What you need to know
As much as we love ’em, kids are expensive. And that’s not even counting childcare. The Dependent Care Flexible Spending Account (FSA) boosts your budget by helping you pay for eligible dependent care costs. Your pretax FSA contributions cover childcare and more. Plus, they reduce your taxable income.
How it works
As a new employee, during annual Open Enrollment, or if you experience qualified life event), you can enroll in the Dependent Care FSA and set aside up to $5,000 for the 2024 calendar year. Your pretax paycheck deductions can be used to cover eligible childcare or adult dependent care expenses.
You’ll lose any unused balance after December 31, and you can’t change your contribution amount midyear (unless you experience a qualified life event like starting daycare for your child).
After you enroll and elect your contribution, you’ll receive a Forma debit card and instructions for setting up your account.
As you incur expenses, you can pay with your debit card or pay out of pocket and submit a claim for reimbursement. Be sure to keep your receipts in case you need to document your reimbursement request or substantiate a debit card payment.
Eligible expenses
Expenses can be used for children through age 12 and any other person, of any age, who is incapable of caring for themself and can be claimed as a dependent on your federal tax return.
Typical expenses include:
- Daycare centers
- Summer camp
- Nannies
- Preschool tuition
For detailed eligibility criteria and a comprehensive list of qualified expenses, review IRS Publication 503, Child and Dependent Care Expenses.
Receipts must include the caregiver or company’s Federal Tax ID number or SSN.
Simplify repeat payments
Racking up the same expenses every month? Complete a recurring dependent care expense form, and submit it to Forma. Hello, time saved.
Using your FSA
Because “sorry, we don’t take cards” is still a thing, here’s how to submit claims for eligible expenses that you pay out of pocket:
- Online
- Mobile app (download through the App Store or Google Play)
You have until March 31 of the following year to submit reimbursement claims for current-year expenses.
Please refer to the plan and policy documents for additional details on the plans, including exclusions, limitations and eligibility.