Page 39 - 2020 Benefits Guide

Dependent Care FSA

The Dependent Daycare FSA offers a Forfeiture of Benefits
convenient way to use pre-tax dollars Be conservative in estimating health and
to pay for eligible child and elder care dependent care expenses. You will forfeit
expenses (generally expenses you incur amounts remaining in your Health Care
so that you can work). Enrollment is not and/or Dependent Care FSA account(s) for
automatic. You must actively enroll in the which you are unable to claim reimbursable
Dependent Care FSA each year. expenses. Funds DO NOT roll over from
year-to-year. Unlike an HSA, you must use
Contributions are deducted from each the funds in your FSA by December 31,
paycheck and deposited into an account 2020, or you lose them. Deadline for claims
that may be accessed with a claim form.
submission: All claims for reimbursement
The Dependent Daycare FSA has for the 2020 plan year must be filed with
IRS limitations of $5,000 per year and WageWorks prior to March 31, 2021.
further limitations for certain married Expenses You Can Pay with a
participants. Your taxable income will be Dependent Daycare FSA:
reduced by the amount you set aside for Child Care (while you work) for child(ren)
your FSA every pay period. It is important under age 13, provided by
to estimate the amount of your out-of- ; After school program
pocket expenses carefully and plan your ; Daycare center
payroll contributions accordingly. ; An individual who is NOT also your tax
dependent
Unlike Health FSA, the Dependent Care ; Summer day camp
FSA can only reimburse you for amounts
you have on deposit as you incur claims. Elder Care (of your tax dependent)
You must incur reimbursable Dependent ; In your home
Care expenses during the 2020 plan year ; Adult daycare
or during your benefit period if enrolling
as a newly eligible employee.
NOT REIMBURSABLE:
Before you enroll in Dependent 4 Health care expenses of your child or
Daycare FSA, note this account is other dependent
NOT for reimbursement of depen- 4 Babysitting for non-work related
dent health care expenses! activities
Do not enroll in this plan unless you 4 Dance lessons
expect to incur eligible expenses, 4 Tutoring services
such as daycare services that can be 4 Field trips
substantiated with a receipt. 4 Dog walking
Astrid Morales, Office Manager
Also consider: Compare the Dependent Tampa, FL Yard
Daycare FSA to the Federal dependent
care tax credit to see which approach
provides you with the better tax
advantage. In some cases, you may
be able to split your eligible expenses
between a Dependent Care FSA and the
tax credit. You may wish to consult your
tax advisor.
3838