Dependent Care Flexible Spending Account Program
The Department of Defense (DOD) employs over 700,000 civilians in an array of key positions worldwide, and employees that work for this Executive branch agency can elect to participate in the Federal Flexible Spending Account Program (FSAFEDS).
FSADEDS allows employees to be able to save their money for health care expenses with a Health Care or Limited Expense Health Care FSA. What FSADEDS also providers is an account for those families that have young children or eldercare expenses. That is called the Dependent Care FSA (DCFSA), which allows parents to set aside money to pay for daycare and other dependent care expenses.
Why Enroll In An FSA Program?
- You will save an average of 30 percent on dependent Child Care providers and services
- You will reduce your overall tax burden – funds are withdrawn from your paycheck for deposit into your account before taxes are deducted
- You will be able to take advantage of several convenient, no-hassle payment and reimbursement options
- The money withheld for FSAs is not subject to taxes
Dependent Care FSA Eligible Expenses
- Physical care, In-home care, such as a nanny or au pair, or institutional-setting care, such as child or adult daycare services, by qualified caregivers (siblings or relatives don’t count)
- Summer day camps
- Before and after-school care
- Transportation provided by a caregiver.
There is also a list of expenses that do not qualify for the FSA spending and you must observe these limits while spending under FSA. The following expenditures do not qualify for FSA:
- Any type of private tuition of the qualified person
- Education at or above the kindergarten level does not come under the program
- Private school tuition
- Late payment fees of any type
- Any type of side program e.g. music classes, etc
- Overnight camp expenditures
- Any type of expense on food, lodging, entertainment, and clothing for recreational trips
- Any type of housekeeping
- Babysitting by a sibling
When claiming dependent child care expenses, you must provide the SSN or Tax ID of the provider.
Salary Reduction Amount: Minimum of $260, a maximum of $5,000 PER family or $2,500 if married and filing separate tax return
How You Can Get Depending Child Care FSA
During Federal Benefits Open season (November/December timeframe) is when you can enroll in or renew in your Department Care FSA via FSAFEDS. All Open Season enrollments are effective January 1 of the following year, and those that are already enrolled are required to sign up each year if they wish to continue participating in FSAFEDS. Please note that enrollment does not transfer over year to year.
All new and newly employees that are eligible who want to enroll in the program must do so within 60 days once they become eligible, but it must be before October 1 of the calendar year. For further details, visit FSAFEDS.com or call 1-877-372-3337.