Tips for Using the Dependent Care Fund
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- When you enroll, you specify the amount you can use in one year.
- Your contributions are automatically deducted from each pay in equal amounts throughout the year.
- The money in your account can be used to cover the costs of care for your dependent children under age 13 or adult day care while you or your spouse work or attend school full time. For a complete list of eligible expenses, see IRS Publication 503.
- You have access only to the money currently in your account. This means that your account balance at the end of January will be whatever amount was deducted from your pay(s) during that month.
- You can use the funds in your account only for eligible expenses incurred during the same calendar year.
- After you have paid for a dependent care service, you can file a claim for reimbursement from your account. Note: You should wait to file a claim until there is enough in your account to cover the amount of the claim. Otherwise, you'll be reimbursed up to the balance in your account when you file the claim. You will be reimbursed for the remainder of the claim after enough money has been credited to your account through future payroll contributions.
- You have until March 31 of next year to file claims for this year's eligible expenses.
- You'll lose any money in your account that is not used by December 31.
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