Qualified expenses—Adult & Elder Care FSA

Check your Summary Plan Description for the benefit(s) available in your plan.

Adult and Elder Care expenses that DO qualify for reimbursement

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

  • Housekeeper and nurse's fees, for services provided inside your home, are eligible to the extent they are attributable to elder care expenses and expenses of incidental household services.
  • Elder care expenses incurred for services outside your home, providing they are incurred for the care of a dependent that regularly spends at least 8 hours per day in your home.
  • Food and incidental expenses may be eligible if part of dependent care charge.
  • Expenses paid to a relative (e.g. child) are eligible. However, the relative cannot be under age 19 or a tax dependent of the participant.
  • FICA and FUTA payroll taxes of the daycare provider are eligible.

Adult and Elder Care expenses that DO NOT qualify for reimbursement

  • Overnight stays at medical or recreational facilities.
  • 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 adult dependent care.
  • Mass transit and parking.

Limitation on Qualified Expense

Adult and Elder 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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