Dependent Day Care FSA


Whose Expenses Are Eligible	You can use the Dependent Day Care FSA to reimburse eligible Dependent Day Care expenses for the care of: children under age 13 whom you can claim as dependents on your federal income tax return, a disabled spouse who is physically or mentally incapable of self-care, and any other person whom you can claim as a dependent on your federal income tax return and who is physically or mentally incapable of self-care. Remember, your dependents' healthcare expenses are eligible for reimbursement through a separate account, the Healthcare FSA.
What Care Is Eligible	The Dependent Day Care FSA can be used to help cover the cost of care for eligible dependents (as noted above) so that you can work. If you are married, the Dependent Day Care can only be used: so that your spouse can work also or look for work, so that your spouse can attend school full time, or because your spouse is disabled. Eligible expenses include the following: Care provided in your home (as long as the caregiver is not one of your children under age 19, your spouse, the child's parent (if not your spouse) or any other dependent claimed on your tax return), including room and board costs of the caregiver. Care provided outside your home. The caregiver must meet the dependent care licensing requirements of the state in which care is provided. (Be sure to check your state's licensing requirements before submitting a claim.) Care provided by a housekeeper who is also responsible for providing day care. Care at a licensed day care center (for adults or children), nursery school, or summer day camp (including specialized day camps). To qualify, the school or center must comply with state and local laws, provide care for more than six nonresidents, and receive a fee for its services. Transportation charges by the caregiver to the dependent care location. Care provided by before-school and after-school programs at or above kindergarten level. Household services related to the care of an eligible dependent who lives with you. Agency and application fees required to obtain the services of an au pair or other caregiver.
How the Dependent Day Care FSA Works	You set aside money from your paycheck on a pre-tax basis (thereby reducing your taxable income) to pay for eligible Dependent Day Care expenses you incur so you can work. You can elect to have WageWorks pay your provider directly from your account or, after incurring eligible expenses (and paying the care provider), you submit a claim that is reimbursed from your account. Your claim for eligible expenses is paid up to your account balance at the time you submit the claim. If you ask to be reimbursed for an expense that is greater than the amount in your account, the excess expense is carried over until you have sufficient funds in your Dependent Day Care FSA to cover it during that calendar year. (Reimbursements are paid differently under the Healthcare FSA.) Each year, you receive a statement showing your Dependent Day Care FSA balance and any payments made from your account. You may be reimbursed for eligible Dependent Day Care expenses incurred through December 31 of the year for which you established the FSA. By year-end, if you haven't incurred sufficient eligible expenses to use up the money remaining in your Dependent Day Care FSA, you forfeit that money. You have until March 31 to submit claims for eligible expenses incurred through December 31 of the previous year.
How Much You Can Contribute	You can set aside up to $5,000 (with an annual minimum of $50) per full calendar year in the Dependent Day Care FSA. Your contribution is automatically deducted from your pay on a pre-tax basis and redirected into your account in equal amounts throughout the year. If you are married, the most you and your spouse can contribute to Dependent Day Care FSAs is $5,000 per year. If you are married and file your tax return separately from your spouse, the most you can contribute is $2,500. Other limits may apply, especially if your spouse does not work. If you begin participating midway through the calendar year, the amount you can contribute will be prorated. For example, if you do not open an account until July 1, you should elect to contribute only $2,500 (half of the $5,000 allowed per full calendar year) over the remaining half of the year.
Company Match	McGraw-Hill offers a company match for employees who make less than $85,000 per year. The company will contribute $1 for every $1, up to $1,000. Employees who earn over $85,000 per year will not be eligible for the company match.
Filing Claims	You have until March 31 of the following calendar year to submit claims for expenses incurred during the current calendar year. Claim forms are available: at www.wageworks.com on the Human Resources Portal of The McGraw-Hill Companies Intranet, from the Forms page, and from WageWorks at 1-877-924-3967.