What is a Dependent Day Care Flexible Spending Account?

The Dependent Day Care FSA lets you set aside before-tax money to use for eligible dependent day care and elder care expenses. The Dependent Day Care FSA is administered by UnitedHealthcare (UHC).

There are a few rules related to Dependent Day Care FSAs:

  • The expenses must be necessary because you (and your spouse, if married) work, are looking for work, or attend school full-time. If you’re single or divorced, expenses must be necessary so you can work even if you don’t claim your child(ren) as dependents on your federal income tax return. See IRS Publication 503 for details.
  • You can’t reimburse expenses of a domestic partner to provide care for a dependent.
  • You can’t transfer funds from your DDCFSA to a Health Care FSA (HCFSA) or a Limited Purpose FSA (LPFSA) or vice versa.
  • If you use the funds for child-care expenses, you can’t use the same expenses to claim the child tax credit.
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