Dependent Care Reimbursement Account (DCRA) Eligible Expenses

Dependent/day care expenses include payments you make for the care of a child under age 13 and/or a dependent regardless of age who requires care due to an inability to care for him or herself, to enable you (and, if married, your spouse) to remain gainfully employed or attend school full-time.

Those dependents unable to care for themselves must spend at least eight (8) hours a day in your home for the care to be eligible, and you must declare them as a dependent (or have the ability to declare them as a dependent except for their level of gross income) on your federal tax return.

Reimbursement for amounts cannot be claimed if paid to your spouse, anyone you claim as a tax dependent, or your child under age 19. Any expenses reimbursed through your reimbursement account cannot be claimed for income tax purposes. Following are several examples of eligible DCRA expenses:

• Licensed day care facilities
• Preschool programs
• After-school programs
• In-home child and dependent care services
• Day camp expenses
• Elder care
• Any other qualified dependent care expense as defined by the IRS

These expenses must meet certain guidelines to qualify:

• The service provided must be necessary to enable you (and your spouse, if you are married) to work, look for work, or attend school full-time
• The service may be provided in your home or elsewhere, but not by anyone you declare as a dependent on your income tax return (e.g., your child or parent)
• If you use a day-care facility that cares for more than six individuals who do not reside at the facility, it must comply with all applicable state and local laws and regulations

Following are several examples of ineligible DCRA expenses:

• Transportation expenses·
• Nursing or convalescent home expenses
• Expenses incurred for your personal convenience or ease, rather than to enable you to be employed
• Expenses reimbursed or provided for under any other similar plan or program
• Dependent health care expenses (see Health Care Reimbursement Account)
• Overnight camp

This is not a comprehensive listing. A complete list is available in IRS Publication #503, "Child and Dependent Care Expenses." Visit www.irs.ustreas.gov or call 1-800-Tax-Form (1-800-829-3676) for a free copy. SelectAccount's Customer Service Phone number is 1-800-859-2144 (in the Twin Cities, 651-662-5065).