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Dependent care FSA

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  • Dependent care FSA

    I have a question about a dependent care FSA through my employer. Both spouse and I work. We pay someone to drive our children from home to after school activities (mainly youth sports) and back home. We are paying payroll taxes as a Household Employer for her work, though to be fair, almost all of her work for us is driving the kids to their activities and not in our home. One is over 13, the other is still under 13. For the child under 13, based on the nature of the work done for us, can we claim this as "dependent care" for FSA purposes. The rules for the plan align with that of the IRS, but when I read the IRS source materials, I could not get a clear answer.

  • #2
    The TPA running your program may allow it. I don't claim to know all the rules, but first hunch is transportation provider is outside the reimbursement rules.

    Though you should definitely try to submit. Worst the TPA can say is no. I suppose more broadly the nanny is providing care to an eligible dependent. Care just happens to include the driving.