Is Summer Camp FSA Eligible?

Flexible Spending Accounts (FSAs) allow individuals to manage certain expenses with pre-tax dollars. These employer-sponsored benefits enable employees to set aside a portion of their income before taxes are calculated, reducing their taxable income. Funds accumulated in an FSA can then be used for eligible out-of-pocket costs, providing a financial advantage for approved expenditures.

Understanding Dependent Care Flexible Spending Accounts

A Dependent Care Flexible Spending Account (DCFSA) is a specialized FSA designed to help working individuals cover eligible dependent care expenses. This account focuses specifically on costs for qualifying dependents, distinguishing itself from other FSAs like those for healthcare. The primary purpose of a DCFSA is to enable the account holder, and their spouse if married, to work, actively look for work, or attend school full-time.

To qualify, the care must be for a dependent child under the age of 13, a disabled spouse, or another dependent who is physically or mentally incapable of self-care and lives in the account holder’s home for more than half the year. Common eligible expenses include daycare, preschool, and before- or after-school programs. Funds for a DCFSA are accessed either through a debit card or by submitting claims for reimbursement after paying for services out-of-pocket.

For the 2025 tax year, the annual contribution limit for a DCFSA is $5,000 for individuals or married couples filing jointly, and $2,500 for married individuals filing separately. A notable characteristic of FSAs is the “use-it-or-lose-it” rule, meaning any unspent funds by the end of the plan year are forfeited. Some plans may offer a grace period of up to 2.5 months after the plan year ends to use the remaining funds.

Summer Camp Eligibility Criteria

Summer camp expenses can be eligible for DCFSA reimbursement under specific conditions, primarily when the camp’s purpose is to provide care for a qualifying dependent while the parent(s) are employed, seeking employment, or attending school. The care must be for a child under the age of 13. This eligibility applies to day camps, which provide custodial care during working hours.

Overnight or sleepaway camps are not eligible for reimbursement. The “care” component is recognized only during parents’ working hours, and overnight stays are not considered work-related expenses. Even if an overnight camp attempts to separate the day and overnight portions, the entire expense remains ineligible. The focus for eligibility is on custodial care provided, not on specialized instruction or skill development.

General recreational day camps, arts and crafts camps, or sports camps primarily focused on supervision are eligible. Conversely, expenses for summer school, tutoring, or camps primarily offering academic enrichment or specialized lessons like swimming or music are not covered, as their main objective is not care but skill development. Costs for transportation, field trips, or meals billed separately from the primary care service are ineligible.

Submitting Your Reimbursement Claim

Submitting a DCFSA reimbursement claim for summer camp expenses follows a structured process to ensure compliance and timely payment. Claim submission typically involves using an online portal, a mobile application, or mailing a paper form. Most claims are processed within one to two business days after being received and verified.

The reimbursement claim form requires specific details, including the dependent’s name, the dates services were provided, the total amount paid, and the care provider’s name and address. It is necessary to include the care provider’s Employer Identification Number (EIN) or Social Security Number (SSN) on IRS Form 2441 when filing taxes to claim the tax exclusion. If a provider is reluctant to supply their EIN or SSN, individuals should document their attempts to obtain it, as this may still allow the claim to be processed with an attached explanation.

Maintaining detailed records, such as itemized receipts or invoices from the camp, is important for verification and tax purposes. These documents should clearly state the type of service, dates of service, dependent’s name, and the amount paid. In some cases, a provider’s signature on the claim form can substitute for separate receipts. If a claim is denied or additional information is requested, individuals receive notification and guidance on how to resolve the issue.