Maximizing Tax Benefits for Summer Expenses

If you’re worried about childcare expenses this summer, take a deep breath, because you can claim credit for this. You can claim credit for summer day camp expenses if your child is below 13.
Tax Benefits for summer expenses
Maximizing Tax Benefits for Summer Expenses
In this article

Summer is here. And with it come a ton of expenses! Be it vacations, tours, cruises, camping trips and so on. But summer break isn’t in vain, you don’t have to spend without a few benefits. 

So, if you haven’t planned your family getaway yet, get planning right away. Because some of the costs and expenses you incur during your summer vacation can be deducted from your income tax for the year? But if you rather save and learn a lot more about tax benefits for summer expenses, here are a few that you and your family can enjoy this summer.

Check if you’re eligible

Want to claim some summer credit? You need to have proof of income for the year. If there is no account of an income earned during the year, then you won’t be able to file for a claim.

Summer day camp expenses

If you’re worried about childcare expenses this summer, take a deep breath, because you can claim credit for the same. Phew! But, conditions apply, of course, the child has to be below 13 years old and an overnight stay in the summer camp is not tax-deductible. 

So go ahead and claim a tax break if you have to pay someone to care for your children this summer. 

Check your paperwork

If you’re eligible to earn a credit verify all your paperwork. 

Ensure to attach a federal form 2441 to a federal form 1040, Federal Form 1040A, or Form 1040NR. However, this rule is not applicable for stay-at-home parents. So, if you are unemployed, you will not be able to claim credit for child care expenses.

Upon filing tax claims for child care summer expenses, you will be required to provide your child’s Social Security number. Make sure that you have this information in handy when preparing your taxes. 

Summer rental income

Do you have a summer home or vacation property, such as a house, apartment, boat, mobile home, or similar property? You can rent it out for up to 15 days a year without having to pay taxes on the rental income. You can even deduct qualified expenses for the rental home on Schedule A of your tax return. If you paid mortgage interest on your second home, remember that it is a deductible expense. 

The right summer camps

Do your research on summer camps before you send your children to them. The right summer camp will give you two benefits, one being, your child is safe and having fun while you’re at work and the other being, you can claim credit for summer child care benefits.

However, a summer camp care provider cannot be your spouse or a dependent. But a son or a daughter over age 19 years, who lives independently is an eligible care provider. But before you claim your benefits, you must declare the care provider’s name, address and tax ID number.

Know which expense qualifies

Knowledge is power! (Subtle ‘Game of Thrones’ reference) What we’re trying to say is that not all expenses spent for summer camp qualify for a tax credit. So be aware of the specific items you can deduct and spend accordingly. For example, food, clothing  and fuel expenses as you drive your child to the summer camp don’t count. But fees paid to the care provider qualifies as a deductible expense. You can claim up to $3,000 credit for one child and up to $6,000 if you have two or more kids.

Taxes and yard sales

Having a garage sale or yard sale this summer, don’t worry about taxes! These sales are generally tax-free because your used items are sold for much less than what you bought them for. Apart from that, taxes are owed only if you sell valuable collectibles. Check out Beem to file your federal and state taxes without any hidden charges and get the maximum refund.

Was this helpful?

Did you like the post or would you like to give some feedback? Let us know your opinion by clicking one of the buttons below!

Shirlene Grace Isaac

Shirlene Grace Isaac

Shirlene puts words on the Internet because she loves to do so and also for the money! She is a singer, songwriter, occasional poet, artist and muser — all in the body of a 20 something. She's a taleteller of sorts often looking for opportunities to narrate stories untold.

This page is purely informational. Beem does not provide financial, legal or accounting advice. This article has been prepared for informational purposes only. It is not intended to provide financial, legal or accounting advice and should not be relied on for the same. Please consult your own financial, legal and accounting advisors before engaging in any transactions.

Related Posts

Do Homeless People Pay Taxes
Do Homeless People Pay Taxes?
Being homeless is a complicated problem that affects a huge number of people all over the United States. Some of them pay taxes, but not all do. Here's a detailed guide to help through paying taxes for homeless people.
List of Tax Deductions for Lawn Care Business [2024]
Do Nursing Home Residents on Medicaid Need to File Income Taxes?
Do Nursing Home Residents on Medicaid Need to File Income Taxes?
Low-income people obtain health insurance through Medicaid. If you are covered under this program, you may not have to file income taxes if your income is below the filing threshold. Let's read on to know more!
Taxes on game show winnings and prizes: How much tax you have to pay?
Winning at least $600 is likely to result in a 1099-MISC tax form being sent by the awarding entity to both the winner and the IRS. If no form is received, the winner is still obligated to report the winnings value.
60000 after tax
60k a year is how much a month/week/hour after taxes?
If you earn a yearly salary of $60,000, it is crucial to know the amount of income tax you are obligated to pay. Planning ahead and determining the income tax rate on a salary of $60,000 per year can help you efficiently navigate the tax filing process. Calculating how much you owe can be a daunting task, but our blog provides a useful breakdown to help you determine the amount of tax you need to pay this year.
W2 Form 2024: Everything You Need to Know
The IRS requires employers to send their employees a copy of their W-2 form by January 31 or face penalties. Even if you have quit your job, your last employer can send you a W-2 by  January 31 or earlier, in which case the employer has 30 days to provide it.

Get up to $1,000 for emergencies

Send money to anyone in the US

Ger personalized financial insights

Monitor and grow credit score

Get up to 20% on everyday spends

Save up to 40% on car insurance

Get up to $1,000 for loss of income

Insure up to $1 Million

Coming Soon

File federal and state taxes at low cost

Quick estimate of your tax returns

Get up to $1,000 for emergencies

Send money to anyone in the US

Save big on auto insurance - compare quotes now!

Zip Code:
Zip Code: