unreimbursed expenses of up to $3,000 for one child and $6,000 for two or more.
That’s a little better, now isn’t it?