WSI offers a Dependent Care Flexible Spending Account (FSA) to help you pay for eligible day care expenses. You decide how much money to contribute each month (up to IRS limits), and your contributions are deducted from your paycheck before taxes — saving you money on care you’d need to pay for anyway. BenefitWallet® is our new vendor for the Dependent Care FSA.
Whether you have children under age 13, tax-dependent elderly parents or a disabled spouse/same-gender domestic partner who resides with you and requires care, this account assists with those eligible expenses. You can enroll in this account and select your contribution every year only during Open Enrollment (unless you experience a Qualifying Life Event such as the birth or adoption of a child). The IRS sets the maximum contribution, which is $5,000 (not to exceed $416.66 per month) per family, per calendar year.
Use it or lose it! Carefully estimate your contributions, because any money left at the end of the 2022-2023 plan year will be forfeited. If you become non benefits-eligible, you have 90 days to submit claims for any unused Dependent Care FSA funds in your account.
If you are single (non-head of household) or if you and your spouse/same-gender domestic partner file taxes separately, your calendar-year maximum is $2,500.
If you are designated as a highly compensated employee, you will be limited to contributing $1,500 into your Dependent Care FSA for the 2022-2023 plan year running July 1–June 30.
Dependent Care FSA Eligible Expenses
You can use your Dependent Care FSA to pay for a wide variety of child care services. The IRS determines which expenses are eligible for reimbursement, and expenses can only be reimbursed up to the amount available in your account. This list identifies some of the most common eligible dependent care expenses. For a complete list of eligible expenses, please visit irs.gov.
Here are some eligible expenses to consider:
- Before-school or after-school care (other than tuition)
- Licensed day care centers
- Nursery schools or preschools
- Placement fees for a dependent care provider, such as an au pair
- Child care at a day camp, nursery school or by a private sitter
- Late pick-up fees
- Summer or holiday day camps
For more information about your Dependent Care FSA, access these helpful BenefitWallet resources: