The DCFSA allows you to set aside money on a pretax basis to help pay for eligible day care expenses for your eligible adult and child dependents (up to age 14).
Up to $10,500 per family (or $5,250 if married and filing taxes separately).
Rollovers are allowed from 2020 into 2021 and 2021 into 2022. There is no limit on the rollover amount.
Eligible expenses include care for qualified dependent children under age 14 or an adult incapable of self-care.
Most work-related care services for your dependent children under the age of 14 or other dependents who are unable to care for themselves will qualify. Examples include day care, afterschool care, summer day camps, preschool, and elder care. Ensure your planned care is covered before setting up your account. Click here to view covered expenses.
How Do I Use My Dependent Care FSA?
You can submit claims, check your balance, and manage your account on the Benefits Service Center. You can also file claims using the Smart-Choice Accounts Mobile app by downloading it on your mobile device from the Apple App Store or Google Play. The Dependent Care e-Signature feature of the Smart-Choice Accounts Mobile app allows you to display your claim form on the go, and even have your dependent care provider sign it directly on the screen of your phone.
Should I Get a Dependent Care FSA?
If you expect significant eligible dependent care expenses next year, a Dependent Care FSA is a great way to help cover costs. Alternatively, you may choose to claim these expenses for a dependent-care credit when you file your taxes, which could potentially save you more depending on the number of dependents and your tax bracket.
What Else Should I Know?
Some expenses will require additional documentation to be submitted through the Benefits Service Center, so be sure to save all your receipts.
Should you leave American, you will only be able to receive reimbursement for claims incurred up to your last day of employment. DCFSAs are not eligible for COBRA.
You can find all the details on Dependent Care Flexible Spending Accounts in the Summary Plan Description on the Plan Guides page.