Day camp could garner tax credit

Date: 3/28/2011

By Bette Bussel

American Camp Association, New England

Day camps provide an excellent and educational way for children to spend the summer months. In addition to the physical, mental, and social benefits of the camp experience for their children, there's an additional bonus that parents who work or attend school can cash in on.

Many people don't realize that summer day camp tuition may qualify for tax credit. In this challenging economic climate, this little known fact is especially relevant. Parents want their kids to enjoy a summer at camp while having fun and gaining skills that prepare them for college and life. This tax credit may make that a little easier for some families.

To qualify for tax savings, parents must have dependent children under the age of 13 enrolled in a day camp and must either be employed or a full-time student; because the day camp allows parents to work or attend school, its fees can be considered dependent-care expenses.

In 2010, some parents received a tax credit for up to 35 percent of the cost of day camp ($1,050 for one child or $2,100 for two or more children).

Tax benefits vary depending on household income and other factors; parents are encouraged to consult a professional accountant or tax advisor to find out if they qualify and for how much.

For further details, visit www.irs.gov/pub/irs-pdf/p503.pdf.

Provided by the American Camp Association, New England, the region's leading source for "all things summer camp."

For more information, visit www.ACANewEngland.org or call (781) 541-6080. Find us also at www.www.Facebook.com/ACANewEngland.