MMC Benefits Handbook
Examples of Ineligible Expenses
You cannot be reimbursed for dependent care expenses:
- that you claim as a tax credit on your income tax return (generally you can claim either a tax credit or have expenses reimbursed under the Plan, but not both. Note, though, that if you have expenses for two or more qualifying dependents, you may be able to claim a tax credit for expenses over the $5,000 plan year limit)
- that do not qualify for an income tax credit on your tax return (if your expenses do not qualify for an income tax credit, they will not qualify as reimbursable expenses under the Plan)
- for services provided by your spouse or a person you claim as a dependent on your income tax return
- for services provided by your child who is under age 19 that are not work-related
- for services that occurred in another plan year.
These are some examples of expenses that are not eligible for reimbursement:
- baby-sitting when you or your spouse, if married, are not working
- kindergarten and higher grades
- overnight camp
- boarding school
- expenses for child care if you have a non-working spouse who is neither disabled nor a full-time student.
- Virtual/online learning and camp programs while your child is home
- Educational programs and tutoring
The Dependent Care Flexible Spending Account cannot be used for health care expenses incurred by any of your family members or dependents, so be sure not to include health care expenses when you are calculating your Dependent Care Flexible Spending Account. If you enroll by mistake in the Dependent Care Flexible Spending Account, you can't transfer the balance to a Health Care Flexible Spending Account or cancel the account during the year.