Can a Dependent Care Reimbursement Account Save Me Money?
If your answer to any of these questions is “yes,” then you should consider participating in a Dependent Care Reimbursement Account:
- Do you spend money on day care for your children up to age 13?
- Do you have children up to age 13 enrolled in a before- or after-school program, summer day camp, or intersession day camp while you work?
- Do you spend money on adult day care for an elderly parent who lives with you and whom you claim as a dependent for income tax purposes?
Who is Considered a Dependent?
Children up to their 13th birthday.
Any other individuals you claim as dependents on your federal income tax return, regardless of age, who live with you and are incapable of caring for themselves.
Use the Dependent Care Reimbursement Account Worksheet below or the WageWorks calculator at wageworks.com/mydcfsa to help you decide how much to contribute.
|Estimated Expenses for 2017|
|Dependent child care for children up to their 13th birthday, such as a qualified day care center, nursery school tuition, or a baby-sitter inside or outside your home||$|
|Dependent adult care during working hours for adult dependents who live with you and who rely primarily upon you for support||$|
|Before-school and after-school day care programs for your child up to his or her 13th birthday||$|
|Intersession camp for your child up to his or her 13th birthday||$|
|Summer day camp for your child up to his or her 13th birthday||$|
|FICA and other taxes you pay for day care providers||$|
|Total Estimated Expenses for January 1 – December 31, 2017. Note: Any money left in your Dependent Care Reimbursement Account after December 31, 2017 will be forfeited unless claims are submitted by April 15, 2018.||$|
How Much Can I Contribute?
- The maximum contribution to your Dependent Care Reimbursement Account is $5,000. The minimum contribution is $130.
- If both you and your spouse have Dependent Care Reimbursement Accounts, your total combined contribution limit is $5,000.
- Your total contribution cannot be greater than your earned income or your spouse's earned income, whichever is lower.
- If your spouse has no earned income, you are not eligible for a Dependent Care Reimbursement Account. However, there are special rules if your spouse is a full-time student or is disabled. Contact WageWorks at (877) 924-3967 for more information.
- If you are single with an eligible dependent, you can contribute up to the full $5,000.
- If you receive a subsidy from a Duke-contracted child care facility such as the Duke Children's Campus or The Little School at Duke, the amount that you can contribute to the Dependent Care Reimbursement Account is reduced dollar-for-dollar. Call (919) 684-5600 for more information.
- According to federal law, any money left in your Dependent Care Reimbursement Account at the close of the 2017 plan year will be forfeited, unless claims are filed by April 15, 2018. Review your dependent care bills carefully from 2016 before deciding how much to contribute to a reimbursement account. Then estimate your expenses for the remainder of the calendar year. You may submit your claims for expense reimbursement for dependent care services received during the plan year (January 1¡VDecember 31, 2017), until April 15, 2018. You will forfeit any money left unclaimed in your Dependent Care Reimbursement Account after April 15, 2018.
What Can I Pay for With the Dependent Care Reimbursement Account?
In the box below are some examples of out-of-pocket expenses eligible or not eligible for reimbursement from the Dependent Care Reimbursement Account. This is not a complete list. To check if an expense not listed is eligible, contact WageWorks at (877) 924-3967 or refer to IRS Publication 503, available by calling (800) TAX-FORM (829-3676) or by accessing the IRS website at irs.gov.
|Expenses eligible for reimbursement from a Dependent Care Reimbursement Account||Expenses NOT eligible for reimbursement from a Dependent Care Reimbursement Account (per IRS)|