5 Things You’ll Need to Know to get a Tax Break on Camp Tuitions
Summer is supposed to be more relaxed, but for working parents it can get really complicated, since you have to find coverage for those hours usually spent in school and aftercare. Most parents fill in the blanks with camps, daycare, vacation time, etc. and all of that takes planning. In all the planning, don’t forget that your camp tuitions may be tax deductible.
Here are some things to think about if you want to write off camp fees:
1. Your child must be going to day camp, not overnight camp. No, posh sailing camps in the Bahamas don’t count!
2. Your child must be younger than 13. Yes, this is unfair, but in most states, kids older than 13 can stay at home by themselves. Scary thought, we know.
3. Both spouses/partners must be working or looking for work. One spouse/partner can be in school. We think stay-at-home moms and dads deserve a break too, but at the moment, the IRS doesn’t agree with us.
4. If you are divorced, usually only the custodial parent can take the credit.
5. Child care tax breaks are credits, not deductions, so you can subtract them directly from the taxes you owe. This definitely makes it worth the time it takes to be organized with all the paperwork. For instance, you will need to know the tax ID number of the camp. If the camp won’t share that information, you might want to take a closer look at the camp.
For more information, here’s a good place to start: http://www.kiplinger.com/article/taxes/T054-C001-S003-get-a-tax-break-on-child-care-costs.html#L2YkO5R5P7GBzVg7.99