Tax Update: Day Camp Expenses May Qualify for Tax Credit

Day Camp Expenses May Qualify for Tax Credit: A nonrefundable tax credit is available to taxpayers who pay child and dependent care expenses to allow them (and their spouse if married) to work. The credit can be up to 35% of the taxpayer's qualifying expenses, depending on income. The cost of day camp can be a qualifying expense, but not the cost of an overnight camp. The cost of a day camp can count even if the camp specializes in a particular activity. However, "summer school or tutoring programs are not for the care of a qualifying individual" and so are not qualifying expenses.