Most Popular Questions
How do I know if I am eligible to participate in a DCFSA?
If you are an active employee of the Executive Branch or of another agency that participates in FSAFEDS, you are eligible to participate in a Dependent Care FSA (DCFSA) with FSAFEDS. The only exception(s) are intermittent or "when actually employed" (WAE) employees who are expected to work less than six months in a calendar year.
There is a $5,000 household limit ($2,500 if married, filing separately) on the amount that can be set aside in a DCFSA. It's very important to discuss your elections with your spouse to ensure the household limit is not exceeded. If you and your spouse elect more than the $5,000 household limit, FSAFEDS will not be able to cancel your election per IRS guidelines. You will need to resolve the over-deduction through your federal income tax return.
Under the IRS Code, annuitants (other than re-employed annuitants whose employment status is full-time) cannot participate in a DCFSA. An FSA is a way to set aside part of your salary - before taxes - for payment of eligible out-of-pocket expenses. An annuity is not considered salary.
To be reimbursed through your DCFSA for child and dependent care expenses, you must meet the following conditions:
- You must have incurred the expenses so you and your spouse, if married, can work, or look for work - unless your spouse was either a full-time student, was physically or mentally incapable of self-care, or each of you have earned income during the year. However, if you did not find a job and have no earned income for the year, your dependent care costs are not eligible.
- You cannot have made the payments to someone you can claim as your dependent on your Federal Income Tax return or to your child who is under age 19.
- Your filing status must be single, qualifying widow(er) with a dependent child, married filing jointly, or married filing separately.
- The care must have been provided for one or more qualifying dependents identified on the form you use to claim the credit.
- You and your spouse must maintain a home that you live in for more than half the year with the qualifying child or dependent.