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Dependent Care Spending Account
A Dependent Care Spending Account offers you reimbursement for certain dependent care expenses before Federal, Social Security, and in most areas, state and local income taxes are withheld. A Dependent Care Spending Account is designed to assist you (and your spouse) with the cost of dependent day care expenses on a before-tax basis so that you are able to work. If you are married, you may only use your Dependent Care Spending Account if your spouse is employed, a full-time student, or disabled. Consequently, you must be actively at work to utilize your Dependent Care Spending Account.
Note: The YSA card is for use with the Health Care Spending Account only – it does not work for dependent care expenses.
Here is a summary of the key benefits of a Dependent Care Spending
Account, including eligible reimbursable expenses.
| Maximum
Annual Contribution Amount |
$5,000
$2,500, if married and filing separately
|
| Maximum Annual Contribution — Highly Compensated
Employees (HCEs) |
IRS rules require limitations on contributions below the plan maximum. Verizon Wireless will communicate the HCE maximum to the affected employees each year. |
| Eligible Expense Time Period |
January
1 (or hire date, if later) to December 31 |
| Claims Filing Deadline |
April 30 of subsequent year |
|
Eligible Covered
Dependents
|
Dependent children under age 13 whom you claim as a dependent on your Federal income tax return. Other family members, such as disabled children or elderly parents, who are unable to take care of themselves, require full-time care, and whom you claim as dependents on your income tax return, are also eligible. |
| IRS Rules |
Any funds left in your account at
the end of the year are forfeited |
- Care provided at a licensed nursery school or day camp
- Care provided by an individual service provider
- Care provided at an adult day care facility
- Care provided by before-school or after-school programs
- Care provided by anyone inside or outside your home
- Household services related to the care of the eligible
dependent(s) living with you
|
- Private school (Kindergarten and above)
- College tuition
- Enrichment or recreational classes for children (e.g.
dancing, swimming)
- Any other type of child/dependent care that is not necessary
to maintain employment
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