The Dependent Care FSA lets you use tax-free dollars to pay for child and elder day care expenses to enable you and your spouse to work or attend school full-time. You can use your FSA to pay for regular expenses such as day care, babysitting, and even summer day camp.
It is important to note that the maximum for the Dependent Care FSA is a “family maximum.” If your spouse has a Dependent Care FSA available at his or her employer and chooses to participate, your election amounts are combined. Your combined election amount cannot be higher than the maximum that pertains to you.
*Married, filing separately - $2500
*Married, filing jointly - $5000
*Married, incapable spouse - $5000
*Single, head of household - $5000
Dependent Care FSAs differ from General-Purpose Health Care FSAs in that they are not “pre-funded.” This means that you can only be reimbursed for an amount up to the total you have deposited in your account at any given point in the year.
To qualify for dependent care reimbursement, an expense must meet the following requirements:
- The expense must be for a qualified dependent
- The expense must be for a qualified dependent care expense
- The expense must occur during the Plan year
Participants have 45 days to incur eligible expenses to be reimbursed from unused amounts remaining at the end of the immediately preceding plan year. Eligible expenses must be received no later than 90 days after the end of the plan year in order to be paid. Money remaining in either account must be used prior to the end of the Plan Year or it will be forfeited. For this reason, accounts should be funded wisely.
NOTE: YOU CANNOT CLAIM ANY EXPENSE PAID TO A DEPENDENT FOR THE CARE OF ANOTHER DEPENDENT.
For more information contact the Benefits Office at (985) 549-2587.