A Dependent Care FSA is the smart way to help pay for eligible dependent care expenses. Here is a list of those expenses.
Camp activities
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X
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Separately-stated fees for non-elective activities required for day camp participation are reimbursable.
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X
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Separately-stated fees for elective activities are not reimbursable.
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| Camp, day
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X
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The cost of day camp, including specialized day camp (for ex., soccer camp, computer camp, etc.) is reimbursable. Also see Camp activities; and Recreation fees.
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| Camp, overnight
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X
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The cost of overnight camp is not reimbursable, even when the daytime portion is broken out. Overnight camp is not considered an eligible expense by the Internal Revenue Service (IRS).
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| Care at night
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See Nighttime care.
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Care during a layoff or strike
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X
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The cost of care while the participant is on strike or has been laid off (participant is not gainfully employed) is not reimbursable. If actively seeking employment, see Care while looking for work.
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Care during a short, temporary absence from work
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X
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If the FSA participant must pay for dependent care expenses on a periodic basis (for ex., weekly or monthly) and the absence is short and temporary, the cost of care for a period that includes the absence and the work days is reimbursable. Note: The determination of an absence as short and temporary is based on the facts and circumstances of each person’s situation.
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| Care when one parent works days and other parent works nights
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X
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The cost of care when one parent is working and the other parent is sleeping is reimbursable when the care allows both parents to be gainfully employed.
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Care when participant/ participant’s spouse is employed part-time
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X
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-
For part-time employment, expenses must be allocated between days worked and days not worked.
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If payment for care is on a weekly or longer basis (i.e., must pay for care for days worked and days not worked), the cost does not have to be allocated.
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Care while living in a foreign country
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X
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For U.S. citizens working abroad and who are eligible to participate in a dependent care FSA, the cost of care is reimbursable. NOTE: The qualifying person must be a U.S. citizen or national or a resident of the U.S., Mexico or Canada.
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Care while looking for work
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X
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The cost of care while the participant or participant’s spouse is looking for work is reimbursable.
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The person looking for work must have earned income for the year.
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If married, the other spouse must be gainfully employed, looking for work, be a full-time student or be mentally or physically incapable of self-care.
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Care while on family, personal or medical leave
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X
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Generally, the cost of care while the participant is on leave is not reimbursable. Note: Individual facts and circumstances must be reviewed as other factors (for ex., one spouse being gainfully employed while the other spouse is mentally or physically incapable of self-care) may qualify the expense for reimbursement.
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Care while participant/ participant’s spouse is working at self-employment
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X
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The cost of care while the participant or participant’s spouse is self-employed with net earned income is reimbursable. Note: Self-employed persons are not eligible to participate in a flexible spending account (FSA). However, a person participating in an FSA through his or her employer may also be self-employed (separately from his or her employer relationship).
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Care while performing volunteer work
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X
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The cost of care while the participant is performing volunteer work (participant is not gainfully employed) is not reimbursable.
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Child care placement fees
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See Indirect expenses.
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| Child daycare
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X
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The cost of child daycare is reimbursable.
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| Child of FSA participant, amounts paid to
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See Relative, amounts paid to.
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| Clothing
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X
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| Convalescent home
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X
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The cost of care in a convalescent home is not reimbursable. The qualifying dependent must reside in the participant's home at least 8 hours per day; see Publication 503 at www.irs.gov.
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| Custodial care
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See Convalescent home and Elder care.
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