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Maximize Your Dependent Care FSA Value
  • Estimate Dependent Care FSA expenses carefully! The “use it or lose it” rule applies.
  • Dollars in the account are deposited pre-tax — they are not subject to income taxes
  • Complete reimbursement requests for eligible DCFSA expenses

2014-2015 Dependent Care Flexible Spending Account (FSA) At-A-Glance

The Dependent Care FSA allows you to pay for eligible dependent care expenses with tax-free money. When you enroll in the Dependent Care FSA, the dollars you designate will be deducted from your paycheck on a pre-tax basis and credited to your FSA.

How the Dependent Care FSA Works

Here’s how you can use your Dependent Care FSA:

     Contribute to your account through convenient pre-tax payroll contributions.

     Incur eligible dependent care expenses for services provided to qualified individuals — including your children (up to their 13th birthday), or other family or household members who meet certain dependent eligibility requirements.

     Submit proof of those expenses with a claim form to the address provided on the form. You can only be reimbursed up to the total amount deposited into your account at the time you submit the claim.

 

If you wish to participate in the Dependent Care FSA and are enrolling as a new hire, you must select your contribution amount for the remainder of the plan year. If you are enrolling during annual Open Enrollment, you select your contribution amount for the following plan year. Keep in mind that elections do not carry over from year to year. If you do not enroll during the annual Open Enrollment period, you will not be able to contribute to the FSA in the following calendar year.

 

Before making your spending account election, you need to predict your out-of-pocket costs for dependent care in the coming year, because any contributions you make during the year but don’t use by June 30, 2015 for the Dependent Care FSA are forfeited.

 

For the 2014-2015 plan year, you can contribute from $260 up to $5,000 pre-tax in earnings to the Dependent Care FSA.

 

Please note that if you are married and filing a joint tax return, your contributions combined with your spouse’s contributions to a Dependent Care FSA, cannot exceed $5,000 for the calendar year (January 1 through December 31), regardless of your or your spouse’s plan year.

 

In addition, employees making $115,000 or more will only be able to contribute a maximum of $1,700 this plan year to a Dependent Care FSA to meet IRS regulations.

 

Did you know that you can submit your Flexible Spending Accounts (FSA) claims and validate your debit card swipes online?

Online Claims Submission:

Once you log into your spending account, click on the “Online Claim Submission” link. Then, just follow the directions.

 

Card Transaction Validation:

Once you log into your spending account, find your debit card swipes that need attention by clicking on “Advanced Search” from the left navigation bar and selecting “Recent claims needing my attention.” Then, double click on the card transaction and select the “Upload documentation” button and follow the steps.

Eligible Dependent Care FSA Expenses

You can use your Dependent Care FSA to be reimbursed for child or elder care expenses which enable you to work. This includes costs you incur for child care for dependent children under age 13 and/or an adult living with you whom you claim as a tax dependent and who is physically or mentally incapable of self-care (e.g., disabled spouse, elderly parent).

 

You can only be reimbursed for up to the amount that has been deposited into your FSA at the time you request reimbursement.

 

Important Dependent Care FSA Rules

     You must re-enroll every year in order to participate in the Dependent Care FSA.

     Any unused funds left after June 30, 2015, will be forfeited. You can submit expenses until September 30 after the end of the plan year.

     Expenses paid through the Dependent Care FSA can’t be claimed as a tax deduction on your federal income tax return.

 

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