Q- My parents live with me. May I submit my parents' expenses for reimbursement from my Flexible Spending Accounts?
A- In order for an expense to be reimbursed from a health FSA, it must be for medical care and it must be incurred by an employee, spouse, child under age 27 or other individual who is considered a tax dependent for health coverage purposes. An employee's parent will generally be considered a tax dependent for health coverage purposes if the employee provides over half of the parent's support and the parent is not another person's qualifying child. Check the terms of your health FSA plan.
In order for a day care expense of a parent to be reimbursed from a dependent care FSA, the expense must be for care, the parent must be a dependent of the employee who is physically or mentally incapable of self-care, and the parent must share the same home as the employee for more than half of the year. If the expense is provided outside the home, the parent must reside at least 8 hours a day in the employee's home. Check the terms of your dependent care FSA plan.