Child Dependent Care expenses that DO qualify for reimbursement

Only expenses necessary for you and your spouse (if married) to be gainfully employed can be claimed.

• Nanny, babysitter, housekeeper, and nurse's fees through age 12, for services provided inside your home, are eligible to the extent they are attributable to dependent care expenses and expenses of incidental household services.
• Dependent care expenses incurred for services outside your home, providing they are incurred for the care of a qualifying dependent that regularly spends at least 8 hours per day in your home.
• Registration fees to a day care facility are eligible as long as the fees are allocable to actual care and not described as materials or other fees.
• Food and incidental expenses (diapers, activities, etc.) may be eligible if part of dependent care charge.

• Before and after school care through age 12.
• Pre-K or nursery school expenses are eligible, even if the school also furnishes lunch and educational services.
• Day camp expenses through age 12 are eligible if the day camp's main purpose is the dependent child's well-being and protection.
• Expenses paid to a relative (e.g. child, parent, or grandparent of participant) are eligible. However, the relative cannot be under age 19 or a tax dependent of the participant.
• FICA and FUTA payroll taxes of the day care provider are eligible.
• Dependent care expenses incurred to enable the employee to find work are eligible.

Child Dependent Care expenses that DO NOT qualify for reimbursement

• Kindergarten fees are almost always an education expense and should never be reimbursed under a dependent care plan.
• Elementary school expenses for a child in first grade or higher are not eligible.
• Overnight camp.
• Food, transportation, and incidental expenses (diapers, activities, etc.) are not eligible if charged separately from dependent care expenses.
• Expenses paid to a housekeeper, maid, cook, etc. are not eligible, except where incidental to child or dependent adult care.
• Mass transit and parking.

Limitation on Qualified Expense

Child Dependent Care reimbursement may not exceed the smaller of the following limits:

• The maximum allowed under the plan.
• $5,000 (if you are married and filing a joint tax return or are single, head of household) and $2,500 if you are married and separate returns are filed.
• Your taxable compensation (after all compensation reduction elections). If you are married, your spouse's actual or deemed earned income.
• If you are married, your spouse's actual or deemed earned income.

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