PSA: your dependent care FSA covers camps! Here’s everything you need to know to save money on those summer camps coming up: 1. The savings are big — DCFSA dollars are pre-tax which means you’re saving 25-40% on program costs. 2. You can save more this year — The limit jumped from $5,000 to $7,500 for 2026. That’s the first increase in 40 years! Hallelujah someone heard the moms! 3. Max it out — Daycare costs avg $14k/yr (that’s low in most major markets). Summer camps cost $3-10k/summer per kid. Gap day camps another $1-2k per kid. If you have kids under 13, you’re probably hitting the cap, so you’ll want to max it out. 4. You can use it on camps?! — Yes! In-person camps that allow parents to work or look for work are covered. Even ballet camps. Even soccer camps. Definitely space camps. 5. The fine print — funds can only be used for kids under 13. They can’t be used for overnight camps. You must save your receipt to claim. Funds are use it or lose it, so take a beat to calc expected costs, and don’t put in more than you’ll use. This is one of the easiest ways for working parents to save thousands on the childcare they’re already paying for!
I had no idea
DSA can also be used for tutoring. We use it for Russian School of Mathematics (which also acts like childcare).
Only a note that while the limit did increase you will want to check with your employer to see if they have opted into the higher amount. Not all employers will allow the increase or in some cases depending on non discrimination test results the amount may have remained at $5000
And if you pay for services now and submit the receipt, you’ll get the reimbursement amount set straight to your bank account every paycheck!
Love DCFSA's! Unfortunately we lost some funds we couldn't use this year due to some big changes in our home, so that was fun 😬 Also good to point out that if you are married and one partner does not work/isn't looking for work, DCFSA's generally cannot be used (unless disabled or a ful time student)
Oh this is brilliant. We shuffled several things around this year and over committed to our FSA
This is a super important tip for families!! Tax savings can be a real help.
Great point!!
Does this apply in some fashion (maybe slightly different as to what’s eligible) for those on Medicare/Medicaid and SNAP?