Postal Service Child Care AssistanceDependent Care Flexible Spending Accounts for Postal Service Employees Can Pay for Child Care Assistance and Services

A Dependent Care FSA (DCFSA) allows career postal service workers a pre-tax benefit account that is used to pay for dependent Child Care services, such as preschool, summer day camp, before or after school programs, and child daycare. It’s a smart, simple way for you to save money while taking care of your children so that you can continue to work.

 Why Enroll In An FSA Program?

  • You will save an average of 30 percent on dependent Child Care 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  • You will reduce your overall tax burden – funds are withdrawn from your paycheck for deposit into your account before taxes are deducted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

Postal Service Essential Information

  • When claiming dependent 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

There are two ways to enroll. Call PostalEase toll-free at 877-477-3273 or, at a USPS facility, log on to http://liteblue.usps.gov. Click on Employee Self-Service, then on PostalEase.