If you work and you have a dependent child or disabled spouse/parent that needs care during the day, the Dependent Care FSA may be right for you. You can contribute up to $5,000 in pre-tax dollars each year to your DCFSA. Keep in mind that $5,000 is a household maximum, so if your spouse participates in a Dependent Care FSA at his or her work, your combined contributions cannot be more than $5,000.
You can use your Dependent Care FSA to pay for expenses of an eligible person. An eligible person meets one of the following criteria:
- A dependent child under age 13 for whom you have custody
- Your spouse, if physically or mentally incapable of self-care
- Your dependent of any age who is physically or mentally incapable of self-care
For daycare to be eligible for reimbursement under the plan, it must be necessary so that you and your spouse (if not physically or mentally incapable) can work, actively look for work or attend classes as a full-time student. In addition, the care cannot be provided by your minor child or another dependent claimed on your income taxes. You cannot use your DCFSA to pay for expenses for a domestic partner or his or her children, per IRS rules.
You can pay for eligible DCFSA expenses using your Fidelity NetBenefits Visa AccessCard or by submitting a claim for reimbursement through NetBenefits.com or Fidelity’s “NetBenefits” mobile app. If you have a HSA or FSA with Fidelity, you will use the same NetBenefits AccessCard for all account types. You can use money in your Dependent Care FSA as it is deposited into your account. You cannot be reimbursed for more than what is in your account at any time.