Did You Know Summer Camp Could Be a Tax Deduction?
Summer is in full swing, and if you’ve already written checks for day camps, sports programs, or enrichment activities, here’s some good news you’ll actually want to hear: a portion of those costs may qualify for a valuable federal tax credit. It’s one that more families than you’d expect can take advantage of — and one that doesn’t get nearly enough attention.
What Is the Dependent Care Tax Credit?
The Dependent Care Tax Credit (sometimes called the “childcare credit”) lets working parents claim a credit — a dollar-for-dollar reduction in taxes owed — for money spent on care for qualified dependents. That includes children under age 13, as well as elderly or disabled relatives you financially support, as long as the care enables you (and your spouse, if married) to work.
The credit applies to the first $3,000 in expenses for one qualifying child, and $6,000 for two or more.
How Much Can You Actually Save?
The credit is calculated on a sliding scale based on your Adjusted Gross Income (AGI). For most higher-income taxpayers, the credit maxes out at 20% — meaning up to $600 back for one child, or $1,200 for two or more.
Starting in 2026, the One Big Beautiful Bill Act increases the credit percentage for low-to-moderate income households. The 20% cap still applies once AGI exceeds $105,000 for single filers or $210,000 for joint filers — but if you’re under those thresholds, the numbers get more interesting.
Here’s the Part That Surprises Most Parents
A lot of families assume this credit is only for traditional daycare or after-school programs. It isn’t. The IRS casts a wider net than most people realize, including:
- Summer day camps (including YMCA programs and similar organizations)
- Specialty day camps focused on sports, academics, or the arts — yes, soccer camp and coding camp may both count
The key word is day camp. Overnight camps do not qualify, full stop — regardless of the circumstances. If you’re still weighing options for the remainder of the summer, that distinction is worth keeping in mind.
A Few Rules Worth Knowing
Both spouses generally need to be working. If only one spouse is employed and you file jointly, the credit typically isn’t available. The exception: if one spouse is a full-time student or is disabled, they’re treated as earning $250/month for one child or $500/month for two or more.
This is not the same as the Child Tax Credit. The Child Tax Credit (for children under 17) is a separate benefit entirely. Depending on your situation, you may be eligible for both when you file your 2026 return — so it’s worth reviewing both.
Keep your receipts and provider info. To claim the credit, you’ll need the name, address, and Taxpayer Identification Number of the care provider. If you haven’t collected this from the camp yet, do it before summer ends — it’s much harder to track down in April.
The Bottom Line
Summer camp is expensive. The good news is that some of that money may find its way back to you at tax time. Whether your child is at a general day camp or a specialized program, it’s worth a quick check to see if those expenses qualify.
Not sure if your situation fits? That’s exactly the kind of question we’re here for.