Dependent Care FSA Eligible Expenses
A Dependent Care FSA can be used for expenses incurred to care for children age 12 and younger, as well as adult tax dependents, who are unable to care for themselves while you are at work.
The Dependent Care FSA allows certain out-of-pocket daycare costs to be paid on a pre-tax basis. Services must be provided while the employee and their spouse are at work, looking for work or attending classes as a full-time student. Expenses that occur before the beginning of the FSA plan year are not eligible.
Services that are eligible
Daycare for eligible dependents under the age of 13
The care must be provided by a licensed daycare center or an IRS-compliant daycare provider. A daycare provider is IRS-compliant as long as it is not the employee’s spouse, their dependent, their child under the age of 19 or the parent of the child.
Daycare for a spouse or dependent who for mental or physical reasons are unable to take care of themselves
The care can be given inside or outside the residence. In the case of services provided outside an employee’s household, the dependent must regularly spend at least eight hours each day in the household.
- In-home babysitter
- After school activities
- Daycare center
- Outside babysitter
- Nursery school
- Elder custodial care
- Latchkey program
- Summer day camp
- Elder daycare
Services that are not eligible
- Services provided by a dependent or spouse
- Services provided by a child's sibling under age 19
- Services provided while an employee and/or spouse are not at work, such as overnight summer camps
