During the school year, you are most likely using your Dependent Care Account (DCA) for before or after school care. But what do you do when your school is closed for a break or holiday? Do you know all your options? Here are a few DCA-eligible options you may not have considered.
Day Camps
Day camps are a great option to use your DCA funds, and there are usually many local businesses and organizations that offer them. For a day camp to be eligible, the primary purpose of the camp must be to provide care while a parent or guardian1 is working. Most day camps focus on a theme or incorporate aspects of learning in a less structured environment. These themes could include sports, dance, art, music, science, nature explorations, and more. No matter what your child’s interests are, you can probably find a camp they’d enjoy or learn from. Maybe even both!
In-Home Care
There are several options for in-home care that may be considered eligible expenses when the services are needed for you to work, look for work, or attend school full-time*. Those include:
- Nannies
- Au Pairs
- Family Members
- Babysitters
What’s Not Eligible
There are many eligible options to help parents and caregivers in their unique situations. However, there are also a few expenses that are not considered eligible such as:
- Care provided by a spouse or parent of qualifying child
- Care provided by a tax dependent
- Care provided by a child who is under age 19 during the plan year
- Overnight camps
- Day camps or programs not primarily designed for child care while you or your spouse (if applicable) are working or are attending school
- Transportation to and from the care provider
- Late payment fees
- Primarily educational programs like summer school, tutors, music lessons, dance lessons, etc.
Additionally, if you have an existing DCA and your child’s summer care involves a price increase or change in provider, it may allow you to increase your contributions, as long as they do not go over the allowed annual maximum amount. With a little planning, you can maximize your DCA benefits and make sure no funds are left on the table during school breaks.
This blog is up to date as of June 2026 and has not been updated for changes in the law, administration, or current events. American Fidelity does not provide financial, legal, or tax advice. Consult an attorney or a tax professional regarding your specific situation.
1If you have a stay-at-home parent or guardian in your household or the care of your child is not primarily used so you (and your spouse if married) can work, look for work, or attend school full time, the expense would not be eligible for reimbursement from a DCA.
*Care providers must meet the applicable requirements under IRS rules.
