Dependent Care FSA: Eligible Expenses
Dependent care FSAs reimburse qualifying child care, elder care, and adult dependent care expenses. This guide covers everything eligible, from day camps to preschool to in-home care.
10 minute read
Short answer
A dependent care FSA reimburses expenses for qualifying child care and elder care that let you or your spouse work. Unlike a health care FSA, it doesn't cover medical, dental, vision, or education expenses. The IRS allows you to exclude from income "pre-tax contributions you made under a dependent care flexible spending arrangement" when those contributions pay for work-related care of a qualifying dependent.
Dependent care FSAs are organized by the type of care you're paying for: child care expenses (day care, babysitters, nannies, day camps, preschool), elder care and adult dependent care (adult day care, in-home care), and administrative costs like agency fees. Your employer's plan document governs what specific expenses qualify and the annual contribution limit. Understanding the difference between reimbursable and non-reimbursable expenses can save time when you file for reimbursement.
What Dependent Care FSA Covers
A dependent care FSA reimburses care expenses that let you work. It's fundamentally different from a health care FSA or HSA, which cover medical expenses. The purpose must be to enable you to work, not for other reasons.
Your dependent care FSA covers three types of qualifying dependents. Children under age 13 qualify automatically if they are your dependent. Spouses and other dependents who can't care for themselves also qualify. This includes aging parents and adults with disabilities, provided they lived with you for more than half the year. The plan administrator verifies that your dependent meets these criteria when you file for reimbursement.
No special documentation or doctor approval is required for any dependent care expense. Unlike health FSA or HSA reimbursement, dependent care doesn't require medical review. Your employer's plan document and the IRS rules determine what counts as qualifying care.
How to Read the Eligible Expenses List
Dependent care expenses fall into two categories: reimbursable and not reimbursable. Reimbursable expenses qualify and you can request reimbursement. Not reimbursable expenses are excluded by IRS rules or your plan. There's no third category of "reimbursable with a letter" for dependent care. The care must have the "main purpose" of enabling you to work. If the main purpose is education, entertainment, or something else, it doesn't qualify.
The IRS main-purpose test is strict: care only qualifies if its main purpose is the dependent's well-being and protection while you work, not food, lodging, education, clothing, or entertainment. Apply this test to every expense category below.
Child Care Expenses That Qualify
Child care is the largest category of dependent care FSA expenses. Any cost for someone to care for your child under age 13 while you work qualifies, as long as the primary purpose is care, not education.
Type of Expense | Reimbursable? | Notes |
|---|---|---|
Day care center, child care facility, or dependent care center | Reimbursable | Dependent care center costs are work-related expenses if it serves more than six people and complies with state and local regulations The center must be licensed or comply with state law. |
In-home nanny, babysitter, or au pair | Reimbursable | These count as household employees whose work is partly for the care of the qualifying person. Pay only for the portion of their work that is childcare. |
Preschool tuition (primary purpose is care, not education) | Reimbursable | Only the care portion counts, not the educational component. If preschool offers before-school and after-school care, that care time qualifies. Your plan may require documentation to separate care costs from education costs. |
Day camp | Reimbursable | "The cost of sending your child to a day camp may be a work-related expense, even if the camp specializes in a particular activity, such as computers or soccer." The entire day camp cost qualifies. |
Before-school care, after-school care, school-break care | Reimbursable | These programs enable you to work and qualify in full, even if they combine education with care. |
Summer care and summer day camp | Reimbursable | Daytime summer programs for children qualify. Overnight camps do not. |
Overnight camp or residential camp | Not reimbursable | "The cost of sending your child to an overnight camp isn't considered a work-related expense." Residential overnight facilities are excluded. |
Private school tuition (K-12) or boarding school | Not reimbursable (except separable care portion) | "You can't count any part of the amount you pay the school for your child's education." If a boarding school offers separable care services, only that portion may qualify. The tuition itself never does. |
Tutoring, academic enrichment, sports lessons, or music lessons | Not reimbursable | The primary purpose of these activities is education or skill-building, not care while you work. |
Meals, clothing, school supplies, or education materials provided by a care provider | Not reimbursable | These are personal-use or education items and are explicitly excluded. |
Elder and Adult Dependent Care
If you care for an aging parent, spouse, or other adult dependent who can't care for themselves, dependent care FSA can reimburse the cost of care that lets you work. The IRS defines this as a qualifying person who "wasn't physically or mentally able to care for themselves." They must also have lived with you for more than half the year.
Type of Expense | Reimbursable? | Notes |
|---|---|---|
Adult day care (for a spouse or dependent unable to self-care) | Reimbursable | Day care for an aging parent or disabled spouse qualifies. Pay only for the hours while you work. |
In-home caregiver, housekeeper (partly for dependent care) | Reimbursable | These count as household employees whose work is partly for the care of the qualifying person. Pay only for the portion devoted to caring for the dependent, not general household work. |
Respite care for a dependent | Reimbursable | Short-term relief care that lets you attend to other responsibilities (including work) qualifies. |
Nursing home or assisted living (if primary purpose is care while you work) | Reimbursable | Facility costs qualify if they are for custodial care (not medical care) while you work. Medical care components may need to be separated out. |
Medical, therapeutic, or nursing care | Not reimbursable | Medical care belongs in a health FSA or HSA, not a dependent care FSA. Costs for medical services, prescriptions, or therapeutic treatment do not qualify under dependent care rules. |
Fees and Other Expenses
Beyond the direct cost of care, certain administrative and indirect expenses qualify.
Type of Expense | Reimbursable? | Notes |
|---|---|---|
Agency fees to hire a care provider | Reimbursable | |
Deposits paid to a daycare or preschool to secure a spot | Reimbursable (if care is provided) | Deposits you paid to an agency or preschool... are work-related expenses if you have to pay them to get care. If your child never attends and the deposit is forfeited, it is not reimbursable. |
Application fees to a daycare or school | Reimbursable | Application fees... are work-related expenses if you have to pay them to get care. |
Forfeited deposit (if child never attended or care wasn't provided) | Not reimbursable | A forfeited deposit isn't for the care of a qualifying person if care isn't provided. |
Transportation provided by the care provider (bus, van, etc.) | Reimbursable | |
Transportation not provided by the care provider (you drive) | Not reimbursable | Your own transportation to drop off or pick up a child does not qualify. |
What Doesn't Qualify
Several categories of expenses are explicitly excluded from dependent care FSA reimbursement under IRS rules. Understanding these helps you avoid filing claims that will be denied.
School tuition for kindergarten and above, even if after-school care is included.
Care provided by your spouse or a dependent you claim on your taxes.
Care expenses when no one in the household has earned income.
Medical expenses, prescriptions, dental work, or vision care.
Meals, food, clothing, school supplies, or entertainment provided by the care provider.
Child support payments or family support obligations.
Expenses reimbursed by a state social service agency or government program.
What Changes by Plan
Your plan document determines what your dependent care FSA covers. IRS rules set a baseline, but your employer can be more restrictive. Check your benefits guide to confirm what your specific plan covers.
Employers can impose more restrictions than the IRS allows. Your employer decides what your plan covers, how long you can carry over unused funds, and whether a grace period is available. These differences exist because different employers offer different plans.
How Reimbursement Gets Paid
When you incur a dependent care expense, you submit a claim to your plan administrator with proof (receipt, invoice, statement from the care provider). Your plan administrator reviews the claim to confirm that the expense meets your plan's definition of qualifying dependent care, that the dependent qualifies, and that you have earned income that year.
If the claim is approved, your administrator pays you back by direct deposit to your bank account, by check, or through a dependent care debit card (if your plan offers one). The reimbursement comes directly from the pre-tax funds you contributed to your dependent care FSA throughout the year. No taxes are withheld from the reimbursement.
Keep records of all expenses. Your employer may require receipts or a claim form. If your administrator pays for an ineligible expense, you may need to repay it.
Frequently asked questions
Can I use a dependent care FSA for medical expenses?
No. A dependent care FSA covers only care expenses that let you work, not medical, dental, vision, or health-related costs. If you need to reimburse medical expenses, use a health FSA or HSA instead.
Does my child have to be my biological child to qualify?
No. Step-children, foster children, and adopted children all count as qualifying dependents if you claim them on your taxes and they are under age 13. Adult dependents (such as aging parents) qualify if they can't care for themselves and lived with you for more than half the year.
What documentation do I need to claim dependent care expenses?
You need proof of payment from your care provider, such as receipts or invoices showing what you paid for. Unlike some health expenses, no special documentation from a doctor is required. Dependent care FSA reimbursement is based on work-related expense rules, not medical qualifications.
Can I count preschool tuition in a dependent care FSA?
Only the care portion of preschool tuition qualifies. If the school bills separately for care time and educational instruction, the care portion counts. If preschool is bundled as one price, your plan may require you to document what portion is care versus education. Kindergarten and higher education never qualify.
What if my plan administrator denies a claim I thought was eligible?
Ask your administrator in writing for the reason for the denial and cite the specific language in your plan document. If you believe they made an error, request an appeal. Your plan document typically includes an appeals process. You may also contact your benefits department or HR to discuss the denial and confirm your plan's rules.
Can I use a dependent care FSA if I'm self-employed?
No. Dependent care FSAs are employer-sponsored benefit plans only. You must be employed by a company that offers a dependent care FSA, and you must have earned income from that employment. If you are self-employed, you can't open a dependent care FSA.
Can I use both a dependent care FSA and a dependent care credit on my taxes?
You can claim both, but not for the same dollar of expense. If you exclude $5,000 from your income through a dependent care FSA, you can only claim a tax credit on expenses above that amount. The IRS rule is clear: "If you received dependent care benefits that you exclude or deduct from your income, you must subtract that amount from the dollar limit that applies to you."
Keep reading: How a dependent care FSA works, Dependent care FSA contribution limits, What is an FSA (health FSA), and all guides on this topic.
Sources
Publication 503 (2025), Child and Dependent Care Expenses (qualifying persons and dependents, work-related expense tests, dependent care center requirements, day camp vs. overnight camp, school tuition rules, household services, adult dependent care, agency fees and deposits, transportation, medical expenses, household employment)
2025 Instructions for Form 2441, Child and Dependent Care Expenses (definition of work-related expenses, care of the qualifying person main-purpose test, food/lodging/education exclusions, contributed benefits and double-counting rule)
IRS Publication 15-B, Employer's Tax Guide to Fringe Benefits (employer plan design discretion for dependent care assistance programs)
