A qualifying dependent is defined by the IRS as:

• Your qualifying child who is your dependent and who was under age 13 when the care was provided;
• Your spouse who was not physically or mentally able to care for himself or herself and lived with you for more than half the year; or
• A person who was not physically or mentally able to care for himself or herself, lived with you for more than half the year, and either was your dependent, or would have been your dependent except that he or she received a gross income of $3,900 or more, filed a joint tax return, or you (or your spouse if filing jointly) could be claimed as a dependent on someone else’s tax return.

All of the following must be true about the care:

• The care is provided while you work or to enable you to look for work. If you are married, the care is provided while your spouse also works or to enable your spouse to look for work or go to school full-time (at least five months a year) or while your spouse is incapable of self‑care.
• The care is provided when the dependent meets the definition of a qualifying child or relative (per the IRS, based on a tax year).
• The care may be provided by a relative or non-relative but cannot be provided by your child under the age of 19 (tax dependent or not), the child’s parent, or another tax dependent.
• Your care provider conforms to state and local laws (including being licensed, if required) and is able to provide you with his/her Social Security or Tax ID number. You will need this when filing the Form 2441 with your income taxes.
• Disregard temporary absences due to illness, education, business, vacation, or military service. You must maintain a home for the person during the temporary absence and the person must be expected to return after the absence.

If you are divorced or separate from your spouse and are a parent, IRS guidelines state that even if you cannot claim your child as a dependent, he or she is treated as a qualifying person if:

• The child was under age 13 or was not physically or mentally able to care for himself or herself;
• The child received over half of his or her support during the calendar year form one or both parents who are divorced or legally separated under a divorce or separate maintenance decree, or are separated under a written separation agreement, or lived apart at all times during the last 6 months of the calendar year;
• The child was in the custody of one or both parents for more than half the year; and
• You were the child’s custodial parent.

  The “custodial parent” is the parent with whom the child lived for the greater number of nights during the past calendar year. If the child was with each parent for an equal number of nights, the custodial parent is the parent with the higher adjusted gross income. The noncustodial parent cannot treat the child as a qualifying person even if that parent is entitled to claim the child as a dependent under the special rules for a child of divorced or separated parents.

  Check with your legal or tax advisor to see if special rules apply to you that would enable your child to be claimed by the noncustodial parent or by both parents.

Here’s an example. Your employer’s plan year runs from January 1, 2023 through December 31, 2023, and you will be covered for the entire plan year. Your daughter is a qualifying child until her 13th birthday on August 1, 2023, and is not a qualifying child or relative as of August 1, 2023. The Dependent Care services provided for your daughter between January 1, 2023 and July 31, 2023 are eligible to be paid from your account. The Dependent Care services provided for your daughter on August 1, 2023 and later are not eligible because she is not a qualifying child or relative at the time the services are provided.

The same example applies for a qualifying relative who becomes capable of self‑care on August 1, 2023. If your employer’s plan allows all federally-recognized changes, both events (your daughter’s 13th birthday and a person ceasing to be a dependent) are qualified change events that will allow you to decrease your election or cancel your enrollment in your WageWorks Depenent Care FSA.

The amount you contribute to your Dependent Care FSA cannot be changed during the year unless you experience a change in status or a change in the cost or coverage of services. As determined by the IRS, a change in status is an event that causes your dependent to meet or no longer meet eligibility requirements.

• Change in legal marital status
• Change in number of dependents due to birth, adoption, or death
• Change in employment status
• Change in cost or coverage charges

Families often need help with child and elder care. A Dependent Care Flexible Spending Account (FSA) lets you save on Dependent Care expenses using pre-tax dollars. You can spend your Dependent Care savings account funds on a wide range of care for eligible members of your family. Some of the expenses covered include senior care, child care, babysitting, before/after-school programs and sick child care.

Dependent Care expenses must be incurred to enable you (and your spouse if married) to work or look for work. Work may include actively looking for work but does not include unpaid volunteer work, or volunteer work for a nominal salary. Your spouse is considered to have worked if he or she is a full-time student for at least five calendar months during the tax year, or if he or she is physically or mentally incapable of self‑care.

Expenses you pay for Dependent Care while you are off work due to illness are not eligible for reimbursement.

To find out more about what expenses are covered by your Dependent Care Flexible Spending Account (DCFSA), please visit the Qualified DCFSA Expenses Page.

We make it as easy as possible to use your Dependent Care FSA. You can pay for eligible expenses in two ways:

• Pay My Provider: Tell us how much and when to pay your provider and we’ll send a check directly from your Dependent Care savings account.
• Pay Me Back: If your expenses are unpredictable, pay for them yourself and then get reimbursed via check or direct deposit.

If your claim amount is more than what you have in your Dependent Care account and you submit a Pay Me Back claim, we will reimburse you up to the amount that is in your account and hold the rest of your claim until your account is funded. At that time, we will reimburse you for the rest of our claim. If you submit a Pay My Provider claim, the claim will be denied due to insufficient funds.

No, you will only have access to Dependent Care funds that have been deducted from your pay check each pay period.

Your election may not exceed the maximum amount specified in Section 129 of the Internal Revenue Code. Currently, the maximum annual amount is $7,500 per year ($3,750 if you are married and file separate returns). Your maximum allocation may not exceed the earned income limitation. If you are single, the earned income limitation is your salary (excluding your contributions to the plan). If you are married, the earned income limitation is the lesser of your salary (excluding your contributions to the plan) or your spouse’s salary.

If you are married and file a joint tax return, the maximum amount you may exclude is $7,500. In other words, you and your spouse may not each claim $7,500. The maximum amount available if you are married but filing separate returns is $3,750. Please note you may not “double-dip” expenses (e.g., expenses reimbursed under your Dependent Care FSA may not be reimbursed under your spouse’sDependent Care FSA and vice versa).

A qualifying individual is any of the following:

• A dependent under the age of 13 who resides with you and for whom you are entitled to a personal tax exemption as a dependent; however, if you are divorced, the child is a qualifying individual with respect to you if the child lives with you even if you have permitted the non-custodial parent to take the exemption.
• A spouse or other tax dependent who resides with you and is physically or mentally incapable of self‑care.

Learn more about qualifying dependents here.

No. Fees associated with kindergarten as well as tuition for children in first grade and above are not eligible for reimbursement under a Dependent Care FSA. Expenses related to before and after school care or nursery school expenses are eligible if the care is primarily custodial in nature.

For a list of eligible Dependent Care expenses, please click here.

Your election is irrevocable for the plan year unless you have a change in status or other qualified event as defined in the IRS Regulations and your employer’splan permits such qualified changes.

• A change in marital status (such as marriage, divorce or death of your spouse)
• A change in the number of your dependents (such as birth or adoption of a child, or death of a dependent)
• A change in employment status of you, your spouse or dependent
• An event that causes your dependent to satisfy or cease to satisfy an eligibility requirement for a particular benefit
• A change in residence of you, your spouse or dependent
• A change in cost in coverage

Your requested change must be consistent with a qualifying event. If you experience a change in status or other qualified event, please contact your HR representative to obtain the appropriate paperwork for completion.

All money contributed to a Dependent Care FSA must be used to reimburse qualified expenses incurred during that plan year. Money not used to reimburse eligible expenses is forfeited.

The unused portion of your Dependent Care FSA may not be paid to you in cash or other benefits, including transferring money between FSAs. To reduce the risk of forfeiture, it is critical for you to be conservative when choosing your annual election amount. Our online savings calculator can help you estimate your annual expenses.

You may not claim any other tax benefit for the tax-free amounts received by you under the Dependent Care FSA, although the balance of your eligible employment-related expenses may be eligible for the Dependent Care credit. Please consult your tax advisor to determine whether the tax credit may be more favorable to you than participating in the Depenent Care FSA.

You can pay many of your Dependent Care expenses directly from your FSA account, with no need to fill out paper forms or send in receipts. It’s quick, easy, secure, and available online at any time.

To pay a provider:

1. Log into your Dependent Care Flexible Spending Account (DDFSA) account or use the unique account url provided by your employer. Click “Submit Receipt or Claim.”
2. Request “Pay My Provider” for healthcare or Dependent Care and follow the instructions.
3. You’ll need to enter the provider’sfull name, mailing address, and phone number (and for Dependent Care providers, Social Security number or tax ID number as well.) Make sure to have your bill handy when you log in. You will need to upload a copy of your documentation when submitting your claim online.
4. When you’re done, we will send a check directly from your account. If you pay for eligible recurring expenses like after school care or in-home nursing care, follow the online instructions to set up automatic monthly payments.

If you do need to submit a receipt for reimbursement you have several options:

1. Snap a photo of your receipt or have your provider sign for services directly in the EZ Receipts Mobile Application^™.
2. Go online and submit your receipt directly through Pay Me Back.