Dependent Care Account

What is a Dependent Care Account?

A Dependent Care Account (DCA) allows you to be reimbursed a maximum of $5000 (or $2,500 for married-filing separate) on a pre-tax basis for child care or adult dependent care expenses for qualified dependents that are necessary to allow you or your spouse to work, look for work, or attend school full-time.

Your DCA can be used to reimburse you with pre-tax dollars if the expenses for your dependents meet the IRS definition of dependent care expenses for income tax purposes. An adult (e.g., parent, grandparent, and adult disabled child) may qualify as a dependent if you are providing more than half of that person's care for the year.

Claims Processing

Healthy Dollars works with employees to ensure they are set up for the continual reimbursement with direct deposit if eligible. This process eliminates the need to submit claims throughout the year and provides a single claim form that can be completed annually. Click here to access the Dependent Care Account Form.

DCA FAQ

DCA Frequently Asked Questions

DCA FAQ Continued

For me to claim from my DCA account, does my daycare provider need to be licensed?

No. You can use the DCA funds to pay anyone who watches your children while you and your spouse are working or in school. It can be a family member, if the individual is not your tax dependent. They must provide you with a Social Security number or Tax ID number and must claim the income on their taxes.

You can find our DCA claim form on this link.

Is the DCA account able to pay for preschool, if there is a stay at home parent?

No. Both parents must be employed, looking for employment or attending school.

Is there an age limit for children to be eligible?

Yes. The eligibility range is from infant and will end on their 13th birthday.

Am I able to use my DCA account to pay for daycare for my parents?

Yes. You can use your DCA to pay for elder daycare if they are a tax dependent adult who resides with you.

Can I transfer money from my Health Care FSA to my Dependent Care FSA?

No. IRS regulations do not allow combining or transferring of funds from one account to another. You are only able to use funds only for the purpose of the initial election. FSA money can only be used for health-related items and DCA money can only be used for dependent care.

Eligible Expenses include:

  • Nursery Schools, Childcare Centers, Childcare worker.
  • After school programs.
  • Summer camps (not including overnight).
  • Preschool tuition.
  • Adult day care facilities.