Dependent Care FSA
Questions?
If you have questions regarding your existing flexible spending account, contact Fidelity:
- Online at the Fidelity website: http://netbenefits.com/stanford
- By phone at 888-793-8733
Child Care Subsidy Grant (CCSG) Program
Stanford’s Child Care Subsidy Grant (CCSG) is a university contribution to your Dependent Day Care FSA. If you receive a CCSG amount, it will be included in your total Dependent Day Care FSA annual amount.
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The Dependent Care FSA provides for reimbursement of eligible dependent care expenses incurred by the participant.
If you elect benefits under this plan, a non-interest bearing bookkeeping account will be set up to keep a record of before-tax contributions - and where applicable, any non-elective employer contributions - allocated to the account and the reimbursements for eligible dependent care expenses to which you are entitled during the plan year. No actual account is established; it is merely a bookkeeping account.
NOTE: When using the Stanford FSA debit card for dependent care expenses, payments are limited to the amount you have accrued within your Dependent Care FSA at the time a claim is submitted.
Plan Information
| Overview | The Dependent Care FSA lets you pay for eligible dependent care expenses with pre-tax dollars so that you and your spouse can work, look for work, or go to school full time. Child care is only eligible for children under age 13. The Flexible Spending Accounts are managed by Fidelity. If you have been awarded a Child Care Subsidy Grant (CCSG), your award will be automatically accepted for you in My Benefits and applied to your Dependent Care Flexible Spending Account (FSA). The amount will be included in your total Dependent Care FSA annual amount. The combined total of the CCSG and your contributions cannot exceed the $5,000 annual limit. |
| How to Enroll | Elect to participate at during the annual open enrollment period or after you have experienced a qualifying life event. If you are a current participant and fail to re-enroll during open enrollment, your Dependent Care FSA will not roll over into the next plan year. |
| How it Works |
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| How to Submit Claims | You have three options for submitting your Dependent Care FSA claims for reimbursement:
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| Types of Documentation | In order to submit a claim, you will need to provide documentation in one of two formats.
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| Resources |
Frequently Asked Questions
Below are answers to the most frequently asked questions regarding Dependent Care Flexible Spending Account plan.
Dependent Care FSA
Who can I cover?
Generally, you can cover:
- A dependent up to age 13 whom you can claim as a tax exemption on your federal income tax return
- Your spouse* (not a domestic partner) who is physically or mentally unable to care for himself or herself
- Your dependent who is physically or mentally unable to care for himself or herself, and you can claim as a tax exemption, subject to certain criteria
*FEDERAL LAW ONLY RECOGNIZES OPPOSITE-SEX AND SAME-SEX SPOUSES, AS BEING ELIGIBLE FOR THIS PROGRAM.
For details on dependent eligibility requirements, refer to IRS Publication 503. We also suggest you review Part III of the Flexible Spending Account (FSA) Summary.
Can I cover my domestic partner (or my partner’s children) under the dependent care FSA?
Generally, you may not submit Dependent Care FSA claims unless your partner is considered a “qualifying relative” and a “tax dependent” according the Internal Revenue Code rules. For further guidance, please consult your tax advisor.
Your partner’s children, however, may be covered if they meet the eligibility requirements as described in the Flexible Spending Account (FSA) Summary. You can also look at these requirements in IRS Publication 503.
What is the maximum amount I can contribute?
The annual household dependent care FSA maximum is $5,000 per family ($2,500 if you are married and filing separate federal income tax returns).
HIGHLY COMPENSATED EMPLOYEES
Each year FSA plans must pass a non-discrimination test to show they do not favor highly compensated employees regarding eligibility, contributions and benefits. If Stanford’s FSA plans do not pass the test, Stanford may reduce your election(s) during the year, if you are a highly compensated employee as defined by the Internal Revenue Code. We will notify you if it becomes necessary to reduce your contributions.
What is the Stanford FSA debit card?
The Stanford FSA debit card is a convenience feature of the FSA plan that allows you to have access to your account funds for eligible health care expenses right at the point of service—at the pharmacy counter or doctor’s office.
When you enroll in a Health Care FSA or a Dependent Care FSA, you will automatically receive a Stanford FSA debit card from Fidelity. You can use your card with any provider who accepts it.
NOTE:
When using the Stanford FSA debit card for dependent care expenses, payments are limited to the amount you have accrued within your Dependent Care FSA at the time a claim is submitted.
Are there any advantages of using a Dependent Care FSA instead of the Child Care Credit on my federal income tax return?
IRS Publication 503 can help you determine whether using a FSA or filing for the Child Care Credit on your tax return is most advantageous to you. The IRS will not allow you to receive two tax breaks for the same expenses. In addition, depending on your situation, you may be required to file additional forms such as Form 2441. For further guidance, consult your tax advisor.
I participate in the Stanford Child Care Subsidy Grant program. How does that affect my dependent care FSA?
Stanford’s Child Care Subsidy Grant (CCSG) is simply a university contribution to your Dependent Care FSA. If you receive a Child Care Subsidy Grant amount it will be included in your total Dependent Care FSA annual amount. The combined total cannot exceed the $5,000 annual limit.
New in 2020, when you log into My Benefits during Open Enrollment, your CCSG award will be auto-accepted for you, and will enroll you in a Dependent Care FSA for the following calendar year. Once the CCSG money is in your Dependent Care FSA, you use it as if you had contributed the money and file claims for reimbursement of your dependent care expenses.
Remember, you forfeit any unclaimed funds at the end of the plan year unless you submit claims by the April 30 deadline.
How do I receive a payment from the FSA for dependentcare expenses?
Your reimbursement will automatically be placed in your Fidelity account which is associated with your debit card. If you would like your monies to go into a bank account go to http://netbenefits.com/Stanford and enter your banking information.
For questions about your claims payment, call Fidelity at 888-793-8733 Monday-Friday 8AM-5PM. Claims for reimbursement are processed daily. Reimbursement monies are payable to you, not to the provider.
I have a Dependent Care Flexible Spending Account. What information is reported on my W-2?
Employers report dependent care benefits in box 10 of your W-2 form. Dependent care benefits include your pre-tax contributions to your dependent care FSA. Also included are eligible amounts paid by your employer to you or to your day care provider and the fair market value of dependent care in a facility provided by or sponsored by your employer. The fair market value of dependent care services that exceed the non-taxable limit of $5,000 allowed for the FSA is listed in boxes 1, 3 and 5 of the W-2 form. You must complete Form 2441, Child and Dependent Care Expenses, to compute any taxable and nontaxable amounts.