DEPENDENT ELIGIBILITY REQUIREMENTS

For dependent care expenses to be eligible for reimbursement, you must be working during the time your eligible dependents are receiving care. If you are married your spouse must be:

• A wage-earner;
• A full time student for at least five months duringe the year; or
• Mentally or physically disabled and incapable of self care.

If you are divorced or legally separated, you may be able to use the Dependent Care Reimbursement Account provided you have custody of your children for a longer period of the calendar year than the other parent, and you contribute more than half of the child's support.

Any expenses reimbursed under the Dependent Care Reimbursement Plan cannot be claimed as a tax credit on your personal Federal income tax return. You may wish to consult a tax specialist to help you determine whether a reimbursement account, the tax credit, or a combination would be best for your particular situation. Also, you may receive information from the IRS (ask for Publication 503).

DEPENDENT CARE EXPENSES ELIGIBLE FOR REIMBURSEMENT

In general, if you meet the eligibility requirements, you may be able to use the money in your Dependent Care Reimbursement Account to pay for out-of-pocket expenses for the care of:

• Your children under age 13 whom you claim as dependent for income tax purposes; or
• Spouses and dependents of any age (who normally spend at least eight hours in your home each day if the services are rendered outside the home) who are mentally or physically disabled.

These expenses include charges for such things as:

• Licensed nursery school and day care centers for children
• Licensed day care centers for disabled dependents; and
• Individuals who have the responsibility of providing care for your eligible dependents, either inside or outside your home. If outside your home, the provider must furnish his/her social security number and home address.

IRS regulations do not allow reimbursement for such expenses as:

• Days you are not working-including sick leave, vacation days, or breaks between semesters-or days when you do not meet the eligibility requirements;
• Care provided by your children who are under the age of 19 or by anyone you claim as a dependent for federal income tax purposes;
• Transportation, education, clothing, or entertainment; and
• Babysitting for social events.

Only expenses which are adequately documented will be reimbursed.

Food and education will be covered if provided by the nursery school or day care center as part of its preschool care services. Food and education expenses are not covered for first grade or higher.