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Flexible Spending Accounts (FSAs) (continued)
Dependent Care Flexible Spending Account (DCFSA)
The DCFSA allows you to set aside money on a pre-tax basis to pay for qualiied daycare expenses that are
necessary so that you, or you and your spouse, can work.
Expenses covered under your DCFSA could include:
> Licensed nursery schools
> Daycare centers
> Babysitting (including au pairs)
> Nursery and preschool expenses (excluding kindergarten)
Important Notes
> If care is provided in your home, the provider cannot be one of your dependents.
> On the claim form, you must provide the name, address, and taxpayer identiication number of the person
who is providing you with dependent care services.
Who is a dependent for DCFSA purposes?
Dependents who are eligible for care reimbursable through the DCFSA include:
> Your child(ren) up to age 13; and
> Elderly relatives whom you claim as a tax dependent and who spend at least eight hours a day in your
home.
Paying for your Dependent Care FSA expenses
You can ile a claim with Chard Snyder to have a check or direct deposit reimbursement sent to you. Go to
the Chard Snyder app or website to initial and ile a claim. Additionally, you can use your Chard Snyder debit
card to access the funds in your Dependent Care account once they’ve been deducted from your paycheck.
Contribution Limits
If you are single or if you are married and iling a joint tax return, you can contribute up to $5,000 per
household to your DCFSA (or up to your spouse’s income if it is less) each year. If you are married, and you
and your spouse ile separate tax returns, the maximum contribution is $2,500.
For the Dependent Care FSA, any dependent care expenses are reimbursed based on the availability of
funds in your account.
We will perform year-end Dependent Care Flexible Spending Non-discrimination testing. In the event that it
is determined that our plan has discriminated in favor of highly compensated employees, some Dependent
Care Flexible Spending Account enrollees may experience an adjustment to the taxable income portion of
year-end W-2s.
To learn more about FSAs…
Contact your tax advisor to discuss the tax implications of Healthcare or Dependent Care FSAs.
The IRS is also a good source of information on these topics:
> For Healthcare FSAs, visit www.irs.gov and refer to IRS Publication 502 for a complete listing of eligible
healthcare expenses.
> For Dependent Care FSAs, visit www.irs.gov and refer to IRS Publication 503 for a complete listing of
eligible dependent care expenses.
15
Dependent Care Flexible Spending Account (DCFSA)
The DCFSA allows you to set aside money on a pre-tax basis to pay for qualiied daycare expenses that are
necessary so that you, or you and your spouse, can work.
Expenses covered under your DCFSA could include:
> Licensed nursery schools
> Daycare centers
> Babysitting (including au pairs)
> Nursery and preschool expenses (excluding kindergarten)
Important Notes
> If care is provided in your home, the provider cannot be one of your dependents.
> On the claim form, you must provide the name, address, and taxpayer identiication number of the person
who is providing you with dependent care services.
Who is a dependent for DCFSA purposes?
Dependents who are eligible for care reimbursable through the DCFSA include:
> Your child(ren) up to age 13; and
> Elderly relatives whom you claim as a tax dependent and who spend at least eight hours a day in your
home.
Paying for your Dependent Care FSA expenses
You can ile a claim with Chard Snyder to have a check or direct deposit reimbursement sent to you. Go to
the Chard Snyder app or website to initial and ile a claim. Additionally, you can use your Chard Snyder debit
card to access the funds in your Dependent Care account once they’ve been deducted from your paycheck.
Contribution Limits
If you are single or if you are married and iling a joint tax return, you can contribute up to $5,000 per
household to your DCFSA (or up to your spouse’s income if it is less) each year. If you are married, and you
and your spouse ile separate tax returns, the maximum contribution is $2,500.
For the Dependent Care FSA, any dependent care expenses are reimbursed based on the availability of
funds in your account.
We will perform year-end Dependent Care Flexible Spending Non-discrimination testing. In the event that it
is determined that our plan has discriminated in favor of highly compensated employees, some Dependent
Care Flexible Spending Account enrollees may experience an adjustment to the taxable income portion of
year-end W-2s.
To learn more about FSAs…
Contact your tax advisor to discuss the tax implications of Healthcare or Dependent Care FSAs.
The IRS is also a good source of information on these topics:
> For Healthcare FSAs, visit www.irs.gov and refer to IRS Publication 502 for a complete listing of eligible
healthcare expenses.
> For Dependent Care FSAs, visit www.irs.gov and refer to IRS Publication 503 for a complete listing of
eligible dependent care expenses.
15
