Did You Know That You Can Save on Taxes for Your Kids' Summer Camps?

As summer approaches, many parents begin planning for their children’s summer activities. While summer camps offer invaluable experiences—from outdoor adventures to educational enrichment—they can also come with a hefty price tag. What many parents don’t realize is that some of these costs may actually help reduce their tax bill.

Yes, you read that right—you may be able to save on your taxes when sending your child to summer camp. Here’s what you need to know.

The Child and Dependent Care Credit

The primary way parents can get a tax break for summer camp expenses is through the Child and Dependent Care Credit. This is a non-refundable credit that helps working parents cover the cost of care for their children while they are working or looking for work.

Key Criteria:

• The child must be under the age of 13.

• Both parents (or a single parent) must be working or looking for work.

• The camp must be a day camp—overnight camps do not qualify.

• The expense must be related to the care of the child, allowing the parent(s) to work.

This credit percentage ranges from 20% to 35% of qualifying expenses, depending on your income. Projected for 2025 tax filings (subject to change), you can claim up to $3,000 in expenses for one child or up to $6,000 for two or more children.

What Counts as Qualifying Expense?

Qualifying expenses include the fees paid to a day summer camp or any other care provider that looks after your child during work hours. This can be:

• Sports camps

• Art camps

• Science camps

• General recreational camps

The key is that the primary purpose of the camp must be to care for the child—not education. So, if your child is attending a camp that’s more like a tutoring program, it may not qualify.

Documentation Is Crucial

To claim the credit, you’ll need to file IRS Form 2441 and provide:

• The provider’s name, address, and Taxpayer Identification Number (TIN)

• The total amount paid

• Proof of employment or job search for both parents (if married filing jointly)

Keeping accurate records and receipts is essential to ensure a smooth tax filing process and avoid potential issues with the IRS.

Special Situations to Consider

Multiple Children

If you have more than one child under 13, your eligible expenses double, which can significantly boost your tax credit.

Flexible Spending Accounts (FSAs)

If your employer offers a Dependent Care Flexible Spending Account, you might be able to use pre-tax dollars to pay for summer camp. However, you cannot claim both the FSA and the tax credit for the same expenses—so coordination is key.

Final Thoughts

Summer camps can be more than just a way to keep your kids entertained—they can also be a strategic part of your tax planning. With the right documentation and understanding of the IRS rules, you could significantly offset the cost of summer camp through tax savings.

Before making camp plans, consider speaking with a tax advisor to ensure you're maximizing your benefits. Because when it comes to summer fun and smart finances, every little bit helps.

📌 Disclaimer

The information provided in this article is for general informational purposes only and does not constitute tax, legal, or financial advice. Every individual's tax situation is unique, and tax laws are subject to change. You should consult with a qualified tax professional or financial advisor to understand how these rules apply to your specific circumstances before making any tax-related decisions. The author and publisher disclaim any liability for any loss or risk, personal or otherwise, incurred as a consequence of the use and application of the information presented herein.