Dependent Care Spending Account
A Dependent Care Spending Account (DCSA) allows you to set aside money from your paycheck pretax to pay for child day care expenses and, in some cases, elder care expenses. When you pay less in taxes, you have more money in your pocket. Most people save at least 30 percent on each dollar set aside pretax. There is a $2.14 monthly administrative fee for a DCSA.
How much can I contribute to my DCSA?
Your contribution limit is determined by your tax filing status. The contribution limit for highly compensated employees is $1,600. Highly compensated employees, as defined by the federal government, are those who make $150,000 or more.
| Tax filing status | Limit |
| Married, filing separately | $2,500 |
| Single, head of household | $5,000 |
| Married, filing jointly | $5,000 |
What types of expenses qualify?
Eligible expenses are those incurred while you and your spouse, if married, work or look for work. This can include: daycare; general purpose day camps (overnight camp is not eligible); regular babysitting; before and after school care; nursery or preschool; and pre-kindergarten expenses.
Expenses may only be claimed for dependents that are under the age of 13, or for older dependents that live with you at least eight hours each day and are incapable of self-care.
Does a DCSA impact the tax credit on my income tax return?
You cannot claim a tax credit for amounts contributed to your DCSA. However, you may be able to claim a tax credit for amounts, up to IRS limits, not contributed to your DCSA.
How do I submit claims and get reimbursed?
Your funds are available as you contribute throughout the year. ASIFlex offers several easy ways to submit claims. You do not have to choose only one option; you can use multiple options throughout the year.
- ASIFlex mobile app Download the app and log in to your account. Then, just snap a picture of your itemized receipt and submit a claim via the app.
- ASIFlex Online Sign in to your online account to submit a claim.
- Toll-free fax or mail Download and complete a claim form. Then, submit it with your itemized receipt. Keep a copy for your records.
If approved, reimbursement will be made to you within three business days following receipt of complete claim. Log in to your ASIFlex account to sign up for direct deposit, as well as email and text alerts. You can also opt to receive a mailed check.
Please note that IRS regulations disallow reimbursement for services that have not yet been provided, so even if you pay in advance for your expenses, you can only claim service periods that have already occurred.
Things to remember
- Your DCSA election is fixed for the entire plan year unless you have a qualified event, which allows you to make a change.
- You must submit valid claims incurred by March 15 of the following year before March 31. You will forfeit any unused funds after March 31.
FAQs
Learn more about DCSAs in these FAQs.