What type of expenses are covered by a Dependent Care FSA?
A Dependent Care FSA is used to set aside pre-tax funds to pay for eligible daycare or childcare expenses for your dependents so you and your spouse (if applicable) can work, look for work, or attend school full-time.
Covered expenses must be for:
• Dependent children age 12 and under; or
• A person of any age whom you claim as a dependent on your taxes and who is mentally or physically incapable of caring for himself or herself.
What’s eligible? Eligible expenses include childcare (nursery, preschool or private sitter), before and after school care, and day camps.
What’s not? Ineligible expenses include kindergarten tuition, overnight camps and expenses paid to a tax dependent.
It’s a common misconception that a Dependent Care FSA can be used for medical expenses for your dependents, or for other expenses such as diapers and baby wipes. This is incorrect, however – a Dependent Care FSA only covers the expense of someone else caring for your child or dependent while you (and your spouse, if you have one) are working, looking for work, or attending school full-time.