Employees who send their kids to day camp can reap a double bonus—their kids will be entertained, and they can defray some or all of those expenses through the company’s dependent care assistance plan, up to the $5,000 annual limit. For kids who aren’t nature lovers, expenses incurred for specialty camps, such as computer camps, count too.
Excluded: Expenses incurred for sleep-away camp, and expenses incurred for summer school or tutoring, don’t qualify.
Requirements: Children must be younger than 13, and the expenses incurred must enable parents to work. For non-camp kids, baby sitters’ expenses or other day care expenses qualify. Even better: Employees can change their pretax deductions into dependent care flexible spending accounts to cover these expenses. Wrinkle: Employees who pay for dependent care expenses with debit cards must resubmit substantiation if these expenses exceed their previously substantiated expenses.