Are the camp expenses paid by Ellen for her daughter considered qualified expenses for the Child and Dependent Care Credit?

The camp expenses paid by Ellen for her daughter do not qualify as work-related expenses for the Child and Dependent Care Credit. To be considered qualified expenses under this credit, the costs must be incurred for the care of a child under the age of 13 so that the taxpayer can work or look for work.

While many might think all types of camps would qualify, the IRS specifies that expenses for day camp can qualify, provided they are primarily for the care of the child while the parent is working. However, expenses for overnight camps do not qualify for the credit. If the camp that Ellen is paying for includes overnight stays, those costs would not be eligible for the Child and Dependent Care Credit, making it crucial to determine the nature of the camp.

The distinction is vital—day camps care for children during working hours and can contribute to the credit, while overnight camps do not meet the criteria. Since Ellen's expenses are deemed not work-related according to the guidelines, they do not contribute to the Child and Dependent Care Credit.