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Dependent Care Accounts

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Dependent Care or Day Care Expenses are one of the largest expenses for families today other than their home mortgages.  By offering a Dependent Care Flexible Spending Account, you are allowing your employees to withhold this expense on a pre-tax basis up to the Federal Limit of $5000.00 annual maximum for personal tax filing as a single parent or married filing jointly or a $2500.00 annual maximum for married filing separately.  Dependent Care Providers may be a licensed day care facility or a private individual.  Tax identification numbers are required for reimbursement.  Please scroll down for examples of Allowable and Non allowable DCR Expenses:

 

Allowable Dependent Care Expenses:
  • Day Care or Home Baby Sitting Expenses for work related and or educational related expenses.
  • Dependent Care Expenses are eligible for your qualifying child under the age of 13.
  • Before and after school care and or extended care which are primarily custodial in nature
  • Day Camp: The cost for the child to attend the camp is eligible; no overnight stays are eligible.
  • Providers may be licensed day care providers and or relatives if the in home care is provided as long as the relative is not a dependent of the participant.
  • Dependent Care Deposits and or Required Enrollment Fees for services that will be provided within the company’s plan year
  • Elderly or Disabled Dependent Care: Costs related to the care of a dependent adult that is unable to care for themselves qualifies as an eligible item for reimbursement under the Dependent Care Plan. These services could include nursing services such as changing dressings, giving medications and or general care or grooming of the dependent.
  • FICA and FUTA taxes paid to a provider are eligible.
  • Field Trip Costs
  • Nursery School and or Pre-Kindergarten
Non-Eligible Dependent Care Expenses:
  • Day-Care for a child or dependent aged 13 or older, unless they are disabled
  • Kindergarten or tuition for educational programs at a private school at a kindergarten level or higher
  • Meals, supplies, uniform costs etc
  • Overnight Camps
  • Parent Nights Out
  • Enrichment or Summer School Cost