A Dependent Care Flexible Spending Account, or “FSA,” is a pre-tax benefit account used to pay for dependent care services while you are at work. Under this type of account, a “dependent” is a child under 13 years of age (until the day of their 13th birthday) and adult dependents who can’t take care of themselves.
What qualifies for dependent care spending account?
Expenses That Qualify for FSA Reimbursement Qualified expenses include: Physical care. In-home care, such as a nanny, babysitter (if there to cover for a parent who is at work versus recreational reasons), or au pair, or institutional-setting care, such as child or adult daycare services, by qualified caregivers.
How does Dependant care account work?
With a Dependent Care FSA, you use pre-tax dollars to pay qualified out-of-pocket dependent care expenses. The money you contribute to a Dependent Care FSA is not subject to payroll taxes, so you end up paying less in taxes and taking home more of your paycheck.
How to enroll in the dependent care reimbursement account?
If you want to enroll in the Dependent Care Reimbursement Account you must go through the Benefits Center Web Site or Benefits Resource Line within your 30 day enrollment period or during the annual Open Enrollment Period which takes place in the Fall. You may be interested in the DCRA if you have:
Do you get reimbursed for transportation for a dependent?
Transportation for your dependent between your home and the place where care is provided is not reimbursable. Medical care is not covered by a Dependent Care Reimbursement Account. Refer to the section on Medical Reimbursement Accounts for coverage of such expenses.
How is a dependent care account similar to a medical account?
A dependent care account is similar to a medical account except it’s for paying daycare expenses. This account does not cover medical expenses for your dependents. Refer to the medical reimbursement account for these types of expenses.
Are there any expenses that are not reimbursable for a dependent?
Food and clothing costs are not reimbursable. Transportation for your dependent between your home and the place where care is provided is not reimbursable. Medical care is not covered by a dependent care account. Refer to the section on medical reimbursement accounts for coverage of such expenses.
