Employees who enrolled their kids in day camp this summer will soon be opening the bills and suffering sticker shock. You can ease their anxiety by reminding them that they can defray those expenses through the company’s dependent care assistance program or seek reimbursement through their dependent care flexible spending accounts (FSAs), up to the $5,000 annual limit.
Also covered: child care expenses for kids who stay home.
Qualifications: Children must be younger than 13, and the expenses must enable parents to work. Even better: Employees can change their pretax deductions into dependent care FSAs to account for day camp expenses, but employees who pay for dependent care expenses with debit cards must resubmit substantiation if the expenses exceed their previously substantiated expenses.
Snooze and lose: Expenses incurred for sleep-away camp aren’t eligible for this tax break.