How are qualified dependent care expenses determined? Actually, the qualified is determined by IRS Child and Dependent Care Expenses Publication 503, and there are 2 sections:
Services for a dependent must be rendered while an employee is at work or school.
**Your Dependent Care FSA expenses need to be "work-related." For example, if both you and your spouse work full time and you pay for after-school care for your kids, that is an eligible "work-related" expense. Please note: unpaid and nominal paid volunteer work do not qualify as "work."
The dependent must be 13 or younger.
For example, after school program for children, babysitting, a summer day camp for children, etc.
Can also be used for older dependents that are physically or mentally incapable of self-care.
For example, adult daycare center, day nursing care, elder care, etc.
Some ineligible expenses examples
If you're wondering whether an item or service is eligible under these categories, here are a few ways to find out.
You can view a comprehensive list of eligible expenses HERE.