Dependent Care FSA
The Dependent Care Flexible Spending Account reimburses you for eligible dependent care expenses. Eligible expenses include day care for your children under age 13 or a disabled dependent of any age when the care enables you (and your spouse, if you are married) to work. If you participate in this account, DallasNews Corporation also makes a contribution on your behalf.
Who Is Covered
You may use the Dependent Care Flexible Spending Account to pay for eligible day care or elder care expenses for dependents who depend on you for at least half of their support and whom you can claim on your federal income tax return. These must be eligible dependent care and eligible elder care expenses you incur for the care of your dependents while you are working to enable you (and your spouse, if you are married) to work.
To qualify as a dependent, the person must be:
Under age 13
A person over age 13 (including your child, spouse or parent) if the person meets all of the following criteria:
Lives with you and depends on you for more than half of his or her financial support
Is physically or mentally incapable of self care
Is claimed as a dependent on your federal income tax return
Your Contributions
Federal tax rules regarding your family and tax filing status determine the maximum amount you can contribute per calendar year. The following table illustrates the amounts you are permitted to contribute to your Dependent Care Flexible Spending Account according to your circumstances. Keep in mind that these maximums also include the company’s dollar-for-dollar matching contributions.
Description | Maximum Annual Contribution |
You are single or married and filing a joint income tax return | $5,000 |
You are married and both you and your spouse are making contributions to a dependent care account | Total of $5,000 (your contribution + your spouse’s contributions) |
You are married and you and your spouse file separate income tax returns | $2,500 |
You may not contribute more than your earned income or your spouse’s earned income, whichever is less. If your spouse is a full-time student or is unable to care for himself or herself, you may calculate your contribution amounts as if your spouse had annual earned income of $3,000, if you have one qualified dependent, or $6,000, if you have two or more qualified dependents.
Company Contributions
DallasNews Corporation will contribute up to $20 per week on a dollar-for-dollar match if you participate in the Dependent Care Flexible Spending Account (not to exceed $1,040 annually). Take this into account when deciding how much to contribute during enrollment. To be sure your total contribution is within the $5,000 legal limit, during annual enrollment the most you can elect to contribute from your paychecks is $3,960 each year.
Getting Reimbursed
Here is how the Dependent Care Flexible Spending Account works:
Pay your dependent care expense and submit a claim form with proof of the expense to the claims administrator. Proof of expense is an itemized bill from the provider showing:
The date(s) of service
The name(s) of the dependents who received the service
Cost of service provided
You will be reimbursed up to the amount currently in your account. If your claim is more than your account balance, the unreimbursed amount will pend and will be reimbursed after your next contribution (up to your current account balance).
You may obtain a
claim form from this site (see left navigation), the
claims administrator or by going to the TaxSaver Web site at
www.taxsaverplan.com. Your claim must be postmarked by April 30 of the following year to receive reimbursement. Any money left in your account after April 30 will be forfeited, as discussed in
Use It or Lose It Rule.
Eligible Dependent Care Expenses
To qualify as an eligible dependent care expense, the expense must be necessary for you (and your spouse, if you are married) to work or be a full-time student.
Here are some examples of expenses that are eligible for reimbursement:
Charges for a licensed day care center if it provides care for at least six people and complies with state and local laws
Dependent care in your home or someone else’s home, as long as the care provider is not your spouse or dependent child
Day care services outside your home, as long as the dependent spends at least eight hours a day in your home, or is under age 13
Education expenses if your child is not yet in kindergarten
Day camp expenses for children under age 13
Other expenses that satisfy IRS guidelines are described in IRS Publication 503 and included on the TaxSaver Web site at
www.taxsaverplan.com.
Ineligible Dependent Care Expenses
Here are some examples of expenses that do not qualify for reimbursement through the Dependent Care Flexible Spending Account:
Weekend or evening baby-sitting when you or your spouse are not at work
Overnight camp
Schooling in kindergarten or higher
Transportation services
Expenses for activities or lessons when a separate fee is charged through day care or camp
Tax Considerations
The Dependent Care Flexible Spending Account is one way the government allows you to receive a tax break on your dependent care expenses. You may choose not to participate and pay dependent care expenses with after-tax dollars and take a credit on your federal income tax return instead. You may also use a combination of the two within certain limitations:
The tax credit and the Dependent Care Flexible Spending account cannot be used for the same expenses.
Any expenses reimbursed through the account will reduce your tax credit dollar-for-dollar. For example, if your expenses were $2,300 and you contributed $2,000 to your Dependent Care Flexible Spending Account, you would be able to claim a tax credit for $300 ($2,300 – $2,000 = $300). This example assumes you qualify for a tax credit. Some people may not qualify.
DallasNews Corporation cannot provide tax advice, nor suggest how much to contribute to the Dependent Care Flexible Spending Account. You must decide which tax-saving method, if any, is best for you. Of course, the advantages of using before-tax dollars depend on your individual circumstances. While before-tax dollars reduce your taxes, they may slightly lower your Social Security benefits when you retire. Consult a financial advisor before participating.