Adult Daycare

Includes care of your spouse or dependent that is physically or mentally unable to care for him or herself and for whom you claim as a dependent on your income taxes.

Adult Care Centers

Care provided to a qualified dependent outside your home in a daycare facility.

Convalescent Home

This is not an eligible expense. The qualifying dependent must reside in the member's home at least 8 hours per day (IRS Pub. 503).

In-Home Care

Day care provided to a qualified dependent who resides in your home at least 8 hours per day.

Au Pair

Salary & taxes paid to an AuPair for on going care of a qualifying dependent are eligible expenses.

Durable goods for the Au pair's use (i.e., furniture, etc.) are not eligible expenses.

Agency Fees

Agency fees associated with procurement of an au pair are eligible expenses.

Medical Insurance & Medical Expenses

Medical expenses or fees paid to provide medical coverage for an Au Pair are not eligible.

Travel Expenses

Travel expenses incurred by an AuPair are not an eligible expense (this includes airfare, bus, etc).

Camp Activities

Single payment fees charged for non-elective activities required for participation in the camp are eligible expenses. Elective activities billed separately, however, are not eligible. The cost of food is not an eligible expense unless it is part of the tuition and not separable.

Day Camp

Fees paid to send a qualifying child or relative to a day camp, which allows parents to work, is a covered expense.

Deposits

Expenses associated with deposits for future dates of service for dependent do not qualify for reimbursement.

Field Trips

SEE CAMP ACTIVITIES

Lessons

Lessons given to a qualifying child or relative are not eligible dependent care expenses. (i.e. tennis, swimming, piano, karate, horseback riding, basketball, dancing). These types of expenses are considered to be incurred primarily for education (the lesson), not the element of daycare for the qualifying individual. However, if the lessons are not separately identified and billed from the care portion of the bill, they are reimbursable.

Overnight Camp

Overnight camp is not considered an eligible expense. However, the component of the expense related to the day care portion is eligible for reimbursement when broken out from the total camp fee.

Sports Camp

You can include in dependent care expenses fees for a summer sports camp if the purpose of the camp is to provide care for a qualifying child or relative. However, individual fees charged for sports lessons are not reimbursable if separated from the cost of the care. Overnight sports camps are not covered.

However, the component of the expense related to the day care portion is eligible for reimbursement when broken out from the total camp fee.

Child Daycare

Dependent care expenses must be for the care of qualifying child or relative. (See IRS Pub. 503 Qualifying Person Test). Separate charges for food, clothing, education, entertainment, activities, late fees, transportation or overnight care are not considered eligible.

Child Care Placement Agency Fees

Fees paid to a childcare placement agency to procure the services of a day care provider do not qualify as Dependent Care expenses.

Custodial Parent

The non-custodial parent cannot treat the child as a qualifying person (i.e., does not meet the IRS definition of a dependent). Only the custodial parent can claim expenses under a Dependent Care FSA (regardless of who paid for those expenses). The non-custodial parent can, however, claim the child as an exemption when he/she files their income taxes. This applies if:

Day Care Centers

Fees associated with the care of a qualifying child or relative outside your home are eligible for reimbursement.

Emergency Day Care (Employer Provided)

Emergency day care is an eligible expense when on-site day care is provided by an employer and payment is payroll deducted.

Family/Personal Leave

You cannot include in dependent care expenses amounts paid to provide care for a qualifying child or relative when taking family or personal leave.

Field Trips

You can include in dependent care expenses amounts paid for field trips conducted by the care provider if the field trip is not elective. (Elective field trips are not reimbursable).

Illness, Layoff or Strike

You cannot include in dependent care expenses amounts paid to a day care provider while you or your spouse is off work because of illness. This exclusion would apply for illness longer than one week. Expenses incurred due to a one to five day illness would be allowable. You cannot be reimbursed for dependent care fees paid to provide day care for a qualifying child or relative if one or both parents are laid off or on strike. The exclusion applies until the individual returns to work or actively seeks new employment.

In-Home Care

Fees paid to a caregiver in your home for a qualifying individual before or after school is eligible for reimbursement. A child under the age of 19 who resides in your home or someone you claim as a dependent cannot be considered a day care provider.

You can, however, include in dependent care expenses amounts paid to a divorced spouse who provides care for a qualifying individual. Payments to grandparents are also qualifying expenses.

Kindergarten

If the cost of Kindergarten schooling cannot be separated from the child care aspect of such program, the entire cost may not be reimbursed.

If the cost of schooling can be separated from the cost of care, reimbursement is appropriate only for the childcare portion. The cost of food is a non-reimbursable expense unless such cost is a component of the tuition and is not separable.

Preschool

You can include in dependent care expenses amounts paid to a private pre-school. (IRS views preschool as primarily for care with a minimal amount of education training included.)

Registration Fees

Registration Fees associated with enrollment of an eligible dependent in a day care program will be covered

These fees are typically related to first time or annual enrollment in day care centers and usually cover paperwork costs.

Taxes

This is a reimbursable expense under dependent care. This pertains to Federal taxes paid on wages for a qualified childcare caregiver (i.e. FICA/FUTA taxes).

Transportation

Transportation cost for either the qualifying person or the caregiver is not a reimbursable expense.

Volunteer Work

You cannot be reimbursed for dependent care expenses paid to a day care caregiver when the employee or the spouse is working as a volunteer (not gainfully employed). You are not considered gainfully employed if you do unpaid volunteer work or volunteer work for a nominal salary. (IRS Pub 503, p. 7)

Foreign Countries

Employees paid in US currency and filing Federal Income Taxes may utilize the dependent care program. Because foreign care providers do not have SSN's or TIN's the employee should provide the caregiver's name and address.

Employees paid in foreign currency and who do not file a U.S. Federal Tax return may not utilize the FSA Dependent Care program.