12 Tips For Claiming Summer Camp Expenses On Your Taxes

My daughter is braving the summer heat in goalie pads today at field hockey camp. It was an early morning, loading equipment into the car and getting to registration on time but we know this drill by now. You may, too. If your family is anything like mine, with school out, summer becomes a whirlwind of summer camps - especially for working parents who depend on summer camp for child care.

Fortunately, expenses associated with summer camp may result in a tax break in the form of the child care credit so long as they are work-related. There are, however, some rules and restrictions (as if you expected any different). Follows are 12 tips for claiming summer camp expenses on your taxes:

1. Overnight camp is fun for the parents but doesn't qualify for the credit. Yeah, I enjoy a break away from the kids overnight as much as the next girl. But for tax purposes, the cost of sending your child to an overnight camp is not considered a work-related expense for purposes of the credit.
2. Chess camp might be okay. Ditto for tennis camp or lacrosse. You get the idea. The cost of sending your child to a day camp may be a qualifying expense, even if the camp specializes in a particular activity. You're not required to choose the cheapest child care option (not that you have to seek out the most expensive, either, since the credit is limited) so feel free to send your kid to the geekiest, sportiest, most dramatic, most artsy camp you want.

This list is meant to be a quick and dirty reference. This is tax, after all, so other limitations, exceptions, and restrictions may apply. If you have specific questions or circumstances that might be a little out of the ordinary, be sure to check with your tax professional for more details.

But assuming you meet the criteria, including summer camp expenses for purposes of the child care credit can save you money come tax time. Credits are dollar for dollar reductions in the amount of tax payable which means that they can make a fairly significant dent in your tax bill; in comparison, deductions are simply reductions in your taxable income.

The non-refundable child care credit can be up to 35% of your qualifying expenses, depending upon your adjusted gross income (AGI). Your total expenses must be reduced by the amount of any dependent care benefits provided by your employer that you exclude from your income. The maximum amount of expenses used to calculate the credit for the year is $3,000 for one child or $6,000 for two or more children. Note that the $6,000 doesn't have to be divided up equally for the kids, so if dinosaur camp costs a little more than art camp, you can add up the two as opposed to pro-rating them (yes, there's such a thing as dinosaur camp).

Of course, there are still no tax breaks for slip 'n' slides, water balloons or lightning bug jars but be sure to include those things in your plans anyway. Enjoy your kids – and your summer!