The Summer Camp Discount No One Is Talking About

February 16, 2018

 

As we begin Spring and look forward to Summer, you probably have plenty of reasons to seek out camps all year long for your child.  At STREM HQ we understand that during the school year and in Summer when kids get the benefit of a long break, many parents must keep on working.  Many parents also love the education, learning, and fun that school and Summer camps like STREM HQ offer while providing a safe place to spend those lazy summer days. Did you know that you could be earning back some of your hard earned money by claiming your school and summer camps on your taxes?  Before you complete your taxes, don’t forget to claim the child care tax credit you deserve.  This is just one way, here at STREM HQ, we try to make our camps more affordable.  We also offer early bird and holiday discounts.  Please contact us at info@STREMHQ.com if you need our tax I.D. to claim your credit from attending a STREM HQ camp.  Here the guidelines straight from the IRS to you-

 

IRS Summertime Tax Tip 2017-05, July 12, 2017

Many parents send their children to summer day camps while they work or look for work. The IRS urges those who do to save their paperwork for the Child and Dependent Care Tax Credit. Eligible taxpayers may be able claim it on their taxes in 2018 if they paid for day camp or for someone to care for a child, dependent or spouse during 2017.

Here are a few key facts to know about this credit:

  • Qualifying Person. The care must have been for “qualifying persons.” A qualifying person can be a child under age 13. A qualifying person can also be a spouse or dependent who lived with the taxpayer for more than half the year and is physically or mentally incapable of self-care.

  • Work-Related Expenses. The care must have been necessary so the taxpayer could work or look for work. For those who are married, the care also must have been necessary so a spouse could work or look for work. This rule does not apply if the spouse was disabled or a full-time student.

  • Earned Income. The taxpayer -- and their spouse if married filing jointly -- must have earned income for the tax year. Special rules apply to a spouse who is a student or disabled.

  • Credit Percentage/Expense Limits. The credit is worth between 20 and 35 percent of allowable expenses. The percentage depends on the income amount. Allowable expenses are limited to $3,000 for care of one qualifying person. The limit is $6,000 if the taxpayer paid for the care of two or more.

  • Care Provider Information. The name, address and taxpayer identification number of the care provider must be included on the return. The childcare provider cannot be the taxpayer’s spouse, dependent or the child's parent.

  • IRS Interactive Tax Assistant tool. Use Am I Eligible to Claim the Child and Dependent Care Credit? tool on IRS.gov to help determine if eligible to claim the credit.

  • Dependent Care Benefits. Special rules apply for people who get dependent care benefits from their employer. See Form 2441, Child and Dependent Care Expenses, has more on these rules. File the form with a tax return.

  • Special Circumstances. Since every family is different, the IRS has a series of exceptions to the rules in the qualification process. These exceptions allow a greater number of families to take advantage of the credit. For more information, see IRS Publication 503, Child and Dependent Care Expenses.

Even if the childcare provider is a sitter in the home, taxpayers may qualify for the credit. Taxpayers who pay someone to come to their home and care for their dependent or spouse may be a household employer. They may have to withhold and pay Social Security and Medicare tax and pay federal unemployment tax. Find more on that in IRS Publication 926, Household Employer's Tax Guide.

Keep in mind this credit is not just a summer tax benefit. You may be able to claim it at any time during the year for qualifying care. IRS Publication 503, Child and Dependent Care Expenses, provides complete details on all the rules. Get it anytime on IRS.gov.

 

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