Eligible Expenses:
You can use your DCA for two main types of care:
Child Care (for children under age 13)
These must be for custodial (watching/supervising) care so you can work:
- Daycare or nursery school
- After-school care
- Pre-K programs
- Day camps (not overnight)
- NOTE: Tuition for lessons, private coaching, and sports camps that are primarily instructional (i.e., teaching athletic skills rather than providing care) is considered educational. Therefore, it does not qualify as an eligible expense. If a program combines athletic instruction and custodial care, only the portion of the cost allocable to custodial care is eligible.
Adult Care (for dependent adults unable to care for themselves)
Care must allow you (and/or spouse) to work and may require medical documentation. The adult must meet IRS qualifications as a dependent.
Note: Under the DCA rules, care provided by an employee's child under age 19 or by a person for whom the employee or spouse can claim a deduction (a qualifying child or qualifying relative) does not qualify for reimbursement. But a DCA participant's child who is age 19 or over (and who is not a qualifying child or qualifying relative) may perhaps be sufficiently independent to qualify under the substantiation requirement. See IRS Publication 969 for more information.
Not Eligible:
Some expenses may seem related, but don't qualify for reimbursement through your DCA:
- Babysitting while you go out for fun or vacation
- Kindergarten or high school tuition
- Overnight camps
- Means, snacks, or food
- Medical or nursing care
- Supply, registration, or waitlist fees
- Care by a child under 19 or anyone you claim as a tax dependent
- Care that isn't provided so you can work
Note: Care must be provided by someone independent from your family or household, and you'll need proper documentation (name of provider, date of care, and cost).
