DEPENDENT CARE ACCOUNTS
A Dependent Care Flexible Spending Account will let you set aside a portion of your paycheck tax free to pay for dependent care expenses. Contributions are deducted from your paycheck prior to federal, state and social security tax being calculated. No taxes on your contributions provides you with additional take home pay.
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Integrity Administrators, Inc.
EXCELLENCE IN THIRD PARTY ADMINISTRATION
Dependent Care Guidelines
Eligible Dependent Daycare Expenses
Child care service will qualify for reimbursement from the Dependent Care Account if the services meet the following requirements:
• The child must be under 13 years old and must be your dependent under federal tax rules. If your child turns 13 during the
year, you cannot stop your contributions at that time.
• The services may be provided inside or outside your home, but not by someone who is your minor child or dependent for
income tax purposes (for example, an older child).
• If the services are provided by a daycare facility that cares for six or more children at the same time, it must be a qualified
• The service must be incurred to enable you, or you and your spouse if you are married, to be employed.
• The amount to be reimbursed must not be greater than the spouse's income or one-half your income, whichever is lower.
• Services must be for the physical care of the child, not for education, meals, etc. Kindergarten expenses must separate
out the cost of custodial care from the cost of the education to be reimburse.
• Allowable Dependent Care expenses include payments to the following when the expenses enable you to work.
- Child Care Centers
- Family day care providers
- Nursery Schools
- Caregivers for a disabled dependent or spouse who lives with you
In-eligible Dependent Daycare Expenses
• Dependent Care expenses that are provided to one of your dependents by a family member, unless the family member
is age 19 or older by the end of the year and will not be claimed as a dependent for federal income tax purposes.
• Expenses for food and lodging
• Education expenses from Kindergarten on
• Health care expenses for your dependents
• Overnight camps
Employer provided dependent care assistance is tax-free only if the following conditions are met:
1. Each individual for whom you receive dependent care assistance is;
a) A dependent under the age of 13 whom you are entitled to claim as a dependent on your tax return,
b) A spouse or other tax eligible dependent that is physically or mentally incapable of caring for him or herself.
2. The dependent care assistance is provided for the care of a dependent described above and is incurred to enable
you to be gainfully employed.
3. If the dependent care services are provided outside your household, they are
incurred for the care of a dependent or who resides in your household.
4. If the dependent care is provided by a dependent care center and the center
complies with all applicable state and local laws and regulations.
5. If the service is a camp provided service and the dependent does not stay
overnight at the camp.
6. Payment for the services are not made to a child of yours who is under the age
of 19 at the end of the year for which the expenses are incurred or to an
individual for whom you or your spouse is entitled to a personal tax
exemption as a dependent.
7. The reimbursement amount may not exceed $5,000 per calendar year per family.