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Dependent Day Care FSA

The Dependent Day Care FSA provides for reimbursement of eligible day care expenses incurred by the participant.

If you elect benefits under this plan, a non-interest bearing bookkeeping account will be set up to keep a record of before-tax contributions - and where applicable, any non-elective employer contributions -  allocated to the account and the reimbursements for eligible day care expenses to which you are entitled during the plan year. No actual account is established; it is merely a bookkeeping account.

Plan Information

Overview

 

The Dependent Day Care FSA lets you pay for eligible dependent day care expenses with pre-tax dollars so that you and/or your spouse can work, look for work, or go to school full time. Child care is only eligible for children under age 13.

If you have been awarded a Child Care Subsidy Grant (CCSG), you must elect a Dependent Day Care FSA during open enrollment in order to accept the grant. The amount will be included in your total Dependent Day Care FSA annual amount. The combined total of the CCSG and your contributions cannot exceed the $5,000 annual limit.

How to Enroll

Elect to participate at during the annual open enrollment period or after you have experienced a qualifying life event.

If you are a current participant and fail to re-enroll during open enrollment, your Dependent Day Care FSA will not roll over into the next plan year.

How it Works

  1. Determine the amount of unreimbursed eligible dependent day care expenses you - and where applicable, your eligible family members - will likely incur during the plan year. Keep in mind the IRS limit for pre-tax contributions to your Dependent Day Care FSA is $5,000 per household.

  2. Elect to have Stanford withhold equal amounts from your pay - subject to plan limits - on a pre-tax basis for reimbursement of these expenses. Elect wisely as you forfeit any dollars remaining in a flexible spending account that you do not use for expenses incurred during the plan year. 
  3. Submit your dependent day care claims for reimbursement.
How to Submit Claims

You have three options for submiting your Dependent Day Care FSA claims for reimbursement:

  1. Submit your claim online through TASC, Stanford's FSA administrator.
  2. Complete a Dependent Day Care FSA Claim Form and submit a receipt for each expense incurred.
  3. Use your Stanford FSA debit card, however, reimbursement will be limited to the amount accrued in your account at the time the claim is submitted. 

Resources

 Visit TASC to learn more about how to file FSA claims

Frequently Asked Questions

Below are answers to the most frequently asked questions regarding Dependent Day Care Flexible Spending Account plan.

View complete list of FAQ

Dependent Day Care FSA

Generally, you can cover:

  • A dependent up to age 13 whom you can claim as a tax exemption on your federal income tax return
  • Your spouse* (not a domestic partner) who is physically or mentally unable to care for himself or herself
  • Your dependent who is physically or mentally unable to care for himself or herself, and you can claim as a tax exemption, subject to certain criteria

*Federal law only recognizes opposite-sex and same-sex spouses, as being eligible for this program.

 

For details on dependent eligibility requirements, refer to IRS Publication 503. We also suggest you review Part III of the Flexible Spending Account (FSA) Summary.

Generally, you may not submit Dependent Day Care FSA claims unless your partner is considered a “qualifying relative” and a “tax dependent” according the Internal Revenue Code rules. For further guidance, please consult your tax advisor.

Your partner’s children, however, may be covered if they meet the eligibility requirements as described in the Flexible Spending Account (FSA) Summary. You can also look at these requirements in IRS Publication 503.

The annual household dependent day care FSA maximum is $5,000 per family ($2,500 if you are married and filing separate federal income tax returns).

highly compensated employees

Each year FSA plans must pass a non-discrimination test to show they do not favor highly compensated employees regarding eligibility, contributions and benefits. If Stanford’s FSA plans do not pass the test, Stanford may reduce your election(s) during the year, if you are a highly compensated employee as defined by the Internal Revenue Code. We will notify you if it becomes necessary to reduce your contributions.

IRS Publication 503 can help you determine whether using a FSA or filing for the Child Care Credit on your tax return is most advantageous to you. The IRS will not allow you to receive two tax breaks for the same expenses. In addition, depending on your situation, you may be required to file additional forms such as Form 2441. For further guidance, consult your tax advisor.

Stanford’s Child Care Subsidy Grant (CCSG) is simply a university contribution to your Dependent Day Care FSA. If you receive a Child Care Subsidy Grant amount it will be included in your total Dependent Day Care FSA annual amount. The combined total cannot exceed the $5,000 annual limit.

During open enrollment, you must log into My Benefits and indicate your acceptance of the CCSG award by checking the appropriate box online. This action will automatically enroll you in a Dependent Day Care FSA for the following calendar year. Once the CCSG money is in your Dependent Day Care FSA, you use it as if you had contributed the money and file claims for reimbursement of your dependent day care expenses.

Remember, you forfeit any unclaimed funds at the end of the plan year unless you submit claims by the April 30 deadline.

Learn more about CCSG