Elder and adult dependent day care expenses
that qualify must allow you and your spouse, if
you are married, to work or look for work:
  • Housekeeper and nurse's fees, for services
     provided inside your home, are eligible to the
     extent they are attributable to elder care
     expenses and expenses of incidental household
     services  
  • Food and incidental expenses may be eligible
     if part of dependent care charge
  • Expenses paid to a relative (e.g. child) are eligible.
     However, the relative cannot be under age 19 or
     a tax dependent of the participant
  • FICA and FUTA payroll taxes of the day care
     provider

For additional information CLICK HERE to view
IRS Publication 503.

Elder and adult dependent care expenses that
DO NOT qualify for reimbursement:
  • Overnight stays at medical or recreational facilities
  • Food, transportation, and incidental expenses
    (diapers, activities, etc.) are not eligible if charged
    separately from dependent care expenses
  • Expenses paid to a housekeeper, maid, cook, etc.
     are not eligible, except where incidental to adult
     dependent care
  • Mass transit and parking

How does this plan compare to the credit on
my Form 1040?
Whether or not to participate in the Dependent Care
Benefit (DCB) or to take the tax credit when you file
your taxes depends on your income, filing status,
number of dependents, and annual dependent care
expenses. Use our easy calculator to determine
your savings.

Limitations: Adult dependent care expenses
may not exceed the smaller of the following
limits:
  • The maximum allowed under the plan
  • $5,000 (if you are married and filing as single,
     head of  household) and $2,500 if you are married
     and separate returns are filed.
  • Your taxable compensation (after all compensation
     reduction elections). If you are married, your
     spouse's actual or deemed earned income.
  • Eligible expenses include day care costs for
     dependent elders or a dependent who is physically
     or mentally incapable of self care
  • The dependent must spend at least 8 hours a
     day in your household