Now that school is out, many parents have to find care for their children. Day camps are a popular option for summer break. The cost of day camp for a child under age 13 may be an eligible dependent day care FSA expense.
Day camp may be an eligible, reimbursable dependent care FSA expense if the camp is used for childcare during working hours. If a parent does not send a child to day camp but does use babysitting during the summer, the amount a parent pays someone to watch a child at home when working may also be eligible for reimbursement from a dependent day care FSA. The cost of overnight camp is not eligible for reimbursement nor is the cost of summer school.
If an employer does not offer a dependent day care FSA, or if an employee is not participating in a dependent day care FSA, the cost of day camp and/or at-home babysitting may be used toward the child-care tax credit. Employees should use the interactive tax assistant tool at irs.gov to see if they are eligible to claim the child care tax credit.
Employees may refer to an IRS video on dependent care expenses by clicking here.