Dependent Care Flexible Spending Account

What you need to know

A Dependent Care Flexible Spending Account (FSA) helps you manage eligible dependent care expenses. Your pre-tax contributions can be used to pay for child care expenses and more.

Note that HealthEquity is our new FSA administrator in 2024.

The Dependent Care Spending Account requires enrollment annually. If you’d like to participate, please update your selection during the US Benefits Annual Enrollment period.

Dependent Care FSA fast facts

Administrator: HealthEquity

You contribute through paycheck contributions. You can use the money to pay for eligible dependent care expenses during the calendar year. For employees hired after the first of the year, your benefits effective date is your hire date.

Non-exempt (hourly) employees receive money from PayPal. Get an additional 15% from PayPal, up to $652 annually.

Contribute up to $5,000 per year (a combined limit between you and your spouse). And you don't pay federal or state income taxes on FSA contributions. The Dependent Care FSA balance accumulates throughout the year — you only have access to the amount of funds available in the account.

Plan your expenses carefully. You cannot carry over any money from year to year.

You can submit expenses for qualifying dependents, including your children under age 13 and any other person, regardless of age, who is incapable of caring for him- or herself and can be claimed as a qualified dependent on your federal income tax return.

Eligible expenses include a babysitter or nanny to provide care while you’re at work, daycare provider or after-school care, and preschool tuition. All expenses must take place within the benefit plan year.

Claim Filing Deadlines

2023: File your 2023 claims (for eligible expenses incurred January 1, 2023 to March 15, 2024) to Smart-Choice by April 30, 2024. Access your account via YBR.

Due to the FSA administrator change from Smart-Choice to HealthEquity, if you incurred eligible claims during the 2023 Dependent Care FSA grace period (January 1, 2024 to March 15, 2024), you will have an additional 60 days (from July 1, 2024 to August 31, 2024) to submit 2023 Dependent Care FSA claims. Please read the FAQ on the FSA administrator change to learn more.

2024: The deadline to submit eligible claims for the 2024 plan year (for eligible expenses incurred January 1, 2024, to December 31, 2024) is April 30, 2025.

FSAs are subject to IRS rules. Be sure to save all your receipts. You may be asked to provide copies to confirm your expenses.

Note: Under federal tax law, PayPal's FSA programs must pass certain non-discrimination tests each year. These tests are designed to ensure that highly compensated or key employees / participants do not receive disproportionately greater benefits. If necessary, the maximum participant contribution may be reduced mid-year to comply with federal law. You will be notified if this impacts you.

HealthEquity administers the Dependent Care Flexible Spending Account (FSA), replacing Smart-Choice.

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How do I know how much to contribute?

Typically, this is a use-it-or-lose-it account. Any funds not used by the end of the plan year (December 31st) will be forfeited. You won’t receive a refund if you don’t use all the money in your FSA, which is why it’s important to understand what expenses are eligible and to conservatively estimate your FSA expenses for the coming year.

Use the FSA estimator on Your Benefits Resources (YBR) during Annual Enrollment to help you estimate your expenses. Another way to determine your Dependent Care FSA contribution is to talk to your providers. Each can help you budget your expenses for the upcoming year.

Your contribution can’t be changed (increased or decreased) during the year unless you experience a qualifying life event (e.g., the birth of a child) and notify Your Benefits Resources (YBR) of the change within 30 days of the event. The YBR team can answer your questions about qualifying life events and if you can change your contribution election as a result.

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Eligible dependent care expenses

Eligible expenses include a babysitter or nanny to provide care while you’re at work, day care provider or after-school care, and preschool tuition. Expenses must be incurred for the care of eligible family members as described in IRS Publication 503 — Child and Dependent Care Expenses. All expenses must take place within the benefit plan year.

You can submit expenses for qualifying dependents, including your children under age 13 and any other person, regardless of age, who is incapable of caring for him- or herself and can be claimed as a qualified dependent on your federal income tax return.

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Submitting a claim

You’ll need to submit your receipts for reimbursement via your HealthEquity account. You can also quickly request reimbursement on your smartphone through the HealthEquity mobile app. Eligible claims are typically processed within two to five days. Learn more about filing claims with HealthEquity, including tips on how to file claims with ease. You can activate direct deposit online, which will expedite your reimbursement directly to your bank account.

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If you have questions

Read the FAQ or contact the benefits administrator, HealthEquity, at 866-346-5800.

To view your FSA online, access HealthEquity (@Work | Log in)

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Provider contact information