Dependent Care FSA Expenses

What qualifies as an eligible dependent care expense?

We all need to work in order to provide for our families. This why leveraging Dependent Care FSA funds to cover your dependent care expenses is critical.

Dependent Care FSA accounts provide a tax-free way to cover day care related expenses for children under 13, as well as adult dependents. Allowing you to work and make every dollar count!

But, what qualifies as an eligible dependent care expense? The IRS has outlined a list of eligible expenses. These expenses include:

  • Before school or after school care (other than tuition)
  • Qualifying custodial care for dependent adults
  • Licensed day care centers
  • Nursery schools or pre-schools
  • Placement fees for a dependent care provider, such as an au pair
  • Child care at a day camp, nursery school, or by a private sitter
  • Late pick-up fees
  • Summer or holiday day camps

Unfortunately, not all dependent care expenses are covered. The IRS has outlined the following items as being not eligible for tax-free purposes using Dependent Care FSA funds, including:

  • Expenses for non-disabled children 13 and older
  • Educational expenses including kindergarten, or private school tuition fees
  • Amounts paid for food, clothing, sports lessons, field trips, or entertainment
  • Overnight camp expenses
  • Registration fees
  • Transportation expenses
  • Late payment fees
  • Payment for services not yet provided (payment in advance)
  • Medical care

If you have additional questions regarding eligible expenses, please contact your accountant, or financial advisor.