Dependent Care FSA

What expenses are eligible?

• The cost of a babysitter or daycare provider for a dependent (as defined by the IRS) aged 12 and under which allows for the employee and (if applicable) his or her spouse to be gainfully employed. Eligible expenses include day care, after-school care, Pre-K, and day camps. 
• Custodial care of an adult dependent (as defined by the IRS) who is mentally or physically incapable of caring for himself or herself, so that the other adult(s) can work. Although less common, these expenses are still DCAP eligible, but requirements are very specific and may require medical documentation.

What expenses are ineligible?

• Expenses not directly related to custodial care, such as supply fees, food/meals, etc.
• Education tuition for grades Kindergarten and above
• Overnight camps
• Custodial care that is not for the express purpose of allowing the parent(s) to work, such as babysitting while the parent goes to dinner, on vacation, etc.
• For adult dependents that are incapable of physically or mentally caring for themselves, any expenses related to medical/nursing care or food/meals are ineligible. Only those expenses directly related to custodial care of the dependent are eligible.

If your provider accepts debit cards, you can simply use your AmeriFlex Convenience Card to pay for the eligible expense. If, however, you are unable to use your debit card, you will need to file a manual claim. To file a manual claim for reimbursement from your DCAP, you must complete a Claim Form and submit it to AmeriFlex along with an itemized receipt. The itemized receipt must include the following information: the provider's name, the date(s) of service, the services rendered (e.g., daycare expenses), and the amount charged (not the amount paid). For DCAP claims, you must also include the provider's tax ID number or Social Security Number. After the claim has been processed, you will either receive reimbursement via check or direct deposit. To have your reimbursements deposited directly into your personal bank account, simply complete the Direct Deposit Form.

On your tax return, you must report the correct name, address, and taxpayer ID number (TIN) for your dependent care provider to claim exclusion for employer-provided dependent care assistance benefits or the dependent care credit. If your dependent care provider is exempt from federal income tax, you are not required to report the TIN on your tax return. However, you must still report the correct name and address of the exempt provider and write "tax-exempt" in the space provided for reporting the TIN.

Just like a medical FSA, any unclaimed DCAP funds remaining at the end of the benefit plan year are forfeited if not claimed/spent down within the plan year. Funds do not roll over from year to year. Also, like an FSA, DCAP elections are irrevocable, except in the event of certain changes in legal status such as marriage, divorce, etc.

No. DCAP funds can only be used to pay for eligible expenses incurred in the current benefit plan year. Check with your HR administrator if you are not sure of your plan year dates.