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)
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).
