Tuesday Tax Tidbit: Kids Going to Day Camp? You May be Eligible for a Tax Credit

Day camp is a qualified expense under the child or dependent care credit, which is worth 20% of qualifying expenses (more if your adjusted gross income is less than $43,000), subject to a cap. For 2013, the maximum expenses allowed for the credit are $3,000 for one qualifying child and $6,000 for two or more. The credit’s value had been scheduled to drop in 2013, but the American Taxpayer Relief Act of 2012 made higher limits permanent.

Be aware, however, that overnight camp costs don’t qualify for the credit.

A wide variety of tax breaks are available to parents. If you’d like to learn more, please contact a Weaver advisor.