Can you deduct summer camp and daycare expenses on your 2026 taxes?

What is the Child and Dependent Care Credit?

 The Child and Dependent Care Credit, often called the Daycare Credit, is a tax credit that helps cover the cost of childcare while you work or look for work. For 2026, you could claim 20% to 50% of up to $3,000 in childcare expenses for one child ($6,000 for two or more children). The exact percentage depends on your income.

Who qualifies for the Child and Dependent Care Credit?

 To qualify for the Daycare Credit, you must:

• Have paid for care for a child under 13 (or another dependent who can't care for themselves).
• Have earned income during the year. If you're married, both you and your spouse must have earned income.
• Have needed childcare so you could work or look for work.

Qualifying expenses include daycare, preschool, before- and after-school care, babysitters, and day camp. Overnight camp expenses don't count.

What is the maximum childcare tax credit for 2026? 

The maximum amount a family with multiple children could qualify for with the Daycare Credit in 2026 is $6,000.

What’s the difference between the Child and Dependent Care and the Child Tax Credits?

 The names sound alike, but these are two separate credits, and many families qualify for both. Here's a comparison:

The Daycare Credit

The Daycare Credit helps cover what you spend on childcare, so you can work or look for work. It's based on your actual expenses.

• For kids under 13, or a dependent who can't care for themselves.
• Worth 20% to 50% of up to $3,000 in expenses for one child (or $6,000 for two or more children).
• Nonrefundable. It can eliminate your tax, but you don't get any leftover credit back as a refund.

The Child Tax Credit

The Child Tax Credit is a flat amount per child, just for having a qualifying child. You don't need to have any childcare expenses to claim it.

• For kids under 17.
• Worth up to $2,200 per child.
• Partially refundable. Up to $1,700 per child could come back to you as a refund.

If you have a child under 13 and pay for childcare so you can work, you may be able to claim both credits.

What information do you need from your childcare provider?

To claim the Daycare Credit, you’ll need to get a few details from your childcare provider to fill out Form 2441, Child and Dependent Care Expenses:

• Provider’s name
• Provider’s address
• Provider’s tax ID number
• The amount you paid for the year

Most daycare centers and other childcare providers will give you a statement at the end of the year with all the information you need.  

What childcare expenses are tax deductible? 

Many childcare expenses, including daycare summer camp and daycare costs, are not tax deductible on the federal level, but the Daycare Credit helps cover childcare expenses that allow you to work. Most states also offer credits or deductions for childcare expenses based on the federal credit, but some depend on additional limits or require you to itemize.

Medical expenses for a child with special needs

One childcare expense you may be able to deduct is medical expenses if you have a child with special needs. If your child has a diagnosed medical condition, like autism, a learning disability, or another physical or mental impairment, some of the costs of their care may count as deductible medical expenses, including speech, occupational, or behavioral therapy, specialized tutoring or schooling, and even travel to medical appointments.

A few rules apply:

• The care must be recommended by a doctor. Get it in writing if you can.
• You can only take the deduction if you itemize instead of taking the standard deduction.
• You can also only deduct the portion of your total medical expenses that adds up to more than 7.5% of your adjusted gross income (AGI). So, if you earn $80,000 a year, you could only deduct medical costs over $6,000.

Deducting medical expenses can get complicated, and the IRS pays closer attention to big medical deductions. That’s why it’s smart to keep thorough records and work with a Tax Pro.

Dependent Care FSA

Another way to save on childcare costs is through a Dependent Care FSA (Flexible Spending Account). It's not a deduction, but it works in a similar way.

If your employer offers a Dependent Care FSA, you can set aside up to $7,500 of your pre-tax payroll dollars for 2026 to cover things like daycare, preschool, after-school care, and day camp for kids under 13.

A few rules apply:

• You must sign up through your employer, usually during open enrollment.
• You must use the money by the end of the year and any grace period, or you will lose it.
• You can't use FSA money and claim the Child and Dependent Care Credit for the same expenses.

Do after-school programs qualify for the childcare credit?

The cost of after-school programs counts as a qualifying childcare expense for the Daycare Credit but isn't tax-deductible on its own.

Can self-employed parents claim childcare expenses?

Yes, self-employed parents can claim childcare expenses if you qualify for the Daycare Credit. However, you cannot claim childcare expenses as a business deduction.

Even though you may need childcare to work, the IRS considers childcare to be a personal expense, not a business expense.

Can I write off my child's extracurricular activities on my taxes?

In most cases, no. Activities, like sports leagues, dance classes, music lessons, and art programs, aren't tax-deductible and don't qualify for any tax credits.

There are a couple of exceptions:

• Activity-based day camps: If you send your child to a day camp so you can work, it may count toward the Daycare Credit, even if the camp is centered around a sport, art, or specific activity. To qualify, the camp must provide care during your work hours. Overnight camps don’t count.
• Activities prescribed by a doctor: If an activity is part of a treatment plan for a child with a diagnosed medical condition, like therapeutic horseback riding for a child with autism, it may qualify as a deductible medical expense. You'll need documentation from your child's doctor.

Have questions about the Daycare Credit, deducting medical expenses, or anything else? Walk in or book now at https://office.jacksonhewitt.com/en/office-locator to get the answers you need. Jackson Hewitt Tax Pros are here all year and ready to help.