Q.- Our Dependent Care Flexible Spending Account Plan allows reimbursement for dependent day care expenses. Can an employee claim an amount he pays his 14 year old for watching his younger children after school until he comes home from work?
A. No. The amount a participant pays to his child under age 19 for watching his younger child is not an eligible Dependent Care FSA expense. Payments to other relatives are also not eligible for reimbursement. This includes payments to someone for whom the employee (or the employee’s spouse) could claim a deduction under Code section 151(c), payments to a spouse, and payments to a parent of the employee’s child (for example, a divorced spouse who is also the child’s parent).