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Dependent Care Assistance Program (DCAP) Examples of Eligible and In Expenses A Dependent Care Assistance Program (DCAP) may also be referred to as a Dependent Care Expense Account (DCE). It allows you to set aside pre-tax dollars to use toward childcare and eldercare. A DCAP account is funded on an accrual basis and funds become available when employee payroll deductions are received and posted. All must be incurred for the care or household services that include the care of one or more qualifying individuals. A qualifying individual is either 1. a dependent under the age of 13, or 2. physically or mentally unable to care for themselves and lives with the employee more than half of the year, or 3. a spouse of the employee who is physically or mentally unable to care for themselves and lives with the employee more than half of the year. To be considered for care, the service must primarily be to protect the individual and their well-being. Educational, for example are generally in. Expenses must be employment-related, meaning they allow for the gainful employment of the employee and spouse seeking reimbursement. Only incurred during the period of service are. Deposits, for example, are not reimbursable until the care is provided. Please Note: The individual for which you are seeking reimbursement cannot be claimed using the Dependent Care Tax Credit or any other credit (no double dipping). The following are commonly requested for reimbursement from DCAPs. This list is not comprehensive and is subject to change. In order for any expense to be under your DCAP, supporting documentation is required. Documentation must include: the date the service was incurred (not necessarily equal to the date of payment) a brief description of the service or product, the amount paid for the service On the next page is a list of and potentially with the Dependent Care Assistance Program.

After-school care or extended day programs Agency fee Application fee Only if it enables gainful employment of the employee and spouse. While not generally educational, some of an educational nature (e.g., tuition) are in. Eligible if it must be paid as part of the related care. If the fee is forfeited (e.g., the employee uses a different agency), it will not be reimbursed. Eligible if it must be paid as part of the related care. If the fee is forfeited (e.g., the employee uses a different agency), it will not be reimbursed. Assisted living See also Custodial care and Elder care. Au pair Babysitter (inside or outside participant s household) Backup or emergency care Before-school care or extended day programs Boarding school May be if the au pair provides care to a qualifying individual. Up-front fees may also be if they must be paid to employ the au pair, but they will not be reimbursed until care is provided. Eligible to the extent that the babysitter is (1) over the age of 18 and is not the employee s child, stepchild, or foster child; (2) not claimable on IRS Form 1040 by the employee and spouse; (3) not the spouse of the employee; (4) not the parent of the dependent. Payment for a babysitter while an employee and spouse go out for non-work-related events (e.g. dinner) is generally in. Eligible if it enables gainful employment of the employee and spouse (e.g. regular care provider is ill or closed for the day, child is too ill to go to regular care center). Only if it enables gainful employment of the employee and spouse. While not generally educational, some of an educational nature (e.g., tuition) are in. Generally in. The portion of the cost that is for care may be reimbursable as an employment-related expense (e.g. the employee must be away for work and therefore sends their child to boarding school). See also Overnight camp. Camp See Day camp and Overnight camp. Child of employee, amounts paid to Child support payments Classes (music, dance, swimming, etc.) Clothing Custodial care Day camp Dependent care center Eligible In In Children under 19 are in. Children age 19 or over are only if neither the employee nor spouse claims the child on their taxes. See also Relative. Food and lodging is not considered to be for care. Not considered for care because they tend to be educational. See also Day camp. May be if considered an inseparable part of dependent care (e.g., preschool T-shirt included with the care). Eligible to the extent that (1) care is primarily for the qualifying individual s well-being and protection; (2) the qualifying individual (excluding a qualifying child under 13) is at the home of the employee 8 hours or more during the day. See also Elder care and Sick-child facility. May be if it is to care for a qualifying individual, even though it may specialize in a specific activity (e.g., sports). Equipment or other associated fees are in. May also be considered a Dependent care center. See also Dependent care center. Summer school is primarily for education and is in. See also Tuition. The center must be incompliance will all applicable laws. May also be considered a day camp. See also Day camp.

Deposit Disabled qualifying child under age 13 Educational Elder care Entertainment FICA and FUTA taxes of provider Food Hold-the-spot fee Household services Incidental Kindergarten Late fees Lessons Long-term care Looking for work Nanny Nursery school Nursing home In In Eligible if it is required to obtain the care and only after the service is provided (e.g., payments required at the time of registration). Forfeited fees are in. Eligible if it enables the employee and spouse to be gainfully employed. Other restrictions may still apply. See Kindergarten or Preschool/nursery school. Eligible to the extent that (1) care is primarily for the qualifying individual s wellbeing and protection; (2) the qualifying individual (excluding a qualifying child under 13) is at the home of the employee eight hours or more during the day. Continuous care at a nursing home is in. See also Custodial care. Small charges may be if considered an inseparable part of dependent care. Charges separate from dependent care are in. Eligible if the care provider s total are Small charges may be if considered an inseparable part of dependent care (e.g., lunch included with daycare). Charges separate from dependent care are in. May be if it is required to re-attain care from the provider when it is needed in the future (e.g. parent is home during leave, then resumes work). In if the care is not resumed with the same provider. May be if care of a qualifying individual is part of the duties. examples: housecleaning services, housekeeper, maid, cook. In examples: bartender, chauffer, gardener, home security system. Likely to be carefully examined by the IRS. May be if they are considered an inseparable part of dependent care. Separate are in. Not considered for care because it is primarily educational. See also After-school care and Likely if for late pickup because payment is for additional care of the child. Fees for late payment are in. Not considered for care because it is primarily educational (e.g., music, sports). See also Day camp for examples. See Custodial care and Elder care. Eligible if the employee is actively looking for work because it enables gainful employment. In if the employee does not find a job and has no income. Likely if payment is for care of a qualifying individual. See also Au pair and Registration fees. See Preschool/nursery school. See Elder care.

Overnight camp Parent of employee s under-age-13 qualifying child Part-time employment Placement fees for finding a dependent care provider Preschool/nursery school Recreation Registration fee Relative Self-employment, Services provided outside U.S Sick-child facility Sick employee (payments to provider for periods when sick employee stays home) In In In Not considered to enable gainful employment of the employee and spouse. See also Day camp. See also Relative. May be if payment for care covers period that includes work and non-work days (e.g., weekly or monthly daycare payments). Daily payments are only for working days. Not considered required to obtain care. May be if required to obtain care. See also Au pair. Programs below Kindergarten are considered to be for care. Must also allow gainful employment of the employee and spouse. Small charges may be if considered an inseparable part of dependent care. Charges separate from dependent care are in. Eligible if it is a requirement to obtain the care. Fees not likely to be reimbursed until the care is provided. Forfeited fees are in. See also Deposit. Eligible to the extent that the relative is (1) over the age of 18 and is not the employee s child, stepchild, or foster child; (2) not claimable on IRS Form 1040 by the employee and spouse; (3) not the spouse of the employee; (4) not the parent of the dependent. Payment to a relative while an employee and spouse go out for non-work-related events (e.g. dinner) is generally in. Eligible if are incurred for care services. Eligible if the service provided is for care and enables the employee and spouse to be gainfully employed. Foreign care providers are not required to obtain a U.S. tax ID in order to be reimbursed for the service. Only if it enables gainful employment of the employee and spouse and the primary purpose is dependent care. Eligible if the absence is less than two consecutive weeks and the employee is required to pay for care. Other absences are unlikely. See also Hold-the-spot fee. Spouse of employee In See also Relative. Summer day camp Summer school Transportation Tuition In In See Day camp. Not considered for care because it tends to be educational. See also After-school care and Eligible if the transportation is to or from the place of care and the transportation is provided by the dependent care provider. Other may be if they are considered an inseparable part of dependent care. Likely to be carefully examined by the IRS. Not considered for care because it tends to be educational. See also After-school care and

Tutoring programs In Not considered for care because it tends to be educational. Unemployment Vacation Volunteer work In See Looking for work (e.g., that allow an employee to actively seek employment). Eligible if the absence is less than two consecutive weeks and the employee is required to pay for care during the absence (e.g., monthly daycare payments where the absence occurs during that period). Other absences are unlikely. See also Hold-the-spot fee and Parttime employment. Not considered the enable gainful employment of the employee and spouse. May be if paid significantly for the work. FSA Dependent Care Assistance Plan (DCAP) Accounts Frequently Asked Questions When will I have access to my entire DCAP election? You will have access to the funds as they are deposited into the account by your employer. What if I submit my dependent care receipt before I ve accrued enough through payroll reductions to cover that expense? For dependent care, reimbursement is available only after those funds have been payroll deducted by your employer and transmitted to us. If you have a portion of the funds available when we receive your request, we ll issue a partial reimbursement right away. We will issue a reimbursement for the balance of your request as soon as adequate funds become available. What is the turnaround time for processing and reimbursing a DCAP reimbursement request? Reimbursement takes about one week from the date we receive your dependent care claim, as long as those funds have already been payroll deducted by your employer and sent to us. How far in advance can I claim for DCAP? We will process a claim received up to two weeks in advance of the upcoming month. How do I submit a claim? Complete and sign a Request for Reimbursement from FSA or HRA form or login to MyFlex and submit a claim along with your documentation. If your dependent care are consistent, consider setting up recurring reimbursements see next question for more information. How do recurring reimbursements work? Simply complete our Dependent Care Recurring Expense form, have your dependent care provider complete their portions, and then send it to us via MyFlex, fax, or mail. Once it s set up, you won t need to submit any additional documentation. As we receive payroll deductions, we ll automatically generate recurring reimbursements based on a flat weekly, biweekly, or monthly rate. The arrangement is valid for the duration requested or for the current plan year, whichever is less. If you need to make a change to your recurring reimbursement before the plan year is over, simply submit a new form, and we ll make the adjustment. CLB338 0617