Providing you additional ways to save

The Dependent Care Flexible Spending Account (FSA) allows you to set aside up to $7,500 (or $5,000 if filing separately, there is a $100 minimum contribution per calendar year) each year to cover eligible child care or adult day care expenses. You can use this account to cover expenses related to nanny services, licensed day care, preschool fees, before- and after-school programs, elder care services, and more. You do not pay any taxes on the dollars that you contribute to an FSA and you do not pay any taxes on the reimbursement you receive.

Some Points to Consider:

As you decide how much you want to contribute to the FSA, be sure to consider the following points:

• You must actively enroll in the Dependent Care FSA each year. Your current contribution amounts will not automatically carry over to next year.
• You will not be able to change your FSA election until the next open enrollment period, unless you have a qualified change in status.
• Only eligible expenses incurred while you are a participant can be reimbursed.
• Expenses paid through the FSA cannot be claimed as a tax deduction.
• Since you do not pay Social Security taxes on your contributions, your future Social Security benefit could be slightly reduced.
• Use it or lose it! In exchange for the favorable tax breaks, the IRS requires that any money left in your FSA that is not used for eligible expenses by the deadline to be forfeited. In other words, if you do not use the money, you will lose it.
• Typically you have until mid-March, to incur eligible expenses and until April, to submit claims for reimbursement against your prior year account.

Click the below links to view eligible expenses for the Dependent Care FSA:

• IRS: Dependent Care Flexible Spending Account Eligible Expenses
• Inspira: Dependent Care Flexible Spending Account Eligible Expenses

Paying for Services

There are two ways to use the money in your FSA for eligible expense:

Inspira debit card
When you enroll, you receive a debit card to pay for eligible expenses. Money is deducted automatically from your balance at point of sale.

Claims
If you pay out of pocket, you can then submit a claim for reimbursement online, through the Inspira mobile app, or by mail with a claim form. Review the claim submission instructions for more information.

Keep your receipts!
The IRS may require you to submit a receipt to Inspira to prove your expense was indeed eligible for reimbursement from your FSA.

Click here to see how the Dependent Care FSA works.