A tax deduction only lowers the amount of income on which you calculate your tax. The answer for many frantic parents is summer camp. Here's what you need to know to pocket your savings from Uncle Sam. The cost of day camp is eligible for the child and dependent-care tax credit if your child is under the age of 13. Expenses paid for sleep-away camp, however, are not eligible.
Day camp is treated as a substitute for child care, while sleep-away camp is considered a luxury.
A couple can also qualify if one spouse is working and the other is a full-time student or works part time. If you're planning on claiming a credit, get the camp's tax-identification number now. You must have the number to collect the savings on your tax return. Don't wait until next April when you're filing your return to track the number down. By then, the camp will probably be closed for the winter.