Dependent Care FSA
A Dependent Care FSA (Flexible Spending Account) allows you to pay for certain eligible day care expenses using before-tax contributions from your paycheck.
Eligible day care expenses would be for a dependent child or adult relative to allow you or your spouse to work, or while your spouse is a full-time student or disabled.
The Internal Revenue Service (IRS) limits the amount you can contribute to an FSA as shown in the table below.
|Type of FSA||Minimum Annual Contribution||Maximum Annual Contribution|
If you are a Highly Compensated Employee, your dependent care contribution is limited to a lower amount ($1,900 per family).
The lists below only provides a few examples of eligible and ineligible expenses. The Dependent Care FSA plan intends to follow current IRS reimbursement guidelines. If you are not sure whether and expense is covered, contact WageWorks.
What Is Covered
Your dependent care expenses must meet the following requirements:
- The care of your Dependent Child or other eligible dependent must be necessary so you can work. If you are married, both you and your spouse must be employed, or your spouse must be a full-time student or disabled, and not available to care for the dependent.
- Care must be for your child who is under age 13 or for an adult you claim as a dependent on your income tax return. A dependent adult may be an elderly parent or spouse who cannot be left alone while you are at work.
- Expenses can be for a caregiver; before-school and after-school care programs, or for a licensed day care center or day camp.
- Your day care provider must have a Social Security number or taxpayer identification number.
- The cost of this care cannot exceed the annual earnings of the lower-paid spouse.
What Is Not Covered
You cannot use a Dependent Care FSA to pay for:
- School tuition beginning with kindergarten.
- Overnight summer camp fees.
- Nursing home expenses for an elderly relative.
- Fees paid to someone you claim as a dependent on your or your spouse’s income tax return, such as one of your children.
- Expenses for care provided while you or your spouse are not at work, such as expenses for a baby-sitter while you go out to dinner.
- Fees paid to someone who does not report the money as income.
For reimbursement from a dependent care FSA you will need to submit a reimbursement claim form along with appropriate supporting documentation. All dependent care reimbursement requests must include a completed and signed provider certification. If you do not have provider certification, complete the Request for Reimbursement Form and submit an itemized statement from the dependent care provider that includes:
- Start and end dates of service
- Dependent's name and date of birth
- Itemization of charges
- Provider's name, address, and tax ID or Social Security number
Credit card receipts, canceled checks, and balance forward statements do not meet the requirements for acceptable documentation.
The maximum reimbursement you may receive is equal to the current account balance in your dependent care FSA. If your reimbursement request is more than your available balance, the remaining amount will be placed in a pending status. The pended amount will be paid when additional funds are posted to your account.
Enrolling in a Flexible Spending Account
You may enroll in a Dependent Care FSA plan:
- Within 31 days following your date of hire or the date you become a Benefits-Eligible Employee by visiting Workday. Enrollments made during the 31-days following your date of hire or the date you became a Benefits-Eligible Employee take effect retroactive to your date of hire or the date you became a Benefits-Eligible Employee.
- If you do not enroll within 31 days, you must wait until Open Enrollment, unless you have a qualifying change in status or special enrollment event. Enrollments made during Open Enrollment take effect as of the following January 1.