Day Camp - Eligible Expense?

[bzorc]

Does payment to a summer "day camp" qualify as an eligible expense that can be reimbursed through a Section 125 plan? I know that overnight camp does not qualify, but what about a day camp? Opinions I have heard vary greatly.

Thanks!

[Joe Priselac]

Expenses for summer day camp are reimbursable provided that the child is under age 13 and the parent needs the care to work. These expenses are OK even if a sports training program is included as long as the cost for the day camp is comparable to conventional day care.

[bzorc]

Joe, thanks for the answer. Is there a cite in the IRC for this, for my future reference? Thanks.

[Joe Priselac]

This is based on the informal remarks of Harry Beker at ECFC Conference in March 1997. Mr. Beker is the IRS Chief of Branch 6, IRS Chief Counsel's Office. He is the guru of Section 125 and lacking formal regulations over many issues his remarks are often the only guidance available.

[Guest]

Is there nothing on this in the regs? I remember reading something about day camp expenses somewhere. But it is ok for children who are under 13.

[Lisa Hand]

bzorc - You may be thinking about overnight camps which are not considered "employment related" under Code 21, even if the camp separately allocates the expenses for day time and overnight activities. It is an All or Nothing Rule. So if the "Day camp" is part of an overnight camp then none of the expenses are eligible.

[bzorc]

Lisa, my question strictly relates to day camps, not overnight camps. The question I have directly relates to a client who sends her under age 13 son to a "day camp", while she is at work. We suggested she call the facility where her son goes, to see if they would tell her whether their expenses qualify for reimbursement under Section 125. I have not heard an answer as of today, but if I do, I will post the answer here.

Thanks for all the comments!

[Guest Marieke]

I would not be surprised is the day camp did not know what a section 125 plan is. I have administered FSAs and have accepted the day camp as eligible expenses as long as they met the requirements regarding supporting documentation, dependent eligiblity, and it was day-care so that the parents could work, find work, or attend school full-time. I hope this helps.