FSA Dependent Care Expenses

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fsa_dcra Information included in this site is general and may be changed or updated without notice. For individual, tax related information, please consult your tax adviser. In case of a conflict between your plan documents and this information, the plan documents will govern. Please refer to the Summary Plan Description for more information about your covered benefits.

Browse the Dependent Care Expenses Table to see if a particular item is covered.

Expense	Covered	Not Covered	IRS Guidelines
Adult daycare	✓		The cost of adult daycare is reimbursable. The person must be a qualifying person for the FSA participant. Expenses cannot be attributable to medical care. The qualifying person must regularly spend at least eight hours each day in the participant’s home. Also see Convalescent home; Elder care; In-home care; and Relative, amounts paid to.
After-school care	✓		The cost of after-school care (i.e., following the end of the school day) is reimbursable. Also see Before-school care; Tuition, kindergarten or higher; and Tuition, preschool or nursery.
Agency fee			See Indirect expenses.
Application fee			See Indirect expenses.
Assisted living			See Convalescent home and Elder care.
Au pair	✓		Amounts paid to an au pair are reimbursable. Also see Employment taxes; Nanny; and Room and board.
Au pair		✖︎	Durable goods (for ex., furniture, etc.) for the au pair's use are not reimbursable.
Babysitter	✓		The cost of a babysitter, whether in or out of the home, is reimbursable. Note: The cost of the babysitter must be for work-related care and not for personal reasons (for ex., while participant and spouse go out to dinner or a movie). Also see In-home care; and Relative, amounts paid to.
Before-school care	✓		The cost of before-school care (care before the start of the school day) is reimbursable. Also see After-school care; Tuition, kindergarten or higher; and Tuition, preschool or nursery.
Boarding school			See Tuition, kindergarten or higher.
Camp activities	✓		Separately-stated fees for non-elective activities required for day camp participation are reimbursable.
Camp activities		✖︎	Separately-stated fees for elective activities are not reimbursable.
Camp, day	✓		The cost of day camp, including specialized day camp (for ex., soccer camp, computer camp, etc.) is reimbursable. Also see Camp activities; and Recreation fees.
Camp, overnight		✖︎	The cost of overnight camp is not reimbursable, even when the daytime portion is broken out. Overnight camp is not considered an eligible expense by the Internal Revenue Service (IRS).
Care at night			See Nighttime care.
Care during a layoff or strike		✖︎	The cost of care while the participant is on strike or has been laid off (participant is not gainfully employed) is not reimbursable. If actively seeking employment, see Care while looking for work.
Care during a short, temporary absence from work	✓		If the FSA participant must pay for dependent care expenses on a periodic basis (for ex., weekly or monthly) and the absence is short and temporary, the cost of care for a period that includes the absence and the work days is reimbursable. Note: The determination of an absence as short and temporary is based on the facts and circumstances of each person’s situation.
Care when one parent works days and other parent works nights	✓		The cost of care when one parent is working and the other parent is sleeping is reimbursable when the care allows both parents to be gainfully employed.
Care when participant/ participant’s spouse is employed part-time	✓		For part-time employment, expenses must be allocated between days worked and days not worked. If payment for care is on a weekly or longer basis (i.e., must pay for care for days worked and days not worked), the cost does not have to be allocated.
Care while living in a foreign country	✓		For U.S. citizens working abroad and who are eligible to participate in a dependent care FSA, the cost of care is reimbursable. Note: The qualifying person must be a U.S. citizen or national or a resident of the U.S., Mexico or Canada.
Care while looking for work	✓		The cost of care while the participant or participant’s spouse is looking for work is reimbursable. The person looking for work must have earned income for the year. If married, the other spouse must be gainfully employed, looking for work, be a full-time student or be mentally or physically incapable of self-care.
Care while on family, personal or medical leave		✖︎	Generally, the cost of care while the participant is on leave is not reimbursable. Note: Individual facts and circumstances must be reviewed as other factors (for ex., one spouse being gainfully employed while the other spouse is mentally or physically incapable of self-care) may qualify the expense for reimbursement.
Care while participant/ participant’s spouse is working at self-employment	✓		The cost of care while the participant or participant’s spouse is self-employed with net earned income is reimbursable. Note: Self-employed persons are not eligible to participate in a flexible spending account (FSA). However, a person participating in an FSA through his or her employer may also be self-employed (separately from his or her employer relationship).
Care while performing volunteer work		✖︎	The cost of care while the participant is performing volunteer work (participant is not gainfully employed) is not reimbursable.
Child care placement fees			See Indirect expenses.
Child daycare	✓		The cost of child daycare is reimbursable.
Child of FSA participant, amounts paid to			See Relative, amounts paid to.
Convalescent home		✖︎	The cost of care in a convalescent home is not reimbursable. The qualifying dependent must reside in the participant's home at least 8 hours per day; see Publication 503 at www.irs.gov.
Custodial care			See Convalescent home and Elder care.
Day camp			See Camp, Day.
Daycare, adult			See Adult daycare.
Daycare, child			See Child daycare.
Daycare center			See Adult daycare. and Child daycare.
Dependent care center			See Adult daycare. and Child daycare.
Deposit			See Indirect expenses.
Education			See Tuition, kindergarten or higher; and Tuition, preschool or nursery.
Elder care	✓		The cost of elder care is reimbursable. The elderly person must be a qualifying person for the FSA participant. Expenses cannot be attributable to medical care. The qualifying person must regularly spend at least eight hours each day in the participant’s home. See also Adult daycare.; Convalescent home; Elder care; In-home care; and Relative, amounts paid to.
Emergency daycare			See Employer provided on–site daycare and Sick-child facility.
Employer-provided on-site daycare	✓		The cost of on-site daycare is reimbursable, even when the payment for care is payroll deducted. Also see Sick-child facility.
Employment taxes	✓		When the caregiver is actually an employee of the FSA participant, with respect to providing care, federal employment taxes (FICA, FUTA) and similar state payroll taxes are reimbursable.
Extended daycare			See After-school care and Before-school care.
Extended day program			See After-school care and Before-school care.
FICA and FUTA taxes of daycare provider			See Employment taxes.
Field trips			See Camp activities and Recreation fees.
Food		✖︎	Separately-stated fees for meals, snacks and other food are not reimbursable.
Foreign country			See Camp activities and Recreation fees.
Housecleaning services		✖︎	The cost of housecleaning services is not reimbursable. Also see Household services.
Household services	✓		If the person providing the household service also provides care to a qualifying person, the amounts paid for care are reimbursable.
Household services		✖︎	The cost of household services (for ex., chauffeur, maid, cook, security system, etc.) are not reimbursable.
Housekeeper			See Housecleaning services and Household services.
In-home care	✓		The cost of in-home care is reimbursable. Also see Au pair; Babysitter; Nanny; Relative, amounts paid to.; and Room and board.
Indirect expenses (agency, application, hold-the-spot or placement fees; deposits)	✓		When required to obtain the care, and if the qualifying person has actually received that care, indirect expenses are reimbursable.
		✖︎	When not required to obtain the care or if the qualifying person has not yet received the care, indirect expenses are not reimbursable. Fees that are forfeited (for ex., the participant selects a different caregiver) are not reimbursable.
Kindergarten			See Tuition, kindergarten or higher
Late fees	✓		Fees for late pickup due to the participant or participant’s spouse’s work schedule (or other work-related reason) are reimbursable.
Late fees		✖︎	Fee paid for late payment of the childcare bill is not reimbursable.
Lessons		✖︎	Amounts paid for lessons (for ex., tennis, swimming, piano, karate, horseback riding, basketball, dancing, etc.) are not reimbursable. Also see Camp activities; and Recreation fees.
Long-term care expenses			See Convalescent home and Elder care.
Looking for work			See Care while looking for work.
Maid			See Housecleaning services and Household services.
Meals			See Food.
Nanny	✓		Amounts paid to a nanny are reimbursable. Also see Au pair and Room and board.
Nanny		✖︎	Durable goods (for ex., furniture, etc.) for the nanny’s use are not reimbursable.
Nighttime care	✓		The cost of care at night while the parent is working is reimbursable.
Nursery school			See Tuition, preschool or nursery
Nursing home			See Convalescent home and Elder care.
On-site daycare, employer-provided			See Employer-provided on-site daycare.
Overnight camp			See Camp, overnight.
Parent of qualifying child, amounts paid to			See Relative, amounts paid to.
Participant’s child, stepchild or foster child, amounts paid to			See Relative, amounts paid to.
Participant’s dependent, amounts paid to			See Relative, amounts paid to.
Placement fees			See Indirect expenses.
Prepaid fees			See Indirect expenses.
Preschool			See Tuition, preschool or nursery.
Recreation fees		✖︎	Separately-stated fees for recreational activities and supplies are not reimbursable. Also see Camp activities and Lessons.
Registration fee			See Indirect expenses.
Relative, amounts paid to	✓		Generally, amounts paid to a relative (for ex., grandparent, aunt, cousin) are reimbursable. Exceptions apply; see further explanation immediately below.
Relative, amounts paid to		✖︎	Payments made to the following persons are not reimbursable: Participant’s spouse Parent of the qualifying child Participant’s child, stepchild or eligible foster child under age 19 Any person who the participant (or participant’s spouse) claims as a dependent.
Room and board	✓		The additional cost of providing room and board, over the usual household expenditures, to an au pair, nanny or other caregiver is reimbursable.
Security system for the home			See Household services.
Self-employment			See Care while participant/participant’s spouse is working at self-employment.
Sick-child facility	✓		The cost of care at a sick-child facility is reimbursable. Also see Employer provided on–site daycare.
Sick employee			See Care during a short, temporary absence from work.
Snacks			See Food.
Specialized day camp			See Camp, day and Camp, overnight.
Specialized daycare	✓		The cost of specialized daycare is reimbursable.
Sports camp			See Camp, day and Camp, overnight.
Spouse of participant, amounts paid to			See Relative, amounts paid to.
Summer camp			See Camp, day and Camp, overnight.
Taxes			See Employment taxes.
Transportation	✓		When provided by the caregiver, the cost of transporting the qualifying person to and from the care location is reimbursable.
Transportation		✖︎	When provided by anyone other than the caregiver, the cost of transporting the qualifying person is not reimbursable. All other transportation costs (for ex., air or bus travel by an au pair) are not reimbursable.
Travel expenses			See Transportation.
Tuition, kindergarten or higher		✖︎	The cost of tuition for kindergarten or higher-level education is not reimbursable. Also see After-school care and Before-school care.
Tuition, nursery school or preschool	✓		The cost of nursery school or preschool (i.e., pre-kindergarten) is reimbursable. Also see After-school care and Before-school care.
Unemployment			See Care during a layoff or strike and Care while looking for work.
Vacation			See Care during a short, temporary absence from work.
Volunteer work			See Care while performing volunteer work.

The information displayed here was created by combining information from a number of public and private sources. The information displayed here is intended to convey the full scope of governments approved guidelines. Copyright protection or ownership claims for this information are waived. This document is a guide and is not to be interpreted as legal advice.