By David Jacobson and Carolyn Bigda
Money Magazine
As you might be discovering, camp is fun for kids but not fun for your budget. To cut the bill, Uncle Sam gives working parents these breaks for under-13 kids who attend day camp so parents can go to work:
- Use pretax dollars - The higher your income, the more you'll save by paying for camp with cash from a dependent-care flexible spending account, which you have set up during open enrollment at work
- Plan ahead - If your kids go back next summer, arrange for FSA contributions during your benefits open enrollment during the fall.
- Save receipts - No FSA? Get the child- and dependent-care credit for this tax year: 20% of up to $3,000 in camp costs for one child or double that for more kids - enough to fund a vacation of your own.
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