Eligible/Ineligible Dependent Care Expenses

A Dependent Care FSA reimburses you, for care provided by eligible caregivers to dependents so that you (and your spouse, if you are married) can work.Care can be for your dependent children (up to age 13), or a dependent of any age if he or she lives with you and cannot care for himself or herself, such as an elderly parent or disabled child.

The following are some expenses not covered under the Dependent Care Flexible Spending Account:

  • Kindergarten
  • 24-hour nursing home expenses
  • Day Care with a primary purpose of education or enrichment
  • Expenses you expect to claim as a dependent day care tax credit
  • Services provided by one of your children under age 19
  • Expenses for overnight camps
  • Expenses that allow you or your spouse to perform volunteer work
  • Transportation, entertainment, food, and clothing expenses
  • Expenses incurred during a medical leave longer than one pay period

The Internal Revenue Code, section 129, does not allow participating in the Dependent Care FSA while on medical leave.Dependent Care expenses incurred during a medical leave are not eligible for reimbursement.Since your Dependent Care status has changed as a result of medical leave, you may elect to change your election for the balance of the year.

Terminated faculty and staff may continue to submit eligible expenses during the plan year if working or actively seeking other employment.

If dollars are still available in your dependent care spending account after December 31, eligible claims will still be reimbursed as long as they have a date of service prior to March 15 of the following year (2-1/2 month grace period). Faculty and staff will have until March 31, to submit claims that were incurred in the previous year or the grace period.

For specific information regarding the Dependent Care FSA, please contact Human Resources or your tax advisor.

Send us your comments and questions.