A dependent day care FSA lets you set aside pre-tax dollars to cover expenses for your child(ren) or other qualifying person so that you and your spouse can work or look for work.
You and your spouse can contribute a combined total of up to $5,000 per calendar year through automatic payroll deductions.
Since your contribution is pre-tax, it takes less out of your paycheck.
If you join HISD after January 1, 2017, your deductions are allocated over the remaining pay periods.
PayFlex administers the plan.
You have to enroll each year.
Eligible expenses must meet certain requirements.
For dependents ages 12 and under
You must be able to claim an exemption on your federal income tax return for the child, or you must be a parent who has custody for a longer time during the year than the other parent, even if you cannot claim a dependent exemption.
A relative can provide the care, unless the relative is your spouse, child or stepchild under the age of 19, or a relative that you can claim as a dependent on your federal income tax return.
If the care is given by a day care center (a center that cares for more than six individuals), that center must comply with all applicable state and local day care regulations.
For dependents ages 13 and over
The individual must be your dependent for federal income tax purposes and must be physically or mentally incapable of self-care.
The dependent must live with you.
The care may be given outside the home if the dependent regularly spends at least eight hours per day in your home. The dependent day care center must care for more than six individuals and must comply with all applicable state and local day care regulations.
What your dependent day care FSA covers
Payments to nursery schools, daycare centers and eldercare facilities are eligible. So are payments for before- and after-school care and summer day camp for children up to age 13. Overnight camp expenses are not eligible.
Important: You can't use this account to pay for dependent medical expenses.
How it works
After enrollment, we begin automatically deducting your contribution from your pay. Your dependent day care FSA reimburses you up to the amount of funds you have contributed at the time of your claim.
You can submit claims for reimbursement from your contributions online here, or by mail using this claim form.
If you need help with the claims process, visit the FSA website or call PayFlex at 888-678-8242 weekdays between 7 a.m. and 5 p.m. CT, excluding holidays.
In return for the favorable tax advantages, the IRS has strict rules on these accounts.
You can’t change the amount you contribute until the next plan year, unless you have a qualified life event
You can’t transfer money from this account to another FSA account
To be reimbursed, you must be enrolled in the FSA when you incur expenses
You may use your 2016 FSA funds for expenses incurred through March 15, 2017, and you have until May 15 of that year to submit documentation for those expenses
You forfeit any leftover funds in the account
Determining your contribution
Estimate the amount of your upcoming expenses using the Dependent Care Flexible Spending Account Worksheet. Remember to subtract holidays, vacations and other times you may not need to pay for eligible child(ren), adult or elder care. Also consider whether any dependents will lose dependent status during the year, for example, if a healthy dependent child is turning 13.
2017 dependent day care FSA account calendar
January 1, 2017 – March 15, 2018
Eligible dependent day care FSA expenses are covered
May 15, 2018
Deadline to submit documentation for 2017 dependent day care FSA expenses
See the Flexible Spending Account FAQs, visit the PayFlex website or call PayFlex customer service at 800-284-4885. For more information on tax-deductible expenses, visit the IRS online or call 800-TAX-FORM (800-829-3676). If you’re not sure whether an expense is eligible, check with your tax advisor.