Is Summer Camp Tax Deductible??

We're well into our hot-Michigan-summer and your kids may be going to camp.  That can be great fun for your kids and it may also benefit you at tax time.  Did you know that the money you spend for summer camp may be eligible to be counted toward the Child & Dependent Care Credit on your 2012 tax return? 

As with all tax issues, it depends on the facts & circumstances of your personal situation.  First of all, it must be a day camp since the cost for overnight camp won't qualify. Of course, both parents must be working, looking for work or full-time students in order to get the tax credit.  And, your kids must be under 13 years old this year. There are also income restrictions on this and many other tax benefits so you will need to talk to your tax professional to make sure you qualify.

If you do meet all the requirements, the credit may be up to 35% of eligible expenses, depending on your income.  When you add day camp costs to your other child care expenses, you can use up to $3,000 of unreimbursed expenses you pay in 2012 for your first child, plus another $3,000 you pay for all your other kids combined.  Most parents only get a small benefit considering how much they pay for child care during the entire year, but every tax deduction or credit can help. 

I guess we just have to accept that this is going to be one very hot summer, but the kids will still be going to camp and having a great time.  So, if your kids are at camp right now, why not pour yourself a nice cold glass of lemonade and enjoy the peace and quiet?  Once you cool off and relax, find that receipt for day camp and put it with your tax documents so you're ready for tax time.

DISCLOSURE: This article contains only general tax suggestions so you'll need to talk with your tax professional to decide the best approach which will apply to your specific situation.