Can You Write Off Summer Camp on Taxes?

Summer camp expenses are not direct tax write-offs, but they can be relevant for a specific tax credit. This credit is designed to help working individuals offset the costs of care for qualifying dependents.

Eligibility for the Child and Dependent Care Credit

To qualify for this credit, several criteria must be met. The child for whom care is provided must be under 13 years old when the care was furnished. Additionally, the child must be a qualifying person, meaning they generally lived with you for more than half of the tax year.

The core requirement for claiming the credit is that the care expenses were necessary for you, and your spouse if filing jointly, to work or actively look for work. Both spouses must have earned income, although exceptions apply if one spouse is a full-time student or is physically or mentally unable to care for themselves. In such cases, the IRS assigns a deemed earned income to the student or disabled spouse.

Determining Qualifying Summer Camp Expenses

The expenses must be primarily for the well-being and protection of the child, allowing you to work. Specifically, the cost of day camp, including those focused on sports or specific activities, can qualify if the camp provides care while you are working. This means that general supervision fees for day camps are typically included.

However, expenses for overnight camps do not qualify for the credit. Similarly, costs primarily for educational purposes, such as tuition for specific academic programs, tutoring, or specialized lessons that are separate from general care, are generally not eligible. Other non-qualifying costs often include food, lodging, or activity fees if they are charged separately and are not an integral part of the general care provided by the day camp.

Claiming the Credit on Your Tax Return

To claim the Child and Dependent Care Credit, you will need to file Form 2441 with your federal income tax return. This form requires you to provide specific information about your care provider. You must include the care provider’s name, address, and their Taxpayer Identification Number (TIN).

If you received any dependent care benefits from your employer, such as through a Dependent Care Flexible Spending Account (FSA), these amounts must be reported on Form 2441 and will reduce the amount of expenses you can use to calculate the credit.

The credit amount is calculated based on your adjusted gross income (AGI) and a percentage of your qualifying expenses. For the 2024 tax year, the maximum amount of expenses you can use to figure the credit is $3,000 for one qualifying person and $6,000 for two or more qualifying persons.

The credit percentage ranges from 20% to 35% of these expenses, with higher incomes generally resulting in a lower percentage. For example, if your AGI is $15,000 or less, you may be eligible for the maximum 35% credit. The credit is non-refundable, meaning it can reduce your tax liability to zero, but it will not result in a refund if the credit amount exceeds your tax owed.