While your Dependent Care Flexible Spending Account (FSA) is designed to be simple, all Dependent Care FSAs are governed by pretty strict rules set by the IRS.
1. Know Who’s Eligible
Your Dependent Care FSA can be used to pay for eligible dependent care expenses for:
- A dependent child(ren) under the age of 13 who resides with you and for whom you are entitled to a personal tax exemption as a dependent
- A spouse or other tax-dependent who resides with you and is physically or mentally incapable of self-care
2. Know What’s Eligible
Your Dependent Care FSA can be used to pay for dependent care services, such as preschool, summer day camp, before or after school programs, and child or elder daycare, so you, and your spouse if you are married, can work or look for work. It should be noted that fees and tuition associated with kindergarten and elementary school are not eligible for reimbursement. Look up a specific eligible expense, or log into your Kazdon account for a complete list.
3. Keep Your Receipts
The IRS has specific rules for Dependent Care FSAs. Save receipts for each eligible expense you submit for reimbursement under your Dependent Care FSA. Make sure receipts include the following five pieces of information:
4. Dependent Care FSA Management Made Easy.
Kazdon makes it easy to manage your Dependent Care FSA. Log into your Kazdon account via a secure web portal or the Kazdon mobile app regularly to check balances, view claims, verify expenses, upload copies of receipts, and more! Sign up to receive email alerts so you won’t miss important notices and always know what’s going on with your account.