Every summer, thousands of parents spend hundreds or even thousands of dollars on camps to keep their children engaged while school is out. What many families don’t realize is that the type of camp they choose can have a direct impact on their taxes. A common misunderstanding about the Child and Dependent Care Credit can lead to missed savings of more than $1,000. In some cases, parents assume all camp expenses qualify, only to discover at tax time that overnight camp costs are excluded. Understanding this important distinction could help you avoid a costly tax mistake and maximize your family’s tax benefits.
