Employees looking for a place to park their preteens during the summer should consider day camp. Tax break: Parents may defray day camp expenses, including expenses incurred for specialty camps, through the company’s dependent care assistance program, up to the $5,000 annual limit. Also covered: child care expenses for kids who stay home.
Qualifications: Children must be younger than age 13, and the expenses must enable parents to work. 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 these expenses exceed their previously substantiated expenses. Snooze and lose: Expenses incurred for sleep-away camp aren’t eligible for this tax break.