Dependent Care Advantage Account question

[Slav4ikMD]

I've never used a DCAA account, but have one available through my employer (today is the deadline to apply, so procrastinating as always)   Question:  my understanding is that per IRS rules one is only eligible if qualified expenses for child/elderly care are needed so that the person or spouse can work.  How "flexible" is this rule?  I work full-time, my wife does not work at this time.  Can we make a case that our son needs to be in camp over the summer as she is caring for another child or for an elderly parent, or is looking for work, or whatever, or is this a pretty cut and dry rule that she must be employed as well?

Thanks!

[Slav4ikMD]

Also another follow-up question:  if we intend to use the funds in the summer for camp, but wife intends to go back to work in the Fall, is that doable?  In other words is it kosher to do as long as both spouses have some earned income for the calendar year?

[Dreamgiver]

When I applied for DCA the paperwork clearly said it could not be used for summer camps and such. Try looking to the IRS wording on their website.

[Slav4ikMD]

Looks like summer day camp is eligible:  http://www.flexspend.ny.gov/2011/dcaa.asp  Babysitting eligible as well.

But also clearly states that spouse has to have at least 5k in earned income to use the 5k.