Dependent Care Reimbursement Account Tips & Guidelines

Dependent Care Reimbursement Account

Expenses associated with providing care and services for your dependents while you (or your spouse) are at work

Eligible Expenses

Day care expenses enabling you (and your spouse if married) to work, look for work, or attend school full time.

Babysitters, dependent care centers, pre-kindergarten/nursery schools, after-school care or extended day programs, summer day-camps (if the primary purpose of the expense is custodial in nature and not educational).

Expenses That Cannot Be Reimbursed
Any expense that you intend to claim as a credit for Federal tax purpose.

Educational expenses for a child in kindergarten or higher grade.

Food, clothing, shelter, insurance, medical treatment, transportation, or extra charges for diaper changing (if charged separately from dependent care expenses).

Expenses that are incurred when you (or your spouse, if married) miss work due to illness, vacation, or paid holidays.

Day care expenses if you are married and your spouse is not working or not a full-time student.

Overnight camp expenses.

Babysitting amount paid to your child under the age of 19 or any relative who can be claimed as a tax dependent on your Federal tax return.

Under What Circumstances Can You Change Your Election
Marriage, divorce, legal separation, or annulment.

Death of a spouse or the covered dependent.

Birth, adoption, or placement for adoption or foster care of a dependent.

Change in employment status of the employee, spouse, or dependent that affects eligibility (commencement of employment, termination of employment, change in hours, strike or lockout, or change in worksite).

Gain or loss of dependent status (e.g. dependent becomes eligible or ineligible due to a change in age, gain/loss of student status, marriage or similar circumstances).

Change in residence of employee, spouse, or dependent that affects eligibility.

FMLA leave (some other medical leaves may qualify for an election change). 

Change in provider cost or coverage.

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