Eligible expenses that can be paid from the Dependent Care Account include care provided:
- Inside or outside the home, the care must be provided by someone other than:
- The participants spouse
- A person listed as the participant's dependent for income tax purposes; or
- A participant's child under age 19
- In a dependent care center or a child care center, which meets all applicable state and local regulations
- By a housekeeper whose services include, in part, providing care for a qualifying individual.
An eligible dependent must share his or her principle place of residence with the participant and be one of the following:
- A qualified dependent child under age 13 who lives with the participant for more than half of the year
- A qualified dependent child, a qualified relative dependent or your spouse who is physically or mentally unable to care for him or herself
- An elderly parent and qualify as an eligible dependent.
What Expenses Are Not Eligible?
Expenses that cannot be paid from the Dependent Care Spending Account include:
- child support payments
- food, clothing and entertainment
- cleaning and cooking services provided by the care giver
- over night camps
Note: Please refer to the IRS publication 503, "Child and Dependent Care Credit" as a guide to covered and non-covered expenses.