Dependent Care Account Eligible Expenses

Advance Payment of Day Care Expense

After-School Care or Extended Day Programs (Supervised Activities for Children after the Regular School Program)

Yes, these programs are generally custodial in nature and its primary purpose is to care for children while their parents work.

Au Pair Expenses

Yes, but not airfare or other fixed costs.

Babysitter Inside or Outside of Participant’s Household

Yes, unless the babysitter is a child of the participant or the participant's spouse under age 19 or is otherwise claimed as a dependent on the IRS for 1040. 

Chauffeur

Child of Participant, Amounts Paid to for Child Care

No, unless the child is age 19 or older and cannot be claimed as a dependent of the participant or the participant's spouse. 

Cook

Generally, no, unless it involves child care to some extent.

Dependent Care Center Expense

Yes, if requirements of Code § 21(b)(2)(C) are met.

Disabled Spouse or Tax Dependent That Lives Outside of Household

No, they must regularly spend at least eight hours per day in the participant's household.

Educational Expenses - First Grade and Above

No, expenses are considered educational and not custodial (regardless of half or full-day, private or public, state-mandated, or voluntary). 

Educational Expenses - Kindergarten

No, expenses are considered educational in nature and not custodial (regardless of half- or full-day, private or public, state mandated, or voluntary).

Educational Expenses - Pre-Kindergarten or Nursery School

Yes, since care is primarily custodial in nature.

Elder Care / Assisted Living / Custodial Care / Long-Term Care / Nursing Home

Only if the expenses are unrelated to medical services and the qualifying individual spends a minimum of eight hours per day in the participant's household.

FICA and FUTA Taxes of Day Care Provider

Food Expenses

No, if charged separately from dependent care expenses.

Gardener

Household Services, e.g., Housekeeper, Maid, Cook

Generally, no, unless it involves child care to some extent.

Incidental Expenses - e.g., Extra Charges for Diaper Changing, Special Activities, etc.

No, if charged separately from dependent care expenses.

Looking for Work - Dependent Care Expenses Incurred to Enable Participant to Look for Work

Maid

Generally, no, unless it involves child care to some extent.

Nanny Expenses

Yes, if the expense is for dependent care and household services related to the care of the qualifying individual.

Overnight Camp

Registration Fees for Care

No, most fees do not go toward the care of a qualifying individual.

Relative of a Participant, Expenses Paid to for Child Care (e.g. Parent or Grandparent of Participant)

Yes, unless the relative is a tax dependent of the participant or child under age 19.

Sick-Child Facility

Yes, if the expense enables the participant to go to work when the child is ill. 

Sick Employee (Care for Dependent When the Participant Stays Home Sick)

Summer Day Camp

Yes, as long as the expense is for custodial dependent care and not educational in nature.

Transportation Expenses

No, if charged separately from dependent care expenses.

Volunteer Work - Expenses Incurred to Enable Participant to Volunteer

No, if the volunteer work is unpaid or for nominal pay.