DEPENDENT CARE FSA FREQUENTLY ASKED QUESTIONS
Participants
A DCA is an employer-sponsored benefit that allows you to set aside money from your paycheck on a PRE-TAX basis to pay for daycare expenses for your eligible dependents.
DCA contributions and reimbursements are exempt from federal income taxes, Social Security (FICA) taxes, and in most cases, state income taxes. Depending on your tax bracket, you can expect savings between 22% and 38% on your elected amount.
Expenses reimbursed from a Dependent Care Flexible Spending Account reduce the amount you can claim under the federal Dependent Care tax credit. You will have to determine which approach is best for you.
Your annual election is divided among the number of paychecks you
have in the plan year and that amount is deducted from each check
PRIOR to being taxed. Once you incur an eligible dependent care
expense, you can request reimbursement from your account either
online or using a hard copy form. Visit our
Filing Claims
page for specific details.
All expenses must be incurred during the plan year to be eligible for reimbursement*. You "incur" an expense when you receive the service, not when you pay the bill.
*Employers have been given the opportunity to extend their plan year by 21/2 months per IRS Notice 2005-42. Please check with your employer to see if they have elected to take advantage of this flexibility.
*Employers have been given the opportunity to extend their plan year by 21/2 months per IRS Notice 2005-42. Please check with your employer to see if they have elected to take advantage of this flexibility.
To be eligible, you (and your spouse, if married) must work, be looking for work or attend school full-time.
An eligible dependent is someone who spends at least eight hours a day in your home and is one of the following:
- A child under the age of 13 for whom you can claim as an exemption for income tax purposes.
- A dependent under the age of 13 for whom you have custody for more than half of the year if you are divorced or legally separated.
- A dependent that is physically or mentally incapable of self-care (regardless of age).
- Your spouse who is physically or mentally incapable of self-care.
Yes, the IRS limits your deferrals to $5,000 each plan year (or $2,500 if married, filing a separate tax return). Your total contributions cannot be more than your earned income or your spouses earned income, whichever is less.
You may only change your DCA election amount during the plan year if the requested change is due to and consistent with a qualifying event* such as:
- Change in marital status
- Change in dependent status
- Change in employment status
- Change in daycare or provider expense
You can submit your request for reimbursement either online or using
a hard copy form. Visit our
Filing Claims
page for specific details. You must provide your caregiver’s Tax ID
# or SSN. You should acquire and retain either a Caregiver
Certification OR a receipt that includes the following information:
- Name of the dependent for whom the service was provided
- Date(s) of Service
- Amount paid
- Tax ID # or SSN of provider
You can have your claim reimbursement(s) automatically deposited to your checking or savings
account by completing a
Direct_Deposit_Auth
form and submitting it to Planned Benefit Systems, Inc. via
fax/mail/email.
Direct deposit is a quicker and safer means of reimbursement.
All claims are reimbursed up to your account balance at the time the claim is approved. If your claim is for more than your balance, the remainder of the claim is paid automatically as your payroll deductions are posted to your account.
The following are eligible expenses:
- Nursery Care
- Pre-School
- Before-school and/or after-school Care
- Day Camp
What expenses are not eligible for reimbursement under the Dependent Care Flexible
Spending Account?
Spending Account?
The following expenses are not eligible:
- Dependent health care expenses
- Dependent care for children age 13 or older (unless disabled)
- Overnight camp
- Babysitting that is not work-related
- School costs for kindergarten and higher grades (e.g. tuition for private schools)
- Long-term care services (e.g. nursing homes)
The claims filing deadline to submit an expense incurred during the plan year is typically 90 days after the plan year ends*. Pursuant IRS regulations, you will forfeit any money remaining in your account after the 90-day plan run out period.
*Employers have been given the opportunity to extend their plan year by 21/2 months per IRS Notice 2005-42. Please check with your employer to see if they have elected to take advantage of this flexibility.
*Employers have been given the opportunity to extend their plan year by 21/2 months per IRS Notice 2005-42. Please check with your employer to see if they have elected to take advantage of this flexibility.
You will have until the claims filing deadline to submit your dependent care expenses incurred up to your last day worked. Expenses incurred after your termination, but during the plan year, are still reimbursable as long as you are working or seeking work during that time.
Click here
to log in to your account.
You can also reach a Customer Service Representative from 7:30am to 5:00pm MST/MDT,
Monday through Friday, at 303.221.2783 or toll-free at 800.800.0133.
You can also email us at
help@cci-pbs.com.
