Dependent Care Reimbursement Account (DCRA) Questions & Answers

What is an eligible expense under the dependent care expense account?

You may be reimbursed for dependent care expenses incurred on behalf of any individual in your family who is under age 13, and whom you could claim as a dependent on your federal income tax return; any other dependent who is mentally or physically incapable of caring for himself or herself; or your spouse, if the spouse is likewise physically or mentally incapacitated.

If my child's 13th birthday is this year, can I use the dependent care account for the entire year?

No. Only expenses you incurred before your dependent child reached the age of 13 are eligible for reimbursement.

Are expenses for before-school and/or after-school care eligible under the dependent care account?

Yes. If a child under the age of 13 receives before and/or after-school care at school, you must separate the cost of the before- and after-school care from the cost of the school. If this cost is not available separately, it will be pro-rated based on the number of hours your child spends in before- and after-school programs.

If I participate in the dependent care expense account, will I still be able to claim the household and dependent care credit on my federal income tax return?

You may not claim any other tax benefit for the tax-free amounts received by you under this Plan, although the balance of your qualified dependent care expenses may be eligible for the dependent care tax credit.

What happens if I incurred expenses at the end of the plan year and I don't submit a claim by the end of the plan year?

You have 90 days after the end of the plan year to submit a claim. At the end of that run-out period, any money in your account will be forfeited. Expenses must be incurred prior to the end of the plan year.

Would I benefit from electing a Dependent Care Reimbursement Account (DCRA)?

Your marital status and family income will determine whether you may legally contribute to a DCRA. However, as you consider this benefit, these are helpful questions to ask:

• Do you have dependent care expenses for a child under age 13?
• Or, do you have expenses for the care of a physically or mentally disabled parent, child, or other relative (of any age) you claim as a dependent for federal tax purposes?· What are your regular day care expenses?
• Do you anticipate a change in hours or fees?
• Is your day care provider licensed and willing to provide his or her Social Security number so that you may receive reimbursement for the cost of their services through a DCRA?

Will I be able to change the money I set aside in my account during the plan year?

Changes to your reimbursement account elections are allowed during the plan year only if you experience a change in family status. Changes in family status include:

• Marriage
• Divorce or legal separation
• Birth or adoption of a child
• Dependent child's loss of eligible dependent status under the plan
• Death of your spouse or a dependent
• Change of employment status of you or your spouse
• Change in place of residence or worksite
• Qualified Medical Child Support Order (QMCSO)
• Entitlement to Medicare or medical benefits

If you experience a change in family status and wish to change your benefits, you must complete the Family Status Change form located under the Forms link in eServe. You must make any benefit changes resulting from a change in family status within 31 days from the date of the event.

What happens to my reimbursement account benefit if I leave eFunds?

You will have 90 days after leaving eFunds to submit dependent care claims for reimbursement. However, services rendered for dependent care expense reimbursement must be incurred prior to the date of your termination of employment.

How do I file a claim for reimbursement?

You can fax a claim form to FlexAmerica at 1-888-728-3250 or mail them to:

FlexAmerica
P. O. Box 341130
W. Bethesda, MD 20827

A claim form can be fond under the Forms link. Claims are paid on a weekly basis on Thursdays. Any claim received by Tuesday will be paid on Thursday of that same week.

Remember: Even though not all transactions using the debit card will require to to submit a claim, you should still keep your receipts for your tax records.