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Dependent Care Expenses

A smarter way to pay for the care your family relies on.

FSA Dependent Care Expenses

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.

A

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.
Durable goods (for ex., furniture, etc.) for the au pair’s use are not reimbursable.

B

Expense Covered Not Covered IRS Guidelines
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.

C

Expense Covered Not Covered IRS Guidelines
Camp activities
 Separately-stated fees for non-elective activities required for day camp participation are reimbursable.
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.

D

Expense Covered Not Covered IRS Guidelines
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.

E

Expense Covered Not Covered IRS Guidelines
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.

F

Expense Covered Not Covered IRS Guidelines
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.

H


Expense Covered Not Covered IRS Guidelines
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.
The cost of household services (for ex., chauffeur, maid, cook, security system, etc.) are not
reimbursable.
Housekeeper See Housecleaning services and Household services.

I


Expense Covered Not Covered IRS Guidelines
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.

K

Expense Covered Not Covered IRS Guidelines
Kindergarten See Tuition, kindergarten or higher

L

Expense Covered Not Covered IRS Guidelines
Late fees
 Fees for late pickup due to the participant or participant’s spouse’s work schedule (or other work-related
reason) are reimbursable.
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.

M

Expense Covered Not Covered IRS Guidelines
Maid See Housecleaning services and Household services.
Meals See Food.

N

Expense Covered Not Covered IRS Guidelines
Nanny
 Amounts paid to a nanny are reimbursable. Also see Au pair and Room
and board.
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.

O

Expense Covered Not Covered IRS Guidelines
On-site daycare, employer-provided See Employer-provided on-site daycare.
Overnight camp See Camp, overnight.

P

Expense Covered Not Covered IRS Guidelines
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.

R

Expense Covered Not Covered IRS Guidelines
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.

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.

S

Expense Covered Not Covered IRS Guidelines
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.

T

Expense Covered Not Covered IRS Guidelines
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.

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.

U

Expense Covered Not Covered IRS Guidelines
Unemployment See Care during a layoff or strike and Care while looking for
work.

V

Expense Covered Not Covered IRS Guidelines
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.