Can I Use Dependent Care FSA for Summer Camp?
Navigate the complexities of Dependent Care FSA for summer camp expenses. Get clear, practical guidance on eligibility and how to claim your funds.
A Dependent Care Flexible Spending Account (DCFSA) allows families to manage certain care-related expenses using pre-tax dollars. This benefit enables parents to work or seek employment. This article provides guidance on the eligibility of summer camp expenses for reimbursement through a DCFSA.
Understanding Dependent Care FSA Eligibility
A Dependent Care FSA covers expenses for the care of a “qualifying individual” so that the account holder, and their spouse if married, can be gainfully employed, actively look for work, or attend school full-time. The care’s primary purpose must be to allow for these work-related activities.
A qualifying individual is a dependent child who is under the age of 13 when the care is provided. A spouse or other dependent of any age who is physically or mentally incapable of self-care and lives with you for more than half the year may also qualify. Care expenses must be directly related to the well-being and protection of the qualifying individual.
The “work-related” requirement means care must be necessary for you to perform your job duties. If you are married, both you and your spouse must meet this requirement, unless one spouse is a full-time student or is physically or mentally unable to care for themselves. Care provided during non-work hours, such as for a night out, is not eligible.
Summer Camp Specifics for Reimbursement
Day camps are eligible for reimbursement through a Dependent Care FSA, provided they meet the foundational eligibility rules. These camps function as a form of dependent care by offering custodial supervision for children while parents are engaged in work or work-related activities. This can include various types of day camps, such as sports camps or computer camps, as long as the primary service is custodial care.
Conversely, overnight camps are not eligible for DCFSA reimbursement. The Internal Revenue Service (IRS) considers the lodging, food, and other non-care components of overnight camps as ineligible expenses. Even if an overnight camp attempts to separate the costs for day and overnight activities, the overnight portion remains ineligible for reimbursement.
When evaluating camp expenses, distinguish between care and primarily educational or recreational activities. Activities focused solely on education, such as summer school or tutoring, or specialized instruction like music lessons, dance classes, or swimming lessons, are not covered. The core of the camp’s offering must be general supervision and care for the child’s well-being. Fees for field trips, meals (if itemized separately), transportation (if separate), or equipment are ineligible.
Claiming Your Dependent Care FSA Funds
To claim reimbursement from your Dependent Care FSA, you will submit a claim through your plan administrator’s online portal, mobile application, or a paper form. Expenses are reimbursable after the services have been provided, not necessarily when you pay for them. For instance, if you pay a registration fee in advance, you can only be reimbursed once the camp session has occurred.
The documentation required for reimbursement includes an itemized statement or invoice from the camp provider. This documentation must clearly state the name of the provider, their address, and their tax identification number (EIN or Social Security Number). It also needs to specify the dates of service, the name of the dependent for whom care was provided, a description of the type of service, and the total amount charged.
For 2025, the annual contribution limit for a Dependent Care FSA is $5,000 for single individuals or married couples filing jointly. If you are married and filing separately, the limit is $2,500 per person. An earned income limitation applies, meaning your contribution cannot exceed the lesser of your earned income or your spouse’s earned income. Funds in a DCFSA are subject to a “use-it-or-lose-it” rule, meaning any unused funds by the end of the plan year are generally forfeited. Some plans may offer a grace period, an additional 2.5 months (until March 15) into the following year, to incur eligible expenses and use remaining funds.