WHAT'S ELIGIBLE / WHAT'S NOT (continued)

Dependent Care expenses that do qualify for reimbursement.

Expenses necessary for you and your spouse (if married) to be gainfully employed.

• Nanny expenses, for services provided inside your home, are eligible to the extent they are attributable to dependent care expenses and expenses of incidental household services.
• Dependent care expenses incurred for services outside your home, providing they are incurred for the care of a qualifying dependent that regularly spends at least 8 hours per day in your home.
• Registration fees to a daycare facility are eligible as long as the fees are allocable to actual care and not described as materials or other fees.
• Nursery school expenses are eligible, even if the school also furnishes lunch and educational services.
• Food and incidental expenses (diapers, activities, etc.) may be eligible if part of dependent care charge.
• Expenses paid to a relative (e.g. child, parent, or grandparent of participant) are eligible. However, the relative cannot be under age 19 or a tax dependent of the participant.
• FICA and FUTA payroll taxes of the daycare provider are eligible.
• Dependent care expenses incurred to enable the employee to find work are eligible.
• The reimbursement may not exceed the smaller of the following limits:
• The maximum allowed under the plan.
• $5,000 (if you are filing a joint tax return) and $2,500 if separate returns are filed.
• Your taxable compensation (after all compensation reduction elections).
• If you are married, your spouse's actual or deemed earned income.

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