Make the Most of Your Dependent Day Care FSA
The Dependent Day Care Flexible Spending Account (DDCFSA) is a great way to save on taxes when it comes to child care and adult day care expenses. Are you getting the most out of your account? Below, we break down a few common questions to help ensure your DDCFSA dollars work for you.
If your care provider doesn't accept the FSA convenience card, you can file a manual claim online, through the mobile app or by mail. Remember that your reimbursement is limited to your account balance, which is based on the amount deducted from your payroll for year and the amount you've already spent.
If you file a claim manually, you'll need to list the dates of service, your care provider's tax ID and the cost of care. If your care provider doesn't already provide you with this information, simply request that they complete and sign the claim form. Remember, a good rule of thumb while filing manually is to do so a week before the month ends for that month's expenses. It takes 3-5 business days for the claim to process and an additional 1-2 days for funds to hit your bank account.
If your care costs more than what's available in your account, file the entire amount. You'll only be reimbursed up to the amount available in your account, but the remainder may be reimbursable later if no other claims are filed. For example, if your monthly contribution is $416, by the end of the year you'll have contributed $4,992. If you file $1,000 claims in January through May only for a total of $5,000 in claims, then you'll be reimbursed $416 each of those months and you'll continue to receive reimbursements each payroll period as another $416 is deducted from your salary. By the end of the plan year, you'll have been reimbursed your full $4,992 contribution.
The most you can contribute to the account in a plan year is $5,000 per household based on IRS limitations.
If you experience a qualifying life event and want to make changes to your DDCFSA, you have 30 days from the date of the event. Be sure to upload supporting documentation of your change into your enrollment platform. If you don't have supporting documentation, complete the NCFlex DDCFSA QLE Form. And, if you're a university employee, reach out to your University Benefits Administrator to change your DDCFSA.
If you have any other questions about your DDCFSA, please reach out to us at ncflex@nc.gov and we'll help you get the most out of your account.
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