Planning a summer getaway? Discover smart tax tips for families to maximize savings, claim travel-related deductions, and keep your finances on track during vacation season.
With summer in full swing, many working parents are juggling the challenge of keeping their children engaged, safe, and cared for while school is out. Summer camps, daycares, and babysitters provide valuable solutions—but they come at a price. The good news? Some of these expenses may qualify for a tax credit that can help ease the financial burden.
If you’re a parent navigating summer schedules, now is the time to explore how the IRS’s Child and Dependent Care Credit can work in your favor. In this guide, we’ll break down what expenses qualify, who is eligible, how to claim the credit, and key documentation tips to make tax season smoother.
The Child and Dependent Care Credit is a non-refundable tax credit offered by the IRS to help working taxpayers offset the cost of care for qualifying dependents while they work—or actively look for work. This includes childcare during the summer, such as day camps, babysitters, and daycare centers.
Yes—day camps often qualify for the credit. However, overnight camps do not. The key distinction is whether the camp is providing daytime care while the parent works, not overnight supervision or enrichment.
To claim the Child and Dependent Care Credit for summer camp or other childcare expenses, you must meet the following criteria:
You (and your spouse, if filing jointly) must have earned income during the year from wages, self-employment, or other work-related sources. If one spouse is a full-time student or disabled, you may still qualify under special rules.
The expenses must be directly related to your ability to work or look for work—not just for convenience or recreation.
Your child must be:
You can’t claim care expenses paid to:
The IRS allows you to claim a percentage of up to $3,000 in qualifying expenses for one child or $6,000 for two or more children.
Many families find it beneficial to use both—claim the credit for expenses beyond what the FSA covers (up to $6,000 in total for two or more kids).
You must file jointly to claim the credit if you’re married, unless one spouse had no income due to school or disability.
Even if you work from home, you can still claim the credit as long as the care is necessary for you to perform your job duties.
You can pay a relative (such as a grandparent) to care for your child—as long as the provider is not your dependent or the child’s parent.
If you’re a parent who relies on summer camps, babysitters, or other forms of childcare to maintain your work schedule, the Child and Dependent Care Credit can offer meaningful tax relief. By understanding what qualifies and keeping organized records, you can take full advantage of these savings come tax time.
The cost of raising children doesn’t pause for summer—and neither does your right to claim every dollar you’re entitled to.
Yes. As long as the care allows you to work without interruption—even if you're remote—you may still qualify. Be prepared to show that the care was necessary for you to perform your job duties.
It depends. You can claim the credit if the relative is not your dependent and is over age 19. You cannot claim the credit if the caregiver is your spouse, your own child under 19, or someone you already claim as a dependent.
No. The IRS excludes educational expenses. The credit is only for care that allows you to work, not for schooling or tutoring—even if it happens in the summer.
Yes, but only for expenses over the FSA limit. You can’t double dip. For example, if you contribute $5,000 to an FSA, only additional expenses up to $1,000 (if you have two or more children) can be used toward the credit.
Not with your return, but keep them. The IRS doesn't require you to submit receipts with your tax return, but you should keep them for at least three years in case you're audited.
Being audited is comparable to being struck by lightning. You don't want to practice pole vaulting in a thunderstorm just because it's unlikely. Making sure your books are accurate and your taxes are filed on time is one of the best ways to keep your head down during tax season. Check out Vincere's take on tax season!
This post is just for informational purposes and is not meant to be legal, business, or tax advice. Regarding the matters discussed in this post, each individual should consult his or her own attorney, business advisor, or tax advisor. Vincere accepts no responsibility for actions taken in reliance on the information contained in this document.
For business tax planning articles, our tax resources provides valuable insights into how you can reduce your tax liability now, and in the future.
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