DCFSA COVID-19 Updates
Impacts on DCFSA
A Dependent Care Flexible Spending Account (DCFSA) allows employees to set aside pre-tax1 payroll contributions to pay for dependent care expenses. Employees can contribute up to $5,000 per year ($2,500 if married filing separately) and use those tax-free funds for qualifying dependent care expenses.
What does this mean for you?
To qualify, the dependent care must be essential for the employee and spouse (if applicable) to:
- Work
- Look for work
- Attended school full time
Qualifying dependents include children under the age of 13 and dependents of any age who are physically or mentally incapable of self-care and who have the same principal place of abode as the employee for more than half the year.
The care can be provided both inside and outside of the home but cannot be provided by one of the employee's dependents.
For overnight camps, only the portion related to daytime care is eligible. Room and board for overnight camps is not eligible.
Eligible Expenses*
- Babysitter inside or outside household
- Day care
- Looking for work expenses
- Custodial childcare or elder care expenses
Ineligible Expenses*
- Baby-sitting for social occasions
- Meals
- Overnight camp
- Transportation to and from care
Frequently Asked Questions
There have been a lot of changes during this past month as the nation deals with COVID-19. This list will hopefully help you find the answers you need regarding your health benefits. If you have additional questions, please Contact us.
DCFSA
1This is not intended as legal, tax, financial or medical advice. Please consult a tax professional regarding your specific situation.Return to content