Dependent Care Spending Account
The Dependent Care Spending Account allows you to pay for eligible dependent care expenses with pre-tax dollars. Dependent Care Spending Account contributions are taken directly from your pay before federal, most state and city income and social security taxes are deducted.
Dependent Care Flexible Spending Accounts can save you money if you:
- Have Dependent Child(ren) age 12 or under. Dependent eligibility will end the day your child turns 13 years of age.
- A disabled spouse or other disabled tax-qualified dependent that spends at least eight hours a day at your home.
- Before and after school care.
- Babysitting and nanny expenses.
- Daycare, nursery school, and preschool.
- Summer day camp.
- Your election for the Dependent Care Spending Account is only effective for one year.
- The maximum for the plan year is $5,000.00 and a minimum of $200.00 to cover allowable, dependent care expenses.
Each year you are required to make a new election for the following year.
You must enroll (or re-enroll) in the Dependent Care Spending Account for the current Plan year by completing online enrollment and indicating how much of your salary you would like to set aside on a pre-tax basis to pay for eligible expenses, not reimbursed by any other health care plan (medical, dental, eye glasses ,etc.). Your election for the Health Care Spending Account is only effective for one year.
Please note: If you use the Dependent Care Spending Account, the IRS requires that you provide the name, address and Social Security or other tax identification number of your care provider. Non-discrimination testing of this plan may require certain employees who enroll to be reimbursed any pre-tax dollars elected for the calendar year and to stop participation.
Year-end unused contributions will NOT roll over to the new plan year.