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Dependent Care Accounts

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Dependent Care or Daycare Expenses are one of the largest expenses for families today other than their home mortgages.  By participating in a Dependent Care Flexible Spending Account, you are allowed to withhold this expense on a pre-tax basis up to the Federal Limit of $5000 annual maximum for personal tax filing as a single parent or married filing jointly or a $2500 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. See below for examples of Allowable and Non-allowable Expenses:

 Allowable Dependent Care Expenses:

  • Daycare or Home Baby Sitting Expenses for work 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; overnight stays are not eligible
  • Eligible Providers may be licensed day care providers and/or relatives if they are not a dependent of the participant
  • Dependent Care Deposits and 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
  • 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
  • Parents' Night Out
  • Enrichment or Summer School Cost