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When to claim if you want to get up to $8,000 in tax credits on summer camps

  • / Updated:
  • Abbi Aruck 

Working parents who struggle to pay for childcare over the summer and school breaks can earn tax credits.

These credits can be earned if they send their child to summer camp.

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Summer camps and tax credits

Summer camps are a great option to keep kids entrained during the off season of school. However, they can be expensive. Tuition for day camps can rang from $199 to $800 per week. The cost continues to increase the more children you have. However, there is help available for parents who want to send their kids to summer camps.

Child and dependent care tax credits are intended to help parents pay for childcare expenses while they work. Parents can claim up to 20% on as much as $3,000 of annual childcare expenses for one child under the age of 13 for the 2022 tax year. The limit is set at 35% on up to $6,000 for two or more children. The credits can also be claimed for a spouse or dependent of any age with disabilities.

In 2021 people could claim up to $4,000 on childcare they paid for last year, or up to $8,000 for two or more children. The credit was fully refundable, so parents could claim the credit even if they didn’t owe federal income taxes.

If you filed for an extension on your 2021 tax return, you have until October 17 to claim up to $8,000 in tax credits. For summer camp expenses paid in 2022, you can make a claim next year.

The credit is aimed to help working people. However, full-time students and people who were unemployed for part of the tax year are also eligible. It is calculated based on your income and a percentage of expenses that you come across while working or studying. In order to claim the credit you must be working, looking for work, or studying full time. The full credit is available to those making $125,000 or less each year.

How to claim summer camps

These credits can be applied to care provided by a babysitter or licensed dependent care center– which includes summer camps. However, overnight camps do not qualify.

You will need the name, address and Taxpayer Identification Number (TIN) of the person or camp who provided the care to claim the credit. It is recommended to keep a detailed account of your summer camp expenses. The next step is to complete a Form 2441 and attach it to your tax return.

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