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How parents can take advantage of the ‘best summer-camp tax break in years’

Andrew Keshner at MarketWatch called 2026's expanded child and dependent care tax rules the best summer camp tax break in years, and asked advisers how parents should use them. The core point is that day camp for a child under 13 can count as a work-related care expense, which means the cost may qualify for the dependent care credit or for reimbursement through a dependent care flexible spending account, both of which were expanded under the 2025 tax law.

My advice to parents comes down to documentation and coordination. Keep the receipts, the camp's tax ID and the dates, because the IRS treats day camp differently from overnight camp, and only the former qualifies. Coordinate the FSA and the credit rather than assuming one covers everything; the same dollar cannot be used twice, and for many households the FSA delivers a larger benefit than the credit while the credit fills the gap above the FSA limit.

The bigger habit I encourage is treating childcare as a tax planning category all year, not a summer surprise. Families who set the FSA election in the fall based on real camp and after-school costs capture the benefit automatically. Families who discover it in July usually leave money on the table.

This summary was prepared from the article's published description; the full piece is behind MarketWatch's paywall.

Read the full article at MarketWatch →

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Jeff Judge Managing Partner
Jeff is one of Chesapeake’s founding partners and a go-to advisor for professionals navigating complex transitions like retirement, business sales, or sudden windfalls. With nearly two decades of experience, he’s known for delivering calm, clear guidance when it matters most. Clients say working with him feels like talking to a longtime friend, if that friend happened to be an award-winning financial expert.
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