Can a Dependent Care Flexible Spending Account Save Me Money?
If your answer to any of these questions is “yes,” then you should consider participating in a Dependent Care Flexible Spending Account:
- Do you spend money on day care for your children up to age 13?
- Do you have children up to age 13 enrolled in a before- or after-school program, summer day camp, or intersession day camp while you work?
- Do you spend money on adult day care for an elderly parent who lives with you and for whom you claim as a dependent for income tax purposes?
- The Dependent Care Flexible Spending Account is not for health care expenses incurred by a spouse or child.
Who is considered a dependent?
- Children up to their 13th birthday.
- Any other individuals you claim as dependents on your federal income tax return, regardless of age, who live with you and are incapable of caring for themselves.
How much can I contribute?
- The maximum contribution to your Dependent Care Flexible Spending Account is $7,500. The minimum contribution is $130.
- If both you and your spouse have Dependent Care Flexible Spending Accounts, your total combined contribution limit is $7,500.
- Your total contribution cannot be greater than your earned income or your spouse’s earned income, whichever is lower.
- If your spouse has no earned income, you are not eligible for a Dependent Care Flexible Spending Account.
- However, there are special rules if your spouse is a full-time student or is disabled. Contact HealthEquity at (877) 924-3967 for more information.
- If you are single with an eligible dependent, you may contribute up to the full $7,500.
- If you receive a subsidy from a Duke-contracted day care facility such as the Duke Children’s Campus or The Little School at Duke, the amount that you can contribute to the Dependent Care Flexible Spending Account is reduced dollar-for-dollar. Call (919) 684-5600 for more information.
- According to federal law, any money left in your Dependent Care Flexible Spending Account at the close of the 2027 plan year will be forfeited, unless claims are filed by April 15, 2028. You may submit your claims for expense reimbursement for dependent care services received during the plan year (January 1 – December 31, 2027) until April 15, 2028. No carryover is allowed when filing claims for dependent care expenses.
- The Dependent Care Flexible Spending Account is required to complete annual testing to ensure compliance with Internal Revenue Code regulations. One test examines the participation rates in the plan by income levels. If participation rates are not in accordance with the regulations, your contribution amount may be adjusted. The Duke Benefits Office will contact you to provide notice in advance of any adjustment.
Please note: Unlike a Health Care Flexible Spending Account (FSA), which provides access to your full annual election on January 1, 2027, a Dependent Care Flexible Spending Account (DCFSA) only reimburses expenses up to the amount that has been contributed to the account through payroll deductions at the time the claim is submitted.
