Am I eligible to use a Dependent Care FSA?
In most cases* you are eligible to use a Dependent Care FSA if you are using it to provide care to a qualified person and if the care provided to the qualified person enables you to be: gainfully employed look for work If you are married, the care must also enable your spouse to: work […]
Which is more advantageous, having a Dependent Care FSA or claiming the Child Care Tax Credit on my income tax return?
Your particular tax situation will affect which option makes more sense. Generally, those with lower income levels (under $30,000 annually) will see a greater advantage to using the Child and Dependent Care Credit. As your income level increases, the advantages become greater under the Dependent Care FSA. In some cases, you may be able to […]
Will I have to report contributions to my Dependent Care FSA on my tax return?
Box 10 on your W-2 form should indicate the total annual amount of your Dependent Care FSA deductions. When completing your tax return, you will need to attach a Child and Dependent Care Expenses form (Form 2441 for a 1040 return; Schedule A for a 1040A return). You should contact a tax preparer for more […]
Are application fees, agency fees and deposits paid for the care of a qualified individual eligible for reimbursement under a Dependent Care FSA?
These expenses may be deemed eligible for reimbursement if and only if they are required to obtain the care and if the care is actually provided. Therefore, a claim for this type of fee/deposit should not be submitted until the care associated with the expense begins. Forfeited fees are not considered to be for the […]
Are day care expenses for an elderly parent eligible under a Dependent Care FSA?
If an elderly parent lives with a participant and relies on that person for at least 50% of their support, then the Dependent Care FSA may be used for day care expenses. However, the care must be necessary to allow the participant to work, and cannot be custodial nursing care. Also, if the participant is […]
If I pay for day care expenses and am not the custodial parent, can these expenses be reimbursed from a Dependent Care FSA?
No. Since the child does not meet the requirements set by the IRS as a qualifying individual, these expenses are not eligible for reimbursement from a Dependent Care FSA.
My dependent child will turn 13 during the current plan year but will still have a babysitter throughout the plan year. Can I use the Dependent Care FSA for the entire year for that child?
No. Only expenses for services provided before a dependent child reaches age 13 are eligible. Note: For 2020 and 2021 only, the IRS raised the dependent care age limit from under 13 to under 14 due to the COVID-19 pandemic relief efforts.
Can eligible day care services be provided by a relative?
Yes, as long as the relative is not the participant’s child under 19 years of age and is not someone who can be claimed on the participant’s (or spouse’s) federal tax return as a dependent.
My day care provider charges me a fee for transporting my child from school to the day care location. Is this fee reimbursable from my Dependent Care FSA?
Transportation expenses that are provided for the qualifying individual to go from one place to where the care is given is eligible for reimbursement from a Dependent Care FSA as long as the care giver is providing the transportation.
Are expenses at a day care center eligible under a Dependent Care FSA?
Yes, as long as the care meets the IRS definition of an eligible dependent care service. If the provider is a day care center which regularly provides care for more than 6 people, the center must comply with state and local laws and regulations.
Are day care expenses for before-school and after-school care eligible under a Dependent Care FSA?
Yes, as long as the care meets the IRS definition of an eligible dependent care service.
Can I use a Dependent Care FSA to pay for a babysitter in my home rather than using a day care facility?
Yes. The care from a babysitter can be claimed as long as: it was for a qualifying person you received earned income it allowed you to work or look for work When submitting a Dependent Care receipt for care from a babysitter, you are required to provide the babysitter’s name and address. For tax filing […]
My dependent child who is under age 13 goes to private school. Are the tuition payments eligible for reimbursement under my Dependent Care FSA?
No. School tuition is not child care and is not an eligible expense under a Dependent Care FSA. Note: For 2020 and 2021 only, the IRS raised the dependent care age limit from under 13 to under 14 due to the COVID-19 pandemic relief efforts.
Is Kindergarten reimbursable from a Dependent Care FSA?
No. The IRS considers Kindergarten primarily educational in nature. Therefore, it is not an eligible expense for reimbursement from a Dependent Care FSA. Note: Summer school and tutoring programs are also considered education and are not eligible for reimbursement.
My dependent child who is under the age of 13 goes to day camp during the summer. Is that expense eligible under my Dependent Care FSA?
Yes, as long as the care meets the IRS definition of an eligible dependent care service. However, expenses for overnight camps are not eligible. Note: For 2020 and 2021 only, the IRS raised the dependent care age limit from under 13 to under 14 due to the COVID-19 pandemic relief efforts.
My spouse is also offered a Dependent Care FSA at work. Can we each elect the maximum amount allowed under our respective Dependent Care FSA plans?
No. The maximum amount allowed under a Dependent Care FSA is a household limit set by the IRS for a calendar year. You can each elect a Dependent Care FSA at your respective workplaces, but the total dollar amount for your household is limited to the smallest of the following amounts: $5,000 if single or […]
What services are eligible under a Dependent Care FSA?
You may use this account for dependent care expenses associated with a qualified person. A Qualified Person is someone who spends at least eight hours per day in your home and is one of the following: Your dependent who was under age 13 when the care was provided and for whom you can claim an […]
What is a Dependent Care Flexible Spending Account (FSA)?
A Dependent Care FSA is an account that allows tax-free payroll dollars to be used for payment of eligible child or adult dependent care expenses not covered or reimbursed by any other source.
