Tax Credits for Summer Camps?

Code Naturally
Jul 23, 2017 · 2 min read

That’s right folks! You might get money back for sending your kids to camp. This blog post is for all of the awesome parents we’ve gotten to meet while running Code Naturally Summer Program during the last 2 months. Please contact us at contactus@codenaturally.com to get our EIN to apply for your tax credit!

So how does this credit work?

You could be eligible for this tax credit if you pay someone to care for your child under 13 years of age.

Here’s a quick checklist to see if you qualify for the credit:

1. Did you have earned income during the year? If filing jointly, this applies to both you and your spouse.

2. Did sending your student to an after school/summer program allow you to work or search for work?

If both of these apply to you this means your summer program expenses could qualify for the Child & Dependent Care Expense tax credit.

Here’s how the tax credit is calculated

The credit has a dollar limit of $3000 in expenses for one child and $6000 for 2 or more children.

Your Tax Credit (for a single child) =

[Total Expenses] (up to $3000) X

[%] (this will range from 35–20% based on your gross income)

**Please note that the actual credit you can claim will be based on how much your tax liability is, tax credits are not refunded to you, they are applied against your taxes due.

Steps to Claiming your Credit

  1. Keep a record of your expenses
  • You’ll need the following information for each organization: Name, Address, Employer identification number (EIN), and Amount Paid

2. File your Individual Income Taxes [Form 1040, 1040A, or 1040NR]

3. Fill out & file form 2441 — fill in your expenses in Part I below

https://www.irs.gov/pub/irs-pdf/f2441.pdf

For more detailed information on this tax credit, please refer to IRS Publication 503.

This blog post is written purely for educational purposes. We are not tax or accounting professionals. Please refer to the IRS or a tax specialist with detailed questions about tax exemptions.

Code Naturally

Written by

A New Approach to Math & Programming: www.codenaturally.com Summer Program from June 19th-August 11th. Rolling & Flexible Enrollement.

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