Flexible Spending Accounts
Dependent Care Spending Account

The Dependent Care Spending Account lets you use pre-tax dollars to reimburse yourself for the cost of eligible child or dependent care expenses that are necessary for you - or, if you are married, you and your spouse - to work or to attend school full-time. With a Dependent Care Spending Account, you can set aside from $50 to $5,000 annually on a pre-tax basis to cover dependent care expenses for the year. (The annual amount reimbursed cannot exceed the earned income of the lower-paid spouse or $5,000, whichever is less. If married and filing separate tax returns, it cannot exceed $2,500.) To be eligible to use this account, you must be at work during the time your eligible dependents are receiving care.

You qualify to use a Dependent Care Spending Account if:

• You are a single parent
• You have a working spouse
• Your spouse is a full-time student for at least five months during the year while you are working
• Your spouse is disabled and unable to provide for his or her own care

Eligible dependents include:

• Your children up to age 13 whom you claim as dependents for tax purposes
• Adult dependents who normally spend at least eight hours in your home each day and are not able to care for themselves because of disability.

A complete list of reimbursable expenses is available in IRS Publication 503, "Child and Dependent Care Expenses." Please review this list before you decide to elect a Dependent Care Spending Account. Also, when making your election be sure to consider your back-up day care usage. Publication 503 is available from your nearest IRS office or by calling the IRS at 1-800-829-3676. You also may obtain a copy online by accessing http://www.irs.gov. If you have any questions regarding the eligibility of an expense, call ASI at 1-800-659-3035.

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