Employee Benefits

Dependent Care Flexible Spending Account Eligibility

The Working Families Tax Relief Act of 2004 changed some of the tax laws with regard to Dependent Care Flexible Spending Accounts, including the eligibility requirements for expenses under a Dependent Care Flexible Spending Account. The Open Enrollment Newsletter sent in April 2004, did not reflect this change.

Dependent Eligibility Under a Dependent Care FSA

Expenses for the care of a qualifying individual are eligible under a Dependent Care Flexible Spending Account if they are necessary in order to allow you to work and are for the care of:

1. Your child or children age 12 or younger;
2. Your spouse who is physically or mentally incapable of caring for himself or herself and resides with you for more than one-half of the calendar year; or
3. Your other dependent (e.g., your parent or child age 13 or older), who is physically or mentally incapable of caring for himself or herself and resides with you for more than one-half of the calendar year (to be considered your "dependent" the individual must be someone you could claim as an exemption on your taxes, including the fact that the individual must have gross income less than the IRS tax exemption amount - $3,200 for 2005).

If you have any questions about Dependent Care Flexible Spending Accounts or any other Flexible Spending Account issues, please call the Benefits Department at 581-7447.