Whose expenses are eligible for reimbursement?
•a dependent of the taxpayer who has not attained age 13; • a dependent of the taxpayer who is physically or mentally incapable of caring for himself or herself (i.e. a dependent child 13 years and older or other dependent adult) and lives with the tax payer for more than ½ the year; • a […]
My divorce decree requires that I reimburse my ex-spouse for childcare expenses incurred while we both work. I am not the custodial parent. Can I be reimbursed for work-related dependent care expenses?
No. Only the custodial parent may be reimbursed tax-free for work-related day care expenses.
I live with my boyfriend and our child. My boyfriend is claiming our son on his tax return. Can I participate in my employer’s dependent care FSA?
Only the parent who claims the child as a qualifying child on their tax return will be able be reimbursed for the child's dependent care expenses under the dependent care FSA. The other parent cannot be reimbursed, even if he or she works for an employer that offers dependent care reimbursement benefits. If both parents […]
What is the maximum amount I can elect to set aside for Work-Related Dependent Care expenses?
$5,000 is the maximum if you are single or married and filing a joint tax return. $2,500 is the maximum if you are married and filing separate returns. However, your contribution may not exceed your earned income, nor your spouse’s earned income. This maximum is per family, per calendar year. The spouse of a married […]
How is my dependent care FSA benefit funded?
When you complete the enrollment form, you specify how much you want to contribute to your dependent care FSA each pay period through pre-tax salary deduction. Your dependent care account will be credited each pay with the amount you elected. The amount available for reimbursement at any particular time will be whatever has been credited […]
Can I change my work-related dependent care amount during the plan year?
Yes. You may change your election for any one of the following reasons within 30 days of the event. marriage or divorce death of a spouse or child birth or adoption of a child change of employment status (i.e. full-time to part-time) your provider increases or decreases the cost you change day care providers The […]
When must the dependent care expenses be incurred?
Dependent care expenses must have been incurred during the plan year. A dependent care expense is incurred when the service that gives rise to the expense is provided; it doesn’t matter when the expense is paid, it’s the date of service that is important. If you have paid for the expense but if the services […]
Can I elect to include premium contributions under my spouse’s employer’s group insurance plan?
No.
Are the claims for Work-Related Dependent Care expenses advanced just like claims for Health Care Expenses?
No. Claims are reimbursed as monies are withheld and deposited into your Account. The dates of service must be incurred prior to reimbursement. For example, if you pay your child care provider on Monday for the entire week, the claim cannot be reimbursed until Friday, when the dates of service have been rendered.
If, at the end of the year, I have $0 left in my Health Care Account, $50 in my Work-Related Dependent Care Account and medical expenses of $50, may I use the funds in the Dependent Care Account to get reimbursed for the medical expenses?
No. Funds may not be transferred between accounts. Careful estimates should be made at the beginning of the year for each different type of expense.