Page 15 - 2019 Sharks Benefits V6.1

Dependent Care Spending Account (DCFSA)

What is the maximum I can elect?

The maximum you can elect is $5,000. The maximum tax exclusion permitted during a 12-month
calendar year is $5,000 per individual taxpayer or married couple filing a joint tax return. The maximum
amount permitted could be reduced under the following circumstances:

• If you are married and file a separate tax return, the maximum you may elect is $2,500
• If your spouse earns less than $5,000, you may not elect more than your spouse earns during
the Plan Year
• If your spouse is a full time student or incapable of self-care, the maximum you may elect is
$3,000 for one child in day care, however, you may elect the $5,000 if you have two or more
children in day care

Can I be reimbursed more than I’ve had deducted from my paycheck?

At no time can you be reimbursed more than you have actually contributed to your account through
payroll deduction.

How do I use the Dependent Care FSA?

The Dependent Care FSA allows you to be reimbursed for custodial or day care expenses for children
that are your federal tax dependents under age 13, or for a disabled adult federal tax dependent that
lives with you, so that you and your spouse (if applicable) can work, attend school or actively look for
work.

Your daycare provider may not be your dependent or child under the age of 19.

Only the Custodial Parent is eligible to participate in the Dependent Care FSA. In the case of divorce,
the Custodial Parent is the parent with whom the child lives for MORE THAN 50% of the year. Only one
parent can qualify as the Custodial Parent.

Qualified Expenses Include:

• Actual reportable (“above the table”) daycare expenses incurred during the plan year
(separate fees for services such as transportation, meals, classes, lessons, trips or supplies are
not reimbursable unless the charges are included as part of your base fee – not itemized.)
• Day camps, including day camps that focus on specific activities such as sports and arts
(overnight camps are excluded even if the camp apportions the day camp and overnight
charges.)
• Educational (tuition) charges for kindergarten and over are NOT eligible for reimbursement.
• The maximum amount you may elect is reduced for couples that file separate returns, when
one spouse is a student or when a spouse earns little or no income.

• Determine your election amount for the entire plan year. Do NOT elect more than your actual
expenses. Your annual election is then deducted pre-tax from your pay in equal installments
throughout the plan year.

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