Dependent Flexible Spending Account Question

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OldSport
Posts: 303
Joined: Tue Jul 25, 2017 7:01 pm

Dependent Flexible Spending Account Question

Post by OldSport » Thu Jan 18, 2018 9:00 pm

What are eligible expenses for a Dependent FSA? I know preschool was, but what about before/after school programs and summer care programs?

Do the pretax Dependent FSA contributions lower your AGI and MAGI to qualify for Roth IRA contributions and lifetime learning credit limits, assuming one is on the line with either of those?

Also, can you contribute to a Dependent FSA if you have an HSA? They seem completely irrelevant but just asking.

ShowMeTheER
Posts: 354
Joined: Mon May 24, 2010 9:12 am

Re: Dependent Flexible Spending Account Question

Post by ShowMeTheER » Thu Jan 18, 2018 9:34 pm

Yes to summer camp and school programs

Yes to lowering Income

Yes you can contribute to both DCFSA and HSA

ccieemeritus
Posts: 555
Joined: Thu Mar 06, 2014 10:43 pm

Re: Dependent Flexible Spending Account Question

Post by ccieemeritus » Thu Jan 18, 2018 10:01 pm

Normally I'd say go directly to the IRS publication, but it's not clear to me which publication identifies eligible dependent care FSA expenses.

IRS publication 503 explains eligible child and dependent care expenses for a child tax credit. I'm not sure if these are the same rules that apply to eligible dependent care FSA expenses.

https://www.irs.gov/publications/p503

pshonore
Posts: 6419
Joined: Sun Jun 28, 2009 2:21 pm

Re: Dependent Flexible Spending Account Question

Post by pshonore » Fri Jan 19, 2018 8:19 am

ShowMeTheER wrote:
Thu Jan 18, 2018 9:34 pm
Yes to summer camp and school programs

Yes to lowering Income

Yes you can contribute to both DCFSA and HSA
Note summer camps are day camps only - no overnights.

nolesrule
Posts: 646
Joined: Thu Feb 26, 2015 10:59 am

Re: Dependent Flexible Spending Account Question

Post by nolesrule » Fri Jan 19, 2018 9:57 am

The basic qualification is you are paying someone to take care of your kids so you can work, though it is a bit more nuanced.

The dependent care tax credit is another way of getting similar tax benefits for the same purpose, and any pretax money put into a DCFSA reduces the amount of the dependent care tax credit.

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