DEPENDENT CARE (DC)


If in order for you and your spouse to work, you need someone to care for your dependent, pre-taxing your DC under the plan may save you more the tax credit you can claim at the end of the year.  DC Credit VS CAFETERA PLAN

A Qualifying Dependent Is:

A Dependent who was under age 13 when the care was provided and for whom you can claim as an exemption on your taxes.

A Spouse who is physically or mentally not able to care for himself or herself.
 
A dependent who is physically or mentally not able to care for themselves and for whom you can claim as an exemption.

How Does It Work?

First you must determine the amount you will be spending on DC during your plan year.  You may pre-tax up to $5,000 or $2,500 if you are married filing a separate return.

Your yearly amount will be divided by the number of deductions within the plan year. That amount will be deducted tax free and placed into an account.

As the expense is incurred, you submit a receipt to SABC along with a  Request for Reimbursement Form to be reimbursed.  (Claim Procedures)