Are children’s summer camps tax deductible?

summer camp

Did you know that summer camp expenses are tax-deductible in some cases? During summer, many American children spend time at camps of various kinds. Although these recreational camps may be rather expensive, you might be able to get a tax credit for these expenses. Let’s take a look at the conditions under which you can claim summer camp expenses on your tax return:

Conditions under which summer camps can be tax-deductible: summer camp

When the camp functions as daycare

If you send your children to summer day camp, you should be able to deduct expenses under the provisions of Child and Dependent Care Credit. This is valid for children under the age of 13 at the end of the relevant tax year. For disabled dependents, there is no age limit. The reasoning behind this condition is that you are not sending your children away merely for their pleasure, but you are putting them in the care of other responsible guardians who can look after them while you are working. 

If there is no one in the household to care for the children at home when school is out 

If your spouse or partner is at home and can take care of the children when they are not in school, you won’t be able to claim these tax deductions. If you and your spouse or partner are both at work or school, then you may qualify for tax credit or deductions. 

They have to attend camp at a real institution

Unfortunately, you can’t just send your kids over to play at the neighbors and qualify for tax deductions. To qualify, you need to make a payment to a recognized person, facility, or organization. When you do your return, you need to furnish details, including the address and identifying number.

The cost of transport isn’t automatically included in deductions 

Unless the transport cost is included in the fees, you won’t be able to deduct the costs expended on getting your children to and from the campsite or location. If the camp fee includes transport, then you may qualify for the tax credit. 

Did you know that you can get tax credits between 20% and 35% of what you spent on daycare? The tax credit you may qualify for depends on the number of children and your AGI (adjusted gross income). At Georgen Scarborough Associates, PC, we can help you to make sense of all these conditions and limits.

For assistance on your tax refund, contact our tax experts to discuss tax deductions and other tax tips.

The PATH Act explained by GSACPA

The path act

According to the IRS, the Protecting Americans from Tax Hikes (PATH) Act was enacted in 2015. This act extends to various aspects that taxpayers should be aware of, including changes to legislation that regulate taxes and extending some laws that would have expired. The act aims to protect taxpayers against fraud. It includes provisions that may affect the taxpayer credits of individuals and businesses. This guide will take a look at those aspects. The path act

What taxpayers need to know about the PATH Act 

The PATH Act extends expired tax laws and introduced new regulations to reduce fraud and to ensure that Americans get the correct refunds from the IRS. The PATH Act now addresses regulations governing Additional Child Tax Credit (ACTC), Earned Income Tax Credit (EITC), and Work Opportunity Tax Credit (WOTC). Although the act may not change the amount of your return or when you receive your refund, it does ensure that certain tax credits are monitored more closely.

The most important aspect to recognize is that the PATH Act will not change how you complete your tax return. Although early filers may experience some delays, these delays afford the IRS opportunities to counteract possible tax fraud.

Key aspects of the PATH Act

Under the Act, some taxpayers who file early for Additional Child Tax Credit (ACTC) or Earned Income Tax Credit (EITC) may receive their refund later. These taxpayers could have to wait until after the 15th of February to receive a refund. The delay allows the IRS to verify information that can help to reduce tax fraud. All pending refunds should be released from the 15th of February, so if you don’t receive your refund within 4-6 weeks after the 15th of February, you may want to visit the IRS website to find out about the delay. 

The Act has retroactively extended the Work Opportunity Tax Credit (WOTC). This is a credit for employers who hire workers from target groups faced with barriers to employment. 

If you’re still unsure about any part of the PATH Act, or if you need more tax tips, visit our website or reach out to talk to a tax expert about your tax refund.