It’s not unusual to pay someone to watch your young children in the summer while you and your spouse toil at your jobs.
At least you can claim the child care credit for a portion of your qualified expenses. Typically, this applies to amounts paid to baby sitters, day care centers and nursery schools.
Strategy: Send the kids to summer camp. The entire cost of a day camp qualifies for the credit while your child is enjoying the great outdoors. You don’t have to allocate any part of the cost. But no credit is allowed for the cost of an overnight camp.
The tax break isn’t limited to generic day camps. The child care credit is also available if you send a child to one of the following specialized summer camps:
- Sports camps focusing on a single activity
- Academic camps to learn about computers or other areas of study
- Fine arts camp for music, drama and art
Tip: Claim the credit on Form 2441, Child and Dependent Care Expenses. Find it at www.irs.gov/pub/irs-pdf/f2441.pdf.
- Small Business Tax Deduction Strategies No matches