Dependent Care Spending Account (DCSA)
Eligible Dependents and Eligible Expenses

Eligible Dependents
Eligible dependents -- for the purposes of this plan only -- include:

• Your child age 12 or younger of whom you have custody and for whom you are entitled to claim a deduction on your federal tax return. For children of divorced or separated parents, only the parent with custody can consider the child an eligible dependent under this plan.
• Your child of any age who is incapacitated (as defined by the regulations), even if he/she does not entitle you to a deduction on your federal tax return.
• Your spouse who is incapacitated (as defined by the regulations), even if he/she does not entitle you to a deduction on your federal tax return.
• The parents of you or your spouse who are tax dependents, reside in your home and are incapable of self care.

Eligible Dependent Care Expenses
The following types of care are reimbursable from a DCSA:

• Care provided inside or outside your home by anyone other than: your spouse, a person you list as your dependent for income tax purposes, or one of your children under age 19.
• If your dependent is in 1st grade or higher (through age 12), the cost of schooling must be separated from the cost of care.
• If your dependent is under 1st grade and the cost of care and the cost of schooling can be separated, then only the cost of care is reimbursable. However, if the cost of schooling is incident to and cannot be separated from the cost of care, the total cost is reimbursable.
• A dependent care center or child care center (if the center cares for more than six children, it must comply with all applicable state and local regulations).
• A housekeeper, au pair or nanny whose services include, in part, providing care for a qualifying dependent.
• Day care costs while in day camps; overnight camp costs are not reimbursable.

To qualify for reimbursement, you must provide your dependent care provider's tax ID number, Social Security number or license number on your federal tax return. If you fail to do so, your DCSA reimbursements may be reclassified as taxable income by the IRS. Remember, you are required to complete IRS Form 2441 when reporting taxes at the end of each calendar year.

You are responsible for making sure the expenses you submit for reimbursement are considered eligible expenses by the IRS. If you're not sure whether an expense is eligible, please contact ProBusiness Administrative Services Client Services. As a guideline, you may refer to IRS Publication 503: "Child and Dependent Care Expenses." You can order this publication by calling the IRS at 800-829-3676 or you can find it in the forms and publications section of the IRS Web site.