|Originally posted by Chelly2003
Depends on your place of work too - my work will only allow $1500 for dep. care, and $2500 for medical. I wish it was the other way round.....
Then I just opted out actually because our HR lady said that we can't use it if DS is LEARNING anything at day care (?) he's 3 1/2 of course he is learning....... I was very confused to say the least - so I opted out.
The dependent care account is federally mandated so your company should not be able to put any secondary limits on the account. It won't cover any schooling (public/private/montessori etc.) or "kindergartens" even if they are in a daycare center. So maybe that is where you company is getting the no learning thing???
If it is worth it you might want to pursue it. Here is the general wording:
"The Dependent Care Spending Account can be used to reimburse yourself for certain dependent child and/or dependent adult care expenses, which allow you and your spouse to work.
DAY CARE ELIGIBLE EXPENSES: In general, the following rules apply to day care expenses:
No participant shall be allowed to defer more than $5,000, if married filing jointly, or
$2,500 if married filing separately. The maximum that can be deferred under this program shall be the lesser of $5,000 or the earned income of the participant's spouse. The expenses must be employment related expenses for the care of a dependent of the
employee who’s entitled to a dependent deduction under the Internal Revenue Code section 151(e) or a dependent who is physically or mentally incapable of caring for himself or herself.
Payments cannot be made to a person who is claimed as a dependent by the employee. If the services are provided by a day care center which provides care for more than six individuals, the center must comply with state and local laws."