Dependent Care Reimbursement enables an employee to deduct childcare (day care) or elder care expenses up to $5000.00 a year per family, before taxes.  The following rules apply to this account: 

• A Dependent must be either under age 13 or disabled at any age.
• Employee and spouse must work or attend school full-time.
• Expenses cannot exceed the lower income of either spouse.
• If using a day care center, it must be licensed.
• Babysitting services provided by a “dependent relative” under age 19 are not eligible.
• Overnight camps are not eligible.
• A receipt must be submitted and must show the date of service, the amount charged, the provider’s name and federal identification number/social security number.

After school programs, summer camps, and elder care are eligible.  Remember to review the savings through this program versus the savings of the child care tax credit; the total tax savings depends on household income.