|To Participate in the Plan, you Must Meet the
- You must have earned income from wages, salaries,
tips, or other employee compensation. If you are
married, both you and your spouse must have earned
income, unless one spouse was either a full-time
student or was physically or mentally incapable
- The payments for care cannot be paid to someone
you can claim as your dependent on your Federal
Income Tax return or to your child who is under
- If your filing status must be single, head of
household, qualifying widow(er) with a dependent
child, or married filing jointly, you may take
up to $5,000 each calendar year. OR, if your filing
status is married filing separate, you may take
up to $2,500 each calendar year.
- The care must have been provided for one or
more qualifying persons identified on your Federal
Income Tax return.
- You (and, if you’re married, your spouse) must
maintain a home that you live in with the qualifying
child or dependent.
What is a “qualifying” child or dependent?
The child must have been under age 13 when
care was provided and you must be able to claim
the child as an exemption on your Federal Income
Tax return. (For an exception to this rule, see
“Child of Divorced or Separated Parents” in Publication
503, Child and Dependent Care Expenses.) A spouse
who is mentally or physically unable to care for
himself also qualifies. A dependent of any age that
is physically or mentally incapable of self-care
also qualifies if the person can be claimed as an
exemption on your Federal Income Tax return.
What will I need in order to be reimbursed
under this plan? You will need to provide
the name, address and taxpayer identification number
of the care provider. If the provider is an individual,
you need the Social Security number. The receipts
must show the service dates of the care given.
Can I also claim the expenses on my Federal
Income Tax return? You cannot use the same
expenses on your Federal Income Tax return. Your
W-2 will indicate the amount of wages set aside
for this Plan.
This information is NOT intended
to be tax advice.
Please consult with your tax advisor for what is
best for you.