With the DCFSA, you don’t have to pay taxes on the money you use to pay for eligible expenses, such as dependent day care and elder care programs.
DEPENDENT CARE FLEXIBLE SPENDING ACCOUNT (DCFSA)
COVID-19 and Paying for Day Care and Elder Care Expenses
Several pieces of legislation and IRS Notices have passed that allow for greater flexibility in using your DCFSA funds. Below are updates to the standard restrictions.
- You may make contributions of up to $10,500 to your DCFSA in 2021 ($5,250 if married and filing separate income tax returns).
- You have until December 31, 2021, to spend any unused 2020 DCFSA balance.
- You have until December 31, 2022, to spend your 2021 DCFSA balance. This gives you an additional full year to use your 2021 DCFSA money.
- If your dependent child turned age 13 in 2020, you may use your DCFSA money to cover day care costs incurred for that child in 2020. Additionally, if you have a balance remaining in your DCFSA after all 2020 reimbursements have been made, then you may use any remaining DCFSA funds for qualifying day care costs you incur in 2021 (until that dependent turns 14).
- If your dependent child turns age 13 in 2021 and you have a balance remaining in your DCFSA after all 2020 reimbursements have been made, you may use your DCFSA money to cover day care costs incurred for that dependent in 2021. Additionally, you may use any new 2021 DCFSA funds for qualifying day care costs you incur for that dependent in 2021 (until that dependent turns 13).
- You can make changes to your DCFSA by November 30, 2021, without having to prove that you’ve had a qualified life event.
Who can participate?
You are eligible to open a DCFSA if you have eligible dependents.
Who can contribute?
Only you can make contributions.
How much can I contribute?
You can contribute a minimum of $500 to a maximum of $5,000 a year.
If you are married and file separate tax returns, the most you can contribute is $2,500. The IRS maximum contribution may be no more than the maximum earnings of the spouse who earns the least.
Can I change my contributions?
You can change your contributions only if you experience an applicable qualified life event.
Do I need to open an account?
Not exactly. You will need to enroll and elect an annual contribution amount in order to participate in the DCFSA.
What can I use the money for?
Eligible expenses, including licensed day care, after-school care programs or summer day camps for dependents under age 13, or care provided for disabled or elderly dependents or your disabled spouse.
How do I use the money?
You can make payments directly to providers or get reimbursed from your account.
When can I use the money?
You can use funds that are currently in your account. You can be reimbursed for expenses you incur between January 1, 2021–March 15, 2022. You can submit claims from this period for reimbursement through March 31, 2022.
Can I lose the money?
Yes. The money in your DCFSA will not roll over from year to year. Any unused funds on March 15, 2022, are forfeited. However, you have until March 31, 2022, to submit reimbursement claims for expenses you incur between January 1, 2021–March 15, 2022.
Can I take my money with me if I leave Hess?
No. However, you can still use any unused amounts in your DCFSA to pay for claims incurred before you left Hess. Any unused amounts will be forfeited at the end of the calendar year.
How do I file a claim?
Go to wageworks.com > Claims & Activity > Submit Receipt or Claim. You’ll have the option to Pay Me Back or Pay My Provider. You can also call WageWorks at 1-877-924-3967 for assistance.