Do you have children who go to daycare, or need before- or after-school care? Do you have an aging parent who lives with you and needs care while you’re at work? Are you tired of writing checks to your daycare provider? Using a Dependent Care Flexible Spending Account (DCFSA) can knock 30% off the cost of daycare by reimbursing you with money that isn’t taxed.
The Dependent Care FSA is NOT for your dependent’s health care expenses. It is for dependent daycare needs. You can use this account to help pay for daycare that lets you go to work. If you’re married, your spouse must work, be looking for work, or go to school full time.
| Contribution limits | Single or married, filing jointly: $7,500/year maximum Married, filing separate tax returns: $3,750/year maximum |
| Unused funds carry over? | No |
| What expenses are eligible? | Dependent care plans can be used for child and elder care expenses such as daycare, pre-school, before and after-school programs, and senior care. |
| How can I be reimbursed? | Reimburement can only be completed via direct deposit. |
| Can I invest the money in my account? | No |
| Can I track my balance online? | Yes, at claritybenefitsolutions.com |
| Eligibility | First day of the calendar month following date of hire and regularly scheduled to work 20 or more hours per week. Temporary employees are ineligible. Open enrollment is held each November for the plan year beginning December 1. Qualifying events may apply. |