Dependent Care Flexible Spending Accounts
Flexible Spending Accounts allow you to pay for certain health care and dependent care expenses with tax-free earnings. Your contributions to these plans are deducted from your pay before taxes are calculated and withheld. Please review these options carefully, because the IRS sets regulations on contributions, reimbursements and left-over account balances.
The Dependent Care Flexible Spending Account is available for the reimbursement of certain child care expenses.
Click here for the Dependent Care Flexbile Spending Account FAQ.
Eligibility for Dependent Care FSA
This plan is designed to help pay for expenses related to caring for your dependents while you are at work. To be eligible, you must be single, or married with a spouse who works, is actively seeking work or is a full-time student.
Using the Dependent Care FSA
You pay your dependent care provider and submit a reimbursement form to BASIC along with your documentation. You are reimbursed from your account. Reimbursement requests are generally processed within two business days of receipt by BASIC.
Eligible Expenses
Dependent care expenses include the cost of:
- care in someone’s home, including a neighbor’s or relative’s home
- daycare centers
- nursery school or preschool (as of 2008, kindergarten expenses are no longer reimbursable)
- care in your home
To be eligible, expenses must be for a dependent under age 13 whom you claim as an exemption on your income taxes. This plan also reimburses you for care of a mentally or physically handicapped spouse or other dependent that requires care while you are working. You cannot pay someone in your immediate family from this account.
Documentation and Reimbursement for the Dependent Care FSA
To receive reimbursement under this account, you must have custody of the child(ren) and submit a short form along with an itemized bill. Your canceled checks are not acceptable documentation. An itemized bill should include:
• The name and the taxpayer identification number (TIN) or Social Security number of the person or organization who provides care
• The name of the person receiving the care
• The dates care was provided
• The total charges for the care
If you elect the Dependent Care FSA, you will need to submit a reimbursement request along with your documentation to BASIC, the administrator for the Archdiocesan FSA plans. BASIC processes most reimbursement requests within two business days of receipt.
Run out periods – January 1 – March 31
For both medical and dependent care flex programs, each has what is called a run out period. This period is between January 1 and March 31 of every plan year. It is during this time, that if you wish to pay for an expense that incurred in the prior year, the only way to pay for it is with your own funds and then submitting a claim reimbursement form. Debit cards will not work during this period to pay for any expense in the prior plan year. This has to do with having two different buckets of money in one plan for separate plan years. For further clarification on this, please contact Basic directly.
Maximum Contributions to the Dependent Care FSA
If you are single or married filing a joint tax return, you may put up to $5,000 in the account each year. If you are married and filing separate tax returns, you may put up to $2,500 in the account each year.
For more information about our FSAs, contact Basic at 800-444-1922.
