My husband started a new job in April and signed up to contribute to the dependent-care flexible spending account. I know I can use the money for day camp for my son while we work, but I paid some of the bills for camp myself. Can I withdraw the money from the FSA for the eligible expenses even though I have already paid the bills directly?
Yes, the withdrawals are based on the dates of care, not when the payments were made. As long as the dependent-care FSA was in effect when your child was at camp and you have a bill showing the dates of care -- and you have enough money in the account -- the FSA should reimburse you for the expenses even though you already paid the bill yourself, says Jody Dietel, chief compliance officer at WageWorks, which administers FSAs.
You can only use dependent-care FSA money as it accumulates in the account. (Health care FSAs let you use the full amount you plan to contribute for the year starting in January, before you’ve made the contributions.) Most plans let you pay out the money you’ve saved in the account so far, with the remainder reimbursed as you make more contributions, says Dietel.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Keep in mind that you and your spouse can contribute a total of $5,000 per year to a dependent-care FSA if you file your taxes jointly (if you file as head of household, you can also contribute $5,000). You can contribute only $2,500 if you’re married filing separately. Also, summer camp is an eligible expense only if it’s a day camp (overnight camps don’t count) that a child under age 13 attends so you and your spouse can work or look for work. See Take a Tax Break for Summer Camp for more information about both the dependent-care FSA and the child-care credit.
-
The Trump GOP Tax Bill Could Worsen California Cost of LivingState Tax Energy bills in the Golden State may shock you if Republican lawmakers in Congress remove certain energy tax credits through Trump's 'big, beautiful bill.'
-
The Best Covered-Call ETFs to BuyCovered-call ETFs can provide consistent, above-average income generation, but they can also cap potential upside. Here's what to look for.
-
The Trump GOP Tax Bill Could Worsen California Cost of Living
State Tax Energy bills in the Golden State may shock you if Republican lawmakers in Congress remove certain energy tax credits through Trump's 'big, beautiful bill.'
-
Texas Property Tax Relief in 2025? What to KnowProperty Tax Texas residents could get major relief from property taxes this year. Here's a breakdown of the tax cuts.
-
Homeschoolers Could Soon Save on Expenses With 529 PlansSavings Accounts A new House GOP bill could change how you save for your child's homeschool education. Find out how.
-
Ohio Announces Two-Week Sales Tax Holiday Amid Tariffs, High PricesState Tax Ohioans won't want to miss out on savings as pressure from tariffs spikes prices.
-
Five ‘Big Beautiful Bill’ Tax Changes to Watch in the SenateTax Policy The House passed its version of Trump’s "One Big, Beautiful Bill." Here’s what to look for as Senate Republicans take up the mega legislation.
-
New GOP Car Loan Tax Deduction: Which Vehicles and Buyers QualifyTax Breaks To fulfill Trump's campaign promise, House GOP lawmakers want to offer a tax deduction for car loan interest. How would it work?
-
Big GOP Tax Bill Could Change Your Estate Planning for 2025Tax Law The GOP might extend and increase the higher estate and gift tax exemption and AMT thresholds. What might this mean for your estate plan?
-
New 'No Tax on Tips' Bill Approved: What to Know NowIncome Taxes Will you stop paying taxes on your tip income this year?
