Get a Tax Break on Child-Care Costs
You may be able to write off the cost of day camp for your kids if you work.
- (opens in new tab)
- (opens in new tab)
- (opens in new tab)
- Newsletter sign up Newsletter
Can I take the child-care tax credit for the cost of summer camp?
If it is a day camp, not an overnight camp, then the cost of camp can count toward the child-care credit. The camp can be both over school vacations and during the summer. To qualify, your child must be younger than 13 and must attend camp while you and your spouse work or look for work (one spouse can be a full-time student while the other works). For parents who are divorced or separated, the custodial parent is usually the one who can claim the credit.
The cost of a nanny, babysitter, day care or preschool also counts if you use them so you can work. School tuition drops off the list of qualifying expenses once your child reaches kindergarten, but before-care and after-care costs do qualify.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
There is no maximum income cut-off to qualify, but the smaller your income, the larger the credit. You can count up to $3,000 in child-care expenses for one child or up to $6,000 for two or more children. Families earning less than $15,000 can claim a credit for up to 35% of those expenses. The size of the credit gradually decreases as income rises. For instance, families earning more than $43,000 can claim a credit for up to 20% of eligible costs. To translate those percentages into dollars, families with one qualifying child can get a credit of $600 to $1,050, depending on their income; families with two or more children can get a credit of $1,200 to $2,100. This is a credit, not a deduction, so it lowers your tax liability dollar for dollar.
To claim the credit, file Form 2441 (opens in new tab) with your tax return and include the employer-identification number of the camp or the Social Security number of the care provider. Keep copies of the bills you pay to the camp and the employer ID number in your tax files so you have them when you’re ready to file. For more information, see IRS Publication 503, Child and Dependent Care Expenses (opens in new tab).
If you have a dependent-care flexible-spending account at work, you could be better off using money from that account rather than taking the child-care credit, especially if you’re in a higher tax bracket, because the money in the FSA bypasses federal taxes as well as Social Security taxes. The rules for qualifying are the same as they are for the child-care credit -- the child must be younger than 13 and must attend the camp or receive care while you work.
You can’t use money from the dependent-care FSA and take the child-care credit for the same expenses, but if you have two or more children and you’ve used $5,000 from your FSA, you can take the tax credit for an extra $1,000 in child-care expenses, which can cut your taxes by an extra $200 if you qualify for the 20% credit.
As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
-
Stock Market Today: Stocks End Lower Ahead of Powell Speech
Investors continued to grapple with Friday's strong jobs report and how it might impact the Fed's decision-making.
By Karee Venema • Published
-
Legalized Weed Sales Begin in Missouri: This Week in Cannabis Investing
The Show Me State legalized recreational weed in 2022, with sales officially underway as of last Friday.
By Morgan Paxhia • Published
-
The Many Definitions of Modified Adjusted Gross Income (MAGI)
The definition of modified adjusted gross income differs depending on what the calculation is used for.
By Joy Taylor • Published
-
Does the IRS Audit Some Taxpayers More Than Others?
A study of IRS audits, from Stanford University researchers and the U.S. Treasury Department, looked at whether some taxpayers are audited more than others.
By Kelley R. Taylor • Published
-
Can the Earned Income Tax Credit Help You?
The earned income tax credit (EITC) can help people with low-to-moderate income but it can also increase IRS audit risk.
By Kelley R. Taylor • Last updated
-
Child Tax Credit Changes and FAQs for Your 2022 Tax Return
Tax Breaks The bigger and better child tax credit for 2021 is gone, replaced by a new set of rules for taking the credit on 2022 returns.
By Joy Taylor • Published
-
The IRS Issued 12 Million Tax Refunds for 2020: Here's Why
An unemployment tax break caused the IRS to issue $14.8 billion in tax refunds.
By Kelley R. Taylor • Published
-
New EV Tax Credit Gets Complicated for 2023
More car models qualify for the full federal electric vehicle tax credit for a little while, but then what?
By Kelley R. Taylor • Published
-
State "Stimulus Checks" in 2023 – Which States Are Still Sending Payments
Residents in a handful of states could still receive a tax rebate check or other payment in 2023.
By Rocky Mengle • Last updated
-
What's the Gift Tax Exclusion for 2023?
Plan on giving cash or property to family or friends? Keeping it below the annual gift tax exemption can help you save both time and money.
By Rocky Mengle • Published