Overview

You can use your Dependent Care Health Care FSA (DCFSA) funds to pay for a wide variety of dependent care products and services for you, your spouse, and your dependents. Only your work-related expenses are eligible. The IRS determines which expenses can be reimbursed by an DCFSA.

Eligibility

Qualifying Person

Your child and dependent care expenses must be for the care of one or more qualifying persons.

A qualifying person is:

1. Your qualifying child is your dependent and who was under age 13 when the care was provided.

   • In divorced or separated parents or parents living apart situations, even if you can't claim your child as a dependent, he or she is treated as your qualifying person if:

2. Your spouse who wasn't physically or mentally able to care for himself or herself and lived with you for more than half the year; or

3. A person who wasn't physically or mentally able to care for himself or herself, lived with you for more than half the year, and either:

   a. Was your dependent, or b. Would have been your dependent except that:

   1. He or she received a gross income of $4,300 or more,
   2. He or she filed a joint return, or
   3. You, or your spouse if filing jointly, could be claimed as a dependent on someone else's tax return.

Dependent Definition

For more information about who is a dependent or a qualifying child, see Pub. 501, Dependents, Standard Deduction, and Filing Information.

Work-Related

Your Dependent Care FSA expenses need to be "work-related." This means that the expenses must be incurred while you (or your spouse) are working or looking for work. For example, if both you and your spouse work full time and you pay for after-school care for your kids, that is an eligible "work-related" expense. Please note if it is an activity that you take them to in the evenings outside-of-work schedule then it would not be eligible. Absence in work, generally, is not considered as work-related either, unless the absence is short and temporary because of vacation or sick leave.

Note: unpaid and nominal paid volunteer work do not qualify as a qualifying absence.

💡 Long story short, what makes the expenses eligible as long as:

1. the expenses must be incurred while you (or your spouse) are working or looking for work.
2. the services must be primarily for the care of children up to the age of 13 so parents can work.
3. they are for the care of a qualifying person only if their main purpose is the person's well-being and protection.