Why Choose the dependent daycare FSA?

Tax Savings

• The dependent daycare flexible spending account (FSA) allows you to pay for certain daycare expenses on a pre-tax basis for your qualifying dependents who are either under age 13, or for older and are incapable of self care and living with you at least 8 hours per day
  • Day care
  • Babysitting
  • General purpose day camps
• By paying for the expenses on a pre-tax basis, you generally save more tax money than you would by claiming a credit on your tax return

How it works

• You pay for your qualifying dependent care expenses up front
• Money is deducted from your paycheck on a pre-tax basis and deposited into a special FSA account with ASI Flex
  • Limits change annually and are displayed in Workday when you enroll
• ASI Flex now offers a convenient Recurring Direct Pay Program (NEW) or
• You can submit proof of qualifying expenses to ASI Flex and ASI Flex will reimburse you from your available account funds either by check or direct deposit

What's the catch?

• You need to be prepared to pay the money to daycare providers up front while money is coming from your paycheck to build up your account
• Daycare providers must provide you with proof of your payments, which you'll report on Form 2441 when you file your taxes
• FSA money is use-it-or-lose-it, so you must plan wisely. 
  • If you don't have enough expenses to claim by the annual deadline - or it you fail to claim the money by the annual deadline (or within 90 days after you separate from employment, which ever comes first) - you'll lose the money *
• Care cannot be provided by
  • A dependent
  • Your spouse
  • Your child under the age of 19
• Care cannot be provided while you are not at work

*  See Claims Deadlines tab for details