Summer is here! That means sunscreen, popsicles, swimsuits, and the annual quest to keep the kids entertained while you’re at work. If summer camp is part of your family’s plans, here’s some good news: those camp costs may help you at tax time.

Wait…Summer Camp Can Be Tax-Friendly?

Yes! If you pay for a day camp so you can work or actively look for work, those expenses may qualify for the Child and Dependent Care Credit.

Think of it as a little bonus for juggling work schedules, camp pickups, and remembering that Thursday is “Crazy Hat Day.”

It’s also worth noting that this benefit is a tax credit, not a deduction. That means it can directly reduce the amount of tax you owe, making it especially valuable for eligible families

Who Qualifies?

Generally, qualifying care expenses must be for:

• A child under the age of 13
• A spouse or dependent who is physically or mentally incapable of caring for themselves

What Expenses May Qualify?

Eligible expenses can include:

• Day camps (sports, arts, science, nature—you name it!)
• Before and after-camp care
• Babysitters or childcare providers while you work
• Daycare and preschool for younger children

The key? The care must allow you (and your spouse, if filing jointly) to work or look for work.

What Doesn’t Count?

Not every summer expense makes the tax list.

These generally don’t qualify:

• Overnight camps
• Tutoring programs
• Summer school focused on education
• Family vacations (nice try!)

Keep Those Receipts!

Before you toss that stack of camp invoices into the junk drawer, hang onto them. You’ll also want:

• The provider’s name
• Address
• Tax Identification Number (TIN) or Social Security Number
• Records of what you paid

Future-you will be grateful when tax season rolls around.

A Few Things to Keep in Mind

The IRS places limits on the amount of qualifying childcare expenses that can be used to calculate the credit, so not every dollar you spend may be eligible. The amount of the credit also depends on factors such as your income.

If your employer offers a Dependent Care Flexible Spending Account (FSA), those benefits may reduce the amount of expenses that can also be used for the Child and Dependent Care Credit. Coordinating both benefits can help maximize your overall tax savings.

A Little Planning Goes a Long Way

Summer flies by, but tax season always seems to show up right on schedule. Keeping track of childcare expenses now can make claiming valuable tax credits much easier later.

So go ahead—pack the lunchboxes, label the water bottles, and wave goodbye as the kids head off to camp. While they’re making friendship bracelets and learning archery, you may be setting yourself up for a tax benefit, too.

Now that’s something worth celebrating!

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