Dependent 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- You will reduce your overall tax burden – funds are withdrawn from your paycheck for deposit into your account before taxes are deducted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.