Is Summer Camp Tax Deductible?

I know, I know…the subjects of fun summer camp and “funless” income tax preparation don’t exactly go together as well as toasted ‘mallow and graham. But for as painful as taxes might be, there is some value here for anyone that sent a child to camp last summer, or is planning to in the coming months.

You might think the first order of business is to answer whether or not summer camp is tax deductible. But actually, it’s important to first distinguish between tax credit and tax deduction. Both are good, but a deduction reduces how much taxable income you claim, while a credit directly reduces the amount of tax owed. For your benefit, I’m going to focus on the credit opportunity, because let’s face it…these are dollar for dollar reductions.

So long story short, summer camp expenses might actually help you qualify for a tax credit. It’s the Child and Dependent Care Credit, and it’s available for expenses incurred during the summer (up to 35%, for a qualifying child under the ages of 13). Why does the credit exist? To help parents offset care expenses while they work (or look for work).