Many working parents arrange for summer care for their younger children under 13. A popular solution is a day camp program, which can sometimes result in tax benefits as well. Taxpayers who pay for care for a child or other eligible person so that they can work or look for work may be able to claim the Child and Dependent Care Expenses Tax Credit.

Unlike overnight camps, the cost of a day camp can be counted as an expense toward the Child Care Tax Credit.

To receive this credit, taxpayers must have earned income. The credit is calculated based on income plus a percentage of the costs incurred in caring for eligible individuals so taxpayers could work, look for work, or attend school.

• Depending on income, taxpayers can receive a credit of up to 35% of their eligible child care expenses, with a minimum of 20% of those expenses. For 2024, the maximum eligible expense for this credit is $3,000 for one eligible person and $6,000 for two or more people.

• Reimbursements of expenses, for example from a state welfare office, must first be deducted as work-related expenses in order to calculate the amount of the credit.

• The amount of work-related expenses used to calculate the credit generally cannot be more than the income earned during the year (for single people) or the lower of the income of the spouse (for married people).

• Taxpayers who claim it must include the day camp name and address and the taxpayer identification number on their tax return, unless an exception applies.

IRS Publication 503, “Child and Dependent Care Expenses,” explains all of the rules and the tests required to claim the credit. It also describes an exception for certain taxpayers who live separately from their spouse and meet other requirements. Taxpayers can also use the Interactive Tax Assistant on IRS.gov to determine if they can claim this credit.

• Tax Topic No. 602, Tax Credit for Children and Dependents

• Form 2441, Costs for child care and care of relatives