Dependent Care FSA Eligible Expenses

Dependent Care FSA Eligible Expenses2020-12-31T10:28:52-05:00

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

Dependent Care FSA accounts — also known as Dependent Care Assistance Program (DCAP) accounts — provide a tax-free way to cover day care related expenses for children under 13, as well as adult dependents. Take care of your family while making every dollar count!

Check out the list of Dependent Care FSA eligible expenses below.

Dependent Care FSA Eligible Expenses Image

What qualifies as an dependent care FSA eligible expense? The IRS has outlined a list of Dependent Care FSA 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 FSA expenses are covered. The IRS has outlined the following items as not being 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
  • Payment for services that are not primarily for the care and wellbeing of a child (e.g. virtual or online day camps or classes)
  • Amounts paid for food, clothing, sports lessons, field trips, or entertainment
  • Overnight camp expenses
  • Registration fees
  • Transportation expenses not charged by your provider for the purpose of getting to and/or from the site of care
  • Late payment fees
  • Payment for services not yet provided (payment in advance)
  • Medical care

Be sure to also check out our HSA, FSA, and HRA Eligible Expenses list and Commuter Benefits Eligible Expenses list. If you have additional questions regarding dependent care FSA eligible expenses, please contact your accountant or financial advisor.

Where to Next?


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