Dependent Care Flexible Spending Accounts

Maximum Contributions

The annual maximum contribution to a dependent care account is $5,000 for any tax year. The plan year is based on the calendar year. Married individuals who file separately may contribute $2,500 each. Contributions to dependent care accounts cannot exceed the income earned by the lower-paid spouse. Make a conservative estimate for any anticipated eligible dependent care expenses incurred during the plan year because any amounts left over or not used will be forfeited per IRS regulation. Employees should monitor accounts closely, especially toward the end of the plan year.

Contribution Limitation

Participants need to choose between electing a dependent care reimbursement account and receiving the dependent care tax credit. The dependent care tax credit maximum is directly reduced by each dollar placed into a reimbursement account.

Filing Claims

Employees first pay any fees owed to dependent care providers. Once an employee pays an eligible expense, the employee files a reimbursement claim using the Dependent Care Reimbursement Request providing funds are available in the employee's FSA. Reimbursement checks are payable directly to employees once Crosby receives a reimbursement claim form with attached documentation of expenses. Many employees choose to submit claims on a monthly basis, though claims may be submitted at any time during the plan year. Note that dependent care claims must be submitted within the same calendar year that they are incurred or they will not be reimbursed. Employees will receive an explanation of benefits from Crosby upon reimbursement.

If You Are Divorced or Separated

If an employee is divorced or separated from a non-working spouse and has dependents, the employee may be eligible to join the plan. Please check with Human Resources to determine eligibility.

Who Qualifies as a Dependent?

According to the IRS, a dependent is an individual that the taxpayer can claim on a federal tax return and is one of the following:

• Under the age of 13, or
• Over the age of 14 and physically or mentally incapable of self-care, or
• A spouse of the taxpayer who is physically or mentally incapable of self-care.

Qualifying Expenses

Qualifying expenses must be employment-related expenses incurred for the care of a dependent of the employee. Examples include:

• Baby-sitters
• Day Care centers
• Nursery School
• After-school care
• Home health care for a physically disabled child or adult

Download Reimbursement Form (Acrobat PDF)