Tax Breaks for Summer Day-Camp Expenses

 

The NYS Tax Department reminds parents and guardians that summer day-camp expenses for a child or dependent may qualify for the Child and Dependent Care Credit. The credit, which varies based on income, is intended to help reduce expenses involved in raising a child or caring for a dependent.

The tax break applies, for example, to qualified expenses for a dependent child under age 13 to attend day camp, but not overnight camp. To claim the expenses, the taxpayer and spouse (if married) must be working or job hunting while the dependent attends the camps. 

Nearly 520,000 taxpayers claimed nearly $189 million in NYS Child and Dependent Care credits for tax year 2014. The average amount claimed was $364.

Guidelines

To claim the New York State credit, taxpayers must first qualify for the federal Child and Dependent Care Credit. The NYS credit ranges from 110% of the federal credit, for taxpayers with incomes under $25,000, to 20% if their income is over $65,000. A NYC Child Care Tax Credit is also available to NYC residents with incomes of $30,000 or less with a child or children under age 4.

Dependent-care benefits from an employer will reduce the credit amount; these benefits are included on a taxpayer’s W-2 form.

Taxpayers should maintain accurate records to support their claims for the credit and for use when filing their income tax returns. These include: itemized statements from the day camp or licensed care provider; names, addresses, and taxpayer identification numbers of the care providers; and copies of the checks or money orders used to pay, or receipts for cash payments. 

More information:
NYS Child and Dependent Care Credit
NYS Recordkeeping Suggestions for Child Care Expenses
NYC Child Care Tax Credit

IRS pages:
Child and Dependent Care Credit
Am I Eligible to Claim?
Frequently Asked Questions

Source: New York State Department of Taxation and Finance