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Dependent Care Flexible Spending Account

The Dependent Care Flexible Spending Account (DCFSA) lets you set aside before-tax dollars to pay for eligible nonmedical day care expenses.
Smart-Choice Accounts is the administrator.

Here’s a high-level overview of the DCFSA. For details, review the Flexible Spending Account SPD.

Features
Contributions to your Account  
  • DCFSA contributions are deducted before-tax from your paycheck, which reduces your taxable income.
  • The minimum contribution is $100 per year and the maximum is $5,000 (if you and your spouse file taxes together)/$2,500 (if filing separately).
Eligible Dependents Use the DCFSA to put aside money on a before-tax basis to pay for eligible dependent care expenses for your eligible dependents, including:
  • Your children under age 13
  • Your spouse or other dependent (of any age) who is physically or mentally incapable of self-care and is claimed as an exemption on your federal income tax

Note: If your domestic partner and/or domestic partner’s children qualify as your tax dependents, their expenses are eligible to be claimed under your DCFSA.
Eligible Expenses Use your DCFSA funds to pay for day care for a dependent child under age 13 or other dependent (such as an elderly parent) who is physically or mentally incapable of self support. IRS Publication 503 has a complete list of eligible and ineligible expenses.
Reimbursement
  • Submit DCFSA claims to Smart-Choice Accounts along with your receipts for expenses.
  • You’ll receive reimbursement from your account up to the balance in your account at the time you submit your request. If you incur expenses that exceed your available funds, future claims will be reimbursed as funds accumulate in your account.
Carry Over of Funds You may not carry over a balance from one year to the next. Amounts that cannot be used for eligible expenses will be forfeited.

Manage your DCFSA

Here’s how you can view and track your DCFSA and submit claims on Smart-Choice Accounts:

  • Go to Workday, click My Benefits & Retirement application
  • Select your network status (on or off the BMO network)
  • Click Reimbursement Accounts tile

DCFSA & Income Tax Credit

The IRS lets you claim work-related dependent care expenses for this credit on your income tax return. You can use the DCFSA and the tax credit, but you cannot claim the same expenses for both.

Consult with your tax specialist and review the Flexible Spending Account SPD.

Related Links

Workday

Important Forms/Docs

Flexible Spending Account SPD

Dependent Care FSA Claim Form