Page 179 - Washington Nationals 2023 Benefits Guide -10.26.22_Neat

Table 2: Expenses that Qualify for Reimbursement from a
Dependent Care Assistance Account
• Before and after school programs
• Care in your home or someone else's home (as long as the care giver is not your spouse
or your child who is under age 19, even if you no longer claim that child as a dependent)
• Care for a disabled dependent provided outside your home as long as the dependent is a
child under age 13 or is in your home for at least eight hours a day
• Child care center (if the center provides care for more than six individuals, other than
residents, it must comply with all applicable state and local laws)
• Nursery school or pre-school
• Summer camp, including a camp that specializes in a particular activity (such as a soccer
or computer camp, but not overnight camp)
• Household services, if attributable to the care of your dependent
• Agency fees, application fees or deposits, if you are required to pay these expenses in
order to obtain the related care

Please contact the Plan Administrator before enrolling in the Plan to confirm that the expenses for
which you will seek reimbursement will qualify as dependent care assistance.

You will not be reimbursed for any expenses that are (i) not incurred in the Plan Year, (ii) incurred
before or after you are eligible to participate in the Plan, (iii) attributable to a tax credit you take
for the same expenses, or (iv) covered, paid or reimbursed from any other source.

Generally, amounts reimbursed from your Dependent Care Assistance Account are tax-free to you.
However, federal law provides that the amount excluded from your gross income cannot exceed
the lesser of:

• $5,000 ($2,500 if you are married and filing separate federal income tax returns);
• Your annual income; or
• Your spouse’s annual income.

If your spouse is (1) a full-time student for at least five months during the year, or (2) physically
and/or mentally handicapped, there is a special rule to determine his or her annual income. To
calculate the income, determine your spouse’s actual taxable income (if any) earned each month
that he or she is a full-time student or disabled. Then, for each month, compare this amount to
either $250 (if you claim expenses for one dependent) or $500 (if you claim expenses for two or
more dependents). The amount you use to determine your spouse’s annual income is the greater
of the actual earned income or these assumed monthly income amounts or either $250 or $500. If
you are married and filing separate federal income tax returns, the $2,500 limit described above
will not apply if you are (1) legally separated or (2) your spouse did not reside with you for the
last six months of the calendar year, you maintained a household that was your dependent’s
primary residence for more than six months during the year and you paid more than half of the
expenses of that household.

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