HR Fast Facts: What Are Eligible Child & Elderly Care FSA Expenses?
Learn about eligible and ineligible dependent care FSA expenses here.
Child & Elderly Care FSAs can be used to pay for care provided to qualified dependents so that the employee can continue working. Here are some examples of eligible expenses.
Eligible expenses
Some common eligible expenses:
- The cost of a babysitter or daycare provider for a dependent aged 12 and under is eligible, if the employee and/or spouse require the service so they can work.
- Day care, after-school care, Pre-K, and day camps are generally eligible.
- Custodial care of an adult dependent who is mentally or physically incapable of caring for himself or herself can be eligible, so that the employee can work. Please note that requirements are very specific for adult dependents and may require medical documentation.
See IRS Publication 503 for a comprehensive list of eligible Dependent Care expenses.
Ineligible Child & Elderly Care FSA expenses
- Anything not directly related to custodial care, such as supply fees, food/meals, etc.
- Education tuition for grades Kindergarten and above
- Overnight camps
- Custodial care that is not for the express purpose of allowing the parent(s) to work, such as babysitting while the parent goes to dinner, on vacation, etc
- Any expenses for adult dependents that are related to medical/nursing care or food/meals are ineligible
