Eligible Dependent Care Expenses

daycare

DEPENDENT CARE EXPENSES (DC) RULES 

Expenses incurred for a day care center or private sitter for a covered dependent are eligible for pre-taxing under the Section 125 Cafeteria Plan.

ELIGIBILITY FOR DEPENDENT CARE:

Dependent must be claimed by the employee as a dependent for federal tax purposes for the tax year the employee is electing.

Is under age 13  (after school care only or summer  full-time care)

Requires full-time care because of physical or mental incapacity (for example, a disabled spouse or parent); or

Infant to 4K Kindergarten  (full-time care)

Age 5K  Kindergarten   (after school care only)

Eligible care only includes the cost of services for the individual’s well-being and safety;. It does not include the cost of transportation, clothing, entertainment or food unless such items are incidental and cannot be separated from the cost of care provided.

Expenses cannot be claimed for the following:

1). schooling in 5K or higher
2). expenses for when you are off work due to illness
3). payments made to your child under the age of 19
4). payments to yourself or your spouse’s dependent
5). expenses to send your child to overnight camp

For IRS publication on Dependent Care